Interim report of Atria Plc, 1 January–31 March 2019

26.4.2019 08:00

Atria Plc, Interim report, 26 April 2019, 8:00 am

Interim report of Atria Plc, 1 January–31 March 2019

Atria's net sales and result decreased, profit improvement is sought through efficiency and development measures

January–March 2019

- Consolidated net sales totalled EUR 336.4 million (EUR 345.4 million).
- Consolidated EBIT was EUR -2.8 million (EUR 3.5 million), or -0.8% (1.0%) of net sales.
- The Group's EBIT was particularly affected by higher raw material costs and Easter falling in the second quarter.
- Atria Finland's net sales and EBIT were lower than in the previous year.
- Atria Sweden's result was weakened by the costs of the efficiency improvement measures, EUR 1.5 million – the aim of the efficiency improvement measures is to improve operational efficiency and competitiveness.
- Atria Russia seeks rapid profit improvement and is exploring opportunities for divestments.
- The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.40 (EUR 0.50) be paid per share.

  Q1 Q1  
EUR million 2019 2018 2018
Net sales     
  Atria Finland 241.0 245.6 1,019.2
  Atria Sweden 66.6 69.6 287.9
  Atria Denmark & Estonia 21.8 23.1 97.4
  Atria Russia 15.8 17.3 75.1
  Eliminations -8.7 -10.2 -41.1
Net sales, total 336.4 345.4 1,438.5
  Atria Finland 3.9 6.7 36.7
  Atria Sweden -4.1 -3.2 -7.1
  Atria Denmark & Estonia 0.6 1.3 5.3
  Atria Russia -2.2 -0.6 -4.0
  Unallocated -1.0 -0.7 -2.7
EBIT, total -2.8 3.5 28.2
EBIT, % -0.8% 1.0% 2.0%
Profit before taxes -3.7 1.2 22.3
Earnings per share, EUR -0.15 0.00 0.58

Juha Gröhn, CEO

“The first quarter is typically the lowest in terms of net sales. In addition, the Easter season is in April this year. Net sales totalled EUR 336 million, a decrease of EUR 9 million from last year. Sales development has been similar in all market areas.

Slow sales weakened the result, which was at a loss of EUR 2.8 million. The price increases that came into force at the end of the quarter have improved the product-specific margin level, so profitability will improve as trade increases. Atria's market position has remained stable, even though our sales did not quite reach last year's levels.

The cost level of operations did not differ from the normal level except for the EUR 1.5 million cost resulting from the arrangement of operations in Sweden. Demand for poultry in Sweden is growing, and Atria is part of the growth.

Investigations and measures concerning the continuation of Russian operations are proceeding as planned. Current activities are being developed with determination, and as a second option, the partial or full divestment of operations is investigated.

The market situation for pork has turned strongly demand-driven in March, led by the Chinese market.”

January–March 2019

Atria Group’s net sales for January–March amounted to EUR 336.4 million (EUR 345.4 million). EBIT was EUR -2.8 million (EUR 3.5 million). Atria Finland's year-on-year net sales decreased slightly. Atria's net sales in Russia and Denmark were weakened by lower sales to retail. Calculated in local currency, Atria Sweden’s net sales remained unchanged.

Group EBIT was brought down by higher meat raw material costs and reduced sales. The falling of the important Easter season in the second quarter weakened the result. Atria Finland's sales structure was weaker than in the previous year. Atria Sweden's EBIT was weakened by the costs of the efficiency improvement measures and the low profitability of the poultry business. Atria Russia's and Atria Denmark & Estonia's EBIT was weighed down by reduced sales to retail.

Atria Russia updated its strategy at the beginning of 2019. A key goal is the quick revitalisation of business operations in Russia, which means increasing sales and sales margin as well as turning performance positive. As part of the strategy project, Atria is also looking into possibilities of selling Atria Russia's business operations. At the same time, Atria has investigated the reorganisation of the administrative company structure and the strategic development of the Sibylla fast food operations in all business areas.

During the review period, Atria Finland launched an efficiency improvement project at the Nurmo pig cutting plant, which aims to improve the profitability and competitiveness of the plant. The collective redundancy consultation related to the restructuring was completed in February. The restructuring will result in annual savings of approximately EUR 1.5 million, which will be fully realised from the beginning of 2020 onwards. The amount of work in the pig cutting plant will be reduced by about 51 person-years and will be implemented through internal arrangements and the reduction of fixed-term employment relationships.

During the review period, Atria Sweden launched a project in line with its revised strategy, which aims to enhance business operations and improve competitiveness. Related to this plan, Atria has initiated a collective redundancy consultation, which concerns all salaried employees of Atria Sweden. The efficiency improvement project aims to generate annual personnel cost savings of approximately EUR 3 million. The savings would be partly realised towards the end of 2019 and fully from the beginning of 2020. This would mean laying off approximately 40 salaried employees. The cost of the efficiency improvement measures amounted to EUR 1.5 million during the review period.

Atria Finland’s net sales for January–March totalled EUR 241.0 million (EUR 245.6 million). The entire Easter season sales are in the second quarter this year, which is reflected in reduced net sales in the first quarter. During the beginning of the year, the sales structure has not been as favourable as a year ago. EBIT amounted to EUR 3.9 million (EUR 6.7 million). EBIT was brought down by increased meat raw material prices. Sales prices increased during the review period.

Atria Sweden's net sales for January–March amounted to EUR 66.6 million (EUR 69.6 million). Net sales in the local currency were at the same level as in the previous year. Sales of poultry products increased substantially year-on-year. EBIT was EUR -4.1 million (EUR -3.2 million). Performance was weighed down by the cost of the efficiency improvement measures, totalling EUR 1.5 million. The sales structure of the poultry business is still unfavourable but has improved during the review period.

Atria Denmark & Estonia’s net sales for January–March amounted to EUR 21.8 million (EUR 23.1 million). EBIT amounted to EUR 0.6 million (EUR 1.3 million). In Denmark, the tight competitive situation weakened sales development. In Estonia, Atria increased its sales to retail.

Atria Russia’s net sales for January–March amounted to EUR 15.8 million (EUR 17.3 million). In the local currency, net sales decreased by 2.4 per cent. EBIT was EUR -2.2 million (EUR -0.6 million). Net sales fell mainly due to the weakened sales to retail. Sales to Food Service and Sibylla customers developed positively. EBIT was brought down by continued high meat raw material prices and weakened sales to retail.


Atria Group published a Corporate Responsibility Report in March. The report describes essential themes, goals and results of Atria's corporate responsibility in 2018.

Atria Sweden signed the Swedish Food and Drink Industries' Federation's sustainability manifesto and its five responsibility initiatives. The objectives of the initiatives are fully carbon-free production, a 50% reduction in food waste, fully recyclable packaging, water efficiency, and responsible supply chain management.

Atria Finland was among the first companies to join the food industry material efficiency commitment, which aims to reduce the environmental impact of food production, distribution and consumption. By joining the commitment, Atria contributes to profitability and the sustainable use of natural resources by improving the material efficiency of its production and by producing solutions that promote material efficiency for consumers.

Key indicators

EUR million 31.3.19 31.3.18 31.12.18
Shareholders´ equity per share EUR 14.57 14.70 14.69
Interest-bearing liabilities 278.2 247.0 227.2
Equity ratio, % 44.6 % 46.4 % 47.7 %
Net gearing, % 65.3 % 56.6 % 52.1 %
Gross investments in fixed assets 10.3 12.0 44.5
% of net sales 3.1 % 3.5 % 3.1 %
Average FTE 4,430 4,370 4,460

The principles for calculating the indicators are presented in the interim report.
The impact of the IFRS 16 standard is described in the accounting principles for the interim report.

Outlook for the future

Consolidated EBIT was EUR 28.2 million in 2018. In 2019, EBIT is expected to be better than in 2018. At comparative exchange rates, net sales for 2019 are expected to grow compared to 2018.

Board of Directors' proposal for profit distribution

The Board of Directors proposes that a dividend of EUR 0.40 be paid per share for the financial year 2018.


Atria Plc complies with the disclosure procedure in accordance with standard 5.2b of the Financial Supervisory Authority and publishes its interim report for 1 January to 31 March 2019 as an attachment to this stock exchange release. The full release is available on the company's website at

For more information, please contact: Juha Gröhn, CEO, Atria Plc, tel. +358 400 684224. 

Invitation to press conference

A press conference will be held in Finnish today, 26 April 2019, at 9:45 am at Finlandia Hall, in the Terassi room. Entrance is through door M4 or K4. The presentation material will be available on the company's website ( after the distribution of the interim report and as an attachment to this company announcement. 

Board of Directors

Nasdaq Helsinki Ltd
Major media

The interim report is available on our website at