Quarterly Report • Feb 11, 2016
Quarterly Report
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Consolidated net sales fell by 3.4 per cent to EUR 351.0 million (EUR 363.4 million). At comparable exchange rates, the decline was 2.4 per cent.
Consolidated EBIT was EUR 4.8 million (EUR 18.6 million), which equates to 1.4 per cent (5.1%) of net
sales. EBIT includes a goodwill impairment loss of EUR 9.1 million in the Atria Baltic segment.
Consolidated net sales fell by 6.0 per cent to EUR 1,340.2 million (EUR 1,426.1 million). At comparable exchange rates, the decrease was 3.8 per cent.
Consolidated EBIT was EUR 28.9 million (EUR 40.6 million), which equates to 2.2 per cent
(2.8%) of net sales. EBIT without non-recurring items was EUR 36.1 million (EUR 39.6 million).
EBIT includes a total of EUR -7.2 million (EUR +1.0 million) of non-recurring items.
In January 2015, Atria initiated an investment of EUR 36 million in the modernisation of the pig cutting plant in Nurmo, Finland.
The sale of the Falbygdens cheese business to Arla in Sweden was completed in April.
Atria acquired the operations of Aalbaek Specialiteter, a manufacturer of organic cold cuts, in Denmark in May.
The Campofarm piggery real estate in Russia was sold in June.
At the beginning of September, Atria Finland commenced negotiations related to improving the productivity of the Sahalahti chicken unit.
In September, Atria Scandinavia decided to increase the efficiency of its sales, marketing and logistics operations in Sweden.
Consolidated free cash flow in the review period amounted to EUR 68.4 million (EUR 44.3 million).
Net liabilities at year end amounted to EUR 195.5 million (31 December 2014: EUR 250.7 million).
The equity ratio was 47.4 per cent (31 December 2014: 44.0%).
| Q4 | Q4 | |||
|---|---|---|---|---|
| EUR million | 2015 | 2014 | 2015 | 2014 |
| Group | ||||
| Net sales | 351.0 | 363.4 | 1,340.2 | 1,426.1 |
| EBIT | 4.8 | 18.6 | 28.9 | 40.6 |
| EBIT, % | 1.4% | 5.1% | 2.2% | 2.8% |
| Profit before taxes | 2.8 | 16.3 | 20.1 | 34.0 |
| Earnings per share, EUR | 0.11 | 0.48 | 0.49 | 0.93 |
| Non-recurring items* | -9.1 | 1.6 | -7.2 | 1.0 |
| Net sales by segment | ||||
| Atria Finland | 248.0 | 243.6 | 929.0 | 945.5 |
| Atria Scandinavia | 83.8 | 94.9 | 330.5 | 371.9 |
| Atria Russia | 18.6 | 22.3 | 75.1 | 98.8 |
| Atria Baltic | 8.0 | 8.5 | 32.9 | 34.5 |
| EBIT by segment | ||||
| Atria Finland | 13.7 | 15.6 | 29.8 | 33.6 |
| Atria Scandinavia | 3.2 | 4.7 | 12.8 | 14.9 |
| Atria Russia | -0.4 | -0.9 | -0.2 | -5.7 |
| Atria Baltic | -9.1 | 0.1 | -9.0 | -0.0 |
*Non-recurring items are included in the reported
figures
Atria Group's net sales for the fourth quarter totalled EUR 351.0 million (EUR 363.4 million). Net sales fell by EUR 12.3 million year-on-year. This decrease was partly due to the sale of the Falbygdens cheese business and the weakening of the rouble. In addition, tough competition in the retail sector weighed down net sales. EBIT amounted to EUR 4.8 million (EUR 18.6 million). Comparable EBIT was EUR 13.8 million (EUR 17.0 million).
The challenging market environment in Estonia has weakened profit expectations for Atria Baltic's business. As a result of this, a goodwill impairment loss of EUR 9.1 million was recorded for Atria Baltic. The writedown affected EBIT but it had no effect on cash flow.
Atria Finland's net sales for the fourth quarter totalled EUR 248.0 million (EUR 243.6 million), showing growth of EUR 4.4 million year-on-year. EBIT amounted to EUR 13.7 million (EUR 15.6 million). EBIT for the comparative period includes EUR 1.2 million of non-recurring income. The increase in net sales is due to successful sales to retail and food service customers during the Christmas season. Growth in wholesale, industrial and export sales, as well as increased sales in the animal feed business, also strengthened net sales. Tough price competition in the retail sector and difficult conditions on the international meat market weighed down EBIT.
Atria Scandinavia's net sales for October–December totalled EUR 83.8 million (EUR 94.9 million) and EBIT was EUR 3.2 million (EUR 4.7 million). The decrease in net sales and EBIT was due to the sale of the Falbygdens cheese business. The consolidation of Aalbaek's operations into Atria proceeded as planned.
Atria Russia's net sales for the fourth quarter amounted to EUR 18.6 million (EUR 22.3 million). Net sales in euro terms fell mainly due to the weakening of the rouble. Net sales in the local currency were at the same level as in the previous year. Sales growth was weighed down by a further decrease in consumer purchasing power and consequent negative trends in retail. EBIT was EUR -0.4 million (EUR -0.9 million). Comparable EBIT came to EUR -0.4 million (EUR -1.4 million). EBIT improved thanks to increased productivity and an optimised product selection.
Atria Baltic's net sales for the fourth quarter amounted to EUR 8.0 million (EUR 8.5 million). EBIT was EUR -9.1 million (EUR 0.1 million). Comparable EBIT came to EUR -0.0 million (EUR 0.1 million). EBIT includes a goodwill impairment loss of EUR 9.1 million. Net sales and EBIT continued to be weighed down by export and sales bans imposed on the region in order to prevent the spread of African swine fever.
The challenging market environment in Estonia has weakened profit expectations for Atria Baltic's business. As a result of this, a goodwill impairment loss of EUR 9.1 million was recorded for Atria Baltic. The writedown affected EBIT but it had no effect on cash flow.
Atria Group's full-year net sales totalled EUR 1,340.2 million (EUR 1,426.1 million). Net sales fell by EUR 85.9 million year-on-year. This decrease was due to the sale of the Falbygdens cheese business and the weakening of the rouble over the comparison period. Additionally, net sales were brought down by lowerthan-usual sales during the summer season and intense competition. EBIT amounted to EUR 28.9 million (EUR 40.6 million). EBIT includes a total of EUR -7.2 million (EUR +1.0 million) of non-recurring items. Comparable EBIT was EUR 36.1 million (EUR 39.6 million).
At the beginning of the year, Atria Finland launched an investment worth around EUR 36 million in expanding and modernising its pig cutting plant in Nurmo. New production facilities will be built next to the old plant, and the existing facilities will be renovated and automated using the latest production technology. The investment will substantially raise the pig cutting plant's productivity and profitability: it is expected to generate annual cost savings of around EUR 8 million in the plant's operations. Cost savings will be realised gradually with full effect from the beginning of 2017.
The Swedish Competition Authority approved the sale of Atria Scandinavia's Falbygdens cheese business to Arla on 11 March 2015. The sale price was EUR 29.3 million when the change in net working capital as per the sales agreement was taken into account. The operations were transferred to Arla Foods AB on 1 April 2015. The sale will reduce Atria's annual net sales by EUR 52 million and EBIT by approximately EUR 3 million.
In May, Atria acquired the operations of Aalbaek Specialiteter A/S, a Danish manufacturer of organic cold cuts, for EUR 5.5 million. Aalbaek's annual net sales amount to around EUR 10 million. Aalbaek is the top organic cold cuts brand in Denmark. The transaction will strengthen Atria's market-leading position in cold cuts in the country. Aalbaek's brands and business, including all agreements, were transferred to Atria as part of the deal, along with a shop and production facilities in Farre. The operations were consolidated into Atria from 11 May 2015.
Atria sold a Russian subsidiary on 24 June 2015 for EUR 4.5 million. The company owned a farm property near Moscow. Costs of EUR 0.6 million were recorded for the sale as non-recurring items. Additionally, translation differences accrued in equity improved earnings by EUR 2.5 million.
At the beginning of September, Atria Finland launched a project to improve the productivity of chicken production at the Sahalahti plant. Removing overlapping functions and improving efficiency is expected to result in annual savings of about EUR 1.5 million, which will be realised from the second quarter of 2016.
In September, Atria Scandinavia initiated the reorganisation of its operations in Sweden. The reorganisation will affect sales, marketing and logistics. Atria expects operational restructuring and improved efficiency to result in annual savings of about EUR 1.8 million. These savings will be realised from the beginning of 2016.
Investments during the period under review totalled EUR 56.9 million (EUR 62.7 million). The Group's free cash flow for the period (operating cash flow - cash flow from investments) was EUR 68.4 million (EUR 44.3 million) and net liabilities were EUR 195.5 million (31 December 2014: EUR 250.7 million).
Atria Finland's full-year net sales totalled EUR 929.0 million (EUR 945.5 million), showing a decrease of EUR 16.5 million in comparison with 2014. EBIT amounted to EUR 29.8 million (EUR 33.6 million). Comparable EBIT was EUR 29.8 million (EUR 32.7 million). This decline was due to weaker consumer demand and decreased sales prices. EBIT trends have been weighed down by oversupply on the international meat market. Atria Finland has been able to adapt its own operations to the challenging market environment. Thanks to this, cost-efficiency is good and inventories of meat raw material are under control. In 2015, difficult conditions on the meat market depressed the prices that producers can charge for meat.
Atria Scandinavia's full-year net sales totalled EUR 330.5 million (EUR 371.9 million). This decrease was due to the sale of the Falbygdens cheese business, completed on 1 April 2015. EBIT amounted to EUR 12.8 million (EUR 14.9 million). The sale of the cheese business reduced EBIT for 2015 by approximately EUR 2 million.
Atria Russia's full-year net sales amounted to EUR 75.1 million (EUR 98.8 million). Net sales in euro terms fell due to the weakening of the rouble. EBIT was EUR -0.2 million (EUR -5.7 million). Comparable EBIT came to EUR -2.1 million (EUR -6.2 million). EBIT improved thanks to price rises during the year and an optimised product selection. Day-to-day efficiency improvements at the Gorelovo plant and the use of local meat raw material also served to improve EBIT. In 2015, the Sibylla business continued to grow. Sales volumes in the retail business decreased and Atria lost some of its market share.
Atria Baltic's full-year net sales totalled EUR 32.9 million (EUR 34.5 million). EBIT was EUR -9.0 million (EUR -0.0 million). EBIT includes a goodwill impairment loss of EUR 9.1 million. Comparable EBIT was EUR 0.1 million (EUR 0.3 million). Prolonged oversupply in the international meat market and fierce price competition in the retail market have brought down meat prices. Profitability was weakened by slow sales in the summer season and measures taken to prevent the spread of African swine fever.
| Q4 | Q4 | Q1–Q4 | Q1–Q4 | |
|---|---|---|---|---|
| EUR million | 2015 | 2014 | 2015 | 2014 |
| Net sales | 248.0 | 243.6 | 929.0 | 945.5 |
| EBIT | 13.7 | 15.6 | 29.8 | 33.6 |
| EBIT, % | 5.5% | 6.4% | 3.2% | 3.6% |
| Non-recurring items* | - | 1.2 | - | 0.9 |
*Non-recurring items are included in the reported EBIT
Atria Finland's net sales for the fourth quarter totalled EUR 248.0 million (EUR 243.6 million), showing growth of EUR 4.4 million year-on-year. EBIT amounted to EUR 13.7 million (EUR 15.6 million). EBIT for the comparative period includes EUR 1.2 million of non-recurring income. The increase in net sales is due to successful sales to retail and food service customers during the Christmas season. Growth in wholesale, industrial and export sales, as well as increased sales in the animal feed business, also strengthened net sales. Tough price competition in the retail sector and difficult conditions on the international meat market weighed down EBIT.
Full-year net sales totalled EUR 929.0 million (EUR 945.5 million), showing a decrease of EUR 16.5 million in comparison with 2014. EBIT amounted to EUR 29.8 million (EUR 33.6 million). Comparable EBIT was EUR 29.8 million (EUR 32.7 million). This decline was due to weaker consumer demand and decreased sales prices. EBIT trends have been weighed down by oversupply on the international meat market. Atria Finland has been able to adapt its own operations to the challenging market environment. Thanks to this, cost-efficiency is good and inventories of meat raw material are under control. In 2015, difficult conditions on the meat market depressed the prices that producers can charge for meat.
From January to December, the value of the market for the product groups sold by Atria decreased by about one per cent due to tough price competition. However, consumption increased by about one per cent in terms of volume. Atria was able to retain its position in the market: Atria's total share of manufacturing was about 26 per cent in terms of value (27% in 2014). (Source: Atria)
In January, Atria Finland launched an investment worth around EUR 36 million in expanding and modernising its pig cutting plant in Nurmo. New production facilities will be built next to the old plant, and the existing facilities will be renovated and automated using the latest production technology. The investment will substantially raise the pig cutting plant's productivity and profitability: it is expected to generate annual cost savings of around EUR 8 million in the plant's operations. The construction project has progressed according to plan.
At the beginning of September, Atria Finland launched a project to improve the productivity of chicken production at the Sahalahti plant. Removing overlapping functions and improving efficiency is expected to result in annual savings of about EUR 1.5 million, which will be realised from the second quarter of 2016.
Atria's Handprint programme was implemented in all of Atria Finland's focal areas: product safety, nutrition, personnel, animal welfare, the environment, finance and communications. The management system, which has received ISO 9001:2008 and ISO 14 001:2004 certification, was recertified on 16 December 2015 at all of Atria Finland's plants. Atria decided to donate a total of EUR 60,000 to the University of Vaasa, the University of Eastern Finland and the South Ostrobothnian University Fund to support their educational activities.
| Q4 | Q4 | Q1–Q4 | Q1–Q4 | |
|---|---|---|---|---|
| EUR million | 2015 | 2014 | 2015 | 2014 |
| Net sales | 83.8 | 94.9 | 330.5 | 371.9 |
| EBIT | 3.2 | 4.7 | 12.8 | 14.9 |
| EBIT, % | 3.8% | 5.0% | 3.9% | 4.0% |
| Non-recurring items Non-recurring items are included in the reported EBIT |
- | - | - | - |
Atria Scandinavia's net sales for October–December totalled EUR 83.8 million (EUR 94.9 million) and EBIT was EUR 3.2 million (EUR 4.7 million). The decrease in net sales and EBIT was due to the sale of the Falbygdens cheese business. The consolidation of Aalbaek's operations into Atria proceeded as planned.
Full-year net sales amounted to EUR 330.5 million (EUR 371.9 million). This decrease was due to the sale of the Falbygdens cheese business, completed on 1 April 2015. EBIT amounted to EUR 12.8 million (EUR 14.9 million). The sale of the cheese business reduced EBIT for 2015 by approximately EUR 2 million.
In 2015, the total retail market in Sweden for Atria's core product groups, sausages and cold cuts, grew by 1.5 per cent. Atria strengthened its overall market share in the Swedish retail trade to 18 per cent. In cold cuts, the market share was around 17 per cent (Source: AC Nielsen). In Denmark, Atria was the market leader in cold cuts with a market share of 17 per cent (Source: AC Nielsen). Atria Concept, the fast-food business, continued its international expansion into South Korea and Belgium.
In September, Atria Scandinavia initiated the reorganisation of its operations in Sweden. The reorganisation will affect sales, marketing and logistics. Atria expects operational restructuring and improved efficiency to result in annual savings of about EUR 1.8 million. These savings will be realised from the beginning of 2016.
In May, Atria acquired the operations of Aalbaek Specialiteter A/S, a Danish manufacturer of organic cold cuts, for EUR 5.5 million. Aalbaek's annual net sales amount to around EUR 10 million. The operations were consolidated into Atria from 11 May 2015.
The Swedish Competition Authority approved the sale of Atria Scandinavia's Falbygdens cheese business to Arla on 11 March 2015. The sale price was EUR 29.3 million when the change in net working capital as per the sales agreement was taken into account. The operations were transferred to Arla Foods AB on 1 April 2015. The sale will reduce Atria's annual net sales by EUR 52 million and EBIT by approximately EUR 3 million.
Atria Scandinavia updated its corporate responsibility programme in 2015. 12 new objectives were defined for the focal areas of Atria Scandinavia's Handprint programme (health and safety, the environment, corporate responsibility and people) for the period to 2020.
| Q4 | Q4 | Q1–Q4 | Q1–Q4 | |
|---|---|---|---|---|
| EUR million | 2015 | 2014 | 2015 | 2014 |
| Net sales | 18.6 | 22.3 | 75.1 | 98.8 |
| EBIT | -0.4 | -0.9 | -0.2 | -5.7 |
| EBIT, % | -2.3% | -4.2% | -0.3% | -5.8% |
| Non-recurring items* | - | 0.5 | 1.9 | 0.5 |
*Non-recurring items are included in the reported EBIT
Atria Russia's net sales for the fourth quarter amounted to EUR 18.6 million (EUR 22.3 million). Net sales in euro terms fell mainly due to the weakening of the rouble. Net sales in the local currency were at the same level as in the previous year. Sales growth was weighed down by a further decrease in consumer purchasing power and consequent negative trends in retail. EBIT was EUR -0.4 million (EUR -0.9 million). Comparable EBIT came to EUR -0.4 million (EUR -1.4 million). EBIT improved thanks to increased productivity and an optimised product selection.
Full-year net sales amounted to EUR 75.1 million (EUR 98.8 million). Net sales in euro terms fell due to the weakening of the rouble. EBIT was EUR -0.2 million (EUR -5.7 million). Comparable EBIT came to EUR -2.1 million (EUR -6.2 million). EBIT improved thanks to price rises during the year and an optimised product selection. Day-to-day efficiency improvements at the Gorelovo plant and the use of local meat raw material also served to improve EBIT. In 2015, the Sibylla business continued to grow. Sales volumes in the retail business decreased and Atria lost some of its market share.
Atria sold OOO Campoferma, a Russian subsidiary, on 24 June 2015 for EUR 4.5 million. The company owned a farm property near Moscow. Costs of EUR 0.6 million were recorded for the sale as non-recurring items. Additionally, translation differences accrued in equity improved earnings by EUR 2.5 million.
| Q4 | Q4 | Q1–Q4 | Q1–Q4 | |
|---|---|---|---|---|
| EUR million | 2015 | 2014 | 2015 | 2014 |
| Net sales | 8.0 | 8.5 | 32.9 | 34.5 |
| EBIT | -9.1 | 0.1 | -9.0 | -0.0 |
| EBIT, % | -113.6% | 1.5% | -27.3% | -0.1% |
| Non-recurring items* | -9.1 | - | -9.1 | -0.4 |
*Non-recurring items are included in the reported EBIT
Atria Baltic's net sales for the fourth quarter amounted to EUR 8.0 million (EUR 8.5 million). EBIT was EUR -9.1 million (EUR 0.1 million). Comparable EBIT came to EUR -0.0 million (EUR 0.1 million). EBIT includes a goodwill impairment loss of EUR 9.1 million. Net sales and EBIT continued to be weighed down by export and sales bans imposed on the region in order to prevent the spread of African swine fever.
The challenging market environment in Estonia has weakened profit expectations for Atria Baltic's business. As a result of this, a goodwill impairment loss of EUR 9.1 million was recorded for Atria Baltic. The writedown affected EBIT but it had no effect on cash flow.
Net sales for the year amounted to EUR 32.9 million (EUR 34.5 million). EBIT was EUR -9.0 million (EUR -0.0 million). EBIT includes a goodwill impairment loss of EUR 9.1 million. Comparable EBIT was EUR 0.1 million (EUR 0.3 million). Prolonged oversupply in the international meat market and fierce price competition in the retail market have brought down meat prices. Profitability was weakened by slow sales in the summer season and measures taken to prevent the spread of African swine fever.
In June, Atria Plc refinanced a long-term bullet loan of EUR 30 million, which was due in February 2017. The maturity of the new loan is seven years. In October, the value of committed credit facilities was reduced from EUR 150 million to EUR 125 million. In December, Atria Plc refinanced a committed credit facility of EUR 50 million due in September 2017. The maturity of the new credit facility is 5+1 years.
During the period under review, the Group's free cash flow (operating cash flow - cash flow from investments) was EUR 68.4 million (EUR 44.3 million). The Group's investments during the period totalled EUR 56.9 million (EUR 62.7 million).
Interest-bearing net liabilities amounted to EUR 195.5 million (31 December 2014: EUR 250.7 million). The equity ratio was 47.4 per cent (31 December 2014: 44.0%). Translation differences recognised in equity for the full year decreased equity by EUR 4.6 million (EUR 25.0 million) due to the weakening of the rouble.
On 31 December 2015, the Group had undrawn committed credit facilities worth EUR 125.0 million (31 December 2014: EUR 110.6 million). The average maturity of loans and committed credit facilities at the end of the period under review was 3 years 1 month (31 December 2014: 3 years).
The Group had an average of 4,271 (4,715) employees during the review period.
| Personnel by business area | ||
|---|---|---|
| on average (FTE) | 2015 | 2014 |
| Atria Finland | 2,214 | 2,376 |
| Atria Scandinavia | 930 | 1,014 |
| Atria Russia | 812 | 1,004 |
| Atria Baltic | 315 | 321 |
| Total | 4,271 | 4,715 |
Unplanned and unforeseen incidents related to the quality and safety of raw materials and products in any part of the chain, from primary production to consumption, constitute a potential risk to Atria's operations. African swine fever is such an incident in Estonia. It has a high risk of spreading. Atria has introduced several precautions in order to prevent the disease from spreading into its production facilities, and is thereby managing the existing risk.
Shifts in the balance between meat supply and demand in the global meat market pose a risk to Atria's business. Atria estimates that no significant changes have occurred in the uncertainties of the meat market compared to the situation described in the Annual Report 2014. Atria's exposure to the volatility of the Russian rouble and to the effects of Russia's import ban on EU meat continues. Additionally, weakening consumer purchasing power in Russia represents a risk in terms of net sales and EBIT trends.
Consolidated EBIT was EUR 28.9 million in 2015. In 2016, EBIT is expected to be better than in 2015. In 2016, net sales are expected to grow.
Atria Plc will publish three interim reports in 2016:
Atria Plc's Annual Report 2015 will be published in week 13/2016.
Financial releases can also be viewed on the company's website at www.atriagroup.com immediately after their release.
Atria Plc's share capital consists of a total of 28,267,728 shares, divided into 19,063,747 series A shares and 9,203,981 series KII shares. Each series A share entitles its holder to one (1) vote and each series KII share to ten (10) votes at a General Meeting. Therefore, Atria Plc's shareholders are entitled to a total of 111,103,557 votes. The company holds 111,312 series A treasury shares.
The Nomination Committee has decided to propose to the General Meeting that a total of eight members be elected to the Board of Directors. The Nomination Committee has decided to propose to the General Meeting that three members be elected to replace resigning members. Timo Komulainen and Maisa Romanainen have declared that they are no longer available to continue as Board members. The Nomination Committee has decided to propose to the General Meeting that Jyrki Rantsi, who is due to resign, be re-elected as a member of the Board of Directors and that Pasi Korhonen and Nella Ginman-Tjeder be elected as new members.
The Nomination Committee has decided to propose to the General Meeting that the remuneration of the members of the Board of Directors be kept at the same level as in 2015. Remuneration and compensation for meeting expenses shall be as follows:
The Nomination Committee has decided to propose to the General Meeting that the remuneration of the members of the Supervisory Board be kept at the same level as in 2015. Remuneration and compensation for meeting expenses shall be as follows:
The Board of Directors proposes that a dividend of EUR 0.40 be paid for each share for the financial year 2015.
The General Meeting approved the financial statements and consolidated financial statements for 1 January – 31 December 2014, and discharged the members of the Supervisory Board and the Board of Directors as well as the CEO from liability for the financial year that ended on 31 December 2014.
The AGM decided that a dividend of EUR 0.40 will be paid for each share for the financial year that ended on 31 December 2014. Dividends are paid to shareholders listed on the company's shareholder register, kept by Euroclear Finland Oy, on the record date for the payment of dividends. The record date was 30 April 2015 and the date of payment was 8 May 2015.
The AGM decided that the composition of the Supervisory Board would be as follows:
| Member | Term ends |
|---|---|
| Juho Anttikoski | 2016 |
| Mika Asunmaa | 2016 |
| Reijo Flink | 2017 |
| Lassi-Antti Haarala | 2018 |
| Jussi Hantula | 2018 |
| Henrik Holm | 2018 |
| Hannu Hyry | 2016 |
| Veli Hyttinen | 2017 |
| Pasi Ingalsuo | 2017 |
| Marja-Liisa Juuse | 2018 |
| Jukka Kaikkonen | 2016 |
| Juha Kiviniemi | 2017 |
| Pasi Korhonen | 2018 |
| Ari Lajunen | 2018 |
| Mika Niku | 2018 |
| Pekka Ojala | 2017 |
| Heikki Panula | 2016 |
| Ahti Ritola | 2016 |
| Risto Sairanen | 2017 |
| Timo Tuhkasaari | 2017 |
A total of 20 members
The AGM decided that the monthly remuneration of the chairmen of the Supervisory Board would be halved and that other remuneration would remain unchanged. EUR 250 is paid per meeting, compensation for loss of working time is EUR 250 per day of meetings and proceedings, the fee payable to the Chairman of the Supervisory Board is EUR 1,500 per month and the fee payable to the Deputy Chairman is EUR 750 per month.
The AGM decided that the Board of Directors would consist of eight members. Esa Kaarto, Kjell-Göran Paxal and Harri Sivula, who were due to resign, were re-elected as Board members for the next three-year term. It was noted that Seppo Paavola, Timo Komulainen, Jukka Moisio, Jyrki Rantsi and Maisa Romanainen would continue as Board members. The terms of Timo Komulainen, Jyrki Rantsi and Maisa Romanainen will expire at the closing of the AGM in 2016 and those of Seppo Paavola and Jukka Moisio at the closing of the AGM in 2017.
The AGM decided that the remuneration of the members of the Board of Directors would remain unchanged. The fees are as follows: EUR 300 per meeting, compensation for loss of working time is EUR 300 per day of meetings and proceedings, the fee payable to the Chairman of the Board of Directors is EUR 4,400 per month, the fee payable to the Deputy Chairman is EUR 2,200 per month and the fee payable to a Board member is EUR 1,700 per month.
In accordance with the Board of Directors' proposal, the AGM elected Authorised Public Accountants PricewaterhouseCoopers Oy as the company's auditor for a term ending at the closing of the next Annual General Meeting. According to the firm, the auditor in charge is Authorised Public Accountant Juha Wahlroos. The AGM decided that the auditor's fee will be paid against an invoice approved by the company.
The General Meeting authorised the Board of Directors to decide on the acquisition of a maximum of 2,800,000 of the company's own series A shares, in one or several tranches, with funds belonging to the company's unrestricted equity, subject to the provisions of the Limited Liability Companies Act regarding the maximum number of treasury shares to be held by a company. The company's own series A shares may be acquired for use as consideration in any acquisitions or other arrangements relating to the company's business, to finance investments, as part of the company's incentive scheme, to develop the company's capital structure, to be otherwise further transferred, to be retained by the company or to be cancelled.
The shares shall be acquired in a proportion other than that of the shareholders' current shareholdings in the company in public trading arranged by NASDAQ OMX Helsinki Ltd at the market price at the moment of acquisition. The shares shall be acquired and paid for in accordance with the rules of NASDAQ OMX Helsinki Ltd and Euroclear Finland Oy. The Board of Directors was authorised to decide on the acquisition of the company's own shares in all other respects.
The authorisation supersedes the authorisation granted by the Annual General Meeting on 6 May 2014 to the Board of Directors to decide on the acquisition of the company's own shares, and is valid until the closing of the next Annual General Meeting or until 30 June 2016, whichever is first.
The General Meeting authorised the Board of Directors to decide, on one or several occasions, on an issue of a maximum of 7,000,000 new series A shares or on the disposal of any series A shares held by the company through a share issue and/or by granting option rights or other special rights entitling people to shares as referred to in Chapter 10, Section 1 of the Limited Liability Companies Act. The authorisation may be exercised to finance or execute any acquisitions or other arrangements or investments related to the company's business, to implement the company's incentive plan or for other purposes subject to the Board's decision.
The Board of Directors is also authorised to decide on all terms and conditions of the share issue and of the granting of special rights as referred to in Chapter 10, Section 1 of the Limited Liability Companies Act. The authorisation thus includes the right to issue shares in a proportion other than that of the shareholders' current shareholdings in the company under the conditions provided by law, the right to issue shares against payment or without charge, and the right to decide on a share issue without payment to the company itself, subject to the provisions of the Limited Liability Companies Act on the maximum number of treasury shares.
The authorisation supersedes the share issue authorisation granted by the Annual General Meeting on 6 May 2014 to the Board of Directors, and is valid until the closing of the next Annual General Meeting or until 30 June 2016, whichever is first.
The General Meeting authorised the Board of Directors to decide on the donation of a maximum of EUR 100,000 to universities or other educational institutions.
Atria's corporate governance principles and deviations from the Finnish Corporate Governance Code are published on the company's website at www.atriagroup.com.
Atria's long-term incentive plan includes an earning period consisting of three year-long periods. All payments from the earning period to be implemented in 2015–2017 will be based on the Group's earnings per share (EPS) excluding non-recurring items. Bonuses earned during the period will be paid in instalments in the coming years. Cash rewards payable under the plan for the entire 2015–2017 earning period are capped at EUR 4.5 million. The plan will expire on 31 December 2017, and it covers a maximum of 45 people.
The maximum amount of merit pay under the short-term incentive plan is 35 to 50 per cent of the annual salary, depending on the effect on the results and the level of competence required to perform the duties. The criteria in the merit pay scheme are the performance requirements and net sales at Group level and in the area of responsibility of the person concerned. In addition to the CEO and other members of the management team, Atria Plc's merit pay scheme covers approximately 40 people.
Atria Plc invites its shareholders to the Annual General Meeting to be held on Thursday 28 April 2016 at 1pm at Finlandia Hall in Helsinki. The agenda includes matters that are to be discussed by the Annual General Meeting in accordance with Article 14 of the Articles of Association. Under the Limited Liability Companies Act, a shareholder has the right to have a matter falling within the competence of the General Meeting dealt with by the General Meeting, if the shareholder so demands in writing from the Board of Directors well in advance of the meeting, so that the matter can be mentioned in the notice. The Board of Directors must be notified of the demand by 18 February 2016 in order for it to be dealt with at the General Meeting. The demand, with accompanying justification or proposed resolution, must be sent in writing to Atria Plc, Group Legal Affairs, Läkkisepäntie 23, FI-00620 Helsinki.
| KII | A | Total | % | |
|---|---|---|---|---|
| Itikka Co-operative | 4,914,281 | 3,537,652 | 8,451,933 29.90 | |
| Lihakunta | 4,020,200 | 3,838,797 | 7,858,997 27.80 | |
| Mandatum Life | 1,119,692 | 1,119,692 | 3.96 | |
| Pohjanmaan Liha Co-operative | 269,500 | 480,038 | 749,538 | 2.65 |
| Varma Mutual Pension Insurance Company | 524,640 | 524,640 | 1.86 | |
| Sijoitusrahasto Taalerintehdas Arvo Markka Osake | 165,500 | 165,500 | 0.59 | |
| Oy Etra Invest Ab | 150,000 | 150,000 | 0.53 | |
| Veritas Pension Insurance Company | 143,053 | 143,053 | 0.51 | |
| Elo Mutual Pension Insurance Company | 126,289 | 126,289 | 0.45 | |
| Norvestia Oyj | 125,672 | 125,672 | 0.44 |
| KII | A | Total | % | |
|---|---|---|---|---|
| Itikka Co-operative | 49,142,810 | 3,537,652 | 52,680,462 47.42 | |
| Lihakunta | 40,202,000 | 3,838,797 | 44,040,797 39.64 | |
| Pohjanmaan Liha Co-operative | 2,695,000 | 480,038 | 3,175,038 | 2.86 |
| Mandatum Life | 1,119,692 | 1,119,692 | 1.01 | |
| Varma Mutual Pension Insurance Company | 524,640 | 524,640 | 0.47 | |
| Sijoitusrahasto Taalerintehdas Arvo Markka Osake | 165,500 | 165,500 | 0.15 | |
| Oy Etra Invest Ab | 150,000 | 150,000 | 0.14 | |
| Veritas Pension Insurance Company | 143,053 | 143,053 | 0.13 | |
| Elo Mutual Pension Insurance Company | 126,289 | 126,289 | 0.11 | |
| Norvestia Oyj | 125,672 | 125,672 | 0.11 |
| mill. EUR | 31.12.15 31.12.14 31.12.13 31.12.12 31.12.11 | ||||
|---|---|---|---|---|---|
| Net sales | 1,340.2 | 1,426.1 | 1,411.0 | 1,343.6 | 1,301.9 |
| EBIT | 28.9 | 40.6 | 19.7 | 30.2 | 8.0 |
| % of net sales | 2.2 | 2.8 | 1.4 | 2.2 | 0.6 |
| Financial income and expenses | -9.2 | -12.7 | -15.2 | -14.7 | -14.1 |
| % of net sales | -0.7 | -0.9 | -1.1 | -1.1 | -1.1 |
| Profit before tax | 20.1 | 34.0 | 6.9 | 18.9 | -4.7 |
| % of net sales | 1.5 | 2.4 | 0.5 | 1.4 | -0.4 |
| Return of equity (ROE), % | 3.6 | 6.6 | -1.0 | 2.4 | -1.5 |
| Return of investment (ROI), % | 5.6 | 8.3 | 3.7 | 4.7 | 1.7 |
| Equity ratio, % | 47.4 | 44.0 | 42.2 | 41.5 | 39.5 |
| Interest-bearing liabilities | 199.6 | 254.1 | 334.7 | 370.5 | 409.4 |
| Gearing, % | 49.3 | 62.6 | 81.3 | 85.9 | 97.1 |
| Net gearing, % | 48.3 | 61.8 | 74.3 | 84.3 | 95.5 |
| Gross investments in fixed assets | 56.9 | 62.7 | 41.1 | 56.2 | 47.0 |
| % of net sales | 4.2 | 4.4 | 2.9 | 4.2 | 3.6 |
| Average FTE | 4,271 | 4,715 | 4,669 | 4,898 | 5,467 |
| R&D costs | 12.4 | 13.9 | 11.8 | 12.0 | 11.9 |
| % of net sales * | 0.9 | 1.0 | 0.8 | 0.9 | 0.9 |
| Volume of orders ** | - | - | - | - | - |
* Booked in total as expenditure for the financial year
** Not a significant indicator, as orders are generally delivered on the day following the order being placed
| 31.12.15 31.12.14 31.12.13 31.12.12 31.12.11 | |||||
|---|---|---|---|---|---|
| Earnings per share (EPS), EUR | 0.49 | 0.93 | -0.15 | 0.35 | -0.24 |
| Shareholders' equity per share, EUR | 14.16 | 14.22 | 14.45 | 15.15 | 14.81 |
| Dividend per share, EUR* | 0.40 | 0.40 | 0.22 | 0.22 | 0.20 |
| Dividend per profit, %* | 81.9 | 43.0 | -142.8 | 63.1 | -84.5 |
| Effective dividend yield * | 4.4 | 6.0 | 2.8 | 3.5 | 3.4 |
| Price per earnings (P/E) | 18.5 | 7.1 | -50.2 | 17.9 | -25.1 |
| Market capitalisation | 255.8 | 187.1 | 218.5 | 177.0 | 168.2 |
| Market capitalisation, series A | 172.5 | 126.2 | 147.4 | 119.3 | 113.4 |
| Share turnover per 1 000 shares, series A | 5 443 | 3 035 | 3 223 | 3 460 | 5 094 |
| Share turnover %, series A | 28.6 | 15.9 | 16.9 | 18.1 | 26.7 |
| Number of shares, million, total | 28.3 | 28.3 | 28.3 | 28.3 | 28.3 |
| Number of shares, series A | 19.1 | 19.1 | 19.1 | 19.1 | 19.1 |
| Number of shares, series KII | 9.2 | 9.2 | 9.2 | 9.2 | 9.2 |
| Share issue-adjusted average | |||||
| number of shares | 28.3 | 28.3 | 28.3 | 28.3 | 28.3 |
| Share issue-adjusted number | |||||
| of shares on 31 December | 28.3 | 28.3 | 28.3 | 28.3 | 28.3 |
* The Board of Directors proposal from year 2015 for the Annual Meeting to be held on April 28 2016.
| Lowest of period | 6.62 | 6.43 | 6.01 | 4.76 | 4.99 |
|---|---|---|---|---|---|
| Highest of period | 10.50 | 8.89 | 8.39 | 7.08 | 9.15 |
| At the end of period | 9.05 | 6.62 | 7.73 | 6.26 | 5.95 |
| Average price for period | 9.03 | 7.46 | 7.21 | 5.89 | 7.21 |
| EUR million | 10-12/15 | 10-12/14 | 1-12/15 | 1-12/14 |
|---|---|---|---|---|
| Net sales | 351.0 | 363.4 | 1 340.2 | 1 426.1 |
| Costs of goods sold | -303.0 | -313.3 | -1 176.9 | -1 249.3 |
| Gross profit | 48.0 | 50.1 | 163.3 | 176.8 |
| Sales and marketing expenses | -22.7 | -23.4 | -87.6 | -96.5 |
| Administrative expenses | -11.4 | -9.7 | -41.5 | -42.0 |
| Other operating income | 0.7 | 4.1 | 5.5 | 6.7 |
| Other operating expenses | -9.9 | -2.6 | -10.7 | -4.4 |
| EBIT | 4.8 | 18.6 | 28.9 | 40.6 |
| Finance income and costs | -1.9 | -3.1 | -9.2 | -12.7 |
| Income from joint ventures and associates | -0.1 | 0.8 | 0.4 | 6.2 |
| Profit/loss for before tax | 2.8 | 16.3 | 20.1 | 34.0 |
| Income taxes | 0.6 | -2.7 | -5.5 | -7.2 |
| Profit/loss for the period | 3.5 | 13.6 | 14.6 | 26.8 |
| Profit attributable to: | ||||
| Owners of the parent | 3.2 | 13.6 | 13.8 | 26.2 |
| Non-controlling interests | 0.2 | 0.0 | 0.8 | 0.6 |
| Total | 3.5 | 13.6 | 14.6 | 26.8 |
| Basic earnings per share, EUR | 0.11 | 0.48 | 0.49 | 0.93 |
| Diluted earnings per share, EUR | 0.11 | 0.48 | 0.49 | 0.93 |
| EUR million | 10-12/15 | 10-12/14 | 1-12/15 | 1-12/14 |
|---|---|---|---|---|
| Profit/loss for the period | 3.5 | 13.6 | 14.6 | 26.8 |
| Other comprehensive income after tax: | ||||
| Items that will not be reclassified to profit or loss | ||||
| Actuarial gains/losses from benefit-based | ||||
| pension obligations | 0.4 | -0.8 | 0.4 | -0.8 |
| Items reclassified to profit or loss | ||||
| when specific conditions are met | ||||
| Available-for-sale financial assets | - | 0.0 | -0.2 | 0.0 |
| Cash flow hedges | 0.7 | 0.0 | 0.2 | -0.3 |
| Currency translation differences | -1.6 | -16.9 | -4.6 | -25.0 |
| Total comprehensive income for the period | 2.9 | -4.1 | 10.5 | 0.6 |
| Total comprehensive income attributable to: | ||||
| Owners of the parent | 2.6 | -4.0 | 9.6 | 0.2 |
| Non-controlling interests | 0.3 | -0.1 | 0.9 | 0.5 |
| Total | 2.9 | -4.1 | 10.5 | 0.6 |
| Assets | ||
|---|---|---|
| EUR million | 31.12.15 | 31.12.14 |
| Non-current assets | ||
| Property, plant and equipment | 394.7 | 390.7 |
| Biological assets | 0.7 | 0.7 |
| Goodwill | 157.9 | 163.6 |
| Other intangible assets | 79.2 | 75.8 |
| Investments in joint ventures and associates | 13.1 | 13.2 |
| Other financial assets | 1.1 | 1.3 |
| Loans and other receivables | 11.2 | 11.3 |
| Deferred tax assets | 7.0 | 6.1 |
| Total | 665.0 | 662.8 |
| Current assets | ||
| Inventories | 80.8 | 92.9 |
| Biological assets | 3.1 | 3.2 |
| Trade and other receivables | 102.3 | 120.7 |
| Cash and cash equivalents | 4.1 | 3.4 |
| Total | 190.4 | 220.2 |
| Assets classified as held for sale | - | 40.6 |
| Total assets | 855.4 | 923.5 |
| Equity and liabilities | ||
| EUR million | 31.12.15 | 31.12.14 |
| Equity attributable to the shareholders | ||
| of the parent company | 400.2 | 401.9 |
| Non-controlling interests | 4.6 | 3.7 |
| Total equity | 404.8 | 405.6 |
| Non-current liabilities | ||
| Interest-bearing financial liabilities | 155.6 | 202.6 |
| Deferred tax liabilities | 45.3 | 43.8 |
| Pension obligations | 7.4 | 7.7 |
| Other non-interest-bearing liabilities | 5.9 | 5.7 |
| Provisions | - | 0.7 |
| Total | 214.2 | 260.4 |
| Current liabilities | ||
| Interest-bearing financial liabilities | 44.0 | 51.5 |
| Trade and other payables | 192.3 | 198.8 |
| Total | 236.3 | 250.3 |
| Liabilities classified as held for sale | - | 7.1 |
| Total liabilities Total equity and liabilities |
450.6 | 517.9 |
| 855.4 | 923.5 |
| EUR million | Equity attributable to the shareholders of parent company | Non- | Total | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| cont | ||||||||||
| Share | Share | Treasury | Other | Inv. | Trans Retained | Total | roll ing |
|||
| non | ||||||||||
| capital | premium | shares | funds | rest. | lation earnings equity inte | |||||
| equity | diff. | rests | ||||||||
| fund *) | ||||||||||
| Equity 1.1.14 Changes in retained |
48.1 | 138.5 | -1.3 | -4.1 | 110.6 | -21.9 | 138.6 | 408.5 | 3.2 | 411.7 |
| earnings from previous years **) |
-0.6 | -0.6 | -0.6 | |||||||
| Comprehensive | ||||||||||
| income for the period | ||||||||||
| Profit for the period | 26.2 | 26.2 | 0.6 | 26.8 | ||||||
| Other comprehensive | ||||||||||
| income | ||||||||||
| Available-for-sale | ||||||||||
| financial assets | 0.0 | 0.0 | 0.0 | |||||||
| Cash flow hedges | -0.3 | -0.3 | -0.3 | |||||||
| Acturial losses | -0.8 | -0.8 | -0.8 | |||||||
| Currency | ||||||||||
| translation differences | -24.9 | -24.9 | -0.1 | -25.0 | ||||||
| Transactions | ||||||||||
| with owners | ||||||||||
| Dividends | -6.2 | -6.2 | -6.2 | |||||||
| Equity 31.12.14 | 48.1 | 138.5 | -1.3 | -4.4 | 110.6 | -46.8 | 157.2 | 401.9 | 3.7 | 405.6 |
| Comprehensive | ||||||||||
| income for the period | ||||||||||
| Profit for the period | 13.8 | 13.8 | 0.8 | 14.6 | ||||||
| Other comprehensive | ||||||||||
| income | ||||||||||
| Available-for-sale | ||||||||||
| financial assets | -0.2 | -0.2 | -0.2 | |||||||
| Cash flow hedges | 0.2 | 0.2 | 0.2 | |||||||
| Acturial gains | 0.4 | 0.4 | 0.4 | |||||||
| Currency | ||||||||||
| translation differences | -4.6 | -4.6 | 0.1 | -4.6 | ||||||
| Transactions | ||||||||||
| with owners | ||||||||||
| Dividends | -11.3 | -11.3 | -11.3 | |||||||
| Equity 31.12.15 | 48.1 | 138.5 | -1.3 | -4.4 | 110.6 | -51.4 | 160.2 | 400.2 | 4.6 | 404.8 |
*) Invested unrestricted equity fund
**) Adjustment of Atria Russia´s holiday pay liabilities for previous years
| EUR million | 1-12/15 | 1-12/14 |
|---|---|---|
| Cash flow from operating activities | ||
| Operating activities | 96,3 | 113,3 |
| Financial items and taxes | -6,0 | -21,1 |
| Net cash flow from operating activities | 90,3 | 92,2 |
| Cash flow from investing activities | ||
| Tangible and intangible assets | -50,2 | -33,9 |
| Acquired operations, net of cash acquired | -5,5 | -32,5 |
| Sold operations | 34,1 | 11,9 |
| Non-current receivables | 0,2 | -2,8 |
| Dividends received from investments | 0,6 | 8,4 |
| Changes in other investments | -1,1 | 1,1 |
| Net cash used in investing activities | -21,9 | -47,8 |
| Cash flow from financing activities | ||
| Proceeds from long-term borrowings | 30,2 | - |
| Repayment of long-term borrowings | -40,8 | -52,3 |
| Changes in short-term borrowings | -45,7 | -11,2 |
| Dividends paid | -11,3 | -6,2 |
| Net cash used in financing activities | -67,6 | -69,6 |
| Change in liquid funds | 0,8 | -25,3 |
| Cash and cash equivalents at beginning of year | 3,4 | 28,8 |
| Effect of exchange rate changes | 0,0 | -0,2 |
| Cash and cash equivalents at end of year | 4,1 | 3,4 |
This interim report has been prepared in accordance with the IAS 34 Interim Financial Reporting standard. Atria has applied the same principles in preparing this report as in preparing the 2014 annual financial statements. However, as of 1 January 2015, the Group uses new or revised IFRS standards and IFRIC interpretations published by the IASB, referred to in the accounting principles of the 2014 annual financial statements. These new or revised standards and interpretations did not have any impact on the figures presented for the review period.
The principles for the calculation of key indicators have not changed, and they are presented in the 2014 annual financial statements. The figures given in this release are rounded to millions of euros, so the combined total of individual figures may differ from the total sum presented.
The figures presented in this financial statement release are unaudited.
| EUR million | 10-12/15 | 10-12/14 | 1-12/15 | 1-12/14 |
|---|---|---|---|---|
| Net sales | ||||
| Atria Finland | 248.0 | 243.6 | 929.0 | 945.5 |
| Atria Scandinavia | 83.8 | 94.9 | 330.5 | 371.9 |
| Atria Russia | 18.6 | 22.3 | 75.1 | 98.8 |
| Atria Baltic | 8.0 | 8.5 | 32.9 | 34.5 |
| Eliminations | -7.4 | -5.9 | -27.4 | -24.7 |
| Total | 351.0 | 363.4 | 1,340.2 | 1,426.1 |
| EBIT | ||||
| Atria Finland | 13.7 | 15.6 | 29.8 | 33.6 |
| Atria Scandinavia | 3.2 | 4.7 | 12.8 | 14.9 |
| Atria Russia | -0.4 | -0.9 | -0.2 | -5.7 |
| Atria Baltic | -9.1 | 0.1 | -9.0 | -0.0 |
| Unallocated | -2.6 | -0.9 | -4.4 | -2.2 |
| Total | 4.8 | 18.6 | 28.9 | 40.6 |
| Investments | ||||
| Atria Finland | 11.4 | 3.5 | 33.0 | 47.1 |
| Atria Scandinavia | 4.6 | 2.4 | 19.3 | 10.3 |
| Atria Russia | 1.1 | 1.0 | 2.9 | 4.3 |
| Atria Baltic | 0.7 | 0.5 | 1.8 | 0.9 |
| Total | 17.9 | 7.4 | 56.9 | 62.7 |
| Depreciation and write-offs | ||||
| Atria Finland | 7.5 | 7.1 | 29.2 | 28.0 |
| Atria Scandinavia | 2.9 | 2.8 | 10.9 | 11.3 |
| Atria Russia | 1.0 | 1.0 | 4.2 | 6.4 |
| Atria Baltic | 9.7 | 0.6 | 11.4 | 2.4 |
| Total | 21.0 | 11.6 | 55.7 | 48.1 |
| Balance sheet items | 31.12.15 | Level 1 | Level 2 | Level 3 |
|---|---|---|---|---|
| Assets | ||||
| Available-for-sale financial assets | 1.1 | 1.1 | ||
| Derivative financial instruments | 1.0 | 1.0 | ||
| Total | 2.1 | 0.0 | 1.0 | 1.1 |
| Liabilities | ||||
| Bonds | 50.0 | 50.0 | ||
| Derivative financial instruments | 8.9 | 8.9 | ||
| Total | 58.9 | 0.0 | 58.9 | 0.0 |
| Balance sheet items | 31.12.14 | Level 1 | Level 2 | Level 3 |
| Assets | ||||
| Available-for-sale financial assets | 1.3 | 0.2 | 1.1 | |
| Derivative financial instruments | 5.2 | 5.2 | ||
| Total | 6.6 | 0.2 | 5.2 | 1.1 |
| Liabilities | ||||
| Bonds | 50.0 | 50.0 | ||
| Derivative financial instruments | 8.0 | 8.0 |
There were no transfers between Levels 1 and 2 during the period.
Level 1: Prices listed on active markets for identical assets and liabilities.
Level 2: Fair values can be determined either directly (i.e., as prices) or indirectly (i.e., derived from prices). Level 3: Fair values are not based on verifiable market prices.
Fair values of financial instruments do not deviate significantly from balance sheet values.
| EUR million | 31.12.15 31.12.14 | |
|---|---|---|
| Assets held for sale: | ||
| Atria Scandinavia | 36.9 | |
| Atria Russia | 3.7 | |
| Total | - | 40.6 |
| Liabilities classified as held for sale: Atria Scandinavia |
- | 7.1 |
In 2014, Atria decided to divest the Falbygdens cheese business in Sweden. The assets and liabilities associated with the operations were sold in April. Atria has also sold a farm property near Moscow, which was classified as available for sale in 2013.
| EUR million | 31.12.15 31.12.14 | |
|---|---|---|
| Debts with mortgages or other collateral | ||
| given as security | ||
| Loans from financial institutions | 2.7 | 2.7 |
| Pension fund loans | 5.5 | 5.4 |
| Total | 8.2 | 8.0 |
| Mortgages and other securities given as | ||
| comprehensive security | ||
| Real estate mortgages | 3.8 | 3.8 |
| Corporate mortgages | 1.2 | 1.2 |
| Total | 5.0 | 5.0 |
| Guarantee engagements not included in the balance sheet |
||
| Guarantees | 0.4 | 0.4 |
| RELATED PARTY TRANSACTIONS |
| milj. EUR | ||
|---|---|---|
| The following transactions were completed with | ||
| related parties: | ||
| 1-12/15 | 1-12/14 | |
| Sales of goods and services | 9.9 | 8.9 |
| Purchases of goods and services | 82.0 | 89.0 |
| Shares sold | - | 1.5 |
| 31.12.15 31.12.14 | ||
| Receivables | 2.4 | 2.3 |
| Liabilities | 5.3 | 5.9 |
In May, Atria acquired the operations of Aalbaek Specialiteter A/S, a Danish manufacturer of organic cold cuts, for EUR 5.5 million. Aalbaek's annual net sales amount to around EUR 10 million. Aalbaek is the top organic cold cuts brand in Denmark.
The demand for organic meat products in Denmark has been increasing steadily for several years. The transaction will strengthen Atria's market-leading position in cold cuts in the country. Aalbaek's brands and business, including all agreements, were transferred to Atria as part of the deal, along with a charcuterie and production facilities in Farre. In conjunction with the transaction, 10 Aalbaek employees transferred to Atria. The operations were consolidated into Atria from 11 May 2015.
In connection with the acquisition, a brand worth EUR 3.7 million on the balance sheet of the reporting day was recognised as a separate intangible asset.
| Fair value used in the |
|
|---|---|
| The business operations of Aalbaek Specialiteter | acquisition |
| Tangible assets | 1.1 |
| Intangible assets | 4.9 |
| Inventories | 0.6 |
| Total assets | 6.6 |
| Deferred tax liabilities | 0.9 |
| Current liabilities | 0.2 |
| Total liabilities | 1.1 |
| Net assets | 5.5 |
| Purchase price | 5.5 |
| Effect of the acquisition on cash flow | 5.5 |
Atria has sold the Falbygdens cheese business in Sweden and a farm property in Russia, which were classified as assets held for sale.
The Swedish Competition Authority approved on 11 March 2015 the sale of Atria's Falbygdens cheese business to Arla Foods AB. The operations were consolidated into Arla Foods AB from 1 April 2015. The transaction included the transfer of the following to Arla: the Falbygdens cheese business and its employees, the production plant in Falköping and the Falbygdens brand. The number of transferred employees was around 100. The assets of the divested cheese business totalled EUR 33.6 million and liabilities EUR 5.3 million. The selling price was EUR 29,3 million when the change in net working capital as per the sales agreement was taken into account. The deal had no impact on the group's results.
Atria sold its subsidiary OOO Campoferma in Russia on 24 June 2015. The company owned a farm property near Moscow. The selling price was EUR 4.5 million, and the company's net assets totalled EUR 5.0 million. Costs of EUR 0.6 million were recognised for the sale. Additionally, translation differences of EUR 2.5 million accrued by the company have been transferred from equity to other operational income.
ATRIA PLC Board of Directors
For more information, please contact Juha Gröhn, CEO, Atria Plc, tel. +358 400 684 224.
Nasdaq Helsinki Ltd Major media www.atriagroup.com
The Financial Statement Release is available on our website at www.atriagroup.com.
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