Atria Oyj — Earnings Release 2021

Jun 14, 2021

Atria is raising its EBIT guideline for 2021

Atria is raising its EBIT guideline for 2021

Atria Plc  Insider information  14[th] of June 2021, at 5.30 pm
Atria is raising its EBIT guideline for 2021
Atria raises its EBIT guideline for 2021 and estimates the adjusted EBIT to be
EUR 41-48 million (EUR 40.5 million).
The reason for the improvement in the EBIT forecast is increased pork exports
from Finland to China,  favorable sales structure and cost control during the
first half of the year. In addition, the negative impact of the operating
activities of OOO Pit-Product on the Group's EBIT was shorter than forecast. OOO
Pit-Product was sold on April 30, 2021. The earnings trend towards the end of
the year is affected by the development in the demand of various sales channels,
the profitability of exports and the effects of cost inflation.
The statement describing the development of EBIT and the amount of translation
differences accumulated from the sale of OOO Pit-Product are updated in the new
guidelines. In other respects, the guidelines have remained unchanged.
Updated guidelines:
In 2021, Atria Group's adjusted EBIT is estimated to be EUR 41-48 million (EUR
40.5 million).
The adjusted EBIT is determined by adjusting the EBIT recognised in the income
statement with material items affecting comparability. These may include events
that are not part of the company's ordinary business activities, such as
reorganisation of operations, capital gains and losses from the sale of
operations, impairment, and the costs of discontinuing significant operations.
Such an item affecting EBIT, is the translation difference recognition of EUR
-45 million arising from the sale of OOO Pit-Product. The translation difference
was recognised after the deal was finalised.
Atria operates mainly in the retail and Food Service markets in Finland and
Sweden. The strong and rapid changes in the global meat market will have a
greater impact on the company's development and reduce predictability.
Consumption of poultry meat is expected to continue to increase, while
consumption of red meat is expected to decline slightly. Atria has increased its
meat exports, and pork exports to China, for example, are expected to increase
further during 2021.
The coronavirus pandemic that began in 2020 and continues in early 2021 has
caused strong and rapid changes in the business environment in the food
industry. This has hindered the predictability of the company’s development.
Immediate effects related to Atria's business have included national
restrictions on restaurant operations and public food services, resulting in
reduced sales to Food Service customers. During the coronavirus pandemic, the
importance of ordinary everyday food has strengthened. The possible weakening of
consumer purchasing power will also affect food purchases and may shift the
sales structure of Atria's products into an unfavourable direction.
Previously published guidelines were:
In 2021, Atria Group's adjusted EBIT is estimated to be EUR 37–43 million (EUR
40.5 million).
The adjusted EBIT is determined by adjusting the EBIT recognised in the income
statement with material items affecting comparability. These may include events
that are not part of the company's ordinary business activities, such as
reorganisation of operations, capital gains and losses from the sale of
operations, impairment, and the costs of discontinuing significant operations.
Such an item affecting EBIT, if realised, is the translation difference
recognition arising from the sale of OOO Pit-Product. Cumulated translation
differences associated with Pit-Product stood at around EUR -45 million on 31
December 2020. Translation differences depend on the development of the Russian
rouble exchange rate and will be recognised after the deal has been finalised.
Atria operates mainly in the retail and Food Service markets in Finland and
Sweden. The strong and rapid changes in the global meat market will have a
greater impact on the company's development and reduce predictability.
Consumption of poultry meat is expected to continue to increase, while
consumption of red meat is expected to decline slightly. Atria has increased its
meat exports, and pork exports to China, for example, are expected to increase
further during 2021.
The coronavirus pandemic that began in 2020 and continues in early 2021 has
caused strong and rapid changes in the business environment in the food
industry. This has hindered the predictability of the company’s development.
Immediate effects related to Atria's business have included national
restrictions on restaurant operations and public food services, resulting in
reduced sales to Food Service customers. During the coronavirus pandemic, the
importance of ordinary everyday food has strengthened. The possible weakening of
consumer purchasing power will also affect food purchases and may shift the
sales structure of Atria's products into an unfavourable direction.
Atria will publish its half-year report for 2021 on July 20, 2021 at
approximately 8:00 AM.
For more information, please contact Juha Gröhn, CEO of Atria Plc, tel. +358 400
684224.
ATRIA OYJ
Juha Gröhn
CEO
DISTRIBUTION
Nasdaq Helsinki Ltd
Major media
www.atria.com