Interim / Quarterly Report • Oct 30, 2014
Interim / Quarterly Report
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The Group's equity ratio was 42.1 per cent (31 December 2013: 42.2%).
Atria lowered its EBIT forecast in April: the company expects the 2014 EBIT without non-recurring items to be clearly lower than the previous year's EBIT of EUR 37.0 million.
| Q3 | Q3 | Q1–Q3 | Q1–Q3 | ||
|---|---|---|---|---|---|
| EUR million | 2014 | 2013 | 2014 | 2013 | 2013 |
| Net sales | 364.4 | 358.4 | 1,062.7 | 1,050.4 | 1,411.0 |
| EBIT | 16.2 | -1.8 | 22.0 | 9.1 | 19.7 |
| EBIT, % | 4.4 | -0.5 | 2.1 | 0.9 | 1.4 |
| Profit before taxes | 13.6 | -5.0 | 17.7 | -0.2 | 6.9 |
| Earnings per share, EUR | 0.35 | -0.54 | 0.45 | -0.48 | -0.15 |
| Non-recurring items* | 0.6 | -16.3 | -0.6 | -15.2 | -17.3 |
*Non-recurring items are included in the reported EBIT.
Atria Group's net sales for July–September totalled EUR 364.4 million (EUR 358.4 million). Net sales grew by EUR 6.0 million year-on-year. Consolidated EBIT was EUR 16.2 million (EUR -1.8 million). EBIT without non-recurring items was EUR 15.6 million (EUR 14.5 million).
Atria Finland's net sales for July–September totalled EUR 238.5 million (EUR 224.8 million), up by EUR 13.7 million year-on-year. This increase was due to the consolidation of the operations acquired from Saarioinen and the increase in poultry feed sales. Summer barbecue season sales were a success despite fierce price competition. The EUR 11.8 million EBIT (EUR 9.8 million) was EUR 2.0 million higher than the EBIT for the corresponding period last year. EBIT includes a non-recurring sales profit of EUR 0.6 million for the sale of real estate company shares. EBIT was increased by improved cost-efficiency.
Atria Scandinavia's net sales for July–September totalled EUR 93.3 million (EUR 99.7 million). At comparable exchange rates, net sales fell by 2.0 per cent year-on-year. This decrease was affected by the slow growth of the total market and stronger market position of private labels. EBIT amounted to EUR 5.9
million (EUR 4.7 million). The growth of EBIT was due to better cost-efficiency and the stable raw material prices.
Atria Russia's net sales for July–September totalled EUR 29.2 million (EUR 32.0 million). At a comparable exchange rate, net sales grew by 0.6 per cent year-on-year. The weak growth of comparable net sales was due to the decline in consumers' purchasing power and in retail sales, together with the discontinuation of primary production at the end of last year. Inflation in food prices is currently about 10 per cent (Source: Rosstat, Oct 2014). EBIT was EUR -1.5 million (EUR -16.4 million). EBIT for the comparative period includes EUR 15.4 million of non-recurring costs. The prices of meat raw materials continued to rise in July– September. Atria Russia was not able to fully pass on the increased costs to sales prices.
Atria Baltic's net sales for July–September totalled EUR 9.0 million (EUR 8.5 million). EBIT amounted to EUR 0.1 million (EUR 0.3 million). Atria's own brands sold well during the summer barbecue season. EBIT was weakened by tight price competition.
Atria Group's net sales for January–September totalled EUR 1,062.7 million (EUR 1,050.4 million). Net sales grew by EUR 12.3 million year-on-year. EBIT amounted to EUR 22.0 million (EUR 9.1 million). EBIT without non-recurring items amounted to EUR 22.6 million (EUR 24.4 million).
Atria lowered its EBIT forecast in April. The company expects the 2014 EBIT without non-recurring items to be clearly lower than the previous year's EBIT of EUR 37.0 million. According to the previously published EBIT forecast, the Group's EBIT for 2014 was estimated to be higher than EUR 37.0 million. Net sales are expected to grow in 2014. The EBIT forecast was adjusted due to the difficult conditions in the Finnish and Russian meat markets.
Atria's share of the January–September income from joint ventures and associates was EUR 5.4 million (EUR 1.9 million). Atria's joint venture, the Finnish Meat Research Institute LTK Co-operative, sold its subsidiary Maustepalvelu Oy. For the deal, LTK recognised a sales profit that increased Atria's share in LTK's net assets.
Atria acquired Saarioinen Oy's procurement, slaughtering and cutting operations for beef, pork and chicken. The operations were consolidated into Atria as of 1 February 2014. The purchase price was EUR 29.2 million. In addition, EUR 4.2 million was paid for producer receivables.
Investments during the period under review totalled EUR 55.3 million (EUR 29.2 million). The Group's free cash flow (operating cash flow - cash flow from investments) for the period was EUR -5.4 million (EUR 20.7 million) and net liabilities were EUR 311.5 million (31 December 2013: EUR 305.9 million).
Atria Finland's net sales for January–September totalled EUR 701.9 million (EUR 660.8 million). This increase was due to the consolidation of the operations acquired from Saarioinen as of the beginning of February and the launch of poultry feed sales at the beginning of the year. EBIT for January–September was EUR 18.0 million (EUR 23.8 million), down by EUR 5.8 million year-on-year. EBIT includes EUR 0.8 million of non-recurring costs related to the takeover of the operations acquired from Saarioinen and EUR 0.6 million of profit from the sale of real estate company shares. EBIT for the comparative period contains EUR 1.1 million of non-recurring profit. EBIT was weakened by tight price competition throughout the review period. The tightened competition is the result of the decline in consumers' purchasing power and the oversupply of meat in the EU meat market owing to Russia's import ban. The price of meat raw material has decreased compared to the previous year. Atria has made significant investments in marketing the Atria brand.
Atria Scandinavia's net sales for January–September totalled EUR 277.0 million (EUR 292.0 million). At comparable exchange rates, net sales fell by 1.1 per cent year-on-year. This decrease was affected by the slow growth of the total market and stronger market position of private labels. EBIT for January–September was EUR 10.2 million (EUR 6.5 million). This positive development is due to more stable raw material prices and improved cost-efficiency.
Atria Russia's net sales for January–September amounted to EUR 76.5 million (EUR 90.8 million), representing a drop of EUR 14.3 million. At a comparable exchange rate, net sales fell by EUR 2.9 million year-on-year. The reason for this decrease in comparable net sales was the discontinuation of primary production at the end of last year and the decline in consumers' purchasing power and in retail sales. EBIT for January–September was EUR -4.8 million (EUR -19.1 million). EBIT for the comparative period includes EUR 15.4 million of non-recurring costs. Production cost-efficiency has improved from the previous year. Reduced EBIT was caused by the steep rise in raw material prices, which could not be fully transferred to sales prices.
Atria Baltic's net sales for January–September totalled EUR 26.0 million (EUR 25.0 million). EBIT for the period was EUR -0.2 million (EUR -0.1 million). EBIT without non-recurring items was EUR 0.2 million (EUR -0.1 million). In June, Atria sold a factory located in Vilnius, Lithuania. The deal resulted in a non-recurring sales loss of EUR 0.4 million. The positive performance was due to better cost-efficiency in production and the improved sales structure.
| Key indicators | |||
|---|---|---|---|
| EUR million | 30.9.14 | 30.9.13 | 31.12.13 |
| Shareholders´ equity per share EUR | 14.38 | 14.26 | 14.45 |
| Interest-bearing liabilities | 311.5 | 361.0 | 334.7 |
| Equity ratio, % | 42.1 | 40.9 | 42.2 |
| Gearing, % | 76.8 | 88.7 | 81.3 |
| Net gearing, % | 75.9 | 84.5 | 74.3 |
| Gross investments in fixed assets | 55.3 | 29.2 | 41.1 |
| % of net sales | 5.2 | 2.8 | 2.9 |
| Average FTE | 4,773 | 4,688 | 4,669 |
| Q3 | Q3 | Q1–Q3 | Q1–Q3 | ||
|---|---|---|---|---|---|
| EUR million | 2014 | 2013 | 2014 | 2013 | 2013 |
| Net sales | 238.5 | 224.8 | 701.9 | 660.8 | 886.8 |
| EBIT | 11.8 | 9.8 | 18.0 | 23.8 | 32.9 |
| EBIT, % | 5.0 | 4.4 | 2.6 | 3.6 | 3.7 |
| Non-recurring items* | 0.6 | 0.0 | -0.2 | 1.1 | 1.1 |
*Non-recurring items are included in the reported EBIT.
Atria Finland's net sales for July–September totalled EUR 238.5 million (EUR 224.8 million), up by EUR 13.7 million year-on-year. This increase was due to the consolidation of the operations acquired from Saarioinen and the increase in poultry feed sales. Summer barbecue season sales were a success despite fierce price competition. The EUR 11.8 million EBIT (EUR 9.8 million) was EUR 2.0 million higher than the EBIT for the corresponding period last year. EBIT includes a non-recurring sales profit of EUR 0.6 million for the sale of real estate company shares. EBIT was increased by improved cost-efficiency.
Net sales for January–September totalled EUR 701.9 million (EUR 660.8 million). This increase was due to the consolidation of the operations acquired from Saarioinen as of the beginning of February and the launch of poultry feed sales at the beginning of the year. EBIT for January–September was EUR 18.0 million (EUR 23.8 million), down by EUR 5.8 million year-on-year. EBIT includes EUR 0.8 million of non-recurring costs related to the takeover of the operations acquired from Saarioinen and EUR 0.6 million of profit from the sale of real estate company shares. EBIT for the comparative period contains EUR 1.1 million of non-recurring profit. EBIT was weakened by tight price competition throughout the review period. The tightened competition is the result of the decline in consumers' purchasing power and the oversupply of meat in the EU meat market owing to Russia's import ban. The price of meat raw material has decreased compared to the previous year. During the ongoing year, Atria has made significant investments in marketing the Atria brand.
Atria did well in the summer season and was the market leader in consumer-packed meat, poultry, cold cuts and cooking sausages. Atria was also a strong number two in the convenience food market. According to Atria's own estimate, its total market share in June–September was approximately 28 per cent.
Atria acquired Saarioinen's procurement, slaughtering and cutting operations for beef, pork and chicken. The operations were consolidated into Atria as of 1 February 2014. The purchase price was EUR 29.2 million. In addition, EUR 4.2 million was paid for producer receivables.
At the end of February, Atria launched a project to improve the profitability of Atria Finland's beef and pork production and to increase efficiency at Atria's Jyväskylä plant. Employer-employee negotiations were completed on 24 April 2014. Improved efficiency and the removal of overlapping functions will result in annual savings of about EUR 5 million compared to the current cost level. The cost savings will be fully realised as of the beginning of 2015. This will mean a reduction of 59 man-years.
In May, Saarioinen Oy terminated an agreement concerning meat packing at the Jyväskylä production plant as of 1 February 2015. Negotiations with the personnel on the adjustment of operations were initiated in May and completed on 23 July 2014. As a result of the negotiations, 48 of the Jyväskylä plant's employees were laid off. All laid-off employees were offered a job at Atria's other plants.
Food Safety System Certification (FSSC 22000) has been awarded to Atria Finland's bovine slaughtering and beef cutting and packing operations at the Kauhajoki plant. FSSC 22000 is a certification scheme focusing on food safety. The purpose of the scheme is to manage food safety and systematically develop all business operations.
| Q3 | Q3 | Q1–Q3 | Q1–Q3 | ||
|---|---|---|---|---|---|
| EUR million | 2014 | 2013 | 2014 | 2013 | 2013 |
| Net sales | 93.3 | 99.7 | 277.0 | 292.0 | 395.0 |
| EBIT | 5.9 | 4.7 | 10.2 | 6.5 | 12.2 |
| EBIT, % | 6.3 | 4.7 | 3.7 | 2.2 | 3.1 |
| Non-recurring items* | 0.0 | -0.9 | 0.0 | -0.9 | -1.0 |
*Non-recurring items are included in the reported EBIT.
Atria Scandinavia's net sales for July–September totalled EUR 93.3 million (EUR 99.7 million). At comparable exchange rates, net sales fell by 2.0 per cent year-on-year. This decrease was affected by the slow growth of the total market and stronger market position of private labels. EBIT amounted to EUR 5.9 million (EUR 4.7 million). The growth of EBIT was due to better cost-efficiency and the stable raw material prices.
Net sales for January–September totalled EUR 277.0 million (EUR 292.0 million). At comparable exchange rates, net sales fell by 1.1 per cent year-on-year. This decrease was affected by the slow growth of the total market and stronger market position of private labels. EBIT for January–September was EUR 10.2 million (EUR 6.5 million). This positive development is due to more stable raw material prices and improved costefficiency.
The market of the product groups represented by Atria has decreased in the Swedish retail trade from the beginning of the year. The cold cuts market has declined by 4.4 per cent and the cooking sausages market by 0.7 percent (Source: AC Nielsen). The share of private labels in the Swedish retail sector has continued to grow. During the ongoing year, Atria has made significant investments in marketing the Lithells brand.
The international expansion of Atria Concept is progressing well: there are currently more than 4,000 Sibylla sales outlets in all.
| Q3 | Q3 | Q1–Q3 | Q1–Q3 | ||
|---|---|---|---|---|---|
| EUR million | 2014 | 2013 | 2014 | 2013 | 2013 |
| Net sales | 29.2 | 32.0 | 76.5 | 90.8 | 121.5 |
| EBIT | -1.5 | -16.4 | -4.8 | -19.1 | -21.0 |
| EBIT, % | -5.3 | -51.2 | -6.3 | -21.1 | -17.3 |
| Non-recurring items* | 0.0 | -15.4 | 0.0 | -15.4 | -17.4 |
*Non-recurring items are included in the reported EBIT.
Atria Russia's net sales for July–September totalled EUR 29.2 million (EUR 32.0 million). At a comparable exchange rate, net sales grew by 0.6 per cent year-on-year. The weak growth of comparable net sales was due to the decline in consumers' purchasing power and in retail sales, together with the discontinuation of primary production at the end of last year. Inflation in food prices is currently about 10 per cent (Source: Rosstat, Oct 2014). EBIT was EUR -1.5 million (EUR -16.4 million). EBIT for the comparative period includes EUR 15.4 million of non-recurring costs. The prices of meat raw materials continued to rise in July– September. Atria Russia was not able to fully pass on the increased costs to sales prices.
Net sales for January–September amounted to EUR 76.5 million (EUR 90.8 million), representing a drop of EUR 14.3 million. At a comparable exchange rate, net sales fell by EUR 2.9 million year-on-year. The reason for this decrease in comparable net sales was the discontinuation of primary production at the end of last year and the decline in consumers' purchasing power and retail sales. EBIT for January–September was EUR -4.8 million (EUR -19.1 million). EBIT for the comparative period includes EUR 15.4 million of nonrecurring costs. Production cost-efficiency has improved from the previous year. Reduced EBIT was caused by the steep rise in raw material prices, which could not be fully transferred to sales prices.
Russia's economy slowed down strongly in July–September (Source: The World Bank, Oct 2014). Retail sales and consumers' purchasing power have weakened and the market of the product groups represented by Atria has contracted. Russia's import ban on EU pork and the weakening of the rouble since last year have raised the price of pork in Russia by over 50 per cent from the beginning of the year (Source: Emeat). The prices of other types of meat have also taken an upward turn. Atria has adapted its product range to the market situation by launching more inexpensive products.
| Q3 | Q3 | Q1–Q3 | Q1–Q3 | ||
|---|---|---|---|---|---|
| EUR million | 2014 | 2013 | 2014 | 2013 | 2013 |
| Net sales | 9.0 | 8.5 | 26.0 | 25.0 | 32.9 |
| EBIT | 0.1 | 0.3 | -0.2 | -0.1 | 0.1 |
| EBIT, % | 1.3 | 3.6 | -0.6 | -0.2 | 0.2 |
| Non-recurring items* | 0.0 | 0.0 | -0.4 | 0.0 | 0.0 |
*The non-recurring items included in the reported EBIT.
Atria Baltic's net sales for July–September totalled EUR 9.0 million (EUR 8.5 million). EBIT amounted to EUR 0.1 million (EUR 0.3 million). Atria's own brands sold well during the summer barbecue season. EBIT was weakened by tight price competition.
Net sales for January–September totalled EUR 26.0 million (EUR 25.0 million). EBIT for the period was EUR -0.2 million (EUR -0.1 million). EBIT without non-recurring items was EUR 0.2 million (EUR -0.1 million). In June, Atria sold a factory located in Vilnius, Lithuania. The deal resulted in a non-recurring sales loss of EUR 0.4 million. The positive performance was due to better cost-efficiency in production and the improved sales structure.
In September, African swine fever (ASF) was detected in a wild boar in southern Estonia. No restrictions have been placed on pork trade, since production pig farms have been successfully protected from ASF. Due to the case of ASF confirmed in a wild boar, Atria has stepped up disease prevention measures at its production pig farms and tightened the hygiene guidelines for farm workers. These measures have resulted in additional expenses.
In September, Atria discontinued a committed credit facility of EUR 40 million due in September 2017. On 30 September 2014, the Group had undrawn committed credit facilities worth EUR 109.5 million (31 December 2013: EUR 148.2 million). The average maturity of loans and committed credit facilities at the end of the period under review was 2 years 10 months (31 December 2013: 3 years 4 months).
The Group's operating cash flow was EUR 48.9 million (EUR 44.8 million) and cash flow from investments was EUR -54.3 million (EUR -24.1 million). During the review period, the Group's free cash flow (operating cash flow - cash flow from investments) was EUR -5.4 million (EUR 20.7 million). During the review period, Atria acquired Saarioinen Oy's procurement, slaughtering and cutting operations for beef, pork and chicken. The purchase price was EUR 29.2 million. In addition, EUR 4.2 million was paid for producer receivables. The Group's investments during the period totalled EUR 55.3 million (EUR 29.2 million) and net liabilities amounted to EUR 311.5 million (31 December 2013: EUR 305.9 million). The equity ratio was 42.1 per cent (31 December 2013: 42.2 %).
As part of the efficiency improvement programme for the Moscow operations, Atria sold the real estate company in Moscow in October for EUR 12 million. Atria will continue to lease the real estate in Moscow until the end of 2014. The deal will have no impact on the company's performance. In late 2013, Atria launched an efficiency improvement programme in Moscow and decided to discontinue industrial production and the operation of the logistics unit by the end of 2014.
In Sweden, Atria concluded an agreement in October for the sale of the Falbygdens cheese business to Arla Foods AB, with a view to focusing on its core business. The sale includes 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 is about 100. The sale will reduce Atria's annual net sales by approximately EUR 52 million and EBIT by some EUR 3 million. The deal is subject to the approval of the Swedish Competition Authority and Consumer Agency. It is expected to go through in early 2015.
The Group had an average of 4,773 (4,688) employees during the period. Personnel by business area:
| Atria Finland | 2,430 | (2,154) |
|---|---|---|
| Atria Scandinavia | 1,008 | (1,044) |
| Atria Russia | 1,015 | (1,168) |
| Atria Baltic | 320 | ( 322) |
Short-term business risks associated with the Russian business environment have increased. Animal disease risk has increased due to the case of African swine fever detected in a wild boar in Estonia. Otherwise, no significant changes have occurred in Atria Group's short-term business risks compared with the risks described in the financial statements for 2013.
The company expects the 2014 EBIT without non-recurring items to be clearly lower than the previous year's EBIT of EUR 37.0 million. Net sales are expected to grow in 2014.
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. 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 General Meeting authorised the Board of Directors to decide, on one or several occasions, on the acquisition of a maximum of 2,800,000 of the company's own series A shares 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 will 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 shall supersede the authorisation granted by the Annual General Meeting on 26 April 2013 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 2015, 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 12,800,000 new series A shares or on an issue of any series A shares held by the company through a share issue and/or by granting option rights or other special rights entitling holders 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, 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 also includes the right to issue shares in a proportion other than that currently held by the shareholders under the conditions provided by law, the right to issue shares against or without payment and the right to decide on a share issue to the company itself without payment – subject to the provisions of the Limited Liability Companies Act regarding the maximum number of treasury shares to be held by a company.
The authorisation shall supersede the share issue authorisation granted by the Annual General Meeting on 26 April 2013 to the Board of Directors and is valid until the closing of the next Annual General Meeting or until 30 June 2015, whichever is first.
| EUR million | 7-9/14 | 7-9/13 | 1-9/14 | 1-9/13 | 1-12/13 |
|---|---|---|---|---|---|
| Net sales | 364.4 | 358.4 | 1,062.7 | 1,050.4 | 1,411.0 |
| Cost of goods sold | -316.6 | -311.3 | -936.0 | -921.2 | -1,237.1 |
| Gross profit | 47.8 | 47.1 | 126.7 | 129.2 | 173.9 |
| Sales and marketing costs | -22.5 | -23.3 | -73.1 | -73.9 | -98.2 |
| Administration costs | -10.1 | -9.5 | -32.3 | -31.8 | -43.5 |
| Other operating income | 1.3 | 0.8 | 2.6 | 3.0 | 6.1 |
| Other operating expenses | -0.3 | -17.0 | -1.9 | -17.4 | -18.6 |
| EBIT | 16.2 | -1.8 | 22.0 | 9.1 | 19.7 |
| Finance income and costs | -2.8 | -3.6 | -9.6 | -11.2 | -15.2 |
| Income from joint-ventures and associates | 0.3 | 0.4 | 5.4 | 1.9 | 2.3 |
| Profit before tax | 13.6 | -5.0 | 17.7 | -0.2 | 6.9 |
| Income taxes | -3.3 | -10.1 | -4.6 | -13.0 | -11.2 |
| Profit for the period | 10.3 | -15.1 | 13.2 | -13.2 | -4.3 |
| Profit attributable to: | |||||
| Owners of the parent | 9.9 | -15.3 | 12.6 | -13.6 | -4.3 |
| Non-controlling interests | 0.4 | 0.3 | 0.6 | 0.4 | 0.0 |
| Total | 10.3 | -15.1 | 13.2 | -13.2 | -4.3 |
| Basic earnings/share, EUR | 0.35 | -0.54 | 0.45 | -0.48 | -0.15 |
| Diluted earnings/share, EUR | 0.35 | -0.54 | 0.45 | -0.48 | -0.15 |
| EUR million | 7-9/14 | 7-9/13 | 1-9/14 | 1-9/13 | 1-12/13 |
|---|---|---|---|---|---|
| Profit for the period | 10.3 | -15.1 | 13.2 | -13.2 | -4.3 |
| Other comprehensive income after tax: | |||||
| Items that will not be reclassified to profit or loss | |||||
| Actuarial gains/losses on post employment | |||||
| benefit obligations | 0.0 | 0.0 | 0.0 | 0.0 | 0.9 |
| Items that will be reclassified to | |||||
| profit or loss when specific conditions are met | |||||
| Available-for-sale financial assets | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Cash flow hedging | 0.1 | 1.0 | -0.3 | 2.1 | 1.5 |
| Translation differences | -4.5 | -0.4 | -8.2 | -7.4 | -11.6 |
| Total comprehensive income for the period | 5.9 | -14.5 | 4.7 | -18.5 | -13.5 |
| Total comprehensive income attributable to: | |||||
| Owners of the parent | 5.5 | -14.8 | 4.2 | -18.9 | -13.5 |
| Non-controlling interests | 0.4 | 0.3 | 0.6 | 0.4 | 0.0 |
| Total | 5.9 | -14.5 | 4.7 | -18.5 | -13.5 |
| Assets | |||
|---|---|---|---|
| EUR million | 30.9.14 | 30.9.13 | 31.12.13 |
| Non-current assets | |||
| Property, plant and equipment | 420.6 | 444.9 | 433.5 |
| Biological assets | 0.7 | 0.9 | 0.8 |
| Goodwill | 166.4 | 167.4 | 164.8 |
| Other intangible assets | 78.1 | 76.5 | 77.0 |
| Investments in joint-ventures and associates | 19.7 | 13.9 | 15.3 |
| Other financial assets | 1.3 | 2.2 | 2.2 |
| Loans and other receivables | 8.5 | 9.7 | 7.5 |
| Deferred tax assets | 5.1 | 5.3 | 4.9 |
| Total | 700.5 | 720.8 | 705.9 |
| Current assets | |||
| Inventories | 97.7 | 127.0 | 114.1 |
| Biological assets | 3.6 | 5.1 | 3.3 |
| Trade and other receivables | 125.6 | 121.1 | 118.8 |
| Cash and cash equivalents | 3.4 | 17.2 | 28.8 |
| Total | 230.3 | 270.4 | 265.1 |
| Non-current assets held for sale | 43.9 | 2.5 | 7.0 |
| Total assets | 974.8 | 993.6 | 978.1 |
| Equity and liabilities | |||
| EUR million | 30.9.14 | 30.9.13 | 31.12.13 |
| Equity belonging to the shareholders | |||
| of the parent company | 406.5 | 403.1 | 408.5 |
| Non-controlling interest | 3.8 | 3.6 | 3.2 |
| Total equity | 410.3 | 406.8 | 411.7 |
| Non-current liabilities | |||
| Interest-bearing financial liabilities | 208.1 | 222.4 | 215.8 |
| Deferred tax liabilities | 45.0 | 46.5 | 44.7 |
| Pension liabilities | 6.8 | 8.2 | 6.9 |
| Other non-interest-bearing liabilities | 5.8 | 5.1 | 5.7 |
| Total | 265.8 | 282.2 | 273.2 |
| Current liabilities | |||
| Interest-bearing financial liabilities | 106.8 | 138.6 | 118.9 |
| Trade and other payables | 186.2 | 166.1 | 174.3 |
| Total | 293.0 | 304.6 | 293.1 |
| Liabilities of disposal group | |||
| classified as held for sale | 5.8 | ||
| Total liabilities | 564.5 | 586.8 | 566.3 |
12 (17)
| EUR million | of parent company | Equity belonging to the shareholders | Non- cont |
Total equity |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Share | Share | Own | Other | Inv. non |
Trans | Retained | Total | roll ing |
||
| capital | premium | shares | reserves | rest. equity fund |
lation diff. |
earnings | inte rests |
|||
| Equity 1.1.13 | 48.1 | 138.5 | -1.3 | -5.6 | 110.6 | -10.3 | 148.3 | 428.2 | 3.2 | 431.4 |
| Comprehensive income for the period Profit for the period Other comprehensive income |
-13.6 | -13.6 | 0.4 | -13.2 | ||||||
| Available-for-sale financial assets Cash flow hedging |
0.0 2.1 |
0.0 2.1 |
0.0 2.1 |
|||||||
| Acturial gains/losses Translation differences Transactions with owners |
-7.4 | 0.0 | 0.0 -7.4 |
0.0 | 0.0 -7.4 |
|||||
| Distribution of dividends | -6.2 | -6.2 | -6.2 | |||||||
| Equity 30.9.13 | 48.1 | 138.5 | -1.3 | -3.5 | 110.6 | -17.7 | 128.6 | 403.1 | 3.6 | 406.8 |
| Equity 1.1.14 | 48.1 | 138.5 | -1.3 | -4.1 | 110.6 | -21.9 | 138.6 | 408.5 | 3.2 | 411.7 |
| Comprehensive income for the period Profit for the period Other comprehensive |
12.6 | 12.6 | 0.6 | 13.2 | ||||||
| income Available-for-sale financial assets Cash flow hedging |
0.0 -0.3 |
0.0 -0.3 |
0.0 -0.3 |
|||||||
| Acturial gains/losses Translation differences Transactions |
-8.1 | 0.0 -8.1 |
-0.1 | 0.0 -8.2 |
||||||
| with owners Distribution of dividends |
-6.2 | -6.2 | -6.2 | |||||||
| Equity 30.9.14 | 48.1 | 138.5 | -1.3 | -4.4 | 110.6 | -30.0 | 145.0 | 406.5 | 3.8 | 410.3 |
| EUR million | 1-9/14 | 1-9/13 | 1-12/13 |
|---|---|---|---|
| Cash flow from operating activities | |||
| Operating activities | 63.3 | 59.6 | 110.6 |
| Financial items and taxes | -14.4 | -14.7 | -21.7 |
| Net cash flow from operating activities | 48.9 | 44.8 | 88.9 |
| Cash flow from investing activities | |||
| Tangible and intangible assets | -23.9 | -27.4 | -38.7 |
| Acquired operations, net of cash acquired | -32.5 | 0.0 | 0.0 |
| Non-current receivables | 0.1 | -0.1 | 2.1 |
| Other investments | 2.0 | 3.3 | 1.8 |
| Net cash used in investing activities | -54.3 | -24.1 | -34.8 |
| Cash flow from financing activities | |||
| Proceeds from long-term borrowings | 50.0 | 50.0 | |
| Repayments of long-term borrowings | -47.8 | -53.5 | -62.3 |
| Proceeds and repayments of short-term borrowings | 34.0 | 0.0 | -13.0 |
| Dividends paid | -6.2 | -6.2 | -6.2 |
| Net cash used in financing activities | -20.0 | -9.7 | -31.5 |
| Change in liquid funds | -25.4 | 11.0 | 22.6 |
| Cash and cash equivalents at beginning of year | 28.8 | 6.6 | 6.6 |
| Effect of exchange rate changes | 0.0 | -0.3 | -0.3 |
| Cash and cash equivalents at end of year | 3.4 | 17.2 | 28.8 |
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 interim report as in preparing the 2013 annual financial statements. However, as of 1 January 2014, the Group uses new or revised standards and IFRIC interpretations published by the IASB, referred to in the accounting principles of the 2013 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 2013 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 interim report are unaudited.
| EUR million | 7-9/14 | 7-9/13 | 1-9/14 | 1-9/13 | 1-12/13 |
|---|---|---|---|---|---|
| Net sales | |||||
| Atria Finland | 238.5 | 224.8 | 701.9 | 660.8 | 886.8 |
| Atria Scandinavia | 93.3 | 99.7 | 277.0 | 292.0 | 395.0 |
| Atria Russia | 29.2 | 32.0 | 76.5 | 90.8 | 121.5 |
| Atria Baltic | 9.0 | 8.5 | 26.0 | 25.0 | 32.9 |
| Eliminations | -5.7 | -6.5 | -18.8 | -18.3 | -25.1 |
| Total | 364.4 | 358.4 | 1,062.7 | 1,050.4 | 1,411.0 |
| EBIT | |||||
| Atria Finland | 11.8 | 9.8 | 18.0 | 23.8 | 32.9 |
| Atria Scandinavia | 5.9 | 4.7 | 10.2 | 6.5 | 12.2 |
| Atria Russia | -1.5 | -16.4 | -4.8 | -19.1 | -21.0 |
| Atria Baltic | 0.1 | 0.3 | -0.2 | -0.1 | 0.1 |
| Unallocated | -0.1 | -0.2 | -1.3 | -2.0 | -4.5 |
| Total | 16.2 | -1.8 | 22.0 | 9.1 | 19.7 |
| Investments | |||||
| Atria Finland | 2.8 | 5.9 | 43.6 | 19.0 | 26.7 |
| Atria Scandinavia | 2.2 | 1.7 | 7.9 | 7.6 | 10.6 |
| Atria Russia | 1.2 | 0.8 | 3.3 | 2.4 | 3.6 |
| Atria Baltic | 0.2 | 0.1 | 0.5 | 0.2 | 0.2 |
| Total | 6.4 | 8.5 | 55.3 | 29.2 | 41.1 |
| Depreciation and write-offs | |||||
| Atria Finland | 7.0 | 6.3 | 20.9 | 19.6 | 25.9 |
| Atria Scandinavia | 2.7 | 2.9 | 8.5 | 9.1 | 12.9 |
| Atria Russia | 1.8 | 16.6 | 5.4 | 21.6 | 23.2 |
| Atria Baltic | 0.6 | 0.6 | 1.8 | 1.9 | 2.5 |
| Total | 12.2 | 26.4 | 36.6 | 52.1 | 64.4 |
Fair value hierarcy:
EUR milloin
| Balance sheet items | 30.9.14 | Level 1 | Level 2 | Level 3 |
|---|---|---|---|---|
| Non-current assets | ||||
| Financial assets available for sale | 1.3 | 0.2 | 1.1 | |
| Current assets | ||||
| Derivative financial instruments | 0.1 | 0.1 | ||
| Total | 1.4 | 0.2 | 0.1 | 1.1 |
| Non-current liabilities | ||||
| Derivative financial instruments | 5.8 | 5.8 | ||
| Current liabilities | ||||
| Derivative financial instruments | 1.0 | 1.0 | ||
| Total | 6.8 | 0.0 | 6.8 | 0.0 |
| Balance sheet items | 31.12.13 | Level 1 | Level 2 | Level 3 |
| Non-current assets | ||||
| Financial assets available for sale | 2.2 | 0.2 | 2.0 | |
| Current assets | ||||
| Derivative financial instruments | 0.5 | 0.5 | ||
| Total | 2.7 | 0.2 | 0.5 | 2.0 |
| Non-current liabilities | ||||
| Derivative financial instruments | 5.7 | 5.7 | ||
| Current liabilities | ||||
| Derivative financial instruments | 1.4 | 1.4 | ||
| Total | 7.1 | 0.0 | 7.1 | 0.0 |
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.
| Unlisted shares | 30.9.14 | 31.12.13 |
|---|---|---|
| Opening balance | 2.0 | 1.6 |
| Purchases | 0.4 | |
| Decreases | -0.9 | |
| Closing balance | 1.1 | 2.0 |
Fair values of financial instruments do not deviate significantly from balance sheet values.
| milj. EUR | 30.9.14 | 30.9.13 | 31.12.13 |
|---|---|---|---|
| Assets held for sale: | |||
| Scandinavia | 38.6 | 1.4 | |
| Russia | 5.4 | 5.9 | |
| Baltic | 1.1 | 1.1 | |
| Total | 43.9 | 2.5 | 7.0 |
| Liabilities of disposal group classified as held for sale: | |||
| Scandinavia | 5.8 |
In May Atria sold factory located in Lithuania for EUR 0.8 million. The deal generated a sales loss of EUR 0.4 million, which is included in Atria Baltic´s other operating expenses.
In September Atria decided to sell the Falbygdens cheese business in Sweden. EUR 15.3 million in noncurrent assets and EUR 23.3 million in current assets related to the business were classified as assets held for sale. Liabilities related to the business amount to EUR 5.8 million.
| EUR million | 30.9.14 | 30.9.13 | 31.12.13 |
|---|---|---|---|
| Debts with mortgages or other collateral | |||
| given as security | |||
| Loans from financial institutions | 2.7 | 2.8 | 2.8 |
| Pension fund loans | 5.6 | 5.7 | 5.6 |
| Total | 8.3 | 8.5 | 8.4 |
| Mortgages and other securities given as | |||
| comprehensive security | |||
| Real estate mortgages | 3.8 | 4.0 | 4.0 |
| Corporate mortgages | 1.3 | 1.4 | 1.4 |
| Total | 5.2 | 5.4 | 5.3 |
| Guarantee engagements not included in the balance sheet | |||
| Guarantees | 0.4 | 0.6 | 0.6 |
| RELATED PARTY TRANSACTIONS | |||
| milj. EUR | |||
| The following transactions were completed with related parties: |
|||
| 1-9/14 | 1-9/13 | 1-12/13 | |
| Sales of goods and services | 6.4 | 6.3 | 7.7 |
| Purchases of goods and services | 66.3 | 62.5 | 84.3 |
| Sale of shares | 1.5 | ||
| 30.9.14 | 30.9.13 | 31.12.13 | |
| Receivables | 2.2 | 1.5 | 1.1 |
| Liabilities | 7.0 | 4.8 | 7.4 |
On 21 January 2014, the Finnish Competition and Consumer Authority announced its approval of Atria's acquisition of Saarioinen Oy's procurement, slaughtering and cutting operations for beef, pork and chicken. In conjunction with the deal, Atria and Saarioinen signed an agreement concerning meat deliveries from Atria to Saarioinen.
The operations covered by the deal employ about 400 people on average. As a result of the deal, Atria's net sales are projected to grow by around EUR 70 million per year. The purchase price was EUR 29.2 million. In addition, EUR 4.2 million was paid for producer receivables. The acquisition had no material effect on the Group's key figures.
The deal consolidates Atria's position as a processing company of domestic meat and complements Atria's existing operations and product range. A long-term cooperation agreement for meat deliveries to Saarioinen will increase the efficiency of production operations. The acquisition raised the capacity of the growing poultry operations. The operations were consolidated into Atria as of 1 February 2014.
| Sahalahden Broiler Oy | Fair value | ||
|---|---|---|---|
| Slaughtering and cutting operations | used in the | ||
| for beef and pork in Jyväskylä | acquisition | ||
| Property, plant and equipment | 8.2 | ||
| Intangible assets | |||
| Contracts of the operations | 9.0 | ||
| Brands | 0.9 | ||
| Goodwill | 11.5 | ||
| Other intangible assets | 0.1 | ||
| Inventories | 0.4 | ||
| Current receivables | 7.5 | ||
| Cash in hand and at bank | 0.9 | ||
| Total assets | 38.4 | ||
| Deferred tax liabilities | 2.5 | ||
| Current liabilities | 2.4 | ||
| Total liabilities | 4.9 | ||
| Net assets | 33.5 | ||
| Purchase price | 33.5 | ||
| Effect of the acquisition on cash flow | 32.5 |
The calculation has been updated since the value of acquired assets and hence the purchase price have been specified. The calculation is preliminary.
ATRIA PLC Board of Directors
For more information, please contact Juha Gröhn, CEO, Atria Plc, tel. +358 400 684 224.
DISTRIBUTION Nasdaq OMX Helsinki Ltd Major media www.atriagroup.com
The Interim Report Release will be mailed to you upon request and is also available on our Web site www.atriagroup.com.
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