CEO Juha Gröhn 30 October, 2014
30 Oct, 2014 1
Atria Group
1 January – 30 September, 2014
| EUR million |
Q3
2014 |
Q3
2013 |
Q1-Q3
2014 |
Q1-Q3
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, € |
0.35 |
-0.54 |
0.45 |
-0.48 |
-0.15 |
| Extraordinary items* |
0.6 |
-16.3 |
-0.6 |
-15.2 |
-17.3 |
* Extraordinary items are included in the reported figures.
- Atria Group's third-quarter results developed positively despite difficult market conditions.
- Net sales for July–September grew by EUR 6.0 million year-on-year.
- EBIT for July–September without non-recurring items was EUR 15.6 million (EUR 14.5 million).
- Net sales for January–September grew by EUR 12.3 million year-on-year.
- EBIT for January–September without non-recurring items amounted to EUR 22.6 million (EUR 24.4 million).
Atria Finland
1 January – 30 September, 2014
|
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 |
| Extraordinary items* |
0.6 |
0.0 |
-0.2 |
1.1 |
1.1 |
*Extraordinary items are included in the reported figures.
- Atria Finland's net sales for July–September grew by EUR 13.7 million year-on-year.
- EBIT for July–September 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.
- The increase of the net sales for January–September 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 decreased 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.
30 Oct, 2014 3
30.10.2014 4
Atria Scandinavia
1 January – 30 September, 2014
| EUR million |
Q3
2014 |
Q3
2013 |
Q1-Q3
2014 |
Q1-Q3
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 |
| Extraordinary items* |
0.0 |
-0.9 |
0.0 |
-0.9 |
-1.0 |
*Extraordinary items are included in the reported figures.
- Atria Scandinavia's net sales for July–September fell by 2.0 per cent year-onyear at comparable exchange rates.
- EBIT for July–September amounted to EUR 5.9 million (EUR 4.7 million).
- At comparable exchange rates, net sales for January–September 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.
- The positive development of EBIT is due to more stable raw material prices and improved cost-efficiency.
Atria Russia
1 January – 30 September, 2014
| EUR million |
Q3
2014 |
Q3
2013 |
Q1-Q3
2014 |
Q1-Q3
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 |
| Extraordinary items* |
0.0 |
-15.4 |
0.0 |
-15.4 |
-17.4 |
*Extraordinary items are included in the reported figures.
- Atria Russia's net sales for July–September grew by 0.6 per cent year-on-year at a comparable exchange rate. 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.
- Comparable EBIT for July–September was EUR -1,5 million (EUR -0,9 million).
- Net sales for January–September decreased by 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.
- Comparable EBIT for January–September was EUR -4.8 million (EUR -3,7 million).
-
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.
- Atria has adapted its product range to the market situation by launching more inexpensive products.
- 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.
30.10.2014 8
Atria Baltic
1 January – 30 September, 2014
| EUR million |
Q3
2014 |
Q3
2013 |
Q1-Q3
2014 |
Q1-Q3
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 |
| Extraordinary items* |
0.0 |
0.0 |
-0.4 |
0.0 |
0.0 |
*Extraordinary items are included in the reported figures.
- Atria Baltic's net sales for July–September totalled EUR 9.0 million.
- Atria's own brands sold well during the summer barbecue season.
- EBIT amounted to EUR 0.1 million (EUR 0.3 million). EBIT was weakened by tight price competition.
- Net sales for January–September totalled EUR 26.0 million. EBIT for the period was EUR -0.2 million. ). In June, Atria sold a factory located in Vilnius, Lithuania. The deal resulted in a nonrecurring 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.
30 Oct, 2014 9
Atria Group Net Sales cumulative, quarterly
30 Oct, 2014 11
Atria Group Financial indicators
| € Million |
30.9.2014 |
30.9.2013 |
2013 |
| 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 |
| Gross investments, % of net sales |
5.2 |
2.8 |
2.9 |
| Average number of employees |
4,773 |
4,688 |
4,669 |
• 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).
30 Oct, 2014 13
Atria Group Income Statement
|
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 |
| 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 |
| % of Net sales |
13.1 |
13.1 |
11.9 |
12.3 |
12.3 |
| Other income |
1.3 |
0.8 |
2.6 |
3.0 |
6.1 |
| Other expenses |
-32.9 |
-49.7 |
-107.3 |
-123.2 |
-160.3 |
| EBIT |
16.2 |
-1.8 |
22.0 |
9.1 |
19.7 |
| % of Net sales |
4.4 |
-0.5 |
2.1 |
0.9 |
1.4 |
| Financial income and expenses |
-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 TAXES |
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 |
| % of Net sales |
2.8 |
-4.2 |
1.2 |
-1.3 |
-0.3 |
| Earnings/share, € |
0.35 |
-0.54 |
0.45 |
-0.48 |
-0.15 |
Atria Group Cash flow statement
|
Q1-Q3 |
Q1-Q3 |
|
| € Million |
2014 |
2013 |
2013 |
| Cash flow from 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 |
Investing activities, tangible and
intangible assets |
-23.9 |
-27.4 |
-38.7 |
| Acquired operations |
-32.5 |
|
|
| Change in non-current receivables |
0.1 |
-0.1 |
2.1 |
| Investments |
2.0 |
3.3 |
1.8 |
| Net cash used in investing activities |
-54.3 |
-24.1 |
-34.8 |
| FREE CASH FLOW |
-5.4 |
20.7 |
54.1 |
Proceeds from non-current
borrowings |
|
50.0 |
50.0 |
| Repayments of non-current loans |
-47.8 |
-53.5 |
-62.3 |
| Changes in current loans |
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 |
30 Oct, 2014 15
Atria Group Gross investments
Atria Group Net debts
Atria Group Equity ratio & Net gearing
Events occurring after the period
- 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.
Short-term business risks
- 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.
Outlook for the future
- 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.