Business Risks Q4/2024

Atria Group’s business, net sales or results can be affected by several uncertainties. Atria describes business risks and risk management more extensively in the 2024 Board of Directors’ Report, which will be published during week 10.

 

Global geopolitical and general economic instability affects consumers’ purchasing decisions. Market rates started to decrease during the second half of the year, but this has not yet had a significant impact on consumer demand. The 1.5 percentage point increase in the general VAT rate implemented in Finland in September has pushed up consumer prices.

 

In Finland, the collective bargaining situation in the spring may cause additional industrial action that may have financial effects.

 

The national nutrition recommendations published in the autumn of 2024 have an impact on consumers’ eating habits. The aim of the new nutritional recommendations is to reduce the consumption of, among other things, red meat and meat products. Atria addresses the nutrition recommendations in its research and development.

 

The risk associated with food exports increased when the European Commission imposed increased tariffs on imports of electric cars from China. As a countermeasure, China stated that it would either raise tariffs on European food imports or ban imports altogether. Although China had not taken any countermeasures by the end of 2024, the associated risk remains.

 

In line with its risk management policy, Atria has protected itself against the risk of damage by insuring those risks outside the Group. In the event of a major accident, Atria’s deductible towards the damage costs will be higher than before. The plants have invested more in risk management measures and business continuity plans and have raised their level of safety.

 

Preparing for cybercrime and information system disruptions is an ongoing activity. Systematic monitoring and cybersecurity improvements aim to ensure a rapid response to any incidents.

 

Atria is actively monitoring the animal disease situation in Europe, as there is a risk of diseases spreading to Atria’s operating countries. Atria has protective measures in place at its own production plants and on its contractual farms.