Atria Plc, financial statement release, 13 February 2025, 8.00 am

Financial Statement Release of Atria Plc, 1 January–31 December 2024

Atria records all-time high adjusted EBIT – all business areas improved their full-year earnings

October–December 2024

• The Group’s net sales increased to EUR 445.3 million (EUR 438.1 million). Atria Sweden’s net sales grew by EUR 8.8 million year-on-year. Atria Finland's net sales decreased by EUR 2.6 million, mainly due to lower feed sales prices.
• The consolidated adjusted EBIT was EUR 13.2 million (EUR 9.4 million), or 3.0% (2.1%) of net sales.
• Atria Finland’s adjusted EBIT was EUR 12.9 million, up by EUR 3.4 million year-on-year. Adjusted EBIT for the comparison period was weighed down by additional costs related to the commissioning of the poultry plant. The savings and efficiency measures carried out during 2024 strengthened EBIT.
• Atria Sweden’s adjusted EBIT was higher than in the corresponding period of the previous year as a result of increased sales to retail and Foodservice customers. The efficiency measures taken contributed to the improved profitability of Atria Sweden.
• Atria Denmark & Estonia’s adjusted EBIT was at the level of the comparison period.
• The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.69 (EUR 0.60) per share be distributed for the 2024 financial period.

January–December 2024

• Consolidated net sales totalled EUR 1,755.4 million (EUR 1,752.7 million). Atria Sweden’s sales to retail and Foodservice customers grew. The acquisition of Gooh! also strengthened the net sales of Atria Sweden. Lower sales prices in the feed business and the decrease in Foodservice sales weighed on Atria Finland’s net sales. Atria Denmark & Estonia’s net sales increased.
• The consolidated adjusted EBIT was EUR 65.4 million (EUR 49.6 million), or 3.7% (2.8%) of net sales.
• Atria recorded all-time high adjusted EBIT, showing an increase of EUR 15.8 million from the previous year. All business areas improved their results. A favourable sales structure, a successful barbecue season, and the improved efficiency of both the operations and the organisation had a positive impact on performance. Most of the profit improvement came from the positive development of Atria Sweden’s EBIT.
• Atria Sweden’s EBIT grew significantly during the review period. Adjusted EBIT increased by EUR 10.2 million year-on-year. Adjusted EBIT for the comparison period was weighed down by additional costs related to the closure of the Malmö plant.
• Atria Finland’s adjusted EBIT increased to EUR 60.4 million, up by EUR 4.3 million. Adjusted EBIT for the comparison period was weighed down by additional costs related to the commissioning of the Nurmo poultry plant.
• Atria Denmark & Estonia’s adjusted EBIT amounted to EUR 5.3 million, showing an increase of EUR 2.3 million.
• Atria’s new poultry plant has been fully commissioned, and production from the Sahalahti plant has been transferred to Nurmo.
• Atria acquired the Swedish Gooh! convenience food business in May. The integration of the business with Atria Sweden was completed in the autumn.
• The adjusted return on equity exceeded the long-term target (10%) and was 10.1%.
• The Group’s free cash flow during the reporting period was EUR 41.6 million (EUR -12.5 million). Cash flow from investments was EUR 50.8 million (EUR 105.7 million).

CEO, Kai Gyllström

“2024 was a successful year for Atria in many ways, and we can be very satisfied with our financial performance. In 2024, Atria Group achieved record-high results, with adjusted EBIT of EUR 65.4 million. This showed an improvement of EUR 15.8 million from the previous year. Atria Sweden in particular improved its adjusted EBIT: in January–December, the improvement compared to the comparison period was EUR 10.2 million. Atria Finland increased its adjusted earnings by EUR 4.3 million, and Atria Denmark & Estonia by EUR 2.3 million, from the previous year.

Atria Sweden’s improvement came especially from higher net sales, the centralisation of production and the streamlining of the organisational structure. Atria Finland’s good performance is based on a successful barbecue season, the efficiency measures carried out, the favourable sales structure and the smooth commissioning of the new poultry plant. Atria Estonia’s profitability improved, driven by the increase in net sales and the strengthening of its market position. Earnings were lower in Denmark.

Atria’s net sales in January–December were slightly above the previous year’s level. Atria Sweden’s net sales grew by almost EUR 30 million as a result of increased sales to retail and Foodservice customers. The Gooh! convenience food business, also acquired in the spring, strengthened Atria’s net sales. Atria Denmark & Estonia’s net sales increased. In Finland, the decrease in Foodservice sales and lower feed prices led to a decrease in the net sales of Atria Finland as a whole. The divestment of Best-In Oy also reduced Atria Finland’s net sales.

Atria Finland’s most important season of the year – the barbecue season – was a success. In the summer period, Atria was the market leader in the retail market for barbecue products with a market share of 33%. The new poultry plant in Nurmo has significantly improved the efficiency of our production. The start of exports of poultry products to China was confirmed in the autumn. The first deliveries of chicken meat to China started at the end of December. Atria now exports several containers of pork and chicken meat to China each week. 

In 2024, Atria Sweden’s businesses showed positive development. Net sales and EBIT increased significantly, mainly thanks to higher sales to Foodservice and retail customers. The closure of the Malmö plant in Sweden in 2023, the centralisation of production at the Sköllersta plant and changes in the organisational structure have improved Atria Sweden’s profitability. The integration of the Gooh! convenience food business acquired in the spring was completed in the autumn.

Atria continued its growth in Estonia. Sales volumes to retail customers increased, and net sales strengthened, compared to the previous year. The increase in net sales is based on Atria’s strong Maks & Moorits brand and successful marketing measures in the retail trade channel. In 2024, Maks & Moorits was the most sustainable and popular meat brand in Estonia.

Atria Denmark’s main brand 3-Stjernet is in a strong second place in the Danish retail market in the cold cuts product category. We improved the efficiency of our operations to improve profitability. We also invested in a new production process for whole meat cold cuts, which enables us to strengthen our position in the cold cuts market.

Consolidated free cash flow amounted to EUR 41.6 million. The lower investment level improved free cash flow.

Our most important environmental goal is to reduce greenhouse gas emissions throughout the Atria food chain. We are committed to reducing the greenhouse gas emissions of our operations by 42% by 2030 from our 2020 levels. The reduction target for Scope 3 emissions is 20% per tonne of meat processed by 2030. During 2024, we promoted several projects to reduce emissions from our production. Such projects include participation in a biogas plant project and the use of electric boilers in heat generation in Nurmo. Regarding social responsibility goals, safety at work and the wellbeing of our employees are of paramount importance, and this work continued in all business areas. The measures taken are reflected in the improved results of employee satisfaction surveys.”

October-December 2024

Atria Group’s net sales for the October–December period were EUR 445.3 million (EUR 438.1 million). The consolidated adjusted EBIT was EUR 13.2 million (EUR 9.4 million), or 3.0% (2.1%) of net sales.

Atria Sweden’s sales to retail and Foodservice customers increased during the review period. The acquisition of Gooh! in May also strengthened Atria Sweden’s net sales. Atria Finland’s net sales for October–December decreased slightly from the previous year, mainly due to lower sales prices in the feed business. Foodservice sales volumes were lower than in the previous year. The first deliveries of chicken meat from Finland to China started at the end of December. For Atria Denmark and Estonia, net sales remained roughly at the same level year-on-year.

Consolidated adjusted EBIT was EUR 13.2 million (EUR 9.4 million). Atria Finland’s adjusted EBIT was EUR 3.4 million higher than in the corresponding period last year. Adjusted EBIT for the comparison period was weighed down by additional costs related to the commissioning of the poultry plant. Atria Sweden’s adjusted EBIT was EUR 0.8 million higher than in the comparison period as a result of increased sales to retail and Foodservice customers, production restructuring, and a more efficient organisational structure. At Atria Estonia, earnings improved as a result of higher sales to retail customers. The weakening of sales volumes weighed on Atria Denmark’s net sales.

Atria Finland’s net sales for the October–December period were EUR 330.9 million (EUR 333.5 million). The decrease in net sales was mainly the result of lower sales prices in the feed business than in the previous year. Foodservice sales volumes decreased year-on-year. Net sales from exports were higher than in the previous year, and export growth was volume-driven. The first deliveries of chicken meat to China started at the end of December.

Adjusted EBIT was EUR 12.9 million (EUR 9.4 million). It was EUR 3.4 million higher than in the corresponding period last year. EBIT for the comparison period was weighed down by additional costs related to the commissioning of the poultry plant. Energy and water costs were at the same level as in the corresponding period of the previous year.

Atria Sweden’s October–December net sales were EUR 89.3 million (EUR 80.4 million). Net sales grew by EUR 8.8 million year-on-year. Sales to retail and Foodservice customers increased positively during the review period. The acquisition of Gooh! in May also strengthened Atria Sweden’s net sales during the period. Adjusted EBIT was EUR 0.5 million (EUR 0.3 million). EBIT improved as a result of higher net sales, production restructuring and a more efficient organisational structure. Energy prices were higher than in the same period last year.

Atria Denmark & Estonia’s net sales in October–December were EUR 30.7 million (EUR 30.6 million). Adjusted EBIT was EUR 1.2 million (EUR 1.3 million). Atria Estonia’s sales volumes and market shares continued to strengthen in October–December. Atria Estonia’s results improved, driven by increased net sales and the improved profitability of primary production. The weakening of Atria Denmark’s sales volumes to retail and Foodservice customers weighed on net sales and EBIT. Atria’s brand products lost part of their market share in Danish retail trade.

January–December 2024

Atria Group’s net sales in January–December were EUR 1,755.4 million (EUR 1,752.7 million). Consolidated adjusted EBIT was EUR 65.4 million (EUR 49.6 million), or 3.7% (2.8%). Consolidated EBIT was EUR 66.4 million (EUR 0.4 million).

Net sales increased by EUR 2.7 million year-on-year. Atria Sweden’s net sales increased by EUR 29.7 million. Atria Sweden’s sales to retail and Foodservice customers grew. The acquisition of Gooh! also strengthened the net sales of Atria Sweden. Atria Finland’s net sales decreased by EUR 30.3 million, mainly due to lower sales prices in the feed business and a decline in Foodservice sales. Atria Denmark & Estonia’s net sales increased by EUR 3.6 million, driven by good sales development at Atria Estonia.

The consolidated adjusted EBIT of EUR 65.4 million was Atria’s highest ever and showed an increase of EUR 15.8 million from the previous year. The positive development of EBIT resulted especially from the improved performance of Atria Sweden. Atria Sweden’s adjusted EBIT grew by EUR 10.2 million from the previous year. The increase in net sales strengthened Atria Sweden's results. The centralisation of Atria Sweden’s production at the Sköllersta plant and the streamlining of the organisational structure contributed to improved profitability. Atria Finland’s adjusted EBIT improved by EUR 4.3 million in January–December. EBIT includes a non-recurring gain of EUR 1.0 million from the sale of fixed assets related to the closure of the Sahalahti plant and the reversal of a provision. The improvement in Atria Finland’s results is based on a good sales structure in the second and third quarters, the savings and efficiency measures implemented during the reporting period, as well as the closure of the Sahalahti plant. Start-up costs for the new poultry plant were allocated to the first quarter. Atria Denmark & Estonia’s adjusted EBIT was EUR 2.3 million higher than in the comparison period.

Atria’s acquisition of the entire share capital of the Swedish convenience food company Gooh! was completed in May. All 65 employees transferred to Atria. With a market share of around 25 per cent, Gooh! is the market leader in the fresh microwaveable meals segment of Swedish retail trade. Gooh!'s annual net sales are approximately EUR 16 million and the business is profitable. Gooh! products are sold in all major grocery chains and vending machines in Sweden. The integration of the Gooh! convenience food business into Atria Sweden’s operations was completed at the end of September. 

In April, Atria acquired 10% of Kaivon Liha Kaunismaa Oy (Well Beef Ltd) and now owns 100% of its shares. In 2016, Atria acquired 70% of the shares in Kaivon Liha and 20% in 2021.

In January, Atria sold 70% of its shares in its subsidiary Best-In Oy to SaVe Logistiikka Oy. Best-In Oy manufactures pet food, and its annual net sales are roughly EUR 5 million. Best-In Oy’s production facility is located in Kelloniemi, Kuopio, and the company has 17 employees. Pet food production is not one of Atria’s strategic priorities.

Lise Østergaard (BSc Economics and Business Administration) was appointed as a member of Atria Group’s Management Team as of 1 January 2024.

Jennifer Paatelainen, MSc (Econ.), was appointed as Atria Group’s EVP Human Resources and member of Atria Group’s Management Team as of 8 January 2024.

Meelis Laande (MBA) started as the CEO of Atria Estonia and a member of Atria Group’s Management Team as of 1 April 2024.

Atria Finland’s January–December net sales amounted to EUR 1,295.6 million (EUR 1,325.9 million). The decrease in net sales was due to lower sales prices in the feed business and the decrease in Foodservice sales. The comparison period included the net sales of Best-In Oy’s pet food business. The company was divested in January 2024. Adjusted EBIT was EUR 60.4 million (EUR 56.1 million). EBIT includes a non-recurring gain of EUR 1.0 million from the sale of fixed assets related to the closure of the Sahalahti plant and the reversal of a provision. The favourable sales structure, combined with the savings and efficiency measures implemented during 2024, and the closure of the Sahalahti plant increased earnings. Regarding costs, the depreciation of plant, property and equipment, and energy and water costs in particular, were higher than in the comparison period.

Atria Sweden’s January–December net sales amounted to EUR 360.2 million (EUR 330.5 million). Net sales grew by EUR 29.7 million year-on-year. Sales to retail and Foodservice customers increased. The completion of the Gooh! acquisition in May also increased net sales.  Adjusted EBIT was EUR 4.5 million (EUR 5.6 million). Growth in net sales strengthened the results. The centralisation of production at the Sköllersta plant, the closure of the Malmö plant in 2023, and the streamlining of the organisational structure are now reflected in improved profitability. EBIT for the comparison period includes costs related to the closure of the Malmö plant and the concentration of production at the Sköllersta plant.

Atria Denmark & Estonia’s January–December net sales amounted to EUR 125.9 million (EUR 122.2 million). Adjusted EBIT was EUR 5.3 million (EUR 2.9 million). The increase in net sales was the result of the continued good development of Atria Estonia’s sales volumes. At Atria Estonia, earnings improved as a result of higher sales to retail customers. The most significant increase in sales came from cold cuts and sausages. At Atria Denmark, the decrease in sales volumes and the additional costs arising from the production efficiency programme had a negative impact on EBIT. Exports grew from the previous year.

Sustainability: aiming for a carbon-neutral food chain

A carbon neutral food chain is the most important goal of Atria’s sustainability work. The Science Based Targets Initiative (SBTi) has officially approved Atria’s emissions reduction targets. The targets are based on the Paris Climate Agreement and aim to limit global warming to 1.5 degrees Celsius globally. In the targets approved by SBTi, Atria commits to reducing greenhouse gas emissions from its own operations (Scopes 1 and 2) by 42% by 2030 from 2020 levels. The reduction target for Scope 3 emissions is 20% per tonne of processed meat by 2030.

Atria’s energy infrastructure partner will implement an investment consisting of two electric boilers and a 100 MWh thermal battery at Atria’s Nurmo production plant. The investment will significantly reduce the emissions of heat production at Atria’s plant in Nurmo. The combined output of the electric boilers is 20 MW. The total value of the project is approximately EUR 7 million. NextGenerationEU funding has been granted for the project. The project promotes Atria’s goal of a carbon neutral food chain and significantly reduces emissions from Atria’s operations. The new electric boilers and the thermal battery to store energy will be introduced at the Nurmo production plant at the end of 2025, which will enable more environmentally friendly heat generation.

Animal welfare is important for Atria. Atria production chain’s animal welfare policy was created to promote the welfare of farm animals. Proactive measures are taken in the production chain every day. Extensive care and good hygiene ensure animal health. Good practices are advanced throughout the production chain. Finland also has proactive animal health systems (e.g. Naseva, Sikava) to ensure the best possible conditions and care for animals.

Regarding social responsibility, employees’ health and safety at work, equality, inclusion and issues related to the predictability of the employment relationship are positive factors for wellbeing at work. The measures taken in 2024 to improve the personnel’s wellbeing at work are reflected in the improved results of employee satisfaction surveys.

Atria’s new innovation programme Atria Growth Engine (AGE) has brought together 26 Atria employees to innovate the business of the future. Through cooperation between Atria employees, the AGE programme addresses the company’s core strategy issues and produces new perspectives to support Atria’s development. The AGE Innovation Programme also aims to encourage innovative new thinking among Atria experts and increase cross-border cooperation with colleagues.

Product safety is Atria's most important area of social responsibility in relation to consumers. Pathogens, foreign objects and allergens are serious product safety risks. This is why product safety is always monitored and ensured throughout the production process. Product safety is measured by the number of product recalls, for example. During 2024, there were five recalls in Atria Group as a whole.

Future outlook and guidance

Atria Group’s adjusted EBIT in 2025 is expected to be lower than in the previous year (EUR 65.4 million).

After the record year of financial performance, supported by the significant efficiency and expansion investments in 2023–2024, Atria is also in a good position to perform well in 2025. Atria’s good market position, strong brands, good customer relationships and reliable industrial processes provide good conditions for business stability.

However, the ongoing unstable global trade and geopolitical situation and its impact on consumer confidence and market growth weaken the outlook for 2025. Similarly, updated nutritional recommendations may weaken the sales of meat products. In addition, labor market negotiations in Finland and the animal disease situation in Europe may have a negative impact on the company's results in 2025.

The Board of Directors’ proposal for dividends in 2024

The Board of Directors proposes that a dividend of EUR 0.69 (Year 2023: EUR 0.30 dividend/share + 0.30 return of capital) be paid for each share for the 2024 financial period.

Disclosure

Atria Plc complies with the disclosure procedure in accordance with standard 5.2b of the Financial Supervisory Authority and publishes its financial statement release for 1 January to 31 December 2024 as an attachment to this stock exchange release. The full release is available on the company's website at www.atria.com.

Publication of the interim report

Atria Plc's CEO Kai Gyllström will present the company's financial statement release in a webcast today, 13th of February  2025 at 1 - 2 pm. The webcast is available on Atria's website at www.atria.com/sijoittajat/ in Finnish language. During the webcast, you can ask questions in writing via chat. The recording of the press conference and the presentation material of the event will be available during the same day at www.atria.com/sijoittajat/taloustieto/osavuosikatsaus/.

ATRIA PLC
Board of Directors

For more information, please contact: Kai Gyllström, CEO, Atria Plc. Contacts and interview requests via Communications Manager Marja Latvatalo, e-mail: marja.latvatalo@atria.com, tel. +358 400 777 874.
 

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The financial statement release is available on our website at www.atria.com.