Interim Report of Atria Plc 1 January - 30 Septemb

Seinäjoki, Finland, 2013-11-01 07:00 CET (GLOBE NEWSWIRE) -- Atria Plc  Company Announcement 1 November 2013 at 8.00 am INTERIM REPORT OF ATRIA PLC 1 JANUARY –30 SEPTEMBER  2013 Arrangements in Atria Russia weighed down performance 1 January – 30 September 2013 - Atria Russia will discontinue primary pork production and its Moscow-based production operations. As a result, it recognised impairments totalling EUR 23.0 million. - Atria lowered its EBIT forecast due to the non-recurring costs of its Russian business operations. - Consolidated EBIT was EUR 9.1 million (EUR 22.4 million) and EBIT without non-recurring items amounted to EUR 24.4 million (EUR 22.4 million). - Consolidated net sales totalled EUR 1,050.4 million (EUR 982.9 million). - Atria Finland's net sales grew by EUR 62.7 million, totalling EUR 660.8 million (EUR 598.1 million). - Atria Finland's EBIT was EUR 23.8 million (EUR 25.5 million) and EBIT without non-recurring items amounted to EUR 22.7 million (EUR 25.5 million). - Atria Scandinavia's EBIT was EUR 6.5 million (EUR 6.3 million) and EBIT without non-recurring items amounted to EUR 7.4 million (EUR 6.3 million). - Atria Russia's EBIT was EUR -19.1 million (EUR -4.7 million) and EBIT without non-recurring items amounted to EUR -3.7 million (EUR -4.7 million). - Atria Baltic's EBIT was EUR -0.1 million (EUR -1.3 million). - The Group's equity ratio was 40.9 per cent (31 December 2012: 41.5%) 1 July – 30 September 2013 - Atria Russia will discontinue primary pork production and its Moscow-based production operations. As a result, it recognised impairments totalling EUR 23.0 million. - Atria lowered its EBIT forecast due to the non-recurring costs of its Russian business operations. - Consolidated net sales totalled EUR 358.4 million (EUR 341.1 million) and EBIT was EUR -1.8 million (EUR 16.6 million). EBIT without non-recurring costs amounted to EUR 14.6 million (EUR 16.6 million). - Atria Finland's net sales grew by EUR 19.7 million, totalling EUR 224.8 million (EUR 205.1 million). - Atria Scandinavia's EBIT was EUR 4.7 million (EUR 4.4 million). EBIT without non-recurring costs amounted to EUR 5.6 million (EUR 4.4 million). - Atria Russia's EBIT was EUR -16.4 million (EUR 0.6 million). EBIT without non-recurring costs amounted to EUR -0.9 million (EUR 0.6 million). - Atria Baltic's EBIT was positive EUR 0.3 million (EUR -0.4 million).

*Non-recurring items which are included in the reported EBIT. Review 1 July – 30 September 2013 Atria Group's net sales for July–September totalled EUR 358.4 million (EUR 341.1 million), up by EUR 17.3 million year-on-year. During the period under review, Atria recognised EUR 23.0 million of non-recurring costs for its Russian business operations. Of this, EUR 15.4 million was allocated to EBIT. Furthermore, an impairment of EUR 0.9 million was recognised for the Scandinavian business operations due to an asset held for sale. Consolidated EBIT weakened by EUR 18.4 million compared to the previous year, standing at EUR -1.8 million (EUR 16.6 million). EBIT without non-recurring costs decreased slightly to EUR 14.6 million (EUR 16.6 million). Atria Finland's net sales for July–September totalled EUR 224.8 million (EUR 205.1 million), up by EUR 19.7 million year-on-year. EBIT was EUR 9.8 million (EUR 12.5 million), down by EUR 2.7 million year-on-year. During the period under review, net sales grew in all sales channels. Fiercer price competition in retail products at the end of the quarter, low export prices and the high prices of meat raw materials weighed down the EBIT. Atria Scandinavia's net sales for July–September totalled EUR 99.7 million (EUR 100.1 million), down by EUR 0.4 million year-on-year. In the local currencies, net sales increased by 2.8 per cent year-on-year. EBIT was EUR 4.7 million (EUR 4.4 million). EBIT includes non-recurring costs of EUR 0.9 million resulting from the impairment of an asset held for sale. The positive performance is due to the improved sales structure and stable raw material prices. Atria Russia's net sales for July–September totalled EUR 32.0 million (EUR 33.9 million). In the local currency, net sales increased by 2.8 per cent year-on-year. EBIT was EUR -16.4 million (EUR 0.6 million). Atria Russia recognised non-recurring impairments totalling EUR 23.0 million, EUR 15.4 million of which was allocated to EBIT. Of the write-downs, EUR 14.3 million was allocated to fixed assets, EUR 7.6 million to deferred tax assets and EUR 1.1 million to other assets. EBIT without non-recurring costs amounted to EUR -0.9 million (EUR 0.6 million). EBIT without non-recurring costs for July–September was negative due to the poor profitability of primary production. It is estimated that the discontinuation of the unprofitable primary production and the Moscow-based production operations will generate annual cost savings of about EUR 6 million compared to 2013. The cost savings will be fully realised as of the beginning of 2015. Atria Baltic's net sales for July–September totalled EUR 8.5 million (EUR 8.4 million). Thanks to efficiency improvement measures, EBIT improved by EUR 0.7 million to EUR 0.3 million (EUR -0.4 million) year-on-year. Review 1 January – 30 September 2013 Atria Group's net sales for January–September totalled EUR 1,050.4 million (EUR 982.9 million), up by EUR 67.5 million year-on-year. During the period under review, Atria recognised EUR 23.0 million of non-recurring costs for its Russian business operations. Of this, EUR 15.4 million was allocated to EBIT. Furthermore, an impairment of EUR 0.9 million was recognised for the Scandinavian business operations due to an asset held for sale. A non-recurring profit of EUR 1.1 million resulting from the reversal of an impairment charge on a property that had been for sale was recognised in Finland. Consolidated EBIT weakened by EUR 13.3 million compared to the previous year, standing at EUR 9.1 million (EUR 22.4 million). EBIT without non-recurring items amounted to EUR 24.4 million (EUR 22.4 million). In March, Atria issued a fixed-interest bond worth EUR 50 million. The funds were used for refinancing and for the Group's general financing needs. The loan period is five years and a coupon rate of 4.375 per cent is payable on the loan. The bonds are publicly traded on the NASDAQ OMX Helsinki Ltd stock exchange. The Group's free cash flow for the period under review (operating cash flow - cash flow from investments) was EUR 20.7 million (EUR -1.5 million), and net liabilities were EUR 343.8 million (EUR 417.8 million). Atria Finland's net sales for January–September totalled EUR 660.8 million (EUR 598.1 million), up by EUR 62.7 million year-on-year. EBIT was EUR 23.8 million (EUR 25.5 million), down by EUR 1.7 million year-on-year. EBIT includes a non-recurring profit of EUR 1.1 million resulting from the reversal of an impairment charge on a property that had been for sale in Forssa. Fiercer price competition at the end of the period under review, high raw material prices in Finland and persistently low export prices weighed down the EBIT. Atria Scandinavia's net sales for January–September totalled EUR 292.0 million (EUR 284.6 million), up by EUR 7.4 million year-on-year. In the local currency, net sales grew by 1.7 per cent year-on-year. EBIT was EUR 6.5 million (EUR 6.3 million).  EBIT includes non-recurring costs of EUR 0.9 million resulting from the impairment of an asset held for sale. The positive development of EBIT was due to the more stable raw material prices and improved sales structure. Atria Russia's net sales for January–September totalled EUR 90.8 million (EUR 93.5 million). In the local currency, net sales grew by 1.8 per cent year-on-year. EBIT was EUR -19.1 million (EUR -4.7 million). Atria Russia recognised non-recurring impairments totalling EUR 23.0 million, EUR 15.4 million of which was allocated to EBIT. Of the write-downs, EUR 14.3 million was allocated to fixed assets, EUR 7.6 million to deferred tax assets and EUR 1.1 million to other assets. EBIT without non-recurring costs amounted to EUR      -3.7 million (EUR -4.7 million). The result for industrial operations improved thanks to efficiency improvement measures. EBIT without non-recurring costs was negative due to the poor profitability of primary production. It is estimated that the discontinuation of the unprofitable primary production and the Moscow-based production operations will generate annual cost savings of about EUR 6 million compared to 2013. The cost savings will be fully realised as of the beginning of 2015. Atria Baltic's net sales for January–September totalled EUR 25.0 million (EUR 25.4 million), down by EUR 0.4 million year-on-year. EBIT was EUR -0.1 million (EUR -1.3 million), up by EUR 1.2 million year-on-year.

Events after the period under review On 21 October 2013, Atria decided to discontinue its unprofitable primary pork production in Russia. Furthermore, the industrial production and logistics unit located in Moscow will be discontinued by the end of 2014. Pizza production will be transferred to the Gorelovo plant in St Petersburg, where investments amounting to EUR 4.6 million will be made. Sales in Moscow will continue under the Campomos brand. The impairments resulting from the discontinuation of business operations were recognised for Q3/2013. Atria recognised impairments totalling EUR 23.0 million, EUR 15.4 million of which was allocated to EBIT. Furthermore, EUR 2.0 million will be recognised as a provision for expenses related to the discontinuation of the aforementioned operations and will be allocated to Q4/2013. On 21 October 2013, Atria lowered its EBIT forecast due to the non-recurring costs of its Russian business operations. The company expects the full-year EBIT for 2013 to be weaker than the previous year's EBIT, which amounted to EUR 30.2 million. The company's EBIT without non-recurring items is expected to be higher than EUR 30.2 million. According to Atria's previous EBIT forecast, the Group's EBIT for 2013 was estimated to be higher than EUR 30.2 million. On 28 October 2013, the Finnish Competition and Consumer Authority (FCCA) gave its decision to commence phase two proceeding in a deal whereaby Atria Plc acquires Saarioinen Oy's slaughtering, meet cutting and meet procurement operations. Outlook for the future Consolidated EBIT was EUR 30.2 million in 2012. In 2013, it is expected to be weaker. The company's EBIT without non-recurring items is expected to be higher than EUR 30.2 million. Net sales are expected to grow in 2013. Publication procedure Atria Plc complies with the publication procedure in accordance with standard 5.2b of the Financial Supervisory Authority and publishes its 1 JANUARY – 30 SEPTEMBER 2013 interim report release as an attachment to this company announcement. The full interim report is available on the company’s website at www.atriagroup.com. For more information, please contact Juha Gröhn, CEO, Atria Plc, tel. +358 400 684 224. Invitation to a press conference A press conference conducted in Finnish will be arranged today 1 November 2013 at 9:30 am at Atria offices in Helsinki, address Läkkisepäntie 23, Helsinki. The presentation material will be available on the company’s website (www.atriagroup.com/en/investors/FinancialInformation/quarterlyreports) after the distribution of the interim report and as an attachment to this company announcement. ATRIA PLC Board of Directors DISTRIBUTION Nasdaq OMX Helsinki Ltd Major media www.atriagroup.com