For the Atria Group, the fiscal year just ended was one of contrasts, according to CEO Kai Gyllström.
Overall, net sales and profitability were up year-on-year, driven by strong performance from its businesses in Finland and Estonia. However, profits developed more slowly for its Swedish and Danish operations. In particular, he said, the year began well for the company, but results were weaker for the fourth quarter.
For the January-December period, the group’s net sales amounted to more than EUR1.75 billion (US$1.90 billion) — an increase of EUR56 million from the 12 months of 2022. Profitability — expressed as Adjusted Earnings before Interest and Taxes; EBIT — was up slightly at EUR49.6 million. As a percentage, Adjusted EBIT slipped 2.9% for the previous year to 2.8% for the year ended in December.
According to Gyllström, the tailing off in performance in the October-December quarter was linked to a decline in consumer purchasing power in Finland as a result of the rise in the cost of living, and global uncertainties. Furthermore, he said, with the exception of energy, the group’s costs were significantly higher in 2023 than in the previous year. Also hitting the bottom line over the past year were the additional costs of commissioning the new poultry slaughterhouse.
Business developments in 2023
Progress continued through the year on the firm’s investments at its plants in Nurmo in Finland, and Sköllersta in Sweden.
The new poultry plant at Nurmo is now fully operational, Gyllström reported, and efficiencies are being ramped up. During the coming year, the Sahalahti facility will be closed, and production transferred to Nurmo. In November, agreement was reached with China for the export of poultry meat from Finland, opening opportunities for Atria to begin its exports to that country.
For Atria Sweden, production was transferred from the Malmö plant — which was closed in June — to Sköllersta. With the view to cost savings of EUR2.5 million, the Swedish business has initiated an efficiency program.
Over the past year, improvements have been made to Atria Denmark operations, while activities have been concentrated into two production facilities.
Meanwhile, in Estonia, the business has been focused on increasing sales and market share, with progress reported.
Progress has been made at the group’s facilities in Finland and Sweden, investing in systems creating renewable energy.
Of the group’s overall net sales of EUR1.75 billion in 2023, more than EUR1.32 billion was generated in Finland — up from EUR1.27 billion. Also generating more sales year-on-year — by almost EUR10 million to EUR122 million — was Atria Denmark and Estonia, while net sales by the Swedish business sales slipped to almost EUR331 million.
More on Atria Group
With annual slaughterings on 45 million birds, Atria Group is among the leading poultry companies in Europe, according to WATTPoultry.com’s Top Poultry Companies survey.
Based in Finland, the company has operations in Sweden, Denmark and Estonia, as well as the home market.
Over the past few weeks, the company has made a number of announcements regarding its businesses.
Firstly, it reported a three-point improvement in its sustainability rating.
Earlier this week, it announced a new director of its Estonian business. Atria Group has acquired Gooh, a convenience food company in Sweden. And in the last few days, Atria has announced its acquisition of two pig farms in Estonia.
