Finland-based meat company, Atria, has reported increased consolidated sales and profit for the 2016 fiscal year ended December 2016 compared with the previous 12 months.
This success the group attributed, at least in part to its acquisition of Swedish poultry company, Lagerberg, in May 2016, and a majority share in Well-Beef Kaunismaa Ltd. in the fourth quarter.
In 2016, Atria achieved consolidated Earnings Before Interest and Taxes (EBIT) of EUR31.8 million (US$33.6 million) on consolidated sales of just under EUR1.352 billion (US$1.43 billion). These figures represent increases of 10.0 and 0.9 percent, respectively from the previous year, nudging EBIT as a percentage of sales up slightly to 2.3 percent.
According to the Board, EBIT growth was restricted by lower sales prices, and the costs of integrating the two new businesses and investment in a new pork-cutting plant in Finland.
Pig meat business developments
Commenting on Atria’s performance in 2016, its CEO, Juha Gröhn, highlighted the authorization to export pork to China, and continuous investment to improve business efficiency.
“We explore new market areas with determination,” said Gröhn. “Atria's Nurmo plant obtained a permit to export pork to China at the end of 2016, and the first deliveries will be dispatched in May 2017. The goal is for China to become a solid market place for Atria in the coming years.
“Continuous development of productivity is imperative. The investment in the new pig cutting plant advanced into implementation in the spring of 2016. The implementation increased cost levels momentarily, but towards the end of the year performance levels rose, and positive development continues.”
When completed in 2017, this cutting plant will be one of the most modern in Europe, with technology to allow the traceability of the meat back to the farm, even for small batches. With an investment of EUR36 million (US$38 million), the firm expects to be able to save EUR8 million (US$8.4 million) annually.
In April of 2016, Atria sold its Linnamäe pig farm in northern Estonia.
Investment in Sweden’s poultry sector
After approval from the national competition authority and consumer agency, Atria acquired the entire share capital of Swedish poultry company, Lagerberg i Norjeby AB (Lagerbergs). Its business operations were transferred to Atria in May 2016 for EUR18.7 million (US$19.7 million)
This first poultry investment by Atria into the poultry sector in Sweden is expected to increase the group’s annual net sales by EUR30 million (US$32 million).
Within two months of the acquisition, Atria’s board approved a long-term investment of EUR14 million (US$14.8 million) in the poultry business chain in Sweden between 2016 and 2018.
According to its website, Atria is a Finnish food company with an international presence in the Nordic countries, Russia and the Baltic region, with customers in the retail, food-service and food manufacturing sectors.
