For the latest three-month period, Atria Group achieved a 13% year-on-year increase in net sales to EUR438.8 million (US$440 million). This is among the results just released by the Finland-based company for the third quarter of the fiscal year, July-September
According to CEO Juha Gröhn, this growth was driven mainly by price rises. Lifting of restrictions related to the the coronavirus (COVID-19) pandemic led to an expansion in sales through the food-service channel. However, the retail sector has seen a levelling-off after a period of growth during the pandemic, and some of the group’s products and businesses have seen a decline in sales.
As reported by other firms in animal protein sector, profitability for the period was held back by rising costs. Among the sharpest increases was electricity, according to Gröhn. Furthermore, Atria paid its meat producers 30% more of this quarter than in same period of last year.
At EUR16.2 million for the latest quarter, profit (as adjusted Earnings Before Interest and Taxes; EBIT) was EUR3.7 million lower than in 2021. As a percentage, adjusted EBIT was down to 3.7% from 5.1% a year ago.
For the July-September period, pre-tax profit for the Group was EUR18.3 million — a drop of EUR1.1 million year-on-year.
Atria is adjusting well to the changing operating environment, according to Gröhn. Among the factors driving these changes are adaptation of consumer behavior as their incomes are squeezed by higher prices, as well as cost inflation for the Group.
Net sales growth for the year so far
For the year to the end of September, Atria Group reports increased sales through the retail and food-service channels, as well as in animal feed production. As for the latest quarter, Gröhn highlights that this was driven by higher selling prices.
At more than EUR1.245 billion, the Group’s net sales for the period were almost EUR109 million higher than in the same period of 2021. However, adjusted EBIT dropped from EUR38.9 million to EUR32.3 million. As a percentage of sales, this represented a decline from 3.4% to 2.6%. However, Gröhn stressed that EBIT was impacted by a number of non-recurring items over the reporting period.
For the January-September period, Atria reports a profit before tax of EUR38.5 million. A year ago, this figure was a loss of EUR7.5 million.
In its business outlook, Atria Group expects adjusted EBIT for this year to be less than the 2021 figure of EUR49.2 million.
Atria's operations in Finland, Sweden, Denmark-Estonia
For the first three quarters of 2022, all three of Atria Group’s operations registered year-on-year expansion in net sales. For Finland, this parameter was almost EUR921 million, EUR270 million for Sweden, and EUR83.5 million for Denmark/Estonia. These sales figures are equivalent to increases of 1.3%, 4.2%, and 6.4%, respectively.
Expressed as EBIT before items affecting comparability, profit generated by Atria Finland was EUR29.2 million (2021: EUR37.5 million), Atria Sweden was EUR3.2 million (EUR2.1 million), and Atria Denmark/Estonia was EUR2.2 million (EUR5.1 million).
Recent developments at Atria Group
Among the latest achievements by the Group highlighted by CEO Gröhn in the recent report were numerous positive assessments at the World Steak Challenge 2022 for Atria’s grass-fed steak grown in Finland.
“The success year after year is a testament to the high and consistent quality of Atria beef,” he said.
The Group has also achieved a two-thirds reduction in workplace accidents since 2017 as a result of a focus in occupational safety at its premises.
One month ago, Atria announced it was considering plans to close its poultry plant in Sahalahti, Finland. This was reported to be part of efforts to make the company’s poultry business more efficient and competitive.
Among the key performance indicators in the group’s half-year results was a near-8% increase in net sales.
In May, the sale was completed by Atria of its Sibylla Rus fast-food business in Russia to a subsidiary of the Cherkizovo Group.
Atria had sold its poultry plant in Malmo, Sweden to an unidentified buyer during the previous month. Despite the sale, Atria intended to continue its operations there until the end of 2023.
Earlier in 2022, Atria set out its sustainability programs with the goal of reaching carbon neutrality.
Atria Finland received a license to export poultry products to South Korea in January. Two months later, its first products were delivered to South Korea.
