Atria: Earnings could be higher than expected

The phased commissioning of the new poultry plant in Nurmo, Finland, is estimated to result in lower costs than previously estimated.

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Atria Chicken Product

Finland-based meat and poultry producer Atria issued a profit warning on September 11, stating that the company is raising its adjusted earnings before interest and taxes (EBIT) guideline for 2023.

“The reason for raising the adjusted EBIT guideline is Atria Finland’s good profit development, which is mainly due to the better-than anticipated commissioning of the new poultry factory. In addition, the structure of Finland's sales is better than the previous year. The phased commissioning of the new factory is estimated to result in lower costs than previously estimated. The completion of the project is progressing on schedule, and the factory will be fully operational by the end of 2024,” the company stated in the profit warning, signed by CEO Kai Gyllström.

Atria previously announced that it was constructing the plant in Nurmo, with its completion date expected for 2024. The company also stated that it would close its plant in Sahalahti, Finland, and consolidate those operations into the Nurmo plant. But in its most recent communication to the market, Atria announced that the phased start-up and testing of the Nurmo plant will begin before the end of 2023.

In 2021, Atria announced it was expanding the plant in Sköllersta, Sweden, and that expansion will be commissioned in 2023.

While the startup costs associated with the Nurmo and Sköllersta plants will lead to additional costs for the company, Atria said its “strong market position and strong brands, good customer relationships and reliable industrial processes will enable stable business, also in 2023.”

Atria, according to information from the Top Companies Database, is ranks as Finland’s second-largest poultry producer, Scandinavia’s third-largest, and Europe’s 44th largest.

During the past year, Atria slaughtered 45 million broilers.

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