- IN FINLAND GOOD PROFIT DEVELOPMENT CONTINUED DURING THE Q4 PERIOD
- IN RUSSIA THE BUSINESS DEVELOPED POSITIVELY
- LITHUANIAN BUSINESS UNPROFITABLE
Atria Group's Q4/2006:
- Turnover EUR 298.3 million (EUR 259.9 million), growth 14.8 %
- Operating profit EUR 17.8 million (EUR 10.3 million)
- Comparable operating profit EUR 9.8 million (EUR 10.3 million)
- Profit before tax EUR 15.0 million (EUR 8.9 million)
- Earnings per share 0.57 euro (0.28 euro).
Atria Group 1-12/2006:
- Group turnover EUR 1,103.3 million (EUR 976.9 million), growth 12.9 %
- Operating profit EUR 41.5 million (EUR 40.2 million)
- Comparable operating profit EUR 33.5 million (EUR 40.2 million)
- Profit before tax EUR 34.6 million (EUR 37.8 million)
- Earnings per share 1.15 euro (1.24 euro).
Group
During the first part of the year, the net profit was weaker than the previous
year in all market areas. Summer sales went well both in Finland and in Sweden,
and profit in Russia also took a positive turn during the summer. The rest of
the year was a time of positive growth for both the profit and business
operations in a wider sense in all business areas, with the exception of the
Lithuania.
The operating profit for Finnish operations exceeded last year's level in the
fourth quarter and amounted to EUR 11.0 million (EUR 6.5 million). The
comparable operating profit amounted to EUR 9.2 million (EUR 6.5 million).
In Sweden, the operating profit for the fourth quarter was EUR 9.4 million (EUR
1.7 million). The comparable operating profit amounted to EUR 1.7 million (EUR
1.7 million).
In Russia sales and profit experienced positive development during the period
and operating profit in the fourth quarter was positive. In the Baltic region,
development and reorganization of operations continued, but result remained
unprofitable because of the weak development in Lithuanian business.
The operating profit of the fourth quarter includes EUR 10.1 million of non-
recurring revenues and EUR 2.1 million of non-recurring costs. In Sweden, we
entered a sales profit of EUR 8.3 million for the sale of the shares of Svensk
Snabbmat för Storkök AB. In Finland, a profit of EUR 1.8 million was received
from the sale of capital assets. The most significant non-recurring costs were
caused in Lithuania by a removal of a brand (EUR -1,5 million) and in Sweden by
additional write-offs (EUR -0,6 million).
In 2006, the Atria Group implemented a significant change to the organization's
operational model. A Management Group was established for the Group. All
central group functions are represented in the Management Group:
- Primary Production
- Quality and Product Safety
- International Accounts
- Information Management, Steering and Logistics
- Finance and Administration
- Purchasing and Investments
- Human Resources
Another crucial reform was the division of the group into three independently
accountable business areas, which include Atria Finland, Atria Sweden and Atria
Russia and Baltic.
The purpose of reforming the operational model is to clarify accountability for
business results, enable faster decision-making processes, and especially to
weave Atria's international operations more tightly into the group strategy.
The new Atria operational model will better support the group's international
activities, as well as boosting the operative efficiency and transparency of
the business areas.
In 2006, the Board of Directors of Atria Group Plc published the economic
objectives set for its operations:
- Operating profit 5 %
- Equity ratio 40 %
- Share of international operations 50 %
- Return on equity 12 %
- Dividend distribution of profit from period 50 %
Finland
Atria Finland Q4/2006:
- turnover EUR 179.9 million (Q4/2005 EUR 165.7 million)
- operating profit EUR 11.0 million (Q4/2005 EUR 6.5 million)
- comparable operating profit EUR 9.2 million (EUR 6.5 million).
Atria Finland 1-12/2006:
- turnover EUR 686.1 million (2005: EUR 634.3 million)
- turnover EUR 33.4 million (2005: EUR 31.6 million)
- comparable operating profit EUR 31.6 million (EUR 31.6 million).
There was positive development in sales and market shares. Atria's domestic
producer share for 2006 was nearly 30 per cent. When the producer share is
considered, Atria is the clear market leader in Finland. The good Q4 result was
based on sales volumes growth and strict cost control.
Sales of products carrying the Atria label grew 12.9 per cent during the year,
which is more than twice the growth of the entire market (5.1 per cent). The
summer barbecue season was an especially profitable time for Atria, with market
share reaching a record level of 45 per cent. Atria's share of new industry
products launched during the year was over 35 per cent.
The Nurmo pig slaughtering plant started up during the first part of 2006.
After the start-up period, the processing capacity of the plant has levelled
out at approximately 3,500 pigs per day.
The construction of the Nurmo logistics centre expansion is progressing
according to plan. Implementation began in January 2007. By June 2007, the
extension will be up and running at 40 per cent capacity and the project will
be completed in September 2007.
The integration of Liha ja Säilyke Oy's operations and Atria's Meal Solutions
business unit progressed according to plan. Liha ja Säilyke Oy's dismissal
negotiations were completed in September. Meat products manufacturing was
transferred from Forssa to Nurmo at the beginning of 2007.
In December, Atria Group Plc's share of A-Tuottajat Oy jumped from 5.4 per cent
to 97.9 per cent.
At the beginning of September, price increases were implemented in several
product groups. Thus, most of the cost increases from the first part of the
year could be transferred to retail prices. Christmas season deliveries,
especially ham deliveries, were completed successfully.
In Finland, the development of Atria operations continued to be strong
throughout the year. Atria joined forces with HK Ruokatalo Oy to search for
solutions for the weak profits of turkey operations. Atria and HK Ruokatalo
established a turkey meat production company, Länsi-Kalkkuna Oy. The ownership
of the new company will be equally shared between the companies (50/50). The
turkey meat production company launched its production operations at the
beginning of 2007. The cooperation covers only primary production, slaughtering
and cutting of the meat, which will be combined in Länsi-Kalkkuna Oy.
The Atria subsidiary A-Rehu Oy decided to tighten its cooperation with Altia Oy
in the feed component trade. A-Rehu Oy will take responsibility for producing
cattle feed from feed components emerging from fuel ethanol production. A-Rehu
is actively striving to reduce the production costs of farms by inexpensive
feed solutions. The agreement made with Altia makes this possible.
Sweden
Atria Sweden Q4/2006:
- turnover EUR 96.0 million (Q4/2005 EUR 76.1 million)
- operating profit EUR 9.4 million (Q4/2005 EUR 1.7 million)
- comparable operating profit EUR 1.7 million (EUR 1.7 million).
Atria Sweden 1-12/2006:
- turnover EUR 336.4 million (2005: EUR 314.0 million)
- turnover EUR 15.1 million (2005: EUR 7.1 million)
- comparable operating profit EUR 7.4 million (EUR 7.1 million).
Sales in Q4/2006 were successful in Sweden. The sales of the Lithells brand in
the retail sector grew 3 per cent during the period compared to sales in the
previous quarter. (Source: AC Nielsen)
The price increases implemented during the Q3 period in Sweden showed as a
partially positive profit development during the Q4 period and full effects
will be shown during the Q1/2007 period.
Svensk Snabbmat för Storkök AB, which specialises in local wholesale
operations, strengthened its position in the Swedish market. Svensk Snabbmat
för Storkök AB and Matgruppen för Storkök i Norr AB signed an agreement on
company reorganisation, the result of which was the transfer of Matgruppen i
Norr AB's outlets to the ownership of Svensk Snabbmat för Storkök AB. At the
same time, the Matgruppen outlet owners became shareholders in Svensk Snabbmat.
Atria continues to be a majority shareholder in the company.
The combined 2006 turnover of the wholesale businesses now owned by Svensk
Snabbmat was more than SEK 500 million. As a result of the business deal, the
annual turnover of Svensk Snabbmat will increase to almost two billion krona.
Following the re-organisation, Svensk Snabbmat now has a total of 18 offices
covering all of Sweden. The acquired companies were consolidated into the Atria
Group on 1 November 2006. The joining of Matgruppen with Svensk Snabbmat at the
beginning of November improved the profit of the company. The purchase price
was EUR 22.1 million. Of the purchase price, EUR 12.8 million were directed
into customer relationships. With the deal, goodwill within the group increased
by EUR 4.6 million.
During the autumn, Atria negotiated to buy Sweden's largest meat company,
Swedish Meats.
Russia and the Baltic Countries
Atria Russia & Baltic Countries Q4/2006:
- turnover EUR 27.7 million (Q4/2005 EUR 21.6 million)
- operating loss EUR -2.6 million (Q4/2005 profit EUR 2.1 million)
- comparable operating loss EUR -1.1 million (profit EUR 2.1 million).
Atria Russia & Baltic Countries 1-12/2006:
- turnover EUR 104.6 million (2005: EUR 42.7 million)
- operating loss EUR -7.0 million (2005: profit EUR 1.5 million)
- comparable operating loss EUR -5.5 million (profit EUR 1.5 million).
Atria's growth in the St. Petersburg economic area continued strong. Pit-
Product's position as market leader in the area was also consolidated. Since
the beginning of the year, Pit-Product's total share of St. Petersburg's modern
retail markets has increased to 25.1 per cent. In the St. Petersburg area, the
growth in demand has focused on increasingly high quality and more processed
products and product groups, which are also Pit-Product's key targets of
investment.
The takeover process of Pit-Product, which was acquired by Atria Group at the
end of 2005, progressed according to the set goals. The company's management
was reorganised as part of the takeover process.
Price increases were implemented during Q3, which had a positive impact on the
profit of Q4. The profitability of Pit-Product improved significantly during
the latter part of the year and was positive.
In October a decision was made to build a logistics centre and meat product
factory in the Gorelovo district in Leningrad oblast. The total cost estimate
of the new constructions is EUR 70 million. The plant is located on the new
ring road, about 20 kilometres from the city centre.
Operational reorganisation continued in the Baltic Countries during the review
period. The primary aim of the reform is to seek business operation growth, as
well as improving profitability for Atria's operations in the Baltics. Another
aim is to seek synergy in our Baltic business operations, as well as creating
closer co-operation with Atria Group. The new operating method aims at a
radical improvement in business thinking, the implementation of reforms and,
particularly, cost efficiency. The expenses of these measures took their toll
on the profit, making the result of Q4 negative.
Atria integrated the business operations of AS Valga Lihatööstus (Estonia) and
UAB Vilniaus Mesa (Lithuania) into a unified Baltics business, starting 5
September 2006. In addition, in Lithuania the brand was removed from the
balance sheet and entered as an expense. This was done because profit
development in Lithuania didn't support keeping the value of the brand in the
balance sheet. The operating profit was in the red in Lithuania.
Human Resources
In 2006, the average number of personnel at Atria Group was 5,740 (4,433).
Matti Tikkakoski, Msc. (Econ.), took over the post of President and CEO on 1
February 2006. He was also appointed to the Atria Group's Board of Directors to
replace Seppo Paatelainen.
On 27 June, Atria Group's Supervisory Board appointed Leena Saarinen, CEO of
Altia Corporation, onto the Board of Directors to replace retiring member Erkki
Roivas. The previously retired Tuomo Heikkilä and Ilkka Yliluoma were
reappointed.
Christer Åberg was appointed as CEO of Lithells AB starting from 1 April 2006.
Juha Ruohola assumed the duties of CEO of Pit-Product on 1 November 2006.
Seija Pietilä was appointed as the new Group Vice President for Human Resources
starting from 4 December 2006.
Investments
The investment in Nurmo's logistics centre that will be completed in the autumn
of 2007 continued during the period. No new large investments were initiated in
Finland during the period. In October a decision was made to build a logistics
centre and meat product factory in the Gorelovo district in Leningrad oblast.
The total cost estimate of the new constructions is EUR 70 million. The plant
is located on the new ring road, about 20 kilometres from the city centre.
The group's investments for the entire year totalled EUR 89.0 million (35.9
million for Q4).
Financing
In May 2006, Atria Group Plc completed a directed issue. Shares were offered to
predefined Finnish and international institutional investors. During the share
issue, the entire new offering of 1,100,000 A Series shares was subscribed to.
The share capital increase of EUR 1,870,000 was registered on 16 May 2006.
In the purchase of A-Tuottajat Oy, Atria Group Plc acquired a total of
10,000,000 series A shares of A-Tuottajat Oy from Itikka Osuuskunta and
Lihakunta. After the transaction, Atria holds 97.9 % of the issued share
capital of A-Tuottajat and 99.0 % of the votes.
The transaction was priced at A-Tuottajat's equity value. As the purchase
price, Atria paid a total of 900,000 new series A shares and EUR 1,283,308 in
currency. The shares were offered for subscription by a decision of Atria's
Board of Directors, based on the authorization of the AGM on 3 May 2006.
According to the agreement, the subscription price is the higher of the
following: the trading-volume-weighted average from 7.12.2006 - 20.12.2006 or
the closing price on 20.12.2006. Based on these, the subscription price was EUR
18.50 per share. As a result of the share issue, Atria's share capital will
increase from EUR 37,727,637.60 to EUR 39,257,637.60. The number of series A
shares will increase from 12,988,747 to 13,888,747.
Svensk Snabbmat för Storkök AB and Matgruppen för Storkök i Norr AB carried out
a company reorganisation process, the result of which was the transfer of
Matgruppen i Norr AB's operations to the ownership of Svensk Snabbmat för
Storkök AB. The Matgruppen owners became shareholders in Svensk Snabbmat, with
Atria continuing as the majority shareholder. The purchase was financed by
loans totalling SEK 200 million from Swedish banks.
In the autumn, the company issued a EUR 40 million bond to institutional
investors with the purpose of substituting short-term financing.
The Board's valid issue authorisations
The AGM authorised the Board of Directors to decide on increasing the company's
share capital by means of one or more subscription issues, so that the maximum
number of the company's series A shares, with a nominal value of EUR 1.70,
should not exceed a total of 4,218,545 shares, thereby increasing the company's
share capital by a maximum of EUR 7,171,526.50.
The authorisation is valid for one year from the empowerment decision taken by
the AGM, until the AGM of 2007.
A total of 2,000,000 authorised series A shares have been used.
Events occurring after the review period
Atria Group Plc announced the purchase of the majority of Swedish AB Sardus on
19 February 2007. The purchase price for 57.1 % of the shares was EUR 80
million. Atria means to acquire the entire share capital of the company. The
current deal was closed at the share price of SEK 115, and the rest of the
shares will be purchased at the same price. The total purchase price will thus
be EUR 126 million. Together with various acquisition costs, the total cost of
the acquisition will be EUR 127 million.
The purchase price exceeds the equity of the company as listed in the balance
sheet by EUR 86 million. The overprice will be targeted at the tangible and
intangible assets of the acquired group, with the remaining proportion becoming
goodwill value.
The table below contains the group's unaudited income statement and balance
sheet according to the financial statement bulletin published by Sardus on 31
January 2007. Reference data from the previous year is included.
INCOME STATEMENT 1.1. - 31.12. 2006 2005
Turnover 232,1 210,2
Operating profit 8,9 10,5
Financing -4,9 -4,0
Profit before tax 4,0 6,5
Taxes -1,0 -1,8
Profit for the period 3,0 4,7
BALANCE SHEET 31.12. 2006 2005
Assets
Tangible assets 54,5 55,8
Intangible assets 46,3 46,8
Financial assets 0,1 0,3
Inventories 25,7 24,2
Trade and other receivables 30,4 25,1
Cash and cash equivalents 6,0 9,1
Total assets 163,0 161,4
Equity and liabilities
Equity 40,7 41,1
Long-term liabilities 92,5 90,5
Current liabilities 29,8 29,8
Equity and liabilities, total 163,0 161,4
Atria has had no mutual trade with Sardus. Hence the effects of the trade on
the result of Atria Group can be assumed to equal the information on the Sardus
income statement for 2006 - in other words, the Group's turnover should
increase by the amount of the turnover of Sardus. In addition to the profit
brought in by Sardus, the financing costs of the deal and possible
depreciations of tangible and intangible assets due to the targeting of the
purchase price will also have an effect on the financial result of the Atria
Group.
Sardus is undergoing a development programme aiming at improving profitability.
The goal of the project is to launch a strong profit development. Management
has been reorganized, and personnel cuts will be made to improve profitability.
Purchases, production and logistics will be the main targets of the cost
savings. Sardus is aiming at annual savings of approximately EUR 6.5 million in
these areas for the next five years. Other central objectives of the
development plan are to strengthen the company's brands and to intensify
marketing and product development.
The purchase is expected to have a positive effect on the profit and the
earnings per share of the Atria Group for 2008.
Atria Group Plc will finance the share transaction with available cash and
current bank loans. The annual interest burden caused by the financing of the
deal is estimated at EUR 5 million.
As a consequence of the deal, the Group's balance sheet total will increase to
EUR 980 million, which means an equity ratio of 32 %.
The purchase is part of Atria's goal to become one of the leading food-industry
companies in the Baltic Sea region.
The Swedish food industry is undergoing a structural change and integration
development, and there are a limited number of major operators. The price
competition has been tightened by the emerging of new discount chains operating
in daily consumer goods retail, as well as by the rising market share of the
chains' own brands. Merging Atria and Sardus strengthens the ability of both
companies to respond to the new challenges set by the integrating markets.
There is a clear industrial logic behind the purchase. Together, the companies
complement each other and form a stronger operator with a wide selection of
strong brands. The merger is expected to produce synergy benefits for product
development, purchases, logistics, production and marketing. The wider product
range and the synergy benefits form the main accelerators of growth. They
strengthen the brands and product groups of both companies.
After the merger Atria and Sardus will have the potential to become one of
Sweden's leading food industry suppliers and business partners for customers
operating in daily consumer goods, institutional kitchens and fast food. The
position of the companies is also strengthened in relation to other interest
groups.
Sardus will be integrated with Atria's industrial operations in Sweden and will
be reported within the Swedish segment.
Starting from the beginning of 2007, the names of the Atria Group's
subsidiaries operating in various geographical areas were unified under the
Atria name. The operative units are called Atria Finland, Atria Sweden, Atria
Baltic and Atria Russia. This will also cause adjustments to segment reporting,
starting from the beginning of 2007.
Outlook for the future
Atria Group has excellent prerequisites for profitable growth in all its
business areas in 2007.
In Finland, completed investments and reorganization measures have improved
cost-efficiency significantly. This competitive advantage will be utilized to
its full extent. Atria is also investing in strengthening its brands,
increasing consumer knowledge and promoting customer cooperation, as well as in
achieving excellent cost management in our entire production chain. Atria
Finland's turnover and result for the first quarter of 2007 are estimated to be
slightly better than the previous year.
In Sweden the consolidation of AB Sardus to Atria Group and exploring of
synergies will be carried out during the year 2007.
In Sweden, the reorganization of the meat industry was the beginning of a major
structural change of the entire industry. In the current situation, Atria is
paying special attention to securing its raw material supply. We will look into
the possibilities of creating our own raw material supply in southern Sweden.
Atria Sweden's turnover and result for the first quarter of 2007 are estimated
to be better than the previous year.
The strong development of the Russian market creates good growth opportunities
for Atria. In 2007 we will expand our sales operations to Moscow and other
major Russian cities. New products and packages will be launched in Russia and
the Baltic countries. Consumer marketing and finding new customers will be
important investment targets. The investment project of the new production
plant and logistic centre will be carried out during the years 2007 and 2008.
Atria Russia's turnover and result for the first quarter of 2007 are estimated
to be better than the previous year. Atria Baltic's turnover and result for the
first quarter of 2007 are estimated to remain a par with the previous year.
Atria Group Plc's turnover and result for the first quarter of 2007 are
estimated to be better than of the previous year.
Corporate Governance
Our Corporate Governance Code, any exceptions to them and the associated
personnel data are published on our website, www.atria.fi/konserni.
Dividend proposal
The Board of Directors proposes that a dividend of EUR 0.595 be paid for each
share for the financial year of 2006.
Annual General Meeting 3 May 2007
Atria Group Plc's shareholders are invited to the Annual General Meeting (AGM),
to be held at the company's premises in Kuopio on Thursday, 3 May 2007,
starting at 2:00 pm; the address is Ankkuritie 2, 70460 Kuopio, Finland.
The AGM will address the following:
1. The matters to be addressed at the AGM as set out in item 16 of the Articles
of Association
2. The Board of Directors' proposal to authorise the Board of Directors to
decide on increasing the share capital through one or more new issues
Restrictions on trading by insiders
On 21 February 2002, Atria Group Plc's Board of Directors decided that the
period during which the company's insiders may trade shares is 14 days after
the publication of Atria Group Plc's Interim Reports and financial statement
bulletins. However, any insider who wishes to trade shares during this period
must request permission to do so in advance from the secretary of the Board of
Directors. Insiders may not trade shares at other times ('closed window'). The
restriction on trading also applies to parties under the guardianship of
insiders and their controlled corporations as defined in Chapter 1, Section 5
of the Securities Market Act.
ATRIA GROUP PLC
CONSOLIDATED BALANCE SHEET
Assets
mill. EUR 31-12-06 31-12-05
Non-current assets
Property, plant, and equipment 362.8 329.3
Goodwill 57.7 50.1
Other intangible assets 33.3 22.7
Loan assets and other receivables 6.9 5.1
Investments 6.3 5.8
Total 467.0 413.0
Current assets
Inventories 63.4 58.6
Trade and other receivables 165.8 151.0
Cash in hand and at bank 35.4 17.5
Total 264.6 227.1
Total assets 731.6 640.1
Equity and liabilities
mill. EUR 31-12-06 31-12-05
Equity
Shareholder's equity 306.6 254.8
Minority interests 5.8 20.2
Equity, total 312.4 275.0
Long-term liabilities
Interest-bearing liabilites 165.4 115.5
Deferred tax liabilies 26.9 22.5
Pension obligations 0.3 0.4
Total 192.6 138.4
Short-term liabilities
Interest-bearing liabilites 78.8 91.4
Trade and other payables 147.8 135.3
Total 226.6 226.7
Liabilities, total 419.2 365.1
Total equity and liabilities 731.6 640.1
CONSOLIDATED PROFIT AND LOSS ACCOUNT
mill. EUR 10-12/06 10-12/05 1-12/06 1-12/05
Turnover 298.3 259.9 1 103.3 976.9
Expenses -268.7 -242.1 -1 024.0 -905.3
Depreciations -11.8 -7.5 -37.8 -31.4
Operating profit 17.8 10.3 41.5 40.2
* % of turnover 6.0 4.0 3.8 4.1
Income from associates -0.4 0.4 0.8
Financial income and expenses -2.4 -1.4 -7.3 -3.2
Profit before tax 15.0 8.9 34.6 37.8
* % of turnover 5.0 3.4 3.1 3.9
Income taxes -2.3 -2.9 -8.6 -10.8
Profit for the period 12.7 6.0 26.0 27.0
* % of turnover 4.3 2.3 2.4 2.8
Profit distribution for
the accounting period:
To parent company shareholders 12.4 5.8 25.1 26.2
To minority shares 0.3 0.2 0.9 0.8
Total 12.7 6.0 26.0 27.0
Basic earnings/share, € 0.57 0.28 1.15 1.24
Diluted earnings/share, € 0.57 0.28 1.15 1.24
CALCULATION OF CHANGES IN SHAREHOLDERS' EQUITY
mill. EUR Equity belonging to the owners Mino- Share
of the parent company rity holders'
share equity
in total
Share Share Trans Retained Total
capital premium lation earnings
diff.
Shareholders'
equity 1.1.2005 35.8 104.4 0.5 103.7 244.4 19.3 263.9
Translation differences -1.5 -1.5 -0.1 -1.6
Other changes -1.6 -1.6 -1.6
Profit for the period 26.2 26.2 0.8 27.0
Distribution
of dividends -12.7 -12.7 -12.7
Shareholders'
equity 31.12.2005 35.8 104.4 -1.0 115.6 254.8 20.2 275.0
Shareholders'
equity 1.1.2006 35.8 104.4 -1.0 115.6 254.8 20.2 275.0
Translation differences 1.7 1.7 0.1 1.8
Other changes -15.0 -15.0
Profit for the period 25.1 25.1 0.9 26.0
Distribution
of dividends -12.6 -12.6 -0.4 -13.0
Share issue 3.5 34.1 37.6 37.6
Shareholders'
equity 31.12.2006 39.3 138.5 0.7 128.1 306.6 5.8 312.4
CASH FLOW STATEMENT FOR GROUP
mill. EUR 1-12/06 1-12/05
Cash flow from operating activities
Operating activities 62.2 59.3
Financial items and taxes -14.5 -12.4
Cash flow from operating activities, total 47.7 46.9
Cash flow from investing activities
Tangible and intangible assets -68.9 -98.3
Investments -2.1 -3.5
Cash flow from investing activities, total -71.0 -101.8
Cash flow from financing activities
Cash share issue 20.9
Loans drawn down 99.7 91.4
Loans repaid -66.0 -19.2
Dividends paid -13.0 -12.7
Cash flow from financing, total 41.6 59.5
Change in liquid funds 18.3 4.6
SEGMENT-SPECIFIC INFORMATION
GEOGRAPHICAL
mill. EUR 10-12/06 10-12/05 1-12/06 % 1-12/05 %
Turnover
Finland 179.9 165.7 686.1 62.2 634.3 64.9
Sweden 96.0 76.1 336.4 30.5 314.0 32.1
Russia and Baltic 27.7 21.6 104.6 9.5 42.7 4.4
Eliminations -5.3 -3.5 -23.8 -2.2 -14.1 -1.4
Total 298.3 259.9 1 103.3 100.0 976.9 100.0
Operating profit
Finland 11.0 6.5 33.4 80.5 31.6 78.6
Sweden 9.4 1.7 15.1 36.4 7.1 17.7
Russia and Baltic -2.6 2.1 -7.0 -16.9 1.5 3.7
Total 17.8 10.3 41.5 100.0 40.2 100.0
Comparable operating profit (sales profits and additional write-offs reduced)
Finland 9.2 6.5 31.6 94.3 31.6 78.6
Sweden 1.7 1.7 7.4 22.1 7.1 17.7
Russia and Baltic -1.1 2.1 -5.5 -16.4 1.5 3.7
Total 9.8 10.3 33.5 100.0 40.2 100.0
Investments
Finland 51.9 58.3 97.6 91.0
Sweden 21.6 24.3 4.3 4.0
Russia and Baltic 15.5 17.4 5.4 5.0
Total 89.0 100.0 107.3 100.0
31-12-06 % 31-12-05 %
Assets
Finland 578.7 79.1 534.3 83.5
Sweden 171.6 23.5 132.1 20.6
Russia and Baltic 89.6 12.2 78.8 12.3
Eliminations -108.3 -14.8 -105.1 -16.4
Total 731.6 100.0 640.1 100.0
Liabilities
Finland 283.8 67.7 268.3 73.5
Sweden 93.5 22.3 69.1 18.9
Russia and Baltic 50.5 12.0 33.3 9.1
Eliminations -8.6 -2.1 -5.6 -1.5
Total 419.2 100.0 365.1 100.0
BUSINESS
mill. EUR 1-12/06 % 1-12/05 %
Turnover
Meat Industries 870.6 78.9 806.8 82.6
Wholesale Trade 257.9 23.4 245.0 25.1
Eliminations -25.2 -2.3 -74.9 -7.7
Total 1 103.3 100.0 976.9 100.0
LIABILITIES
mill. EUR 31-12-06 31-12-05
Debts with mortgages or other collateral
given as security
Loans from financial institutions 90.4 79.8
Pension fund loans 7.0 6.2
Total 97.4 86.0
Mortgages and other securities given
as comprehensive security
Real estate mortgages 83.6 78.7
Corporate mortgages 44.2 44.2
Other securities 52.6 47.3
Total 180.4 170.2
Guarantee engagements not included
in the balance sheet
Unused limits 104.7 107.8
Guarantees 27.8 13.5
FINANCIAL INDICATORS
IFRS IFRS IFRS FAS FAS FAS
31-12-06 31-12-05 31-12-04 31-12-03 31-12-02 31-12-01
Turnover, mill. EUR 1 103.3 976.9 833.7 833.7 765.1 707.0
Operating profit
mill. EUR 41.5 40.2 49.3 38.8 30.9 25.6
% of turnover 3.8 4.1 5.9 4.7 4.0 3.6
Financial income and
expenses, mill. Eur -7.3 -3.2 -5.2 -5.1 -7.3 -5.2
% of turnover 0.6 0.3 0.6 0.6 0.9 0.7
Profit before tax 34.6 37.8 44.6 33.7 23.6 20.4
% of turnover 3.1 3.9 5.3 4.0 3.1 2.9
Return on equity (ROE) % 8.8 10.0 13.9 10.3 7.5 7.7
Return on
investment (ROI) % 8.7 10.3 13.9 10.7 9.1 7.9
Equity ratio % 42.8 43.0 50.9 51.3 49.6 43.3
Gross investments in fixed
assets, mill. EUR 89.0 107.3 37.3 33.8 36.4 66.0
% of turnover 8.1 11.0 4.5 4.1 4.8 9.3
Interest-bearing
liabilities 244.2 206.9 116.1 110.3 129.4 157.9
Average personnel 5 740 4 433 3 638 3 638 3 377 3 300
Research and development
costs, mill. EUR 7.4 6.7 7.0 7.0 6.7 6.1
% of turnover 0.7 0.7 0.8 0.8 0.9 0.9
Volume of orders** - - - - - -
* Booked in total as expenditure for the financial year
** Not a significant indicator.
as orders are generally delivered on the day following the order being placed
SHARE-ISSUE ADJUSTED PER-SHARE INDICATORS
IFRS IFRS IFRS FAS FAS FAS
31-12-06 31-12-05 31-12-04 31-12-04 31-12-03 31-12-02
Earnings per share
(EPS), EUR 1.15 1.24 1.58 1.17 0.83 0.78
Shareholders'equity
per share, EUR 13.28 12.08 11.58 11.42 10.65 10.45
Dividend/share, EUR* 0.595 0.595 0.595 0.595 0.425 0.372
Dividend/profit, %* 51.7 48.0 37.7 50.7 51.5 47.8
Effective
dividend yiel* 3.3 3.3 5.3 5.3 4.7 5.5
Price/earnings
ratio (P/E) 15.9 14.5 7.2 9.6 10.9 8.7
Market capitalisation,
mill. EUR 422.4 379.5 238.3 238.3 190.9 121.8
Share turnover/
1 000 shares, A 3 899 5 704 3 800 3 800 2 325 1 249
Share turnover %, A 28.1 48.0 32.0 32.0 29.9 18.9
Number of shares
million, total 23.1 21.1 21.1 21.1 21.1 15.8
Number of shares, A 13.9 11.9 11.9 11.9 11.9 6.6
Number of shares, KII 9.2 9.2 9.2 9.2 9.2 9.2
Average share issue-adjusted
number of shares 21.8 21.1 21.1 21.1 18.3 18.1
Share issue-adjusted number
of shares on 31 December 23.1 21.1 21.1 21.1 21.1 18.1
SHARE PRISE DEVELOPMENT
Lowest of period A 15.00 11.50 8.55 8.55 6.81 5.85
Highest of period A 21.50 18.18 11.75 11.75 11.40 8.90
At end of period A 18.29 17.99 11.30 11.30 9.05 7.70
Average price
for period A 18.31 15.33 9.42 9.42 9.20 7.35
* Proposal of the Board of Directors
This interim report has been prepared in accordance with the (IFRS) Interim
Financial Reporting standard. Valid IAS- and IFRS standards as well as SIC- anc
IFRIC interpretations have been applied.
This interim report is unaudited.
For further information, please contact Mr Matti Tikkakoski, President & CEO,
tel. +358 50 2582.
ATRIA GROUP PLC
Matti Tikkakoski
President and CEO
DISTRIBUTION
Helsinki Stock Exchange
Principal media
www.atria.fi/konserni
The Financial statements will be mailed to you upon request and are also
available on our website at www.atria.fi/konserni.