ATRIA GROUP PLC'S FINANCIAL STATEMENT BULLETIN 1 JANUARY - 31 DECEMBER 2007
ATRIA GROUP'S STABLE RESULT DEVELOPMENT CONTINUED
- Group turnover was EUR 1,272.2 million (EUR 1,103.3 million), growth 15.3
percent
- Operating profit (EBIT) amounted to EUR 94.5 million (EUR 41.5 million)
- Operative EBIT was EUR 61.4 million (EUR 33.5 million)
- Earnings per share amounted to EUR 2.56 (EUR 1.15)
Atria Group:
Q4/ Q4/
Million euro 2007 2006 2007 2006
------------------------------------------------------------------------
Turnover 337.1 298.3 1,272.2 1,103.3
Operating profit 13.2 17.8 94.5 41.5
Operative EBIT * 13.7 9.8 61.4 33.5
Operative EBIT % 4.1 3.3 4.8 3.0
Profit before tax 11.3 15.0 80.6 34.6
Earnings per share 0.28 0.57 2.56 1.15
* Operative EBIT = Operating profit generated by the underlying business
excluding significant one-time items.
Review Q4/2007
Atria Group's Q4 turnover grew considerably compared to the corresponding period
last year (turnover growth 13.0%). The operative EBIT for the period amounted to
EUR 13.7 million (EUR 9.8 million). The Group's Q4 result was burdened by a
heavy increase in raw material prices.
In Finland, Atria's Q4 turnover increased by 13.3 percent compared to the same
period last year, amounting to EUR 203.9 million (EUR 179.9 million). The
operative EBIT amounted to EUR 8.6 million (EUR 9.5 million). The increase in
raw material prices that began in the end of the year clearly weakened Atria
Finland's earnings potential and the operative EBIT was slightly below the
previous year's level.
In Scandinavia (Sweden and Denmark), turnover for Q4 amounted to EUR 116.0
million (EUR 96.0 million). The operative EBIT was EUR 5.9 million (EUR 1.7
million). During the review period a rationalization programme was launched in
the Sardus Lätta Måltider unit to improve its profitability. The meat raw
material prices rose heavily towards the end of the year in Sweden and Denmark
as well. Implemented price increases and efficiency measures improved the
profitability of the business area towards the end of the review period.
In Russia, Q4 turnover was EUR 16.9 million (EUR 20.0 million). The operative
EBIT was EUR 0.5 million (EUR -0.4 million). The construction of the new
production plant and logistics centre has progressed as planned. Customer
acquisition outside the St. Petersburg region has also progressed according to
plan.
In the Baltic region, Q4 operative EBIT weakened to EUR -1.3 million (EUR -1.0
million). The result was burdened in particular by rapidly-increasing animal
feed costs in Estonian primary production.
Atria Finland
Q4/ Q4/
Million euro 2007 2006 2007 2006
-------------------------------------------------------------------------
Turnover 203.9 179.9 749.6 686.1
Operating profit 8.6 11.3 39.7 34.0
Operative EBIT 8.6 9.5 39.7 32.2
Operative EBIT % 4.2 5.3 5.3 4.7
In the Finnish consumer goods retail market, demand for products in Atria's
market sector grew by 5.4 percent in 2007 measured in value. The value of Atria
Finland's total sales in the retail market grew clearly more, by 6.5 percent.
The growth in products sold under the Atria brand was even higher at 11.5
percent, i.e. double the average market growth. Atria's overall market share in
2007 rose to 30.1 percent. (Source: Nielsen 2007)
During 2007, the sales of Atria's brand in cold cuts grew by 11.6 percent and
was clearly better than the market development of 4.2 percent. In consumer
packed meat Atria's 14.1 percent growth was nearly three times as much as the
average product group growth. In convenience food the sales development of the
Atria brand amounted to 9.6 percent while the average product group growth was
6.2 percent. Percentage-wise, the highest growth on the market was seen in
consumer packed poultry products, at 16.4 percent. The Atria brand grew by as
much as 24.6 percent in this product group. Its market share rose to 38.5
percent.
Q4 sales were better than planned and deliveries in the Christmas season were
problem-free. Towards the end of the year meat raw material prices rose sharply,
which clearly weakened the result for the period. In Q4 the prices of meat raw
material were on average 10 percent higher than in the corresponding period last
year. No increases could be implemented in sales prices in Q4 and they shifted
to 2008 which played a part in the weak Q4 result. Raw material prices are
expected to continue rising in 2008 as well.
Atria Scandinavia
Q4/ Q4/
Million euro 2007 2006 2007 2006
-----------------------------------------------------------------------
Turnover 116.0 96.0 457.8 336.4
Operating profit 5.5 9.4 54.9 15.1
Operative EBIT 5.9 1.7 20.5 7.4
Operative EBIT % 5.1 1.8 4.5 2.2
The year 2007 was a year of structural and strategic changes for Atria
Scandinavia and the entire industry in Sweden. Through corporate arrangements
Atria Scandinavia became a stronger player in the Swedish and Danish markets. In
April, Atria acquired the Swedish-Danish food company AB Sardus and sold the
subsidiary Svensk Snabbmat för Storkök AB to Euro Cater A/S.
Atria Scandinavia has increased its market shares towards the end of the year.
In cold cuts Atria's market share is 22 percent in Sweden, and 12 percent in
Denmark. The market shares in sausages (13%) and convenience food (9%) have
remained stable.
During Q4 Atria Scandinavia signed a long-term agreement on delivering fresh
convenience food to ICA in Sweden. The first deliveries started in late 2007. In
the near future the fresh convenience food category is expected to grow sharply
in Sweden, which traditionally has been a strong market for frozen convenience
food.
A considerable rationalization programme to improve production efficiency was
launched in the Sardus Lätta Måltider unit during the period. The production of
sandwiches and salads are to be centralised in Norrköping's and Halmstad's
factories and production in the Stockholm factory ends. The redundancy applies
to 58 employees in Stockholm, 24 employees in Halmstad and 15 employees in
Norrköping. The one-time cost from the rationalization, EUR 0.8 million, was
booked in Q4/2007. A one-time profit of EUR 0.5 million was also booked in the
period from divestment of fixed assets.
In Q4 Atria Scandinavia's turnover grew compared to corresponding period last
year thanks to the Sardus acquisition. Organic turnover did not grow in the
review period because unprofitable products were discontinued in the Sardus
Lätta Måltider unit and loss-making customer relationships were given up. The
operative EBIT was tripled thanks to increased sales volume, better pricing and
sales mix and lower production costs.
Atria Scandinavia has started preparations for a new brand strategy. The aim of
the new strategy is to clarify Atria Scandinavia's brand portfolio and invest in
fewer but strategically important brands so that they support Atria's aim to be
the consumer's number one choice in its market areas.
Atria Russia
Q4/ Q4/
Million euro 2007 2006 2007 2006
---------------------------------------------------------------------
Turnover 16.9 20.0 65.6 74.1
Operating profit 0.5 -0.4 4.3 -2.7
Operative EBIT 0.5 -0.4 4.3 -2.7
Operative EBIT % 2.8 -2.0 6.5 -3.6
During 2007 the earnings development in Atria Russia turned positive; the EUR
4.3 million operative EBIT represented 6.5 percent of turnover. The positive
development was boosted in particular by price increases and the cost savings
generated from shutting down an obsolete production plant. Atria shut down the
production at its plant located in downtown St. Petersburg and focused its
production to Sinyavino in Leningrad's oblast. Closing of the St. Petersburg
plant improved production processes and logistics management considerably.
Considerable investments in the production lines were also carried out at the
Sinyavino plant. The investments totalled EUR 10 million and the plant's
production capacity had clearly increased by the end of 2007.
Sales growth did not reach the targeted level and turnover was below the 2006
level. Sales growth that had been in line with targets in early 2007 slowed down
in the summer when unhealthy price competition prevailed and led to price
decreases. In order to ensure its profitability, Atria did not cut its prices.
Atria maintained its clear market leader position in modern retail trade in the
St. Petersburg market area. Its market share in the chosen product groups was 21
percent. Outside the St. Petersburg area, Atria sales grew through new
customers.
Construction of the new meat product plant and logistics centre progressed
according to plan. The plant, which will be completed in the autumn of 2008,
will double Atria Russia's production capacity of meat products. Production
planning for the start-up of the new plant and related recruitment began in late
2007.
Due to tightened price competition in Q4, Atria did not reach the targeted sales
volumes, and generated cost savings could not fully compensate for the volume
deficit. The launching of new cold cuts and sausages as well as Christmas season
sales was successful.
Atria Baltic
Q4/ Q4/
Million euro 2007 2006 2007 2006
------------------------------------------------------------------------
Turnover 6.1 7.7 26.7 30.5
Operating profit -1.4 -2.5 -4.4 -4.9
Operative EBIT -1.3 -1.0 -3.1 -3.4
Operative EBIT % -21.3 -13.0 -11.6 -11.1
During 2007 Atria Baltic's operations were centralised in Estonia and the
operations at the Lithuanian factory stopped in August. The aim is to further
improve operational profitability. Due to the closing down of the Lithuanian
operations, Atria Baltic's turnover decreased and was EUR 26.7 million. The
costs from the shut-down weakened the operating profit, which was in the red, at
EUR -4.4 million.
During the spring Atria launched an EUR 8 million investment programme in
Estonia, the majority of which is directed at ensuring raw material procurement
and quality for primary production. Some of the investments were directed at
increasing the capacity and cost efficiency of the Valga production plant.
In Q4 earnings was weakened by a heavy increase in raw materials in primary
production, in particular in animal feed costs. During the review period, Atria
Baltic's and Russia's operations were reorganised. Food engineer Kari Körkkö has
been appointed as the country manager of Atria Baltic operations and the
Managing Director of AS Valga Lihatööstus and UAB Vilniaus Mesa from 1 November
2007.
Human Resources
In 2007, the average number of personnel in Atria Group was 5,947 (5,740).
Tomas Back, MSc (Econ.), was appointed CFO of Atria Group and member of the
management team from 4 June 2007. Atria Group's long-standing CFO, Erkki Roivas,
MSc (Econ.), retired at the end of 2007.
Jarmo Lindholm, MSc (Econ.), was appointed Group Vice President of product
development and category management in Atria Group, as well as a member of the
Group's management team, from 1 December 2007.
Investments
The Nurmo logistics centre investment is ready and was taken into full use
during the summer and autumn. The logistics centre investments are estimated to
total EUR 40 million. The value of Atria Finland's investments in Q4 totalled
EUR 9.6 million.
The construction of a new production plant and logistics centre is underway in
the Gorelovo region of St. Petersburg. The new plant will be completed by the
end of 2008. The total value of the investment is approximately EUR 70 million.
During 2007, approximately EUR 10 million was invested in the modernisation and
capacity increase of the Sinyavino production plant.
At the beginning of October, Atria Scandinavia signed a long-term agreement to
deliver fresh convenience food to ICA in Sweden. This resulted in an investment
of approximately one million euro in the convenience food production at the
Fosie plant in Malmö. During the review period the total investment of Atria
Scandinavia including acquired operations was EUR 213.9 million.
Baltic operations were centralised to Estonia where an investment programme of
EUR 8 million was initiated.
The group's investments for 2007 totalled EUR 284.1 million and EUR 21.1 million
for Q4.
Financing
Atria Group Plc strengthened its liquidity position during the first quarter of
2007 by making a EUR 20 million loan agreement and issuing a EUR 40 million bond
directed at institutional investors.
In May 2007, Atria Group Plc carried out a share issue. As a result of the issue
the share capital increased by EUR 8,797,500 and the number of shares increased
by 5,175,000 new A series shares. Upon registration of the new shares, Atria's
share capital amounted to EUR 48,055,137.60, divided into 19,063,747 A series
shares and 9,203,981 KII series shares. The total net assets acquired in Atria's
share issue amounted to approximately EUR 115 million.
The share issue was primarily implemented as an institutional offering in which
75 percent was directed at Finnish investors and 25 percent at international
investors. The number of new A shares subscribed for in the share issue and as
an extra share option represent 18.3 percent of Atria's total shares and 4.7
percent of the votes. The share issue was carried out through subscription
commitment process and the subscription price was confirmed as EUR 23 per share.
In 2007, Atria carried out two considerable acquisitions; AB Sardus in Sweden
and Liha-Pouttu Oy in Finland. The acquisitions were financed with the
above-mentioned loans as well as temporary credit limits and commercial papers,
which were later repaid with the funds raised in the share issue.
In April Atria sold its share of the Group's Swedish subsidiary Svensk Snabbmat
för Storkök AB to Euro Cater A/S, one of the leading food service companies for
restaurants in the Nordic countries. Atria recorded a profit of EUR 34,7 million
from the deal.
In November 2007, Atria Group Plc signed four new long-term credit limits
totalling EUR 175 million. The credit limits were used, for instance, to convert
AB Sardus' external loans for a counter value of approximately EUR 50 million.
During the autumn of 2007 Atria Group Plc managed to negotiate with banks that
the encumbrances used as loan collateral are released.
Major shareholders 31 Dec. 2007
KII A Total %
Itikka Co-operative 4,914,281 2,327,801 7,242,082 25.62
Lihakunta 4,020,200 3,221,797 7,241,997 25.62
Odin Norden 1,659,200 1,659,200 5.87
Skandinaviska Enskilda Banken 1,592,901 1,592,901 5.64
Pohjanmaan Liha Co-operative 269,500 480,038 749,538 2.65
Odin Finland 695,214 695,214 2.46
Nordea Bank Finland Plc 632,883 632,883 2.24
OP-Suomi Arvo 493,300 493,300 1.75
Public pension insurance company Veritas 281,500 281,500 1.00
Sijoitusrahasto Nordea Fennia 255,078 255,078 0.90
Largest shareholders in terms of voting rights, 31 Dec. 2007
KII A Total %
Itikka Co-operative 49,142,810 2,327,801 51,470,611 46.33
Lihakunta 40,202,000 3,221,797 43,423,797 39.08
Pohjanmaan Liha
Co-operative 2,695,000 480,038 3,175,038 2.86
Odin Norden 1,659,200 1,659,200 1.49
Skandinaviska Enskilda Banken 1,592,901 1,592,901 1.43
Odin Finland 695,214 695,214 0.63
Nordea Bank Finland Plc 632,883 632,883 0.57
OP-Suomi Arvo 493,300 493,300 0.44
Public pension insurance company Veritas 281,500 281,500 0.25
Sijoitusrahasto Nordea Fennia 255,078 255,078 0.23
Notification of changes in shareholding according to the Securities Markets Act
Flagging notification 16 May 2007
On 16 May 2007 Atria Group Plc received a notification from Julius Baer
Investment Management LLC and Julius Baer International Equity Fund that their
combined holding in Atria Group Plc had exceeded the 5 percent limit on 11 May
2007.
Flagging notification 16 August 2007
On 16 August 2007 Atria Group Plc received a notification from Julius Baer
Investment Management LLC and Julius Baer International Equity Fund that their
combined holding in Atria Group Plc had due to the increase in share capital
registered on 5 June 2007 and on 11 June 2007 related to Atria Group Plc's share
issue, dropped below 5 percent. The delay in the notification was caused by the
fact that Atria Group Plc's increase in share capital had not been registered in
the shareholder's data system.
Flagging notification 9 October 2007
On 9 October 2007 Atria Group Plc received a notification from Julius Baer
Investment Management LLC and Julius Baer International Equity Fund that their
combined holding in Atria Group Plc had exceeded the 5 percent limit in a trade
made on 4 October 2007.
Atria Group Plc's administration
Leena Saarinen M.Sc.(Food Sciences)announced that she will resign from Atria
Group Plc's Board of Directors on 22 October 2007, having accepted the post of
President and CEO at Tradeka Ltd.
Atria Group Plc's Board of Directors now has the following membership: Chairman
Martti Selin; Vice-Chairman Timo Komulainen; members Tuomo Heikkilä, Runar
Lillandt, Matti Tikkakoski and Ilkka Yliluoma.
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 A series shares available for subscription should not
exceed a total of 10,000,000 shares. The nominal value of one A series share is
EUR 1.70.
The AGM authorised the Board of Directors to decide on one or more share capital
increases in which the share capital can be increased by a maximum of EUR
850,000.
The AGM set the validity period of these authorisations to a maximum of five
years, starting from the authorisation decision.
The share issue authorisation given to the Board of Directors applies to both a
cash share issue and a bonus issue. The share issue may also be a private
offering if there is a strong financial justification for it concerning the
benefit of the company or, in case of a directed bonus issue, a particularly
strong financial justification concerning the benefit of the company and all its
shareholders.
The authorisation for a bonus issue can be mainly used when executing the share
ownership plan of the top management.
The Board of Directors was given authorisation to decide on all the conditions
of the share issues, including who is entitled to subscription and what the
price will be.
This authorisation will be in effect for five years from the authorisation
decision. A total of 5,175,000 authorised A series shares have been used.
Future prospects
Finland:
The rapid changes in raw material prices in the whole food chain that began in
the second half of 2007 will continue during 2008. In 2008 Atria Finland will
invest more in marketing the Atria brand and domestic meat raw material. In
recent years extensive production and logistics investments have been made in
Finland and their full utilisation will generate considerable cost benefits.
Scandinavia:
Atria Scandinavia will invest in its core product groups in line with its
strategy: cold cuts, convenience food and fast food concepts. In accordance with
the new brand strategy there will be considerably more investments in marketing
than in previous years. Atria Scandinavia will move to a new and innovative
level in development of new products. The cooperation with all the key customers
will be tightened. During the spring the launch of the new convenience food
concept developed in cooperation with ICA will continue with several new
products. The operations of the loss-making Sardus Lätta Måltider unit will be
developed further in accordance with the announced rationalization programme. In
addition Atria will continue benefiting from the synergies of the Sardus
acquisition.
Russia:
Atria Russia's new EUR 70 million production plant will be taken into use in
late 2008. Thanks to the additional capacity it provides, Atria will strengthen
its delivery reliability, particularly in the St. Petersburg area but also to
other cities in western Russia. The new production lines also enable launching
new types of products and product groups on the Russian market.
Baltic region:
Thanks to implemented restructuring and investments, Atria Baltic has good
preconditions for profitable operations in Estonia. Investments in product
development and marketing will boost operational growth. We expect that raw
material prices will remain high.
Group
Turnover in 2008 is estimated to grow and operative EBIT is expected to be
slightly better than in 2007. The Group's 2008 result depends to a large extent
on the raw material price development.
Corporate Governance
The Corporate Governance Recommendations, any exceptions to it and the
associated personnel data are published on our website, www.atria.fi.
Dividend proposal
The Board of Directors proposes that a dividend of EUR 0.70 be paid for each
share for the financial year of 2007.
Annual General Meeting 29 April 2008
Atria Group Plc invites its shareholders to the Annual General Meeting, which
will be held on 29 April 2008 in Helsinki at the Finlandia Hall.
The AGM will address among others the following:
1. Matters to be addressed at the AGM as set out in Article 16 of the Articles
of Association.
2. Authorising the Board of Directors to acquire and assign its own shares.
Restrictions on trading by insiders
In its meeting on 27 June 2007, the Board has decided that the following insider
trading restrictions will apply: the period during which the company's insiders
may not trade company shares is 14 days before the publication of interim
reports and financial statements. 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 Markets Act.
Silent period
Atria Group's IR adopts a silent period, which means that Atria does not give
any statements about its financial situation three weeks prior to the
publication of interim reports and financial statements.
FINANCIAL INDICATORS
IFRS IFRS IFRS IFRS FAS FAS
31-12-07 31-12-06 31-12-05 31-12-04 31-12-04 31-12-03
Turnover, mill. EUR 1 272.2 1 103.3 976.9 833.7 833.7 765.1
Operating profit
mill. EUR 94.5 41.5 40.2 49.3 38.8 30.9
% of turnover 7.4 3.8 4.1 5.9 4.7 4.0
Financial income and
expenses, mill. EUR -14.3 -7.3 -3.2 -5.2 -5.1 -7.3
% turnover 1.1 0.6 0.3 0.6 0.6 0.9
Profit before tax 80.6 34.6 37.8 44.6 33.7 23.6
% of turnover 6.3 3.1 3.9 5.3 4.0 3.1
Return of equity (ROE) % 17.2 8.8 10.0 13.9 10.3 7.5
Return of
investment (ROI) % 15.2 8.7 10.3 13.9 10.7 9.1
Equity ratio % 47.6 42.8 43.0 50.9 51.3 49.6
Gross investments,
mill. EUR 284.1 89.0 107.3 37.3 33.8 36.4
% of turnover 22.3 8.1 11.0 4.5 4.1 4.8
Interest-bearing
liabilities 321.9 244.2 206.9 116.1 110.3 129.4
Average personnel 5 947 5 740 4 433 3 638 3 638 3 377
Research and development
costs, mill. EUR * 8.4 7.4 6.7 7.0 7.0 6.7
% of turnover 0.7 0.7 0.7 0.8 0.8 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 IFRS FAS FAS
31-12-07 31-12-06 31-12-05 31-12-04 31-12-04 31-12-03
Earnings per share
(EPS), EUR 2.56 1.15 1.24 1.58 1.17 0.83
Shareholders´equity
per share, EUR 16.77 13.28 12.08 11.58 11.42 10.65
Dividend/share, EUR * 0.70 0.595 0.595 0.595 0.595 0.425
Dividend/profit, % * 27.4 51.7 48.0 37.7 50.7 51.5
Effective
dividend yield * 4.0 3.3 3.3 5.3 5.3 4.7
Price/earnings
ratio (P/E) 6.8 15.9 14.5 7.2 9.6 10.9
Market capitalisation,
mill. EUR 490.4 422.4 379.5 238.3 238.3 190.9
Share turnover/
1 000 shares, A 7 933 3 899 5 704 3 800 3 800 2 325
Share turnover %, A 41.6 28.1 48.0 32.0 32.0 29.9
Number of shares,
million total 28.3 23.1 21.1 21.1 21.1 21.1
Number of shares, A 19.1 13.9 11.9 11.9 11.9 11.9
Number of shares, KII 9.2 9.2 9.2 9.2 9.2 9.2
Average share issue-adjusted
number of shares 26.1 21.8 21.1 21.1 21.1 18.3
Share issue-adjusted number
of shares on 31 December 28.3 23.1 21.1 21.1 21.1 21.1
SHARE PRICE DEVELOPMENT
Lowest of period, A 16.90 15.00 11.50 8.55 8.55 6.81
Highest of period, A 28.77 21.50 18.18 11.75 11.75 11.40
At end of period A 17.35 18.29 17.99 11.30 11.30 9.05
Average price
for period A 22.18 18.31 15.33 9.42 9.42 9.20
* Proposal from the Board of Directors
Principles applied in preparing the financial statements
The Financial statements have been complied in accordance with the International
Financial Reporting Standards (IFRS). IAS and IFRS standards and SIC and IFRIC
interpretations valid on 31 December 2007 have been followed.
ATRIA GROUP PLC
CONSOLIDATED BALANCE SHEET
Assets
mill. EUR 31-12-07 31-12-06
Non-current assets
Property, plant and equipment 455.6 362.8
Goodwill 151.8 57.7
Other intangible assets 64.3 33.3
Loan assets and other receivables 43.6 41.6
Investments 8.7 6.3
Total 724.0 501.7
Current assets
Inventories 87.3 63.4
Trade and other receivables 153.8 131.1
Cash in hand at bank 35.6 35.4
Total 276.7 229.9
Total assets 1 000.7 731.6
Equity and liabilities
mill. EUR 31-12-07 31-12-06
Equity
Shareholders´equity 474.1 306.6
Minority interest 1.9 5.8
Equity, total 476.0 312.4
Long-term liabilities
Interest-bearing liabilities 194.1 165.4
Deferred tax liabilities 42.8 26.9
Pension obligations 0.3 0.3
Total 237.2 192.6
Short-term liabilities
Interest-bearing liabilities 127.8 78.8
Trade and other other payables 159.7 147.8
Total 287.5 226.6
Liabilities, total 524.7 419.2
Total equity and liabilities 1 000.7 731.6
CONSOLIDATED INCOME STATEMENT
mill. EUR 10-12/07 10-12/06 1-12/07 1-12/06
Turnover 337.1 298.3 1 272.2 1 103.3
Expenses -313.0 -268.7 -1 133.2 -1 024.0
Depreciations -10.9 -11.8 -44.5 -37.8
Operating profit 13.2 17.8 94.5 41.5
* % of turnover 3.9 6.0 7.4 3.8
Income from associates 0.3 -0.4 0.4 0.4
Financial income and
expenses -2.2 -2.4 -14.3 -7.3
Profit before tax 11.3 15.0 80.6 34.6
* % of turnover 3.4 5.0 6.3 3.1
Income taxes -3.2 -2.3 -13.0 -8.6
Profit for the period 8.1 12.7 67.6 26.0
* % of turnover 2.4 4.3 5.3 2.4
Profit distribution for
the accounting period:
To parent company
shareholders 8.1 12.4 66.7 25.1
To minority shares 0.3 0.9 0.9
Total 8.1 12.7 67.6 26.0
Basic earnings/share, € 0.28 0.57 2.56 1.15
Diluted
earnings/share, € 0.28 0.57 2.56 1.15
CALCULATION OF CHANGES IN SHAREHOLDERS' EQUITY
mill. EUR Equity belonging to the owners of the parent company Mino Share
shareholders rity holders'
inte equity
Share Share Fair Other Trans Retained Total rest in total
capital premium value reserv lation earnings
fond diff.
Shareholders'
equity
1-1-2006 35.8 104.4 -0.9 115.5 254.8 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 0.8 128.0 306.6 5.8 312.4
Translation
differences -4.2 -4.2 -0.2 -4.4
Other changes 1.9 0.3 2.2 -4.6 -2.4
Profit for the period 66.7 66.7 0.9 67.6
Distribution
of dividends -13.7 -13.7 -13.7
Share issue 8.8 110.2 -2.5 116.5 116.5
Shareholders'
equity
31-12-2007 48.1 138.5 1.9 110.5 -3.4 178.5 474.1 1.9 476.0
CASH FLOW STATEMENT FOR GROUP
mill. EUR 1-12/07 1-12/06
Cash flow from operating activities
Operating activities 92.3 62.2
Financial items and taxes -28.4 -14.5
Cash flow from operating activities,
total 63.9 47.7
Cash flow from investing activities
Tangible and intangible assets -92.1 -63.5
Investments -1.4 -2.1
Sold shares in subsidiaries 39.1 10.7
Bought shares in subsidiaries -124.6 -16.1
Cash flow from investing activities,
total -179.0 -71.0
Cash flow from financing activities
Cash share issue 116.5 20.9
Loans drawn down 304.1 99.7
Loans repaid -292.1 -66.0
Dividends paid -13.7 -13.0
Cash flow from financing,
total 114.8 41.6
Change in liquid funds -0.3 18.3
SEGMENT-SPECIFIC INFORMATION
GEOGRAPHICAL
mill. EUR 10-12/07 10-12/06 1-12/07 % 1-12/06 %
Turnover
Finland 203.9 179.9 749.6 58.9 686.1 62.2
Scandinavia 116.0 96.0 457.8 36.0 336.4 30.5
Russia 16.9 20.0 65.6 5.2 74.1 6.7
Others 6.1 7.7 26.7 2.1 30.5 2.8
Eliminations -5.8 -5.3 -27.5 -2.2 -23.8 -2.2
Total 337.1 298.3 1 272.2 100.0 1 103.3 100.0
Operating profit
Finland 8.6 11.3 39.7 42.0 34.0 81.9
Scandivania 5.5 9.4 54.9 58.1 15.1 36.4
Russia 0.5 -0.4 4.3 4.6 -2.7 6.5
Others -1.4 -2.5 -4.4 -4.7 -4.9 -11.8
Total 13.2 17.8 94.5 100.0 41.5 100.0
Operative EBIT
Finland 8.6 9.5 39.7 64.7 32.2 96.1
Scandinavia 5.9 1.7 20.5 33.4 7.4 22.1
Russia 0.5 -0.4 4.3 7.0 -2.7 -8.1
Others -1.3 -1.0 -3.1 -5.1 -3.4 -10.1
Total 13.7 9.8 61.4 100.0 33.5 100.0
Investments
Finland 28.6 10.1 51.9 58.3
Scandinavia 213.9 75.3 21.6 24.3
Russia 33.0 11.6 7.3 8.1
Others 8.6 3.0 8.3 9.3
Total 284.1 100.0 89.0 100.0
mill. EUR 31-12-07 % 31-12-06 %
Assets
Finland 780.9 78.0 578.7 79.1
Scandinavia 373.4 37.3 171.6 23.5
Russia 78.8 7.9 47.4 6.5
Others 48.1 4.8 42.1 5.8
Eliminations -280.4 -28.0 -108.2 -14.8
Total 1 000.7 100.0 731.6 100.0
Liabilities
Finland 353.6 67.4 283.8 67.7
Scandinavia 259.8 49.5 93.5 22.3
Russia 54.4 10.4 27.7 6.6
Others 34.1 6.5 22.8 5.4
Eliminations -177.2 -33.8 -8.6 -2.1
Total 524.7 100.0 419.2 100.0
BUSINESS
mill. EUR 1-12/07 % 1-12/06 %
Turnover
Meat Industries 1 095.4 86.1 870.6 78.9
Wholesale Trade *) 195.8 15.4 257.9 23.4
Eliminations -19.0 -1.5 -25.2 -2.3
Total 1 272.2 100.0 1 103.3 100.0
* Includes Svensk Snabbmat för Storkök AB´s turnover 1.1. - 31.5.2007.
LIABILITIES
mill. EUR 31-12-07 31-12-06
Debts with mortgages or other collateral
given as security
Loans from financial
institutions 13.5 90.4
Pension fund loans 4.6 7.0
Total 18.1 97.4
Mortgages and other securities given
as comprehensive security
Real estate mortgages 22.0 83.6
Corporate mortgages 2.2 44.2
Other securities 45.4 52.6
Total 69.6 180.4
Guarantee engagements not included
in the balance sheet
Unused limits 30.2 104.7
Guarantees 3.6 27.8
ACQUIRED OPERATIONS
AB SARDUS:
Atria Lithells Meat and Fast Food AB acquired the Swedish AB Sardus on 1 April
2007. The acquisition forms part of Atria's goal of becoming the leading food
industry company in the Baltic Sea region. The food industry is currently
undergoing a structural change and integration development, and there are a
limited number of major operators. Merging Atria and Sardus strengthens the
ability of both companies to respond to the new challenges set by the
integrating markets. Together, the companies will 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 will form the main accelerators of growth, and they strengthen the
brands and product groups of both companies.
Sardus' turnover in 2006 amounted to EUR 230 million and its operating profit
was EUR 9 million. Sardus employs some 1.000 people.
Acquiree's
Fair current
value book value
Assets
Property, plant and equipment 53.0 53.0
Goodwill 93.7 42.0
Other intangible assets 48.3 3.4
Financial assets 0.9 0.9
Inventories 25.3 25.3
Receivables 30.4 30.4
Cash and cash equivalents 3.9 3.9
Assets, total 255.5 159.0
Liabilities
Deferred tax liabilities 20.4 9.2
Interest-bearing liabilities 80.2 79.4
Other liabilities 30.4 30.4
Liabilities, total 131.0 119.0
Net assets 124.5 40.0
Purchase price 124.5
Cash and cash equivalents of acquired company 3.9
Effect on cash flow 120.6
STAM Sp.z.o.o:
On 30 May 2007, Atria Concept AB acquired the Polish agency office Stam Sp.z.o.o
with which Atria has been cooperating for a long time in Poland. Atria Concept
AB wants to continue strengthening its position in Poland and its neighbouring
countries, the Czech Republic and Slovakia. The aim is to double turnover to
approximately EUR 6 million by the end of 2009 through better utilisation of
local knowledge.
LIHA-POUTTU OY:
Atria Finland Ltd acquired the entire stock of Liha-Pouttu Oy. The acquisition
target was Liha-Pouttu Oy's meat procurement, slaughtering and meat cutting
operations. The competitive authority approved the acquisition on 21 September
2007 and the deal was confirmed on 1 October 2007.
Packing of retail-packed meat was not included in the purchase. In connection
with the deal, Atria and Pouttu signed a cooperation agreement concerning meat
deliveries from Atria to Jaloste-Pouttu Oy. Along with the acquisition, Atria
adds to its cost-efficiency in meat purchasing and cutting operations as
purchasing volumes increase from 140 million kg to approximately 155 million kg.
Thanks to the Liha-Pouttu acquisition, the turnover of Atria Finland Ltd is
expected to grow by approximately EUR 25 million annually.
Stam and Liha-Pouttu combined:
Acquiree's
Fair current
value book value
Assets 8,9 6,3
Liabilities 4,7 4,4
Net assets 4,2 1,9
Purchase price 4,2
Cash and cash equivalents of acquired company 0,2
Effect on cash flow 4,0
SOLD OPERATIONS
SVENSK SNABBMAT FÖR STORKÖK AB:
Atria sold its share of its Swedish subsidiary Svensk Snabbmat för Storkök AB
to Euro Cater A/S. Snabbmat is a local HoReCa wholesale outlet, in which Atria
held 57.2 percent of the shares. Atria recorded a capital gain of nearly
EUR 35 million from the deal. Snabbmat is included in Group figures until
31 May 2007.
Result 1-5/07 1-12/06
Turnover 85,1 146,9
Operating profit 1,6 4,6
Profit before tax 1,4 4,5
Assets and liabilities at the divestment time: 31.5.07
Assets 54,0
Liabilites 43,5
The figures of the financial statement bulletin are unaudited.
ATRIA GROUP PLC
Board of Directors
For further information, please contact Mr Matti Tikkakoski, President and CEO,
tel. +358 50 2582.
DISTRIBUTION
Helsinki Stock Exchange
Principal media
www.atria.fi
The financial statements will be mailed to you upon request and is also
available on our website at www.atria.fi/konserni.