In the first three months of this year, net sales by Atria Plc amounted to a little over EUR420 million (US478 million), according to the quarterly report just published.
Based in Finland, the Northern European food company also has operations in Sweden, Denmark and Estonia. Poultry and pig meats are among its key products.
Group net sales were up by 0.9% compared with the same period of last year, despite challenging trading conditions in the home market.
The Finnish market for the firm’s products fell by 3.5% in value, according to the group’s CEO, Kai Gyllström. He attributed this to a combination of challenges in beef supply, updated nutritional recommendations, and uncertainties in the general economy. Easter falling in the second quarter also had an adverse impact, he said, as did a workers’ union strike prior to the holiday period.
Despite these challenges, the group’s operational profit (expressed as Earnings Before Interest and Taxes; EBIT) improved by 60% year-on-year to EUR12.8 million, and EBIT margin increased from 1.9% in the first quarter of 2024 to 3.1% in the three months just ended.
One driver of this improvement identified by Gyllström was the start of chicken exports to China, which commenced in December.
All of the firm’s businesses — Finland, Sweden, and Denmark & Estonia — reported year-on-year improvements in EBIT.
At almost EUR308 million, net sales in the first quarter were down slightly for Atria Finland, but EBIT increased by EUR4.0 million to EUR11.2 million.
For Atria Sweden, net sales amounted to EUR88.9 million — up 8.3% year-on-year, while EBIT improved from zero to EUR700,000.
Meanwhile, quarterly EBIT for Atria Denmark & Estonia was up EUR300,000 to EUR1.8 million, despite net sales dipping 2.8% year-on-year to EUR29.8 million.
Progress on sustainability
In its quarterly report, Atria Plc confirms that a carbon-neutral food chain is the most important target for its sustainability efforts.
The group’s emissions reduction targets have been officially approved. Compared with 2020, its targets are a 42% reduction in greenhouse gas (GHG) emissions from its own operations by 2030 (Scopes 1 and 2), and a 20% reduction in Scope 3 emissions (per metric ton of processed meat) by the same date.
Atria is seen by consumers as a sustainable brand, the company reports, citing recent surveys in Finland and Estonia.
Furthermore, the group reports it is collaborating with the University of Helsinki on a study to provide greater insight into the climate impacts of agriculture and food production.
One month ago, the company announced a major investment of EUR60-90 million at its plant in Nurmo, Finland. As well as innovations in convenience food products there, the firm is targeting the investments towards greater sustainability, and reduced environmental impacts. Specifically, this will mean improved energy efficiency, and the use of carbon-neutral technology.
More on Atria Plc
Annual production of 45 million chickens puts Atria Plc among the largest poultry producers in Europe, according to WATTPoultry.com’s Top Poultry Companies survey for 2023.
Based in Finland, the firm is one of the country’s leading meat producers, with operations in the pork and poultry sectors. As well as its home market, it has businesses in Sweden, Denmark, and Estonia.
In its most recent full financial year report, the group reported net sales of over EUR1.75 billion. For the period, Atria Plc recorded the highest profit (EBIT) in its history at EUR65.4 million.
