Atria Plc, Half-year financial report, 17 July 2025, 1.00 pm
HALF-YEAR FINANCIAL REPORT OF ATRIA PLC, 1 JANUARY - 30 JUNE 2025
Good result for Atria in April-June despite difficult market conditions
April-June 2025
- The Group's net sales increased to EUR 459.8 million (EUR 454.3 million). Atria Sweden's net sales grew by EUR 10.3 million from the corresponding period last year. Atria Finland's net sales were EUR 6.0 million lower than in the comparison period. The cool start to the summer put off the start of the barbecue season and weakened the sales of seasonal products in all business areas. In Finland, the deliveries for the Easter and May Day periods were not made in full due to the Finnish Food Workers' Union's strike in April.
- The Group's consolidated EBIT amounted to EUR 17.6 million (EUR 18.4 million), or 3.8% (4.0%) of net sales.
- Atria Finland's EBIT was EUR 15.7 million, down by EUR 1.4 million from the previous year. The decrease in net sales also reduced the EBIT for the April-June period.
- Atria Sweden's EBIT was EUR 0.7 million higher than in the corresponding period of the previous year thanks to successful sales to retail and Foodservice customers, and the integration of the Gooh! convenience food business with Atria.
- The EBIT of Atria Denmark and Estonia remained at the same level as in the corresponding period last year. An African swine fever infection was detected on an Atria pig farm in Estonia at the end of June. It is currently estimated that the direct costs incurred by Atria will be minor, amounting to approximately EUR 0.6 million. The costs have been booked for the second quarter. The investigation of any compensations is ongoing. As a risk management measure, Atria Estonia has limited all movement between sites to a minimum. The farm is undergoing thorough cleaning and disinfection under the supervision of the local authorities. Production on the farm is expected to continue normally after a few months.
- Atria Finland is investing approximately EUR 7 million in a new pancake production line and the technical modernisation of the production department.
- Atria distributed a dividend of EUR 0.69 per share for the year 2024 (dividend EUR 0.30 per share and capital refund EUR 0.30 per share, total EUR 0.60 per share).
January-June 2025
- Consolidated net sales totalled EUR 880.3 million (EUR 871.2 million). Net sales were higher than in the corresponding period of the previous year thanks to Atria Sweden's good sales to retail trade and Foodservice customers. In other business areas, net sales were lower than in the corresponding period of the previous year.
- The Group's consolidated EBIT amounted to EUR 30.5 million (EUR 26.4 million), or 3.5% (3.0%) of net sales.
- All business areas improved their EBIT.
- The improved efficiency of poultry production and its concentration in Nurmo, as well as the start of chicken exports to China, strengthened Atria Finland's EBIT.
- The Group's free cash flow during the reporting period was EUR 44.0 million (EUR 1.9 million).
- The adjusted return on equity (rolling 12 months) was 11.1 per cent (8.5%).
After the review period
- After the review period, Atria announced a significant investment in convenience food production at the Nurmo production plant. Atria is investing EUR 82.4 million in the modernisation of convenience food production and the related energy solutions. This includes the renovation of the existing production plant and the replacement of the production process and other technical systems with the most energy-efficient solutions. The plant's annual energy consumption is expected to decrease by about 50,000 MWh, which is about 21 per cent of Atria Finland's energy consumption. In addition, heat production is modified so as not to produce any carbon dioxide emissions. The renewed production process enables the development of innovative products, improved product quality and the utilisation of state-of-the-art technology in convenience food production. The energy solutions included in this investment will result in total annual savings of more than EUR 5 million. Business Finland has granted EUR 24.7 million in clean transition investment support to the project. The project will create a model for a carbon-neutral plant concept of the future.
- Jaana Viertola-Truini, a member of the Board of Directors of Atria Plc, resigned from the Board due to her other work commitments. Atria's Board of Directors will continue for the time being with eight Board members.
- Kati Janhunen, MSc (Econ.), was appointed as Atria Group's EVP, Sustainability, and a member of the Group Management Team. She will take up her duties no later than 1 June 2026 - the current EVP for Sustainability Merja Leino will retire.
| Q2 | Q2 | H1 | H1 | ||
| EUR million | 2025 | 2024 | 2025 | 2024 | 2024 |
| Net sales | |||||
| Atria Finland | 330.1 | 336.1 | 637.8 | 645.9 | 1,295.6 |
| Atria Sweden | 104.1 | 93.8 | 193.0 | 175.9 | 360.2 |
| Atria Denmark & Estonia | 31.6 | 32.1 | 61.4 | 62.8 | 125.9 |
| Eliminations | -6.0 | -7.7 | -12.0 | -13.5 | -26.3 |
| Net sales, total | 459.8 | 454.3 | 880.3 | 871.2 | 1,755.4 |
| EBIT before items | |||||
| affecting comparability | |||||
| Atria Finland | 15.7 | 17.1 | 26.9 | 24.2 | 60.4 |
| Atria Sweden | 2.3 | 1.6 | 3.0 | 1.6 | 4.5 |
| Atria Denmark & Estonia | 1.5 | 1.5 | 3.2 | 2.9 | 5.3 |
| Unallocated | -1.8 | -1.7 | -2.6 | -2.4 | -4.8 |
| Adjusted EBIT | 17.6 | 18.4 | 30.5 | 26.4 | 65.4 |
| Adjusted EBIT, % | 3.8 % | 4.0 % | 3.5 % | 3.0 % | 3.7 % |
| Items affecting | |||||
| comparability of EBIT: | |||||
| Atria Finland | |||||
| Poultry business reorganization costs | 1.0 | ||||
| EBIT | 17.6 | 18.4 | 30.5 | 26.4 | 66.4 |
| EBIT, % | 3.8 % | 4.0 % | 3.5 % | 3.0 % | 3.8 % |
| Profit before taxes | 15.1 | 14.5 | 25.2 | 18.4 | 52.1 |
| Earnings per share, EUR | 0.41 | 0.39 | 0.69 | 0.49 | 1.41 |
| Adjusted earnings per share, EUR | 0.41 | 0.39 | 0.69 | 0.49 | 1.38 |
Kai Gyllström, CEO
"Atria Group's EBIT and net sales for January-June were at a good level. The Group's net sales grew, driven by Atria Sweden. We can also be satisfied with the April-June result because despite less than favourable market conditions and a variety of challenges, we managed to achieve a good result.
The market for Atria's product categories in the Finnish retail trade has been subdued throughout the early part of the year. Reasons for the sluggish market include the impact of nutrition recommendations on consumers, difficulties in beef supply and general economic uncertainty. What is positive, however, is that the downward market trend seems to be easing in the second quarter. The market for poultry products has grown, but all other Atria product categories are in the red in the January-May market metrics. The cool start to the summer delayed the start of the barbecuing season, which is important for us, in all Atria's business areas, especially Finland. At the same time, the Finnish Food Workers' Union's strike and the overtime bans made the review period difficult. Despite the challenges, Atria Finland achieved a good result in the second quarter. Enhancing the efficiency of poultry production and concentrating production in Nurmo as well as the start of chicken exports to China, strengthened Atria Finland's EBIT.
The growth of Atria Sweden's net sales and the company's profit development have been very positive. Behind the positive development are very successful sales to the retail trade and Foodservice customers. The Gooh! business, which was acquired in May last year, has also improved the result for Sweden.
Profit development in the Denmark & Estonia business area has also been positive in January-June. Atria Estonia's sales to the retail trade increased, and market shares strengthened in a growing market. The African swine fever infection on one of Atria's pig farms in Estonia, which was detected at the end of June, weakened the result for the second quarter. For Atria Denmark, the early part of the year has been subdued due to weaker sales to retail trade and Foodservice customers. On the other hand, exports have grown.
An African swine fever infection was detected on Atria's pig farm in southern Estonia at the end of June. According to estimates, the financial impact on Atria will be minor. The cleaning and disinfecting of the farm are being carried out under the supervision of the local authorities. We believe that production on the pig farm can return to normal during the autumn. Atria has started discussions with the local authorities about compensation granted by the Estonian state to producers in connection with cases of swine fever. We have further tightened Atria's internal guidelines for travel and all kinds of movement between our sites to limit the outbreak effectively.
In March, we launched a planning project for a phased investment programme for convenience food production at the Nurmo plant. The total cost of the investment project is estimated to be approximately EUR 110 million. In the first phase, we will modernise pancake production with an investment of EUR 7 million. After the review period, we announced the start of the second investment phase, during which we will invest EUR 82.4 million in convenience production and green transition energy solutions at the Nurmo plant. For this project, we received aid for clean transition investments from Business Finland. This is a major step forward for Atria in achieving our environmental goals. Our modernised convenience food factory allows us to produce and develop new and innovative types of convenience food. The energy solutions to be implemented at the Nurmo plant in the next three year will almost halve the carbon dioxide emissions of Atria Group's own production from the 2024 level.
During the review period, we have consistently advanced our sustainability projects. Several energy efficiency projects have been carried out at our Swedish and Estonian sites. In Finland, A-Rehu's chicken feeds were awarded the "Hyvää Suomesta" (Produce of Finland) swan label. The label has been awarded to the chicken feeds used by Atria's chain of family farms as a guarantee of the products' high degree of domestic origin. Domestic protein sources - feed peas and dehulled oats replace imported soy. The 'Hyvää Suomesta' (Produce of Finland) label confirms that at least 75% of the raw materials used in the feed are of Finnish origin. In addition, the products are manufactured in Finland.
Merja Leino, Atria Group's long-term EVP for Sustainability has announced her retirement from Atria on 1st of June, 2026. Kati Janhunen, MSc (Econ.), was appointed as the next EVP for Sustainability and a member of the Management Team after the review period. I would like to thank Merja Leino for her long career within Atria Group. She has worked for Atria for more than 30 years in varied and demanding positions. Her contribution to the development of Atria's business operations, quality, product development and corporate responsibility has been significant."
April-June 2025
Atria Group's net sales in April-June were EUR 459.8 million (EUR 454.3 million). The consolidated EBIT was EUR 17.6 million (EUR 18.4 million), or 3.8% (4.0%) of net sales.
Atria Sweden's net sales increased by EUR 10.3 million compared to the corresponding period last year, thanks to good sales to retail trade and Foodservice customers. The strengthened exchange rate for the Swedish krona also increased the net sales in euros. Atria Finland's net sales were EUR 6.0 million lower than in the comparison period. In Finland, the subdued market development of Atria's product categories in retail trade weakened Atria's net sales. The cool weather at the start of the summer delayed the barbecue season and weakened the sales of seasonal products. Full deliveries could not be made for the Easter and May Day periods due to the Finnish Food Workers' Union's strike and the overtime and shift change bans related to labour market negotiations. Atria Denmark & Estonia's net sales were EUR 0.5 million weaker than in the corresponding period in the previous year.
Atria Finland's EBIT decreased by EUR 1.4 million but remained at a good level. The decrease in net sales also reduced the operating profit for the April-June period. Atria Sweden's EBIT was EUR 0.7 million higher than in the corresponding period of the previous year thanks to successful sales to retail trade and Foodservice customers, and the integration of the Gooh! convenience food business with Atria. The EBIT of Atria Denmark and Estonia remained at the same level as in the corresponding period last year.
An African swine fever infection was detected on an Atria pig farm in Estonia at the end of June. It is currently estimated that the direct costs incurred by Atria will be minor, amounting to approximately EUR 0.6 million. The costs have been booked for the second quarter. The investigation of any compensations is ongoing. As a risk management measure, Atria Estonia has limited all movement between sites to a minimum. The farm is undergoing thorough cleaning and disinfection under the supervision of the local authorities. Production on the farm is expected to continue normally after a few months.
The beef shortage in Europe has not had a significant impact on Atria's sales development so far. The shortage of raw material has increased the price of beef on the market.
In April, Atria Finland announced that it would invest approximately EUR 7 million in a new pancake production line and the technical modernisation of the production department. With this investment, Atria is responding to the growth in consumer demand and strengthening its position and competitiveness in the growing market for convenience food. The demand for pancakes in Finland has increased significantly over the last year. Measured in value, the market growth is about 14 per cent compared to the previous year. The investment in pancake production enables the development of a new kind of product range and the utilisation of a more diverse raw material base. At the same time, the production capacity of pancakes will increase, enabling the growth of both domestic supply and exports. The investment is due to be completed in the summer of 2026, after which the new production line will be commissioned.
Atria Finland's net sales in April-June were EUR 330.1 million (EUR 336.1 million). The subdued market development of Atria's product categories in retail trade weakened Atria's net sales. The cool start of the summer has delayed the start of the barbecue season and weakened the sales of seasonal products. Full deliveries could not be made for the Easter and May Day periods due to the Finnish Food Workers' Union's strike between 8 and 10 April 2025 and the overtime and shift change bans related to labour market negotiations. The overtime and shift change bans were in force from 7 February to 14 April 2025. Industrial action had a negative impact on deliveries and the net sales and EBIT of the review period. Atria's sales to Foodservice customers were lower than in the previous year. Net sales in exports and industrial sales improved slightly from the previous year. EBIT totalled EUR 15.7 million (EUR 17.1 million). EBIT for the review period decreased by EUR 1.4 million but remained at a good level. The decrease in net sales also reduced the EBIT for the April-June period.
Atria Sweden's net sales in April-June were EUR 104.1 million (EUR 93.8 million). Net sales grew by EUR 10.3 million from the corresponding period last year. In local currency, net sales increased by 6.1 percent. Sales to retail and Foodservice customers increased during the review period. The acquisition of the Gooh! convenience food business in May last year boosted Atria Sweden's net sales during the review period. The exchange rate for the Swedish krona strengthened, which increased net sales in euros. EBIT totalled EUR 2.3 million (EUR 1.6 million). The increase in net sales strengthened EBIT. Raw material prices remained high. The Swedish krona has continued to strengthen in the second quarter. This has also had a positive impact on Atria Sweden's result.
Atria Denmark & Estonia's net sales in April-June were EUR 31.6 million (EUR 32.1 million). EBIT totalled EUR 1.5 million (EUR 1.5 million). Atria Estonia's sales to the retail trade fell due to the delayed start of the barbecuing season. Atria Estonia's result weakened due to the additional costs caused by an African swine fever infection on one of Atria's pig farms. The development of Atria Denmark's net sales in April-June was subdued, which was mainly due to lower sales to retail trade. Also, the sales to Foodservice customers were at a lower level than in the corresponding period last year. The export business experienced positive development.
January-June 2025
Atria Group's net sales in January-June were EUR 880.3 million (EUR 871.2 million). Consolidated EBIT was EUR 30.5 million (EUR 26.4 million), or 3.5% (3.0%).
Net sales increased by EUR 9.1 million from the previous year. Atria Sweden's net sales grew by EUR 17.1 million which was the result of successful sales to retail and Foodservice customers. The acquisition of Gooh! also strengthened the net sales of Atria Sweden. The strengthened Swedish krona increased the net sales in euros. Atria Finland's net sales decreased by EUR 8.1 million due to the weak market development of Atria's product categories and the slow start of the barbecue season. The Finnish Food Workers' Union's strike in April and the related overtime and shift change bans also had a negative impact on the net sales of the review period. Net sales of Atria Denmark & Estonia decreased by EUR 1.4 million.
The Group's EBIT of EUR 30.5 million was EUR 4.1 million higher than in the corresponding period of the previous year. All business areas improved their results. Atria Finland's EBIT improved by EUR 2.6 million in January-June. The good performance is a result of the improved efficiency of poultry production and the concentration of production in the new poultry plant in Nurmo. Atria Sweden's EBIT grew by EUR 1.4 million from the previous year. The increase in net sales strengthened Atria Sweden's result. Atria Denmark & Estonia's EBIT was EUR 0.3 million higher than in the comparison period.
In March, Atria started to plan an investment programme related to the production of convenience foods and green transition energy solutions at the Nurmo production plant. After the review period, Atria announced in July that it would invest EUR 82.4 million in the modernisation of convenience food production and the related energy solutions.
The preparation of Atria Group's business strategy, launched at the end of 2024, has proceeded as planned, and the new strategy will be published at the end of 2025.
Atria Finland's net sales in January-June were EUR 637.8 million (EUR 645.9 million). Net sales fell mainly due to the weakened sales to retail trade. The weak market development of Atria's product categories and the slow start to the barbecue season weighed on net sales. The Finnish Food Workers' Union's strike in April and the related overtime and shift change bans also had a negative impact on the net sales of the review period. Net sales from exports increased compared to the corresponding period of the previous year. The nutrition recommendations published at the end of last year have had a negative impact on consumer demand for meat products, but the decline in demand is easing compared to the development of the early part of the year. EBIT totalled EUR 26.9 million (EUR 24.2 million). The good performance is caused by the improved efficiency of poultry production and the concentration of production in the new poultry plant in Nurmo. The export of chicken meat to China, which started at the end of last year, strengthened the company's EBIT.
Atria Sweden's net sales in January-June were EUR 193.0 million (EUR 175.9 million), growing by EUR 17.1 million from the corresponding period last year. In local currency, net sales increased by 6.9 percent. Sales to retail trade and Foodservice customers increased. The acquisition of Gooh! in May 2024 also increased net sales. EBIT totalled EUR 3.0 million (EUR 1.6 million). The growth of net sales improved the company's EBIT. The integration of the Gooh! business into Atria and the stronger Swedish krona increased the EBIT of the first half of the year compared to the corresponding period last year.
Atria Estonia's net sales in January-June were EUR 61.4 million (EUR 62.8 million). EBIT totalled EUR 3.2 million (EUR 2.9 million). Atria Estonia's result was at a good level thanks to stronger market shares and increased sales to the retail trade. The greatest increase occurred in the sales of ham products, fresh meat and minced meat. The African swine fever infection detected on one of Atria Estonia's pig farms at the end of June weighed on the result of the review period. In Atria Denmark, the weak development of sales to retail trade and Foodservice customers weighed on EBIT. EBIT improved from the corresponding period of the previous year.
| Group key indicators | |||||
| Q2 | Q2 | H1 | H1 | ||
| EUR million | 2025 | 2024 | 2025 | 2024 | 2024 |
| Net sales | 459.8 | 454.3 | 880.3 | 871.2 | 1755.4 |
| Adjusted EBIT | 17.6 | 18.4 | 30.5 | 26.4 | 65.4 |
| Adjusted EBIT, % | 3.8 % | 4.0 % | 3.5 % | 3.0 % | 3.7 % |
| EBIT | 17.6 | 18.4 | 30.5 | 26.4 | 66.4 |
| EBIT, % | 3.8 % | 4.0 % | 3.5 % | 3.0 % | 3.8 % |
| EPS, EUR | 0.41 | 0.39 | 0.69 | 0.49 | 1.41 |
| Adjusted EPS, EUR | 0.41 | 0.39 | 0.69 | 0.49 | 1.38 |
| Shareholders' equity per share EUR | 14.36 | 13.59 | 14.28 | ||
| Equity ratio, % | 43.6 % | 40.4 % | 43.2 % | ||
| Adjusted return on equity (rolling 12m), % | 11.1 % | 8.5 % | 10.2 % | ||
| Adjusted return on investment (rolling 12m), % | 10.7 % | 8.4 % | 10.1 % | ||
Sustainability: aiming for a carbon neutral food chain
Atria published its first sustainability report in accordance with the Corporate Sustainability Reporting Directive (CSRD) as part of the Board of Directors' report 2024. The report is published on Atria's website at: https://www.atria.com/en/investors/financial-information/annual-reports/
Atria is committed to reducing its greenhouse gas emissions in line with the Paris Agreement's 1.5°C targets and to developing its business resilience to the impacts of climate change. The target level of Atria's emission reductions is based on climate science and approved by SBTi (the Science Based Target initiative). The key to reducing the emissions of Atria's own industrial operations is a controlled transition towards the use of emission-free and renewable forms of energy, as well as the improvement of energy efficiency.
During the first half of the year, Atria has taken the following measures to achieve its target for greenhouse gas emissions:
Energy efficiency and consumption reduction:
Several environmental and energy efficiency projects have been carried out at Swedish production sites. The Skene plant has improved the collection of rapeseed oil left over from production. Atria receives compensation for oil collection and recycling. In addition, a demand-controlled ventilation system has been installed in Skene. At the Tranås plant, the installation of a new ventilation unit and an updated control system has produced significant energy savings. In Moheda, the ventilation unit was replaced, and demand-controlled ventilation was installed. This has resulted in an estimated 20% reduction in electricity consumption at the plant.
Atria's Estonian production plant in Valga has implemented a heat recovery system, which brings energy savings to Atria.
Manure storage and treatment:
Atria Estonia has started cooperation with the local biogas plant. The sludge generated at Atria's wastewater treatment plant is taken to the biogas plant to be used as raw material, which leads to significant energy savings and transport cost savings.
Atria is a shareholder in the biogas plant owned by Nurmon Bioenergia. The construction of the production plant started in the autumn of 2024 and has now progressed to the equipment installation phase. The biogas plant will be built in the vicinity of Atria's production plant in Nurmo. The biogas plant will produce renewable domestic energy and various types of bio-fertilisers from manure obtained from farms in the South Ostrobothnia region and from agricultural and food industry side streams. Once completed, the plant will have a production capacity of approximately 125 GWh of sustainably produced liquefied biogas. The plant will be commissioned in 2026.
Reduction in soy use:
The chicken feeds used by Atria's chain of family farms was awarded the "Hyvää Suomesta" (Produce of Finland) label. Atria Finland Ltd's subsidiary, A-Rehu, can now use the "Hyvää Suomesta" (Produce of Finland) label in its chicken feeds. The label has been awarded to the chicken feeds used by Atria's chain of family farms as a guarantee of the products' high degree of domestic origin. Finnish protein sources - field peas and hulled oats - have been used to replace imported soy for some time. The development of A-Rehu's chicken feeds is based on the use of Finnish raw materials. Investing in domestic arable farming increases self-sufficiency, enables better traceability, and supports sustainable food production and the livelihood of Finnish farmers.
Future outlook and guidance
Atria Group's adjusted EBIT in 2025 is expected to be lower than in the previous year (EUR 65.4 million).
After the record year of financial performance, supported by the significant efficiency and expansion investments in 2023- 2024, Atria is also in a good position to perform well in 2025. Atria's good market position, strong brands, good customer relationships and reliable industrial processes provide good conditions for business stability.
However, the global geopolitical situation, which continues to be volatile, and its impact on consumer confidence and market growth are weakening the outlook for the rest of 2025. The outlook for the rest of the year is particularly affected by the continued sluggishness of the Finnish retail market in the product categories represented by Atria.
Disclosure
Atria Plc complies with the disclosure procedure in accordance with standard 5.2b of the Financial Supervisory Authority and publishes its half-year financial report for 1 January to 30 June 2025 as an attachment to this stock exchange release. The full release is available on the company's website at www.atria.com.
Publication of the half-year financial report
Atria Plc's CEO Kai Gyllström will present the company's half-year financial report in a webcast today, 17 July, 2025 at 2.00 - 3.00 pm. The webcast is available on Atria's website at www.atria.com/sijoittajat/ in Finnish language. During the webcast, you can ask questions in writing via chat. The recording of the press conference and the presentation material of the event will be available during the same day at www.atria.com/sijoittajat/taloustieto/osavuosikatsaus/.
ATRIA PLC
Board of Directors
For more information, please contact: Kai Gyllström, CEO, Atria Plc. Contacts and interview requests via Communications Manager Marja Latvatalo, e-mail: marja.latvatalo@atria.com, tel. +358 400 777 874.
DISTRIBUTION
Nasdaq Helsinki Ltd
Major media
www.atria.com
The half-year financial report is available on our website at www.atria.com.
