Atria results: Currency fluctuations hamper group net sales
Overall, the group’s net sales rose by €12.9m, but Atria blamed the “sluggish” poultry market, increased raw material prices and costs caused by employee arrangements for Sweden’s €3m sales fall.
Russia’s ‘seasonal demand’ following the Christmas period affected the business, with a loss of €1.4m compared to 2017’s Q1 results, as consumers returned to budget-restrictive spending when the festivities had finished.
The group’s consolidated EBIT was up by €2.3m from €1.2m to €3.5m compared to the previous year.
“The weakening of the Swedish krona and Russian rouble has been significant during the past months,” said Atria CEO Juha Grohn. “As the first quarter is the calmest business period of the year for the product groups represented by Atria, we can be satisfied with the growth in net sales.
“The weakening of the currencies plays a part in the rising costs of imported materials,” Grohn added. “At the beginning of the year, the EBIT level is usually below average as, during this period, sales are focused on products of low profitability.”
Atria’s Finnish division led the growth of the group, rising by €17.4m year-on-year due to increases in sales volumes and structures, while operations in Estonia and Denmark also met targets, although net sales dropped by €300,000.
The group added that its operational structure and financial reporting had altered at the beginning of 2018, with Atria’s Scandinavian operations simplifying and a separate segment being created for its Swedish operations.
Atria said it expected net sales to grow further in 2018 as it reported strong sales results for 2017, achieved through corporate acquisitions and plans to develop organically through its ‘Healthy Growth’ strategy.
