743700XLYONPSKO15Z91 2023-01-01 2023-12-31 743700XLYONPSKO15Z91 2023-12-31 743700XLYONPSKO15Z91 2022-12-31 743700XLYONPSKO15Z91 2022-01-01 2022-12-31 743700XLYONPSKO15Z91 2021-12-31 743700XLYONPSKO15Z91 2021-12-31 ifrs-full:IssuedCapitalMember 743700XLYONPSKO15Z91 2022-12-31 ifrs-full:IssuedCapitalMember 743700XLYONPSKO15Z91 2021-12-31 ifrs-full:TreasurySharesMember 743700XLYONPSKO15Z91 2022-01-01 2022-12-31 ifrs-full:TreasurySharesMember 743700XLYONPSKO15Z91 2022-12-31 ifrs-full:TreasurySharesMember 743700XLYONPSKO15Z91 2021-12-31 ifrs-full:OtherReservesMember 743700XLYONPSKO15Z91 2022-01-01 2022-12-31 ifrs-full:OtherReservesMember 743700XLYONPSKO15Z91 2022-12-31 ifrs-full:OtherReservesMember 743700XLYONPSKO15Z91 2021-12-31 Atria:InvestedUnrestrictedEquityMember 743700XLYONPSKO15Z91 2022-01-01 2022-12-31 Atria:InvestedUnrestrictedEquityMember 743700XLYONPSKO15Z91 2022-12-31 Atria:InvestedUnrestrictedEquityMember 743700XLYONPSKO15Z91 2021-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 743700XLYONPSKO15Z91 2022-01-01 2022-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 743700XLYONPSKO15Z91 2022-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 743700XLYONPSKO15Z91 2021-12-31 ifrs-full:RetainedEarningsMember 743700XLYONPSKO15Z91 2022-01-01 2022-12-31 ifrs-full:RetainedEarningsMember 743700XLYONPSKO15Z91 2022-12-31 ifrs-full:RetainedEarningsMember 743700XLYONPSKO15Z91 2021-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 743700XLYONPSKO15Z91 2022-01-01 2022-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 743700XLYONPSKO15Z91 2022-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 743700XLYONPSKO15Z91 2021-12-31 ifrs-full:NoncontrollingInterestsMember 743700XLYONPSKO15Z91 2022-01-01 2022-12-31 ifrs-full:NoncontrollingInterestsMember 743700XLYONPSKO15Z91 2022-12-31 ifrs-full:NoncontrollingInterestsMember 743700XLYONPSKO15Z91 2023-01-01 2023-12-31 ifrs-full:RetainedEarningsMember 743700XLYONPSKO15Z91 2023-12-31 ifrs-full:RetainedEarningsMember 743700XLYONPSKO15Z91 2023-01-01 2023-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 743700XLYONPSKO15Z91 2023-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 743700XLYONPSKO15Z91 2023-01-01 2023-12-31 ifrs-full:NoncontrollingInterestsMember 743700XLYONPSKO15Z91 2023-12-31 ifrs-full:NoncontrollingInterestsMember 743700XLYONPSKO15Z91 2023-01-01 2023-12-31 ifrs-full:OtherReservesMember 743700XLYONPSKO15Z91 2023-12-31 ifrs-full:OtherReservesMember 743700XLYONPSKO15Z91 2023-01-01 2023-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 743700XLYONPSKO15Z91 2023-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 743700XLYONPSKO15Z91 2023-01-01 2023-12-31 ifrs-full:TreasurySharesMember 743700XLYONPSKO15Z91 2023-12-31 ifrs-full:TreasurySharesMember 743700XLYONPSKO15Z91 2023-01-01 2023-12-31 Atria:InvestedUnrestrictedEquityMember 743700XLYONPSKO15Z91 2023-12-31 Atria:InvestedUnrestrictedEquityMember 743700XLYONPSKO15Z91 2023-12-31 ifrs-full:IssuedCapitalMember iso4217:EUR iso4217:EUR xbrli:shares
ANNUAL
REPORT
2023
Strategy
Sustainability as a part of
strategy
46
CEO review
17
14
Content
Atria in 2023
3
Atria in brief
4
CEO’s review
6
Financial development
8
Highlights of the year
11
Atria’s value chain
12
Atria’s direction
13
Food market trends
14
Consumer behaviour
15
Strategy
17
Sustainability as a part of strategy
22
Atria as an employer
24
Business areas
26
Atria Finland
27
Atria Sweden
33
Atria Denmark & Estonia
38
Research and development
43
6
Financial Statements and the Report by the
Board of Directors
46
Report by the Board of Directors
47
IFRS Financial Statements
75
Financial Statements of the parent company
117
Auditor’s report
129
Governance
135
Corporate Governance Statement
137
Remuneration Report
152
Investor Information
158
Shareholders and shares
159
Financial communications
160
Financial reporting and Annual
General Meeting 2024
161
Atria as an investment
162
Contacts
163
Financial Statements and the
Report by the Board of Directors
Atria´s Corporate Responsibility Report 2023 is
published on
Atria's website at: www.atria.com/en/csr/csr-reporting/
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | ATRIA 2023
3
Atria Annual Report 2023
Atria 2023
Profitable growth
Atria's net sales increased significantly in 2023 –
the growth compared to the previous year was 3.3
per cent. The development of EBIT was stable.
Delivery reliability and customer satisfaction were at
a good level throughout the year.
In a strongly changed operating environment, Atria
was successful in its business operations and
showed the ability to survive even in difficult
changes. Strategic initiatives were carried forward
consistently and as planned.
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | ATRIA 2023
Atria Annual Report 2023
4
Status at 31 Dec 2023
Atria has production plants in Finland, Sweden,
Denmark and Estonia. In addition, Atria exports
its products to 26 countries. The main export
countries are South Korea, Denmark, China,
Sweden, the Baltic countires and Japan.
We are a Nordic leader in sustainable food production.
Sustainability
is an integral part of Atria’s strategy, business and daily work. Our
efforts to continually improve sustainability cover the entire value
chain – from family farms to people’s dining tables.
It means making
our products and services even more responsible in ever
closer
cooperation with our supply chain partners and
customers. Atria
wants to enable consumers and customers to make
sustainable
choices and promote the wellbeing of the environment
and people.
Atria is one of the leading food companies in Northern
Europe. We
are a company established in 1903 and valued
by our customers,
personnel and owners. Atria was listed on the
Helsinki Stock
Exchange in 1991.
We have been producing food for people 120 years, and
we will
continue to do so. That is why we operate
with respect for the
planet, people and food. Our key goal is to
be Winning Northern
European Food Company.
Atria’s renewal and growth are based on:
●
strong financial performance
●
the most desired brands
●
best partnership for owner-producer
●
leadership in sustainability
●
committed people and
●
commercial excellence.
Our main product, good food, creates a better
mood and sustainable
value for all our stakeholders. In 2023, our net
sales were EUR
1752.7 million, and Atria employed 3898 meat and
food
professionals in Finland, Sweden, Denmark and
Estonia.
The key element of Atria’s good competitiveness and profitable
growth is the company's strong market position in
various business
areas. In the main product groups we represent,
we are the market
leader or a strong second.
Atria's position in the market is also strengthened
by its
prestigious
brands.
Atria Finland’s leading brand is Atria, one of the best-known
and highly valued food brands in Finland.
Atria Sweden's best-known brands are Lönneberga
and Sibylla, the
latter also being the Atria Group's most international
brand. In
Estonia, Atria's main brand is Maks & Moorits,
which is the most
popular meat brand in Estonia. Atria's Danish brands
are 3-Stjernet
and the organic brand Aalbæk Specialiteter, which also has
significant growth potential in the export market.
Becoming the Winning Northern European Food Company
Atria in brief
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | ATRIA 2023
5
Atria Annual Report 2023
Personnel
Dividend and a return on
capital per share, total*
0.60
(EUR 0.70/share)
*Board proposal
3,898
(3,698)
190
(195)
Number of new
products
Net sales by business area,
EUR million
Personnel by business area
12.6%
Scope 1 & 2 emissions
reduced from 2020 level
The share of domestic
meat in Finland
100%
12
(16)
Accident frequency
rate
49.6
(49.0)
1,752.7
(1,696.7)
26
countries
(33)
Exports to
4,000
(Status at
31.12.2023)
Number of
Atria’s
contract farms
Adjusted EBIT,
EUR million
Net sales, EUR
million
Key figures 2023
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | ATRIA 2023
Atria Annual Report 2023
6
Strong year,
looking at the big picture
As a result of this positive outlook, we
increased our guidance
regarding adjusted EBIT for 2023 in September. Indeed, we
achieved our guidance for the full year, that is, the adjusted EBIT
was higher than in the previous year, but the last quarter of the year
fell short of our expectations and the comparison
period of the
previous year.
In the last quarter, the weakened purchasing power of consumers
led to a decline in net sales in all channels
in Finland, and the profit
development of Atria Finland slowed down.
Discount sales and
promotions affected the price level of red meat in
the market,
especially that of best cuts, which challenged the
profitability of red
meat. The commissioning of the new poultry factory in
Nurmo
generated costs especially in the last quarter. All in all, however, the
project has progressed well and on schedule.
In Sweden, net sales decreased, and the result
remained negative,
as changed consumer behaviour weighed down
retail sales and
shifted the focus towards cheaper products. Another
factor
contributing to the decreased net sales in Sweden
was the
divestment of Russia’s Sibylla in 2022 and the consequent
omission
of this business from Atria Sweden’s figures, as well
as the weak
exchange rate of the Swedish krona. In Sweden,
we divested the
Malmö plant and concentrated production at the
Sköllersta plant as
part of the development of our supply chain operations.
This change
brought additional costs for 2023, as the ramp-up of
the old lines in
Sköllersta took more time than anticipated. However, these
challenges have now largely been overcome.
In Denmark, the importance of campaigns has been
emphasised as
the purchasing power of consumers has decreased.
Private label
products took up room in campaigns, which
affected Atria
Denmark's net sales in 2023.
When I started as Atria’s CEO in the summer of 2023,
Atria’s
business was in a good position to move forward
from. I was
particularly inspired by Atria’s vision of being the leading
food
company in Northern Europe – and that we
have a clear desire
to develop and grow beyond Finland. Atria has
a long tradition,
a strong culture, strong local brands and top
meat producers.
As proof of our high quality, Atria’s Finnish grass-fed beef was
widely renowned in 2023, for example, in the prestigious
international World Steak Challenge competition.
Our wide range of products and their ability
to respond to the
various consumer needs in various price categories
ensured our
good performance even in the turbulent operating
environment
in 2023. The inflation, increasing interest rates
and decreasing
purchasing power had a significant impact on
consumers'
purchasing power and behaviour in all our markets.
Price has become more important, as global political
uncertainty
is widely reflected in preparedness and saving.
Consumers buy
cheaper products, consider each purchase more
carefully, and
are more likely to pick up products subject to
discounts or
promotions.
Twofold
year
In the big picture, we had a strong year
with a lot of success.
In
2023, the Atria Group’s net sales increased by approximately
3
per cent to EUR 1,753 million and the adjusted
EBIT was EUR
49.6 million, which was EUR 0.6 million more than in
the
previous year.
The year 2023 was twofold in many ways.
The Group’s net
sales increased and profitability improved, especially
driven by
Finland and Estonia, while in Sweden and Denmark,
profit
development was weaker. The year was also clearly divided
into a strong beginning and a weaker last quarter.
In the beginning of the year, net sales increased strongly,
particularly thanks to sales prices being higher than in
the
comparison period in Finland, and sales volumes
for retail and
Foodservice customers remaining stable. In addition, Ab
Korv-
Görans Kebab Oy, acquired by Atria at the end of 2022,
increased the net sales in Finland. The previous year’s price
increases, the favourable structure of sales and the
smooth
commissioning of Atria Finland's new poultry plant strengthened
our outlook.
”
Our wide range of products and their
ability to respond to the various
consumer needs ensured our good
performance even in the turbulent
operating environment in 2023.
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | ATRIA 2023
7
Atria Annual Report 2023
Our strategy based on organic growth
remains relevant
We expect our operating environment to remain challenging
in
2024, particularly with regard to consumer behaviour. Because of
this, we estimate that the adjusted operating profit
in 2024 will be
lower than in 2023.
With such drastic changes in the operating environment,
many
companies could have ended up changing their
strategy, but Atria
decided to stick to its current strategy extending
until 2025. Instead,
we are thinking about ways to accelerate the strategy.
Our main goals at the moment are organic, volume-driven
growth,
ensuring operational efficiency and advancing sustainability
at the
various stages of our food chain. We continue to invest
in
developing the profitability of red meat and improving
efficiency in
Sweden and achieving profitable growth
especially in the Swedish
retail trade.
We have an even greater need to scale our investments
and
products. Atria has a great home market in Finland,
but at the same
time we must be able to accelerate growth
even more also outside
the Finnish market.
I want to thank our customers, employees, producers
and owners
for the first year of working together. Let’s keep our good old
mission in mind: Good food – better mood.
Kai Gyllström
CEO
The Group’s net sales increased and
profitability improved, especially driven by
Finland and Estonia. The year was also clearly
divided into a strong beginning and a weaker
last quarter.
”
Aiming for a carbon-neutral food chain
Having a carbon-neutral food chain will remain our
most important
sustainability target, which we advanced with several
projects also
in 2023. At the end of 2022, we received formal
approval for our
emission reduction targets from the Science Based
Targets
initiative, which is a significant milestone in our
sustainability work.
In 2023, we made progress, among other things,
in the
measurement of farms’ carbon footprint and started
piloting the
Carbo® environmental calculator at approximately 80
contract
farms. Together with the contract producers belonging to the Atria
Pork chain, we have built the first model in Finland
to verify the
sustainability work of pig farms, which facilitates
the measurement,
reporting and development of sustainability-related matters.
We reduced our own carbon footprint, for example, by
taking into
use the solar park extension in Nurmo, which
almost doubles the
production of solar power in Nurmo, and by introducing
a new bio-
based minced meat package to the market.
The occupational safety of our personnel is a
key focus area in our
social responsibility efforts. Our continuous safety work
has yielded
results, and we succeeded in reducing the number
of accidents at
work as well as our accident frequency rate also
in 2023.
The self-sufficiency of domestic food production and the
fact that we
will continue to have producers in Finland also in
the future is
extremely important to us. With this idea in mind, we
launched the
Atria 100 Young Producers training programme in the autumn to
reinforce young producers’ expertise in entrepreneurship
in the
changing operating environment.
In Sweden and Denmark, the beginning of the year
was difficult in
terms of performance development, but performance
improved
towards the end of the year, which suggests that we are focusing
on
the right points in our efficiency programmes. In 2023,
we launched
the efficiency programme in Sweden, and in Denmark,
we
streamlined our operations by concentrating production
in two
facilities, for example. Atria Finland also adapted its
production
capacity for pig slaughter and cutting to the prevailing
market
situation for pork.
Growing where growth is available
Even in the changed operating environment, we
have managed to
maintain a strong market position in our operating
countries. In
Finland, Atria is the most famous food brand, in Denmark,
our 3-
Stjernet brand is the market leader in cold cuts and
in Estonia, Maks
& Moorits remains the most popular meat product
brand in the
country.
We set off to the year with the goal of growing where growth
is
available: in poultry, convenience food and Foodservice, and we
delivered our promise. In Finland, we achieved
great growth in
convenience foods and increased our market share in
this segment.
In the Foodservice channel, we grew in both Finland
and Sweden.
We introduced a lot of novelties to the market in both convenience
food and poultry-based products.
Nurmo's new poultry factory will enable future growth
in poultry on
an even larger scale. The factory’s construction and
installation
work progressed on schedule and the factory will
be fully
commissioned during 2024.
Our growth is also supported by the agreement
that enables poultry
exports to China, which we signed at the end of
2023. Our goal is to
start exporting poultry meat to China during the
spring of 2024.
We found new markets for red meat. Antibiotic-free pork
sales to
Japan increased by about 40 per cent and sales
to Germany
doubled. Traceability, animal welfare and our products being
antibiotic-free are factors we can use to strengthen
our
competitiveness.
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | ATRIA 2023
Atria Annual Report 2023
8
Atria Group's key indicators, EUR million
2023
2022
Net sales
1,752.7
1,696.7
EBIT
0.4
0.1
EBIT, %
0.0
0.0
Adjusted EBIT *
49.6
49.0
Adjusted EBIT, % *
2.8
2.9
Balance sheet total
989.0
1,039.8
Adjusted return on equity, % *
7.3
8.9
Equity ratio, %
41.7
44.9
Net gearing, %
66.7
50.5
* EBIT adjustment items in 2023 totalled -49,2
EUR million (EUR-48,9 million).
Financial Development
Net sales, EUR million
Adjusted EBIT,
EUR million
Gross investments, % net sales
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | ATRIA 2023
9
Atria Annual Report 2023
Equity ratio,
%
Adjusted return on equity (ROE), %
Net debt, EUR million
Adjusted EPS, EUR
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | ATRIA 2023
Atria Annual Report 2023
10
Atria Group’s carbon footprint
LTA
frequency = number of lost time accidents at
the workplace
per million hours worked.
More information about Atria’s sustainability indicators is
provided in the Corporate Responsibility Report 2023.
The calculation of the Group's greenhouse gas
emissions is
based on the international GHG protocol (Greenhouse
gas
protocol). The calculation covers greenhouse gas emissions
from Atria’s industrial production process in companies of
which
Atria owns more than 50%, in line with Scope 1
and Scope 2.
Scope 1 (red) covers direct emissions from energy
sources that
are owned or controlled by the reporting company, and that are
used for heating and production, for example.
Scope 2 (grey) covers indirect emissions from purchased
electricity, steam and heat production, and from cooling. Scope
2 reporting is based on a cost-based calculation
method and
employs the emission values of known
energy sources or the
national residual mix.
Accident frequency rate
Personnel average FTE
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | ATRIA 2023
11
Atria Annual Report 2023
We were the first in Finland to
bring to the market antibiotic-
free Finnish Atria bacons –
from chicken.
Antibiotic-free bacon
arrives in shops
Maks & Moorits most popular in
Estonia
In Estonia, we have worked consistently to
increase sales and market shares. According to a
survey conducted in June 2023, the Maks &
Moorits brand is the most popular meat brand in
Estonia.
The extension of Atria's solar park
The extension of Atria's solar park was
commissioned in the spring of 2023, and it will
almost double the amount of solar power
production in Nurmo. With the expansion, the
production of solar-generated electricity will be
about 9 gigawatt hours per year, which corresponds
to about 8 per cent of the electricity consumption
of
the Nurmo plant.
Expansion of the Sköllersta plant
Atria Sweden centralised the production from the
Malmö plant to the Sköllersta plant. The Malmö plant
was closed in June. Atria Denmark's production was
concentrated in two production plants.
Agreement for poultry meat export to
China
An agreement enabling the export of Finnish poultry
meat to China was signed in November. Our goal is
to start exporting poultry meat to China during the
spring of 2024.
Emission reduction targets approved by SBTi
The Science Based Targets Initiative (SBTi) has officially approved
Atria’s emissions reduction targets at the end of 2022.
Atria’s
objectives approved by the SBTi are to reduce Scope 1 and
2
emissions by 42 per cent and Scope 3 emissions
by 20 percent
from 2020 to 2030.
Donation to the Finnish
Olympic Fund
We donated EUR 50,000 to the
Finnish Olympic Fund, which
has been raising funds to
support goal-oriented sports for
children and young people
since 2020.
Carbo® environmental calculator
We are reducing the carbon footprint of beef
with the aid of the Carbo®
environmental
calculator. With this calculator, Atria’s more
than 1,200 contract farms specialising in
beef production can calculate the farm’s
environmental impacts and explore the most
efficient ways to reduce these impacts.
Kai Gyllström appointed CEO
Our long-term CEO Juha Gröhn retired. Kai Gyllström
became the new CEO of Atria Plc. In June, Lise
Ø
stergaard
was appointed Managing Director of Atria Denmark
when
Svend Schou Borch left the company. Jennifer Paatelainen
was appointed Executive Vice President of Human
Resources of Atria Group in September.
Progress in the poultry
investment
The investment in the Atria Nurmo poultry
factory in Finland progressed on schedule.
The plant will become fully operational
during 2024. Poultry production will be
concentrated in Nurmo, and the Sahalahti
unit will be discontinued in 2024.
Bio-based minced meat
packaging
In Finland, we launched bio-based vacuum-
packed minced meat in the spring.
Replacing fossil-based plastic with bio-
based plastic will reduce the package’s
carbon dioxide emissions by 48 per cent.
Highlights of the year
Content
Atria in 2023
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CEO’s review
Financial development
Highlights of the year
Atria’s value chain
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Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
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Atria Annual Report 2023
12
PRIMARY PRODUCTION
ATRIA’S
INDUSTRIAL AND
COMMERCIAL OPERATION
S
Strategy for 2021–2025: Winning Northern
European Food Company
Production processes:
Efficiency
Commercial processes:
Commercial excellence
Value and management processes:
Atria’s Way of Work
Atria’s Way of Leading
Responsibility
CUSTOMER
CONSUMER
GOOD FOOD – BETTER MOOD
Our good food is sustainably and ethically produced,
nutritious and safe.
Producers and partners
Purchases from producers, subcontractors and other partners
●
Total purchases and other expenses: EUR 1,480.1 million
Customers
●
Sales to consumer product and primary production
customers and other
revenues: EUR 1,755.4 million
Personnel
●
Total salaries and bonuses: EUR 219.1 million
Society
●
Corporate taxes and social security expenses: EUR
59.9 million
Shareholders and financiers
●
Dividends: EUR 20.7 million
●
Financial income and expenses: EUR -13.6 million
Research and development
In addition to its own research and product development
activities, Atria
participates in applied research in product and packaging
technology, nutrition
and environmental efficiency, among other fields.
Communities
Support for public and private organisations and
associations, including ones
working with children and young people’s physical
exercise and competitive
sports.
Other industries
Food production is based on a circular economy. More than 99 per cent
of all
materials are utilised.
Environmental impact
Carbon dioxide emissions from Atria’s industrial production processes
totalled
71,084 tonnes in accordance with Scope 1 and
Scope 2.
Raw materials and other materials
●
Meat raw materials: pork, beef, poultry
●
Other raw materials
●
Packaging and other materials
Human resources and development
●
3,898 food-industry experts
Intangible capital
●
Brands, patents, concepts
●
Competence
●
Research and development: EUR 14.4 million
Investments
●
Investments: EUR 111.0 million
Financing
●
Equity and liabilities: EUR 989.0 million
Natural resources
●
Energy consumption: around 463 GWh, of which
renewable sources represent around 28.9 per cent
●
Energy efficiency, i.e. energy consumption per tonne
of production: 0.46 MWh/t within the whole
group
●
Water consumption: around 2.80 million m
3
Atria’s value chain
RESOURCES AND INPUTS
OPERATING MODEL
VALUE CREATED
BY ATR
IA AND IMPACTS
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Atria Annual Report 2023
Atria’s
direction
Content
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Atria Annual Report 2023
14
The importance of price is emphasised
Economic instability and uncertainty, as well as
protectionism and locality are increasing and affect
consumer choices. Price has become more important,
as global political uncertainty is widely reflected in
preparedness and saving. Consumers are buying
lower-cost products and carefully consider their
purchases. The growth of private labels also continues.
Special occasions every day
When the future is uncertain and difficult to predict,
the consumer chooses to live in the moment. This
means enriching experiences and small celebrations
every day.
Foodservice is renewed
Demand and new opportunities in the Foodservice
sector are increasing. Digital channels are becoming
more important.
Food market trends
affect our strategic
choices
Healthiness
Consumer awareness of healthy lifestyles,
sustainable development and animal welfare is
increasing.
Ease
Demand for convenience foods and easy-to-prepare
foods is growing.
Lightness
The focus of demand is shifting from red meat
to
poultry.
Food market trends
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Atria Annual Report 2023
The COVID-19 pandemic boosted retail food sales
volumes, but
as inflation and consumer prices have risen in
2022–2023,
volumes have fallen significantly. In 2023, consumer prices
increased by 10 per cent in Finland. At the same
time, the total
volume of retail trade decreased by 3 per cent.
However, the
value of the food market grew by 6 per cent.
The development
has been very similar in other countries where
Atria operates.
Fresh poultry and convenience food have become
firm
favourites for shoppers. The consumption of convenience
foods
has been increasing for the last ten years. The appreciation
of
ease and the diminishing household size will continue
to
support the growth of convenience foods, the Foodservice
channel and fast food consumption in the coming years.
Measured in value, only the markets for fruit and
vegetables,
fresh fish and meat-free proteins have declined
since 2022. The
consumption of fish has decreased the most – although
this is a
longer-term trend of the last 15–20 years. The demand
for red
meat has decreased slightly, but the market for meat products
has remained stable. Overall, our product groups
have
performed well in all our countries of operation
compared to the
general development of volumes.
Purchasing behaviour changes with the times
Consumer behaviour in the food market in 2023
Consumers’ purchasing behaviour is sensitive to the environment
in which they live. Food consumption also
fluctuates. Atria’s diverse product portfolio meets
the changing demand of consumers and customers
regardless of
the economic cycle.
The pandemic years were clearly a time of staying
at home and
enjoying good food. With rising prices and a
tighter economy,
there was a temporary shift to the basics. Inflation
has made
consumers even more attentive. If the average shopping
basket
in Finland previously contained 11 product, now it only carries
an average of 10 products. Food is used with
more care, and
less waste is generated. Within product groups, cheaper
alternatives are chosen, and private labels and
campaign
products are favoured. The share of special offer products
has
increased significantly in all of our operating countries
since
2020.
During the pandemic, food shopping focused on
the retail sector
while the consumption of restaurant food fell sharply. In 2022–
2023, restaurant food volumes clearly recovered
and returned
to pre-pandemic levels in all countries where
Atria operates.
The share of online food shopping increased in
2020–2021, but
in the last two years, growth has subsided and returned
to pre-
pandemic levels.
Pasi Luostarinen
Executive Vice President, Marketing & Market Insight
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Atria Annual Report 2023
16
Source: Atria forecast, 2021. Based on historical meat consumption
barometer data (Kantar TNS) and Statistics Finland's population
projections.
Growth in the consumption of poultry meat in
Finland 2000–2040
Source: Ruokatietoa 2023 / Kantar AgriOy.
Growth in the consumption
of poultry meat
Poultry meat consumption has grown steadily
in Finland during the 2000s. Atria's forecast
for consumption growth in the 2020s to 2030
is an average of 2.3 per cent per year. In the
period from 2030 to 2040, the growth in
consumption will level off at just under 1 per
cent per year.
Consumption of poultry meat in bone-in poultry
meat, meat products and meat-based meals
Poultry meat consumption
in various countries
Per capita consumption of poultry meat in
Finland is slightly above the EU average,
but almost half that of the US, where
poultry meat is consumed far more than
beef or pork.
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17
Atria Annual Report 2023
Atria’s strategy 2021–2025
Our current strategy,
which extends until 2025, was published in 2021, and it remains
largely correct. In
2023, we focused on implementing the existing strategy and accelerating
growth. Our vision is to be the
Winning Northern European Food Company.
Atria has excellent country organisations, which also
enable
stronger growth outside Finland.
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Atria Annual Report 2023
18
●
A good market position in the Finnish market
●
Local production in the four main markets
●
Strong and well-known consumer brands
●
Competent organisation and good customer relations
●
Reliable industrial processes
Financial targets
Achievement in 2023
Operating profit 5%
2.8% of net sales
Equity ratio 40%
41.7%
Return on equity 10%
7.3% (adjusted)
Dividend distribution: 50% of the profit for the period
61.2%
Growing faster than the market
Atria meets all the conditions for growth
A foundation in strong financial
performance
The main goal is to accelerate growth –
where there is room for growth
We aim to grow faster than the market. To achieve this goal, we
need more organic, volume-based growth. We are looking
for
growth where there is growth: poultry, convenience food,
Foodservice and fast food. We invest in the development
and
marketing of poultry products in all business
areas. Our future
growth is supported by poultry investments in
Finland and our
licence to export poultry to China we
received in 2023, among
other things.
In convenience food, we have growth opportunities
both in Finland
and in those markets where we do not yet
operate in this product
category. In strategic choices, we closely monitor the development
of consumer behaviour. The Foodservices market in particular is
growing well, and the value of the market has
returned to the pre-
pandemic level. We grow in the Foodservice market by developing
new concepts and sales channels, among other things.
Our development priorities are the profitable growth
of the
Swedish business, the improving profitability of red
meat and
increasing the efficiency of our supply chain. In 2023,
we
centralised our Swedish production at the Sköllersta plant
and
closed the Malmö plant. In November, we also launched the Atria
Sweden efficiency programme, which aims to achieve
savings of
EUR 2.5 million in stages by 2025. Alongside efficiency, we want
to create an organisation that gets more done.
We are not just
looking for savings, but also efficiency.
The best partner that leads the way in
sustainability
We want to nurture our good customer relationships and
be the
best partner for our owner-producers. Our goal
is to be the best
sales channel for meat produced by contract producers
in Finland
and to promote close cooperation throughout the production
chain.
We strive to lead the way in sustainability. We offer healthy, safe
and responsibly produced food. We are committed to reducing
our
environmental impact at
every stage of the food chain, as well
as
taking care of animal welfare. We will continue our work
to
achieve a carbon-neutral food chain. We invest in the systematic
strengthening of employee engagement and a vibrant
Atria
culture.
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Atria’s value chain
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Strategy
Sustainability as part of
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19
Atria Annual Report 2023
Strategy implementation in 2023
Strategic priorities
Implementation in 2023
Win big in poultry
●
Atria Finland’s market position was #2 in poultry and Atria
Sweden’s #3. In Estonia, the sales
volume of poultry products increased by 12
per cent.
●
In Finland, the construction and installation of a
new poultry plant proceeded on.
●
We invested in the development and marketing of poultry
products in all business areas.
●
Atria Finland was granted a licence to export
poultry products to China – exports will start in
spring 2024.
Expand in convenience food
●
Acquisition of Ab Korv-Görans
Oy in Finland in 2022.
Strengthen Foodservice, incl.
fast food
●
We strengthened our fast food sales in the Baltics, Bulgaria,
and Serbia.
●
We strengthened our portfolio through several new successful
launches, such as co-
branding with the popular Swedish Västerbotten
cheese.
●
We launched a new Rollergrill 3.0 with time control.
●
We developed a new modern visual identity for the
Sibylla concept.
●
The acquisition of Ab Korv-Görans
Oy in Finland in 2022.
Grow Sweden profitably
●
We launched an operational efficiency programme with the goal of
making Atria Sweden’s
operations more efficient and agile.
●
We divested the Malmö plant and concentrated production
at the Sköllersta plant.
●
Atria Sweden's manufacturer share in the Swedish retail
trade strengthened both in
sausages (manufacturer share 21.4 per cent)
and poultry products (manufacturer share 19.8
per cent).
Optimise red meat
●
We strengthened the export of red meat. The sale of
antibiotic-free pork to Japan increased
by about 40 per cent. The sale of antibiotic-free
pork to Germany doubled.
●
Atria's added value factors include, for example,
antibiotic, hormone and salmonella free
products, traceability and the well-being of production
animals.
●
We developed the product mix and productisation together
with customers. We optimised
productisation by export country through needs
and profitability.
●
We have managed to improve operational efficiency by proactively
reacting to slaughtering
seasons and adjusting exports as needed.
Drive next level supply chain
efficiency
●
In Finland, the construction and installation of a
new poultry plant proceeded on schedule –
the production processes of the new plant will
be fully commissioned in 2024. We
concentrated our poultry production in Nurmo, and
the Sahalahti plant will be closed in 2024.
●
Atria Finland adapted its production capacity for pig
slaughter and cutting to the prevailing
market situation for pork.
●
Atria Sweden centralised the production from the Malmö
plant to the Sköllersta plant. The
Malmö plant was closed in June.
●
The production of Atria Denmark was centralised
in two production sites and personnel costs
were cut.
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Atria in 2023
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Atria’s value chain
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Food market trends
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Strategy
Sustainability as part of
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Atria Annual Report 2023
20
Strategic targets
Implementation in 2023
Most desired brands
●
Atria is Finland’s best-known food brand, and its preference
has increased (source: Kantar
Atria Food Brand 6/2023).
●
The 3-Stjernet brand is the Danish market leader
in cold cuts.
●
According to Kantar Emor’s brand survey, Maks & Moorits was
the most popular meat
product brand in Estonia.
Preferred partner for the
customers
●
We implemented projects related to improving the consumer
experience with our customers.
Best partner for owner-
producers
●
Atria made the Carbo® environment calculator available
to its more than 1,200 contract
producers.
●
We launched the Atria 100 Young Producers training programme, which aims to promote the
continuation of the valuable work of family farms.
Commited people
●
Atria joined the diversity commitment of the Finnish
Business & Society (FIBS), the largest
corporate responsibility network in the Nordic
countries..
●
Among other things, we developed a culture of
safety at work. Our accident frequency rate
was 12 (2022: 16).
Leader in sustainability
●
The Science Based Targets initiative (SBTi) officially approved Atria's emission reduction
targets in late 2022, and in 2023 we continued
our journey towards a carbon-neutral food
chain.
●
Together with our contract producers in the Atria Pig chain, we built the first model in Finland
to verify the sustainability of pig farm activities.
●
The extension of Atria’s solar park nearly doubled
solar power production in Nurmo.
●
Atria Finland launched a new bio-based minced meat
package.
●
Atria Finland launched the Carbo ® environmental
calculator, which measures the carbon
footprint of beef.
●
We updated Atria's biosecurity strategy, which applies the WHO's One Health model.
Content
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Atria’s value chain
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Strategy
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Atria Finland
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21
Atria Annual Report 2023
With the completion of Atria’s new poultry plant in Nurmo,
which will
cost around EUR 160 million, the Group’s net debt increased
to
EUR 274 million at the end of the year. The last significant
payments for the plant project will be made in early
2024. The
Group's debt also increased as a result of
Atria Sweden’s
investments in production efficiency, which amounted to
approximately EUR 35 million.
Despite the large investments, the consolidated balance
sheet has
remained strong. The equity ratio is about 42 per
cent, while the
strategic target is 40 per cent. During this period
of high investment,
this is essential, as the company’s cash flow is temporarily
negative.
Atria’s net gearing ratio was also at a good level
of only 66.7 per
cent.
As market interest rates have risen, so has the
average interest rate
on Atria's debt. The average interest rate on
loans at the end of the
year was 4.6 per cent,
compared to 3.5 per cent in the previous
year.
The Group’s
balance sheet and financial
position remained strong
Atria's financial goals have been valid since the beginning
of 2021, and no changes were made to them in 2023.
Atria’s financial targets and actuals
2021–2023
Results
Targets
2023
2022
2021
EBIT 5%
1)
2.8 %
2.9 %
3.2 %
Equity ratio 40%
41.7 %
44.9 %
48.7 %
Return on equity (ROE) 8%
1)
7.3 %
8.9 %
8.2 %
Capital distribution of
of the adjusted profit for the period 50%
1) 2)
61.2 %
49.0 %
49.5 %
1)
Figures are adjusted for non-recurring items,
key figure calculation formulas on pages 73-74.
2)
The Board's proposal from 2023: 50% of the amount
to be distributed as dividends
and 50% as capital return.
Atria has reduced its interest rate risk by
fixing the interest rate on its
loans through long-term interest rate swaps or other
interest rate
derivatives. At the end of the year, fixed rate debt represented 34.8
per
cent of the total loan portfolio.
During the year under review, Atria had financial facilities of EUR 85
million, all of which were undrawn at the balance
sheet date. Long-
term financing consists of bilateral bank loans, drawn
committed
financial facilities and loans from pension funds.
The average maturity
of the financing was 4 years and 2 months. The
most significant single
financing solution in the year under review
was the EUR 50 million
loan agreement we signed in the autumn for a
period of 5+1+1 years.
Tomas Back
CFO and Deputy CEO
Content
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Highlights of the year
Atria’s value chain
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Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
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Atria Annual Report 2023
22
CASE
Atria’s climate targets
officially approved by the
Science Based Targets
initiative
The Science Based Targets initiative (SBTi) has officially
approved Atria’s emission reduction targets. The targets
are
based on the Paris Climate Agreement and aim
to limit global
warming to 1.5 degrees Celsius.
Atria commits to reducing the greenhouse gas
emissions
from its own operations (Scopes 1 and 2) by
42 per cent by
2030 from 2020 levels. The reduction target for
Scope 3
emissions is 20 per cent per tonne of meat
processed by
2030. The target for Scope 3 emissions includes
emissions
related to purchased goods, raw materials and
services.
The main focus of the Scopes 1 and 2 carbon
reduction
measures is to replace fossil fuels with renewable
energy.
Examples of Atria’s measures include introducing wind
power
and increasing the use of solar energy at Atria
Finland’s
production plants, replacing Atria Sweden’s fossil fuels with
bio-based fuels, and Atria Denmark & Estonia increasing
the
use of renewable energy.
The environmental impact of Atria’s products throughout
their
life cycle focuses on the production of meat, the
main
ingredient in its products. Primary production is therefore
key
to reducing Scope 3 emissions.
Atria aims to significantly reduce the energy consumption
and
CO2 emissions of its industrial production and to
develop
sustainable meat production with our contract producers.
Read more about the results of our 2023 sustainability
work in our Corporate Responsibility
Report.
Planet
We work to mitigate climate change and
improve energy efficiency.
We are actively reducing our carbon
dioxide emissions and other
environmental impacts of our
operations, both in our own production
and across the food chain from the field
to the table.
The most significant environmental
impacts of the food chain arise from
primary production. This is why we offer
support to farms in the development of
sustainable primary production.
We manage our direct climate and
environmental impacts by improving our
energy efficiency, increasing our use of
renewable energy sources, developing
ecological packaging solutions and
reducing the use of fossil raw materials,
reducing waste, and using water and
other natural resources sustainably.
People
Our goals are to promote equality,
safeguard human rights and ensure
people's well-being.
At the heart of our personnel responsibility
are our employees’ health and safety, fair
employment relationships and
competence development.
Atria is also aware of its social
responsibility towards its producers and
the young people among its stakeholders.
Product
We want to provide safe, clean and
nutritious food, increase the number of
antibiotic-free products and lead the
way in improving animal welfare and
health together with our producers.
We aim for zero animal welfare
violations.
Traceability of raw materials and
biosecurity throughout the production
chain contribute to a sustainable and
safe food chain.
Sustainability as part of the strategy
In addition to our own operations, our sustainability efforts
cover the entire Atria value chain. We
improve our
sustainability in ever closer cooperation with our supply
chain partners and customers. Atria wishes to make
sustainable choices possible for consumers and customers
and to promote the welfare of the environment and
people. The goal of leading the way in sustainability is one
of the main objectives of our Group strategy.
The
key themes of our sustainability work are the planet, product
and people.
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
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Statement
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23
Atria Annual Report 2023
Moving towards carbon neutrality
At Atria, we have been working for sustainable food production
for decades with good results. The desire to lead the
way in responsibility is so integral to our business that it is
a major part of the Atria Group’s strategy.
Atria produces
healthy and safe food responsibly and sustainably while respecting
people, the environment, and nature. We
are
committed to reducing the climate and environmental impacts
of our own industrial production, and we develop the
responsibility of our operations in increasingly closer cooperation
with our supply chain partners while considering the
welfare of animals.
Solid protection against animal diseases and a high
level of
biosecurity have been and will remain an integral
part of our daily
work. In 2023, we published our biosecurity strategy
that seamlessly
connects human and animal health, food and
product safety, and
the safety of living and working environments.
Strong biosecurity
also enables antibiotic-free production. The share of
antibiotic-free
pork production increased in 2023, and we
were the first to
introduce domestically produced antibiotic-free bacon
to the Finnish
market. Our chicken products have been completely
antibiotic-free
for years.
Taking responsibility
for the future of domestic
primary production
Atria’s effect on people and the society around us are widespread.
We create safe and meaningful jobs for our employees, and
we also
take responsibility for those who work with Atria.
At Atria, improving
our personnel’s occupational health and safety and well-being
at
work are key themes of our personnel responsibility
efforts. Our
accident frequency has been moving in the right direction
for the last
five years and continued decrease in 2023.
We continued our
group-wide Safely home from Atria occupational health
and safety
programme and regularly highlighted health and
safety perspectives
in internal communications.
We are a large employer who offers income and value to
producers,
subcontractors, and partners. We wish to be a good
partner for our
producer-owners and ensure that Finnish farms can also be
successful in the future. In 2023, we
launched the Atria 100 Young
Producers training programme for young livestock
farmers to
improve the knowledge and skills of future producers
in the
changing operating environment.
We will report the sustainability data required by the
Corporate
Sustainability Reporting Directive (CSRD) for the first
time in early
2025, and our work to build that capacity is
well under way. In 2024,
we will continue our projects, especially those
that reduce emissions
and improve the traceability of our food chain.
We also strive to
more comprehensively inform consumers of the
impacts of our
operations and of our sustainability work.
Merja Leino
EVP, Sustainability
Scientifically proven targets support climate work
In 2023, our focus was especially on mitigating climate
change,
reducing emissions from food production, and verifying
the
responsibility of our value chain. At the end of
2022, we received
formal approval for our emission reduction targets
from the Science
Based Targets initiative (SBTi), which supports our climate work
through scientifically approved targets. In 2023, we
worked on our key
objectives with determination, achieving good
results.
We took a major leap forward in the use of renewable
energy when the
extension of the Atria solar power station in
Nurmo in Finland came
online in March 2023. This nearly doubled our
annual solar power
production capacity, and our solar park became one of the most
significant producers of solar power in all of
Finland. Good progress
was also made with the energy efficiency improvements of
our new
poultry plant in Nurmo.
Reducing plastic and fossil materials and adding
bio-based materials is
part of Atria’s packaging strategy in all countries of operation.
In
Finland, one of our largest product groups, Atria-branded
vacuum-
packed minced meat, was switched to bio-based packaging.
The
switch reduced the packaging’s carbon emissions by 48
per cent. Atria
Denmark also tested the use of fully recyclable
monoplastic materials
in the packaging of cold cuts, and the monoplastic
material is planned
for introduction in branded packaging at the beginning
of 2024.
Environmental calculator helps emissions tracing
Our producers play a key role in curbing the
environmental impacts of
our primary production. We introduced the Carbo® environmental
calculator for beef cattle and suckler farms, which allows
our
contracted farms to calculate the climate impacts of
their farm and
implement the right measures to effectively reduce carbon emissions.
In addition, we developed a model for verifying
the sustainability work
of pig farms with our contract producers in the Atria
Pig chain. The
model provides comprehensive information not only on
the
environmental and climate impacts of farms, but
also on broader
sustainability themes.
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | ATRIA
’
S DIRECTION
Atria Annual Report 2023
24
CASE
Atria educates young producers of
the future
Atria’s 100 Nuorta Tuottajaa young producers training
programme for future livestock entrepreneurs was
launched
in October 2023, and the application process was
a pleasant
surprise: not only were the applications of very
high quality,
but there was also a large number of them.
Held for the first time in 2023, the training programme
aims to
support young producers’ entrepreneurship as producers
of
Finnish food and help them succeed in a changing
environment.
The training programme for young producers will
be offered in
turns to all motivated farmers of the future, and
the aim is to
train at least 100 young producers in total.
Approximately 40
students were selected for the first training programme.
The
training will continue in the coming years.
“Finnish food production will be on a strong footing when
we
can work with young farmers from all production
sectors to
tackle future challenges and discover new
opportunities. At
the same time, we enable unique reinforcement
of information
and networks on both sides,” says
Niina Immonen
,
development manager of the Atria pork chain.
As a good employer, Atria treats all its employees fairly and equally.
We recruit, hire, promote and reward our personnel
purely on the
basis of achievement and competence. We are committed
to
promoting diversity, inclusion and equality. Our goal is to
consistently hire employees from different backgrounds and
promote gender pay equality. In 2023, we joined the diversity
commitment of the Finnish Business & Society
(FIBS), the largest
corporate responsibility network in the Nordic
countries.
We respect internationally recognised human rights and
comply with
local labour laws. We offer our employees appropriate terms
of
employment, such as fair pay, reasonable working hours and
occupational health care, as well as opportunities
for participation
and exerting influence. Every year, we carry out an employee
survey that helps us develop our operations and promote
our goal of
improving the well-being of our employees and
being the most
attractive workplace in our industry.
In 2023, the People Power
index in the personnel survey was 68.7, compared
to 67.0 in 2022.
We encourage our employees to further develop their expertise
by
providing them with training, supporting job rotation and
sharing best
work practices. In 2023, we offered training courses related
to,
among other areas, occupational safety, responsibility and
managerial work.
Read more about our personnel in our Corporate
Responsibility Report.
Aspects of Atria’s personnel responsibility
●
Fair employment relationships
●
Safety at work and working ability
●
Competence development
●
Equality and non-discrimination
●
Prevention of bullying and harassment
●
Freedom of association
●
Prevention of child labour and forced labour
We make sure that our employees can work safely every
day and
return home healthy. Our long-term goal is zero accidents. In 2023,
our occupational safety continued to improve, and our
accident
frequency rate decreased significantly. More accident observations
are being made, which is an indication that our
work to further
improve our safety culture is paying off. Our goal is the
overall
wellbeing of Atria employees. We promote safe working
conditions
and healthy lifestyles for our personnel so
that they feel good both at
work and in their leisure time. In addition to occupational
safety, our
approach to wellbeing includes support for mental
wellbeing and the
work-life balance.
Atria is an attractive and fair employer
We want to promote the overall well-being of Atria
employees, offer them meaningful work, a safe,
fair and non-
discriminatory working environment, and opportunities
for professional development. Our goal is to be one of
the
most attractive employers in the food industry and to create
working conditions that meet the requirements of
skilled professionals.
Atria as an employer
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | ATRIA
’
S DIRECTION
25
Atria Annual Report 2023
Sickness absences from regular working hours
*Number of accidents resulting in at least
8 hours of sick leave per million hours
worked.
** No accidents in Denmark in 2021
Accident rate in the Atria Group by business area
2020
-
2023
Proportion of women/men
Number of personnel on average
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | BUSINESS AREAS
Atria Annual Report 2023
26
Business areas
Atria Group’s operational structure consists of
three
business areas, or reporting segments: Atria Finland,
Atria
Sweden and Atria Denmark & Estonia. Of Atria Group’s
2023 net sales of EUR 1752.7 million, Atria Finland
accounted for 74.5 %, Atria Sweden for 18.6 %, and Atria
Denmark & Estonia for 6.9 %.
Atria Denmark &
EUR million
Atria Finland
Atria Sweden
Estonia
Group
Net sales
1,325.9
330.5
122.2
1,752.7
Adjusted EBIT
56.1
-5.6
2.9
49.6
Adjusted EBIT, %
4.2
-1.7
2.4
2.8
Personnel (FTE)
2,614
827
457
3,898
Business areas
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | BUSINESS AREAS
27
Atria Annual Report 2023
Core categories
- Fresh and consumer packed meat
- Poultry products
- Cooking products, such as
cooking sausages
- Cold cuts
- Convenience food
- Animal feed
- Pet food
Brands
Atria Finland’s leading brand is Atria, one of the best-known
and
most valuable food brands in Finland.
Customers
- Retail trade
- Foodservice customers
- Export customers
- Food industry
- Sibylla concept customers
Atria Finland
Atria Finland develops, manufactures, markets and
sells fresh
foodstuffs and provides services related to them. Atria’s main
product groups are fresh meat and meat products,
poultry
products, and convenience foods. Atria is the market leader
in
many of its product categories in Finland. It also
has substantial
export operations. In 2023, Atria Finland’s net sales were
EUR
1325.9 million, and the company had 2614
employees. 100 per
cent of the meat used in Atria brand products
is Finnish.
2,614 employees
67.1%
of the Group’s personnel
Net sales EUR 1,325.9 million
74.5%
of the Group’s net sales
Atria’s market position
#1
Atria is the market leader in most of
its main product categories.
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | BUSINESS AREAS
Atria Annual Report 2023
28
Controlled performance in demanding conditions
%
Adjusted EBIT (EUR million)
56.1
(EUR 49.4 million in 2022)
Net sales (EUR million)
1,325.9
(EUR 1265.3 million in 2022)
Atria Finland’s net sales increased by about 5 per cent
and the
adjusted operating profit improved significantly, i.e. by about 14
per cent in 2023. The increase in net sales was
due to higher
sales prices than in the previous year in the retail
and
Foodservice channels. Foodservice sales returned to pre-Covid
levels and we grew faster than the market in it. However, in the
last quarter of the year, our net sales decreased, which was
the
result of a decrease in net sales in all sales
channels.
The increase in adjusted operating profit was
the result of good
profit development in January
-
September, a more favourable
sales structure and higher sales prices. However, the adjusted
operating profit of the last quarter of the year
fell short of the
comparison period.
The reasons for the weaker result compared to
the comparison
period were the costs associated with the commissioning
of the
new poultry plant and the poor market situation
for red meat,
especially beef. The decline in beef sales is
the result of a
decline in consumers’ purchasing power.
The development activities carried out in day to-day
operations
improved cost-effectiveness extensively throughout the
organisation.
The introduction of equipment and premises at
the new poultry
plant did not lead to any deviations in the
daily operations, and
poultry deliveries to customers went well. Delivery reliability
was
good throughout the year.
During 2023, the cost inflation that consumers experience
in
their daily lives affected all consumption. Consumers are
buying
cheaper products and carefully considering what
they are
buying. Consumers’ attitudes also reflect the global
political
uncertainty, which leads to preparedness and saving. Accurate
purchasing and consumption also influenced the development
of Atria's sales volumes.
Cost inflation also affected Atria’s operations. Prices of
production input and outsourced services remained
at a higher
level compared to the previous year throughout 2023.
The
exception was the price of energy, which remained at a
moderate level, but at a lower level than
the previous year. Atria
succeeded well in its business operations in a
strongly changed
operating environment. We proved our ability to cope with
even
difficult changes. Strategy projects were taken forward
in a
consistent and planned way.
Mika Ala-Fossi
Executive Vice President, Atria Finland
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | BUSINESS AREAS
29
Atria Annual Report 2023
Success for Atria’s Finnish beef at the
World Steak Challenge
Atria’s Finnish grass-fed beef was a big success at the
World
Steak Challenge 2023 in London.
Atria’s Danish partner JN
Meat International, which participated in the competition
with
Atria’s beef products, won gold medals in several categories:
●
Gold medal in the grass-fed beef fillet category
●
Gold medal in the grass-fed beef rib eye (entrecôte)
category
●
Gold medal in the grass-fed beef sirloin category
“The World Steak Challenge has been running since 2015.
From the very start, we have won gold
in every steak contest
that has been held. The success proves that Atria’s Finnish
beef is the best in the world. Credit for this
is due to our entire
beef production chain”, says Markku Hirvijärvi, Senior
Vice
President of Atria Finland’s meat business.
Atria delivers high-quality Finnish beef to its partner
JN Meat
International in Denmark four times a week. The
best pieces
are selected from these for the competition. Atria’s success in
the competition is also due to Atria’s Danish partner
JN Meat.
CASE
1)
Atria Insight 2023
Market for Atria’s main product
categories
1)
Finland’s meat and meat product market
2)
Market value
3,075
EUR million
Market volume
365
million kg
Market value
3,
663
EUR million
Change, %
+6.9%
Change, %
-0.9%
Change, %
-1%
(volume)
+8.2%
(value)
1)
Retail trade, consumer-packed and bulk products
2)
Total value of the meat,
meat products and convenience food market in
the retail trade’s and Foodservice sectors’ distribution
channels.
The position of Atria’s main product
categories in the market
1)
Change in overall market
2)
Atria’s share of
manufactring
3)
Atria brands
4)
Category
Value (EUR)
Volume (%)
Value (EUR)
Position
Consumer-packed meat
+3.6%
–0.4%
36.2%
#1
Poultry
+10.4%
+0.4%
45.7%
#2
Cooking
+4.7 %
–2.3%
26.2%
#2
Cold cuts
+4.8%
–1.4%
19.2%
#1
Convenience food
+9.5%
+0.7%
15.6%
#2
Total
(vs. 2022)
+7.0%
(+6.7%)
-0.9%
(-2.0%)
25.8%
(25.0%)
1)
Grocery trade, consumer-packed products
2)
Percentage of change from 2022
3)
Atria as a supplier
4)
The market position of categories sold under the Atria brand
The Finnish barbecue market
1)
Value, approx. EUR million
170
Market share of Atria’s barbecue products
30.2%
Market position of Atria’s barbecue product
categories
#1
Change, %
+1%
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | BUSINESS AREAS
Atria Annual Report 2023
30
Volume of meat processed
by Atria,
million kg
161.4
The volume of meat processed by Atria
decreased by 8 million kilos compared
to 2022.
Atria’s delivery reliability %
99.89
Atria’s delivery reliability remained at
the previous year’s excellent level. The
introduction of the poultry plant brought
a lot of changes to daily operations, but
it did not affect the reliability of supply.
Atria's good supply chain management
increases operational predictability in
addition to delivery reliability.
Meat production and consumption in Finland in 2023
1)
1)
)
Production and consumption of bone-in meat.
Source: Kantar TNS Agri, 2023.
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | BUSINESS AREAS
31
Atria Annual Report 2023
CASE
Atria aims to launch poultry meat
exports to China
Poultry is a growing product group and there is
also a lot of
interest in the high-quality Finnish chicken internationally. An
agreement enabling the export of Finnish poultry
meat to
China was signed at a ministerial meeting in Beijing
in autumn
2023. Atria aims to start exporting poultry
meat to China in
spring 2024.
Minister of Agriculture and Forestry Sari Essayah
and China’s
Deputy Customs Commissioner-General Wang Lingjun
signed an agreement on the export conditions for poultry
meat and at the same time agreed to start
food safety
cooperation between the two countries. Some company-
specific and other administrative steps are still needed
before
exporting can begin.
“This is a great opportunity for Atria and Finnish
food
production as a whole. We have established customer
relationships and have already held preliminary negotiations
with our Chinese customers. Chinese consumers appreciate
Atria's high-quality and antibiotic-free chicken”,
says Matti
Perälä, Senior Vice President of Atria’s poultry business.
The modern poultry unit at Atria’s Nurmo production plant,
which will be commissioned next year, will make it possible to
expand poultry exports.
In 2016, Atria was the first Finnish company to
obtain a pork
export licence for the Chinese market.
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | BUSINESS AREAS
Atria Annual Report 2023
32
Strategic targets
Implementation in 2023
Strong financial performance
●
We concentrated poultry production in the new
plant in Nurmo; the Sahalahti plant will be closed
down in 2024.
●
We adapted production capacity for pig slaughter and
cutting to the prevailing market situation for pork.
Best partner for owner-producers
●
We launched Atria 100 Young Producers training programme.
●
We invested in feed production.
●
Atria introduced the Carbo® environmental calculator
for more than 1,200 of its contracted producers.
Leader in sustainability
●
Our climate targets were officially approved by
the Science Based Targets initiative.
●
Together with the contract producers of the Atria Pig chain, we built the first model in
Finland to verify the sustainability of pig farms.
●
The extension of Atria’s solar park nearly doubled solar
power production in Nurmo.
●
We launched a new bio-based minced meat package on the
market.
●
We launched the Carbo® environmental calculator, which measures the carbon footprint
of beef.
●
We are involved in a 45 megawatt wind power
project: A wind park will be built near the Nurmo
factory.
●
We are developing energy efficiency at the new poultry factory
and other production facilities.
●
We are investing in antibiotic-free pork production.
Our goal is to have all pig farms on antibiotic-free
production within three years.
●
We are part of the Material Efficiency Commitment of the Finnish
Food and Drink Industries’ Federation.
Committed people
●
We developed our occupational safety culture. Our accident
frequency rate fell to 13.8. (2022: 19).
●
Atria Way of Work (WoW), shared rules for all Atria employees.
●
We joined FIBS (Finnish Business & Society), the largest
corporate responsibility network in the Nordic
countries.
Strategic priorities
Win big in poultry
●
The construction project of the new poultry plant
proceeded on schedule. The commissioning was
carried out in stages in 2023. The plant will
be
completed in its entirety in 2024.
●
Atria was granted a licence to export poultry products
to China – exports will start in the spring of
2024.
Expand in convenience food
●
Acquisition of Ab Korv-Görans Kebab Oy
●
In terms of the volume and net sales of convenience
food, we grew faster than the market, especially
in the retail trade.
●
Sales of the new products were excellent.
●
We invested in increasing the production capacity of microwave
meals.
Optimise red meat
●
We invested in meat exports. Added value includes the
meat being antibiotic-free, hormone-free, salmonella-free
and traceable, and an
emphasis on animal welfare.
●
We adjusted production capacity at the Nurmo pig
cutting and slaughtering plant to the current market
situation for pork.
Strengthen Foodservice, incl. fast food
●
We expanded our raw material base by launching more
fish products on the Foodservice market and introducing
fish-based salads to the retail
market.
●
We launched a street food family (paninis and burritos) to expand
our business into new segments.
●
Acquisition of Ab Korv-Görans Kebab Oy
●
We developed new products for Sibylla. The new
Sibylla roller-grill sausages are manufactured at
Atria’s Nurmo plant. The new bacon jam is
made of Finnish Atria bacon.
Drive next level supply chain efficiency
●
The construction of the new poultry plant proceeded
– commissioning in 2024. We will concentrate poultry
production in Nurmo, and the
Sahalahti plant will be closed down in 2024.
●
Atria Finland adapted its production capacity for pig
slaughter and cutting to the prevailing market situation
for pork.
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | BUSINESS AREAS
33
Atria Annual Report 2023
Customers
- Retail trade
- Foodservice customers
- Sibylla concept customers
- Export customers
●
827 employees
21.2%
of the Group’s personnel
Net sales EUR 330.5 million
18.6%
of the Group’s net sales
Core categories
- Cold cuts
- Cooking sausages
- Fresh poultry products
- Convenience food
- Vegetable and delicatessen
products
Atria Sweden
Atria Sweden produces and markets meat products,
fresh
chicken products, cold cuts and various types
of meals mainly
for the Swedish food market. Atria Sweden has several
valued,
widely known brands, many of which are market leaders
in their
respective product categories. Atria is also a strong
private label
supplier. The meat raw material used in Atria Sweden’s product
groups is mainly of domestic origin. In 2023, Atria
Sweden’s net
sales were EUR 330.5 million, and the company had
827
employees.
Brands
Atria Sweden has several valued brands, the best known
ones
being Lönneberga and Sibylla. Sibylla is Atria Group’s
most
international brand.
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | BUSINESS AREAS
Atria Annual Report 2023
34
%
Adjusted EBIT,
EUR million
-5.6
(EUR 2.3 million in 2022)
Net sales, EUR million
330.5
(EUR 356.2 million in 2022)
and it is the market leader in its category. The development of
the position of Finnish meat has been stronger
than expected.
In the Foodservice and fast food markets, our development
was
positive at the beginning of the year, but weakened in the
second half due to inflation affecting consumer demand.
Atria’s
sales are in line with general market development.
Despite the demanding market situation, we made good
progress towards the key goal of our strategy, that is, improved
operational efficiency. The centralisation of Atria’s production
and logistics at the Sköllersta production plant, the
optimisation
of our portfolio and the continuous improvement
of the efficiency
of our organisation will significantly improve our
competitiveness
in the future.
Jarmo Lindholm
Executive Vice President, Atria Sweden
Atria Sweden’s net sales decreased and operating profit was
negative due to the historically high inflation
that hit the Swedish
economy, rising food prices and weakened consumer
purchasing power. Profitability was adversely affected by the
depreciation of the Swedish krona and the significant increase
in the prices of raw materials, especially domestic
pork during
the year. Net sales and EBIT for the comparison period include
the sales of products previously manufactured at
the Malmö
factory, whose production has been discontinued due to the
factory's closure.
In retail trade, the market of Atria’s main product groups
grew in
value compared to the previous year, measured in local
currency.
Atria’s market share in sausages and fresh chicken products
strengthened in the growing retail market, with
a supplier share
of 21.4% in sausages and 19.8% in chicken
products. In cold
cuts, Atria's supplier share fell slightly and was 12.0%.
The volumes of the total market for fresh chicken
products are
growing. In the Foodservice market, the development of
Atria
Sweden’s position was very strong in chicken sausages
Market position strengthened and operational efficiency
measures progressed despite a demanding market situation
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | BUSINESS AREAS
35
Atria Annual Report 2023
Total markets of
Atria’s main product categories in Sweden
Market value
Value change
EUR 1,323
million
+5.5%
The position of Atria’s main categories in the Swedish retail market
Market value
Change in overall market
1)
Change in Atria’s share of manufacturing
1)
Market position
2)
Category
(EUR million)
Value (EUR)
Volume (%)
Value (%-points)
Position
Cold cuts
539
+3.8%
–1.1%
–1.3%
#2
Sausages
471
+5.7%
–1.1%
+1.1%
#2
Poultry products
312
+8.3%
–8.4%
+0.7%
#3
1)
Percentage of change in comparison to 2022
2)
Position of Atria’s brand categories in the retail
trade
Meat consumption in Sweden
(kg/person) 2000–2023
The total consumption of meat began to decrease
in Sweden in
the mid-2010s and evened out to approximately 75
kilograms
per person five years later. The figures do not include lamb and
game, for example. The consumption of poultry has
increased
by 1–4 per cent annually for the past ten years,
whereas the
consumption of beef and pork has decreased.
In 2023, the
total consumption of meat decreased slightly, or about 2 per
cent from the previous year. The consumption of poultry meat
and beef increased slightly, while the consumption of pork
decreased clearly. The domestic share of meat consumption
reached its lowest level around 2015, after which
there has
been an upward trend in domestic meat production
and
consumption. The domestic share of pork increased
slightly in
2023, while for chicken and beef it decreased
from the
previous year.
The share of domestic meat consumed
in Sweden 2002–2023
Source: Jordbruksverket 2022 and 2023. Figures
for 2023 are estimates based on 01–09/2023.
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | BUSINESS AREAS
Atria Annual Report 2023
36
Value maximisation
The purchasing behaviour of Swedes has clearly
changed.
Consumers are looking for special offers and the highest
possible
value. The price is compared with the quality, but also the
consumer's own goals.
Every day is cause for a little celebration
The future is difficult to predict, so the consumer
chooses to live in
the moment, which includes enriching experiences
and small
celebrations every day.
Sustainable lifestyle
Consumers want to live and consume responsibly. However,
purchasing decisions may be more affected by price and
an
unwillingness to pay too much for food.
Swedish meat product production
moved to the Sköllersta plant
In 2020, Atria made the decision to move production
from the
Malmö plant to Sköllersta, in the county of Örebro.
The
expansion of the Sköllersta plant was completed in
late August
2023. The production lines were transferred from
Malmö to
Sköllersta, and the last day of production at the Malmö
plant
was in June 2023.
Production at the Sköllersta plant has been modernised,
and a
new 6,300 m2 logistics centre has also been built.
The new
production area of the plant is 3,200 m2. The centralisation
has
streamlined production, and the carbon footprint of
the
Sköllersta plant has decreased significantly with
the
modernisation of the plant.
“We have defined the improvement of operational efficiency
and
agility as our strategic goal. In this way, we are looking for better
financial results and profitable growth in Sweden
in the coming
years”,
says Jarmo Lindholm, Executive Vice President of Atria
Sweden.
CASE
Consumer behaviour is changing
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | BUSINESS AREAS
37
Atria Annual Report 2023
Implementation of strategy in 2023
Strategic targets
or priorities
Implementation in 2023
Win big in poultry
●
We grew faster than the market in the retail trade of
fresh poultry.
●
In Foodservice, we continued to expand the Lönneberga
brand in both fresh and frozen.
Expand in
convenience food
●
We increased market share in snack salami through branding.
Strengthen in Foodservice,
including fast food
●
We intensified our Foodservice sales in the Poultry Lönneberga
and Meat Parts from
Finland categories.
●
Our growth followed the growth of the market.
●
We launched several products under the Sibylla fast food
concept and developed the
concept’s visual appearance.
Optimise red meat
●
We focused on optimising meat raw materials and recipes.
●
We continued to work closely with Atria Finland to ensure
the best prices for Finnish meat
raw materials.
Drive next level supply chain
efficiency
●
We improved the efficiency and competitiveness of our processes
and units.
●
We completed the reorganisation of our Swedish operations
in Sköllersta.
Leader in sustainability
●
We reduced the total emissions from Atria Sweden’s production.
●
We improved the energy efficiency of our production plants with
several system
investments.
●
We reduced water consumption in production by streamlining
and optimising processes.
●
We increased the amount of recycled plastics in cold cut
packaging and reduced the use of
plastics in chicken packaging.
●
All plants in Sweden are certified in accordance
with the FSSC 22000 food safety standard.
●
We committed to the goal of a fossil-free food industry by
2045.
●
We intensified our work to improve safety at all our plants.
Our poultry plant had no
accidents leading to absences during 2023.
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | BUSINESS AREAS
Atria Annual Report 2023
38
Atria Denmark & Estonia
Core categories
- Meat products, particularly
sausages, including cold
cuts
- Convenience food
- Fresh and consumer
packed meat
457 employees
11.7%
of the Group’s personnel
Net sales EUR 122.2 million
6.9%
of the Group’s net sales
Customers
- Retail trade
- Foodservice customers
- Export customers
Brands
Atria’s main Danish brands are 3-Stjernet and Aalbaek
Specialiteter. In Estonia, Atria’s main brand is Maks & Moorits,
supplemented by the regional VK and Wõro brands.
Atria Denmark & Estonia produces and markets cold cuts,
meat
and meat products for the Danish and Estonian
food markets.
The business area also has export activities.
Atria Denmark &
Estonia has valued, widely known brands,
many of which are
market leaders or hold the second position in their
product
categories. Atria has two production plants in Denmark
and one
in Estonia. In 2023, Atria Denmark & Estonia
had net sales of
EUR 122.2 million and 457 employees.
The meat raw material
used in Atria’s product categories in Denmark and Estonia
is
mainly of domestic origin. In Estonia, Atria has its own
primary
production, and the company is the country’s second
largest
pork producer.
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | BUSINESS AREAS
39
Atria Annual Report 2023
%
Adjusted EBIT,
EUR million
2.9
(EUR 1.2 million in 2022)
Net sales, EUR million
122.2
(EUR 112.9 million in 2022)
Atria held on to its position
as
one of the market leaders
on
the Estonian market
Atria continued to grow in the Estonian
market and maintained its
second position on the market. Its sales volume and
net sales
increased from the previous year. Retail trade currently generates a
large part of Atria’s net sales in Estonia. In particular, growth took
place in cold cuts, and Maks & Moorits was
the most popular meat
brand in Estonia in 2023.
Inflation continues to affect consumer behaviour, and there is
demand for more affordable products on the market.
We responded
to consumer demand by launching, among other
things, lower-cost
poultry products for the retail sector. In total, we launched 29 new
products. In addition, we continued to invest
in sustainability. We
invested in reducing the amount of plastic in
packaging and also
increased the use of solar power at the Valga plant during the year.
Despite the tight market situation, we were able to reduce
costs by
minimising material and raw material costs, for example,
and by
improving the efficiency of the logistics chain. Going forward,
we will
invest in growth, especially in poultry products,
and aim to become
the largest producer of minced meat in Estonia.
Olle Horm
Executive Vice President, Atria Estonia
Reduced sales volumes weighed
on the result in Denmark
Atria’s market position in its product groups in the Danish
retail trade
remained strong. As a result of general cost inflation,
the weakened
purchasing power of consumers weighed on the development
of Atria’s
net sales. Consumers are now buying lower-cost
products and take
advantage of campaign discounts. The discontinuation
of certain low-
profit products also reduced our net sales.
The decrease in sales volumes and the increase
in raw material and
other costs weighed on the operating profit. The
commissioning costs
of the production lines transferred from Atria Sweden’s Malmö
plant to
the Horsens plant also reduced the operating
profit.
Atria Denmark has a good market position in
the retail trade for
sausages and salami cuts. The sales of whole
meat and pepperoni
products also increased. The 3-Stjernet brand has a
very strong
position in retail trade and is therefore a key
factor in our good market
position.
We improved the efficiency of our operations to improve profitability.
Production was concentrated in two production
plants. Our goal is to
further streamline our operations by investing in
the efficiency of the
supply chain and new production lines. In addition,
we are investing
more in our 3-Stjernet brand and strive to
increase exports, e.g. to the
United Kingdom.
Lise Østergaard
Executive Vice President, Atria Denmark
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | BUSINESS AREAS
Atria Annual Report 2023
40
The position of Atria’s main categories on the Danish and Estonian retail markets
Denmark
Category: Cold cuts
Estonia
Categories: Meat, meat products and convenience
food
Manufacturer share (value)
14.9%
(16.0% in 2022)
Market position
#2
Manufacturer share
21.2%
(20.3% in 2022)
Market position
#2
The markets for Atria’s main product categories in Denmark and Estonia
Value
EUR 762 million
The value of the market for cold cuts in Denmark
and
the value of the market for meat and meat products
in Estonia’s retail sector in total
Value change
+18.5%
Change in the value of Atria’s main product categories
in Denmark and Estonia on average
Volume change
+4.2%
Average change in
market volumes
Value change
in Denmark
+8.1%
(+3.0% in 2022)
Value change
in Estonia
+29%
(6.7% in 2022)
Volume change
in Denmark
-1.3%
(-1.1% in 2022)
Volume change
in Estonia
+9.7%
(-2.4% in 2022)
Atria Denmark strives for job
satisfaction
The Jobtaskforce Horsens Alliancen
granted Atria Denmark
the CSRpeople diploma 2024 for being a socially
responsible
company.
“The diploma is not only a great title, but
a testament to Atria
Denmark's commitment to promoting job satisfaction
and
engagement”, says Anette Thuesen, Head of Human
Resources at Atria Denmark.
The Jobtaskforce Horsens Alliancen
is a cooperation network
of the Horsens municipality and companies and organisations
in the region. It aims to strengthen the social responsibility
of
the Horsens municipality and attract more people to
the
labour market.
CASE
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | BUSINESS AREAS
41
Atria Annual Report 2023
Estonia
1.
Ease of cooking
Inflation has also affected consumer behaviour in Estonia,
where
not only price awareness but also the ease
of cooking has been
appreciated. In Estonia, the product groups of ham
cuts and
sausages in particular have grown significantly, as they bring ease
to consumers’ everyday lives.
2.
Versatility
The share of poultry meat and vegetables grew
as part of the
versatile eating trend. In Denmark, Atria has traditionally
had
several meat-vegetable combination products, and the
development of new products continued. In Estonia,
Atria launched
new plant-based products and several chicken products.
3.
Health
The healthiness of food continues to trend also in
Estonia. The
market demand especially for chicken and vegetable
products has
increased. This brings with it new expectations
for product
development, as consumers want products that are not
only easy
to use, but also of high quality.
4.
Responsibility
Consumers are increasingly interested in the sustainability
of
products. Systematic work to improve sustainability
will continue in
the future. In Estonia, the use of plastic in packaging
materials has
been reduced, solar power is increasingly used in energy
production, and pork is produced locally in Estonia
at Atria’s own
pig farms.
Denmark
1.
Affordability
Danes have always preferred special offers and discounts.
Strong
inflation has made consumers more price-conscious and
significantly reduced the sales of premium and organic
products.
2.
Reducing food waste
One way to curb food costs is to reduce
food waste. Consumers
talk about food waste and give tips on social
media on how to
reduce it. Reducing food waste not only helps
households
financially, but also promotes more sustainable consumption
without additional costs.
3.
Health
Danes have an increased desire to live a healthy
life. While health
and sustainability considerations are important to consumers,
economic pressures are forcing many to buy the
cheapest option
rather than the preferred one. The consumption of
inexpensive and
filling carbohydrates, such as bread and pasta, has
increased.
Consumer behaviour is changing
The following consumer trends in the food products and
food industry were among those affecting
Atria’s operations and offering in Denmark
and Estonia in 2023:
Maks & Moorits is the most popular
meat brand and the second most
popular food brand in Estonia
Maks & Moorits is Atria’s best-known meat brand in
Estonia,
and one of Atria’s key goals is to further strengthen
the brand
also in the future. In Kantar Emor’s annual
brand survey
2023, Maks & Moorits was the most popular
meat product
brand in Estonia and the second most popular
food brand.
Atria’s market share in Estonia has developed favourably over
the last four years. In September 2023, Atria’s market
share
in Estonia was an impressive 22.5 per cent.
Significant investments have been made in brand
work and
marketing, which have contributed to stimulating consumer
interest in Maks & Moorits’ products. Among other
things,
product packaging utilises Atria’s new environmentally friendly
packaging material.
In product development, consumers’ needs were
met by
launching new, interesting flavours of sausages. Of the new
products, the most popular are Kodupihv, Tooma smoked
sausage and Shashlik in kefir marinade. As a
pioneer in the
Estonian meat product market, we produce the new
Maks &
Moorits range free of monosodium glutamate.
The roots of the Maks & Moorits brand extend
to the Estonian
company AS Valga Lihatööstus, founded in 1910. The
company and its brand were acquired by
Atria in 2005. Atria
is Estonia’s second largest pork producer.
CASE
Content
Atria in 2023
Atria in brief
CEO’s review
Financial development
Highlights of the year
Atria’s value chain
Atria’s direction
Food market trends
Consumer behaviour
Strategy
Sustainability as part of
strategy
Atria as an employer
Business areas
Atria Finland
Atria Sweden
Atria Denmark & Estonia
Research and
development
Financial Statements
and the Report by the
Board of Directors
Auditor’s report
Corporate Governance
Statement
Remuneration Report
Investor information
Contacts
ATRIA PLC | BUSINESS AREAS
Atria Annual Report 2023
42
Implementation of strategy in 2023
Strategic priorities
Implementation in 2023
Win big in poultry
●
In Denmark, the sales of chicken cold cuts have
increased the most (+5%). Atria introduced
two new chicken-based cold cut products to retail.
●
Atria introduced new chicken products to the Estonian
chicken product market, especially in
the lower price category.
Strong financial performance
●
To ensure profitability in Denmark, Atria concentrated its operations in two production
plants.
●
Part of the production of cold cuts was transferred from
Malmö, Sweden, to the production
plants in Horsens, Denmark. In the longer term,
the transfer of production will increase the
growth opportunities and profitability of Atria Denmark.
●
In Denmark, the development of the product mix
structure to meet consumer demand
continued.
●
In Estonia, Atria secured its profitability by minimising
its material and raw material costs.
Leader in sustainability
●
In Denmark, Atria introduced a new mono-plastic
base film into cold cut packaging, which
enables the recycling of the packaging.
●
Investments in packaging equipment in Denmark have
made it possible to optimise the
number of boxes in transport.
●
In Estonia, Atria continued to reduce the use of
plastic in product packaging. The company
also increased the use of solar energy at its
Valga plant.
Drive next level supply chain efficiency
●
We utilised a new predictive maintenance programme in
production in Denmark.
●
In Estonia, Atria improved the efficiency of its supply
chain by introducing a new transport
system. The system is based on a single box
design and which makes work in the plant and
warehouse, as well as customer deliveries, more
efficient.