Atria as an Investment

Atria as an Investment

 

Atria is a prestigious and responsible player in a solidly developing industry with good prerequisites for profitable growth both in the domestic and export markets. Atria's growth in shareholder value and stable return are supported by the three basic pillars of Atria's operations: excellent commercial expertise, efficient operations and sustainable, responsible business management creating value for all stakeholders.

 

Atria's profitable growth is based on the growing demand for food. The overall demand for meat in Finland and Europe will increase slightly, as the increase in poultry meat consumption will compensate for the decrease in beef and pork consumption. Globally, demand for all types of meat is growing significantly, most notably for poultry. Demand and consumption of meat are boosted by population growth and rising living standards in developing countries.

 

The overall demand for Atria's products is stable over the medium to long term. Atria's diverse product range includes food for everyday and festive occasions, for the needs of different consumers and customers. Atria's product groups are mainly meat-based, but meat-free alternatives are included in the range, as well.

 

Atria is responding to the growth in demand for poultry meat with the largest investment in its history, approximately EUR 160 million. A new production unit will be completed in connection with the Nurmo facility in 2024, which will increase poultry production capacity by approximately 40 percent. This strengthens Atria's market and competitive position in both domestic and export markets significantly. In addition to Finnish production, Atria is strengthening its poultry meat production in Sweden.

 

In addition to poultry meat, Atria is also aiming for growth in other types of meat. The company sees opportunities for growth both in new product segments and in new market areas. Alongside the retail and Foodservice sectors, export is an important sales channel for Atria. In 2023, Atria Finland exported meat and processed-meat products to 26 countries. The main export markets were South Korea, Denmark, China, Sweden, Baltic countries and Japan.

 

Strong market positions and valuable brands

 

A key factor in Atria's profitable growth is the company's strong market position in its different business areas.

 

In Finland, Atria is the market leader in its main product groups with a 25.8 percent supplier share in the grocery sector (in 2023). The company is also the market leader in the Foodservice sector with a share of around 21 percent. In Sweden, Atria is the market leader in the production of sausages and cold cuts and the market leader in fresh poultry products. In Denmark and Estonia, Atria is the second largest player in its main product groups.

 

Atria's market position is also strengthened by its extensive and valuable brand portfolio. Atria Finland's leading brand is Atria. It is one of Finland's best-known and most respected food brands. Atria Sweden's best-known brands are Lönneberga and Sibylla, which is also the Atria Group's most international brand. In Estonia, Atria's main brand is Maks & Moorits. Atria's Danish brands include 3-Stjernet and the organic brand Aalbæk Specialiteter, which also has significant growth potential in export markets.

 

Growing faster than the market

 

One of the key goals of Atria's strategy is strong financial performance. It aims to maintain this through faster-than-market growth. Atria also maintains a strong balance sheet and a good financial position, as well as good profitability. These are all essential parts of Atria's sustainable value creation and rewarding ownership.

 

Atria's financial targets for the strategic period 2021–2025:

 

  • Faster growth than the market
  • EBIT 5 percent of net sales (2.8 % in 2023)
  • Equity ratio 40 percent (41.7 % in 2023)
  • Return on equity (ROE) 10 percent (7.3 % in 2023)
  • Capital distribution of the profit for the financial period 50% (61.2 % in 2023)

 

Read how Atria's responds to changes in the business environment in its strategy.

Read more about Atria's business areas