Business Risks Q1/2025

Atria Group’s business, net sales or result can be affected by several uncertainties. Atria has described its business risks and risk management in detail in its Annual Report 2024, which is available at www.atria.com/en/investors/financial-information/annual-reports/.

During the review period, uncertainty was exacerbated by the effects of the war in Ukraine and global geopolitical instability such as increased US import tariffs and retaliatory measures from Europe and China. As a result, the risks of market volatility and the loss of consumer confidence are increasing. The impact of the increased tariffs on Chinese electric cars imposed by the European Commission in October 2024 remains unclear. China has announced that it is considering raising tariffs on food imports from Europe or banning imports altogether.

The ongoing collective bargaining dispute in Finland led to a strike in the food sector, which began on 8 April and lasted for three days. The strike had a significant impact on food production and distribution. The strike will be reflected in Atria Finland’s sales and result for the rest of the year.

The national nutrition recommendations published in the autumn of 2024 have reduced the cold cuts market in Finland. During the first quarter, the Finnish cold cuts market in retail trade decreased by about 9% in value. The long-term impact of the recommendations on the market is being assessed.

At the beginning of 2025, foot-and-mouth disease was detected in Germany, which has affected the country’s pork exports. The disease has led to strict import restrictions in many countries. This has caused disturbances in the international pork market. Atria is actively monitoring the animal disease situation in Europe, as there is a risk of diseases spreading to Atria’s operating countries. Atria has protective measures in place in its own production plants and at its contract farms.

The unpredictability of the weather at the start of a new growing season and the effects of the war in Ukraine create risks for the price and availability of grain.

The fight against cybercrime and information system disruptions requires continuous development and a proactive approach. Systematic monitoring is key, as it enables the timely detection of threats. For example, the continuous improvement of cybersecurity through system upgrades, employee training and the introduction of new technologies is also very important.