Atria (ATRAV) Q3 2024 earnings summary

Executive summary

• Group net sales for January–September 2024 were €1,310.1 million, down 0.3% year-over-year, mainly due to lower feed sales prices and subdued Foodservice sales in Finland.

• Adjusted EBIT rose to €52.1 million (4.0% margin), up from €40.2 million (3.1%) year-over-year, with all business areas improving results.

• Atria Sweden's EBIT and net sales grew significantly, supported by the Gooh! acquisition and production restructuring.

• Free cash flow improved to €23.1 million from -€34.4 million year-over-year, driven by lower working capital and investment expenditure.

• Strategic initiatives advanced, including full commissioning of a new poultry plant in Finland and completion of Gooh! business integration in Sweden.

Financial highlights

• Q3 2024 net sales rose 2.2% year-over-year to €439.0 million; adjusted EBIT increased to €25.8 million (5.9% margin).

• Adjusted EPS for Q3 2024 was €0.62 (vs. €0.46); for Q1–Q3 2024, €1.11 (vs. €0.83).

• Equity ratio at period end: 42.2% (vs. 43.6% year-over-year and 41.7% at 2023 year-end).

• Net debt/adjusted EBITDA at 2.31 (improved from 2.65).

• Free cash flow for Q1–Q3 2024 improved to €23.1 million from -€34.4 million year-over-year.

Outlook and guidance

• Adjusted EBIT guidance for 2024 raised; expected to exceed 2023’s €49.6 million, driven by strong performance in all business areas and operational improvements.

• Efficiency measures, favorable sales structure, and the new poultry plant are expected to support future earnings.

• Uncertainty remains regarding consumer purchasing power and sales structure in Q4 2024.

• Potential Chinese tariffs on European food imports could impact Finnish pork exports.