ATRIA PLC | 2022
FRONT PAGE
Atria’s key indicators
CEO’s review
STRATEGY
OPERATING
ENVIRONMENT
Atria Finland
Atria Sweden
Atria Denmark &
Estonia
FINANCIAL
STATEMENTS AND
CORPORATE
GOVERNANCE
Report by the board
of directors and
financial statements
Auditor’s report
Corporate
Governance
Statement
Contact information
ATRIA PLC | 2022
financial statements
Atria Annual Report 2022
ATRIA PRODUCES
SUSTAINABLE VALUE
Atria is one of the leading meat and food
companies in the Nordic countries. We are a
company established in 1903 and valued by our
customers, personnel, and owners. We have been
producing food for 120 years, and we want to
continue to do so, which is why our operations take
account of the Planet, People and Product.
Atria’s renewal and growth are based on
commercial excellence and an efficient and
responsible way of working. Our main product,
good food, creates a better mood and sustainable
value for all our stakeholders. In 2022, our net
sales were EUR 1696.7 million, and Atria had
3,698 employees in Finland, Sweden, Denmark
and Estonia.
Atria Plc’s shares have been listed on the Nasdaq
Helsinki since 1991.
ATRIA PLC | 2022
financial statements
Atria Annual Report 2022
This document is a translation of the Finnish language original
ESEF Financial Statements, file name:
743700XLYONPSKO15Z91-2022-31-12-FI.zip.
The audit firm PricewaterhouseCoopers Oy has provided an
independent auditor’s reasonable assurance report only on
Atria Plc’s ESEF Financial Statements in Finnish.
Annual Report 2022
Atria in brief
2
Atria’s key indicators
4
CEO’s review
6
Strategy and operating environment
Winning North European Food Company strategy
8
Operating environment
15
Business area reviews
Atria Finland
21
Atria Sweden
27
Atria Denmark & Estonia
32
Research & Development
36
Financial Statements and Corporate Governance
Annual General Meeting
40
Report by the Board of Directors
41
Shareholders and shares
59
Group’s financial indicators
61
IFRS Financial Statements
65
Notes to the consolidated financial statements, IFRS
69
Parent company financial statement, FAS
106
Notes to the parent company financial statement, FAS
109
Signatures
117
Auditor’s report
118
Assurance Report on ESEF
125
Corporate Gorvernance Statement
129
Remuneration report
147
Financial communication
153
Contact information
154
ATRIA PLC | 2022
financial statements
Atria Annual Report 2022
8,2
8,9
0
1
2
3
4
5
6
7
8
9
10
18
19
20
21
22
Adjusted return on equity
(ROE), %
1,27
1,43
0,0
0,2
0,4
0,6
0,8
1,0
1,2
1,4
1,6
18
19
20
21
22
EUR
Adjusted EPS
48,7
44,8
0
10
20
30
40
50
18
19
20
21
22
%
Equity ratio
Atria Group's key indicators, EUR million
2022
2021
Net sales
1,696.7
1,540.2
EBIT
0.1
6.4
EBIT, %
0.0
0.4
Adjusted EBIT *
49.0
49.2
Adjusted EBIT, % *
2.9
3.2
Balance sheet total
1,039.8
961.5
Adjusted return on equity, % *
8.9
8.2
Equity ratio, %
44.8
48.7
Net gearing, %
50.5
32.6
* EBIT adjustment items in 2022 totalled EUR -48.9 million (EUR -42.8 million).
ATRIA PLC | 2022
financial statements
Atria Annual Report 2022
Atria Finland.....................1265.3
Atria Sweden......................356.2
Atria Denmark & Estonia....112.9
Net sales by
business area
(1,696.7 EUR million)
3711
3698
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
5 000
18
19
20
21
22
Average number of
personnel
Persons
0
20
40
60
80
100
120
18
19
20
21
22
The Group's carbon footprint
Scope 1
Scope 2
1000tons of CO
2
e
3,6
7,7
0
1
2
3
4
5
6
7
8
18
19
20
21
22
%
Gross investments,
% net sales
14
16
0
10
20
30
40
18
19
20
21
22
Accident frequency rate
The carbon footprint calculation is based on the
international Green House Protocol standard. The
calculation covers carbon dioxide 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 (purple) covers indirect emissions from
purchased electricity, steam and heat production, and
from cooling. Scope 2 reporting is based on a
costbased calculation method and employs the
emission values of known energy sources or the
national residual mix.
LTA accident rate = number of accidents resulting in
absence at work per million working hours.
More information about Atria’s sustainability indicators is
provided in the Corporate Social Responsibility Report
2022.
ATRIA PLC | 2022
financial statements
Atria Annual Report 2022
We focus on the things we can influence
People across the world were hit harder in 2022 than they
have been in decades. Faith in the preservation of security,
predictable economic development and the availability of
commodities at reasonable prices has been shaken. People’s
confidence in a bright future has been eroded, and business
is not helped by this loss of confidence either. Atria’s present
and future depends on consumers choosing our products for
their meals. As confidence weakens, food choices change.
Atria is well positioned to respond to these changes because
our product portfolio offers solutions for every meal.
When describing the difficulties of Atria’s operating
environment, it is important to bear in mind that our problems
are insignificant compared to those faced by Ukraine and its
citizens. Even if the external factors are not the most
favourable for us, we are still able to influence countless
issues that Ukrainians have no control over.
In 2022, Atria put in a controlled performance, with day-to-day
focus on the things we can influence. The subsiding of the
coronavirus made it easier to organise our work and add
strength to the implementation of our plans. Strategic
development was implemented as planned.
“The decisive factor in managing our result
has been the sales price increases.”
In terms of results, 2022 exceeded the expectations from late
winter and spring. The comparable EBIT was EUR 49.0
million. In 2021, the EBIT was EUR 49.2 million. The decisive
factor in controlling the EBIT was the increase in sales prices.
Cost inflation was exceptionally high and the only option was
to pass costs on to sales prices.
Another factor for profitability is that sales volumes in kilos
remained close to 2021 levels, despite price increases. This
means that net sales increased by 156.5 million from the
previous year. Margins were lower than in the previous year
and the increase in net sales therefore has a great impact on
the EBIT.
With inflation at 10%, the amount of working capital tied up in
the business increased with EUR 36.7 million from 2021. In
particular, the value of inventories increased. The quantities of
some materials and raw materials also increased.
Investments amounted to EUR 131.4 million. The increased
working capital and high investments caused the cash flow to
be negative by EUR -47.7 million. The group’s net debt at the
end of the year was EUR 234.7 million. With inflation levelling
off, the increase in working capital will also level off and will
start to decline. The pace of investment will slow down in the
second half of 2023. This will strengthen the cash flow.
ATRIA PLC | 2022
financial statements
Atria Annual Report 2022
Costs will keep rising in the year ahead. The rate of inflation is
likely to slow down, but cost increases will be faster than we
have become accustomed to in recent decades. Rising interest
rates will also affect the economic sentiment for both
households and businesses. These factors, combined with
unpredictable geopolitical developments, mean that even in
2023 we will need to focus our efforts on areas where we can
make a difference.
I would like to thank my colleagues, Atria owners, customers
and the consumers who buy Atria products. It has been a great
honour and privilege to work with you. Following through with
commitments has been at the heart of Atria’s business culture
for ages. If we stick to this principle, we will keep doing well. I
wish my successor Kai Gyllström the very best of success. I
wish the same to all Atria employees for this year, and the years
and decades to come!
Good food – better mood!
Seinäjoki, March 2023
Juha Gröhn
CEO
Atria Plc
In Sweden, industrial restructuring is taking place with the
closure of the Malmö plant. This is part of our strategy for
profitable growth in Sweden. Most of the production from the
Malmö plant will be transferred to the Sköllersta plant in
Örebro in 2023. The Malmö plant was sold in spring 2022.
At the end of 2022, Atria acquired a majority stake in Ab Korv-
Görans Kebab Oy in Pietarsaari, Finland. The acquisition will
enable us to strengthen our position as a supplier of various
convenience food components to our fast food and restaurant
customers.
“We are involved in a wind power project
that, if implemented, would make the
Nurmo plant self-sufficient in electricity,
except on windless days, when balancing
power will still be needed.”
Sustainability is part of Atria’s strategy and practice. Plans will
not turn into action if they are not linked to strategy. We are
involved in a wind power project that, if implemented, would
make the Nurmo plant self-sufficient in electricity, except on
windless days, when balancing power will still be needed. The
capacity of the solar power plant on the Nurmo plant site will
double, at about 10 megawatts in favourable sunny
conditions. We are involved in several international projects,
including the UN Global Compact and the Science Based
Targets programme. The aim of these is to limit greenhouse
gas emissions so that the world temperature rises by no more
than 1.5 degrees Celsius.
Goodwill of the Swedish business was reduced due to higher
market interest rates and less certainty about the
development of demand. In addition, following Russia’s
invasion of Ukraine, we decided to withdraw completely from
Russia and the Sibylla fast food business in Russia was sold
in spring 2022. The Sibylla transaction reduced Atria
Sweden’s net sales and contributed to a decline in
profitability. At the same time, the value of some of the
Swedish brands was set to zero, as there is no longer any
marketing investment in these brands. The total impairment
losses amounted to EUR 51 million.
The major investments in Nurmo and at the Sköllersta plant in
Sweden are progressing on schedule. Significant deviations
from the cost estimates are not expected either. In Nurmo, we
invest around EUR 155 million in a poultry plant, and in
Sköllersta, around EUR 35 million in a logistics centre and a
meat products plant.
“After Russia invaded Ukraine, we decided
to withdraw from Russia completely and
the Sibylla fast food business in Russia
was sold in spring 2022.”
The poultry market is growing and we want to further
strengthen our position in this business. Our investment in the
Nurmo plant supports this objective as do our earlier
investments in the Sölvesborg poultry plant in Sweden. We
are the market leader in Finland and the third largest player in
Sweden in the poultry meat market. In Sweden, our market
position has strengthened in recent years and Atria is well
placed to become the second largest player in the market by
the end of this decade.
ATRIA PLC | STRATEGY
financial statements
Atria Annual Report 2022
BECOMING
THE WINNING
NORTHERN
EUROPEAN FOOD
COMPANY
Atria’s strategic objective is renewal and growth
that enables the company to become the winning
northern European food company. The renewal of
our operations, profitable growth and the increase
in ownership value are supported by the three
pillars of our operations: commercial expertise,
efficiency way of operating and culture that
produce value to all our stakeholders, responsibly
and sustainably.
Our mission
We work to create inspiring food for every
occasion. Our success is based on inspired people
and the most desired brands.
Good food — better mood.
Our vision
The Winning Northern European Food Company
ATRIA PLC | STRATEGY
financial statements
Atria Annual Report 2022
Our strategic goals and their implementation
Target
Implementation
Strong financial performance
● Strong financial performance: growing faster than the market.
● Maintaining a strong balance sheet and performance, and a solid financial
position.
Most desired brands
● In their Product categories, Atria’s brands are the best-known as well as the
most highly recommended in all our business areas.
Preferred partner for the customers
● Comprehensive customer satisfaction.
● Successful customer experience improvement projects implemented in
cooperation with customers.
● Customers are very likely to recommend us.
Best partner for our owner-
producers
● The best sales channel for meat from contract producers across Finland.
● Close cooperation throughout the production chain.
● The best contract producers; expertise and continuous development improve
competitiveness.
● Financially strong owner-producer.
Leader in sustainability
● A carbon-neutral food chain by 2035.
● Reducing carbon dioxide emissions by 25% by 2025 compared with 2016.
● Increasing antibiotic-free production.
● Zero animal welfare violations.
Committed people
● Systematic strengthening of employees’ commitment.
● Reducing accidents.
● Employees who are satisfied with their development opportunities.
● Mobility for personnel from one job to another across country borders and job
rotation within business areas.
The implementation of Atria's strategic goals and priorities in 2022 are presented in the business area reviews: Atria Finland on
page 26, Atria Sweden on page 31 and Atria Denmark & Estonia on page 35.
ATRIA PLC | STRATEGY
financial statements
Atria Annual Report 2022
Atria’s strategy responds to changes in the operating environment
Changes in the operating environment are strongly reflected in Atria’s new strategy. The strategy responds to changes in consumer purchasing behaviour in particular. Awareness of sustainable food
choices and increased demand for convenience foods, and especially poultry, are highlighted in purchasing decisions. The Foodservice channel and the popularity of private labels are also increasing. The
uncertainty of the international meat and food market as well as actions to mitigate climate change pose challenges to the entire sector.
Atria’s strategy responds to the following changes that have a material impact on the food sector :
Proteins
In terms of demand, the focus
continues to shift from red meat to
poultry and vegetable-based options.
Categories
Demand for convenience food and
ready-made food is growing.
Consumers
Consumers’ awareness of healthy
lifestyles, sustainable development
and animal welfare is increasing.
Macroeconomy
Economic instability and uncertainty is
increasing, as well as protectionism
and local focus.
Channels
Demand and new opportunities in the
Foodservice sector are growing. The
importance of digital channels
continues to grow, and the growth of
private labels continues .
Atria’s strategic path
Atria’s strategy to become a leading northern European food company is a consistent continuation of its strategy for the previous period. During the previous period, Atria implemented significant efficiency
programmes and investments to improve its operational productivity and competitiveness. At the same time, the company succeeded in strengthening its equity ratio.
Improving productivity
● Stronger balance sheet and financial position
● Improving profitability and productivity in all countries of
operation
● Investments in growth in Finland, including meat operations,
the feed business, and production automation.
Healthy Grow at Atria
● Primarily organic growth in all business areas
● Operational profitability will not be compromised; emphasis
on productivity
● Growth investments in technology, and other investments to
improve efficiency and productivity.
Winning Northern European Food Company
● Stronger financial performance
● Growth in poultry, convenience food, and the Foodservice sector
through the most attractive brands, deep customer partnerships,
and the most sustainable operations in the sector.
● Improving the profitability of red meat in Finland and profitable
growth in Sweden.
ATRIA PLC | STRATEGY
financial statements
Atria Annual Report 2022
Our strategic priorities
We have adopted six strategic priorities for the 2021–2025 strategy period.
1. Win big in poultry
Poultry consumption is increasing steadily in Finland and globally. We are aiming for
market leadership in poultry in Finland and are also seeking to strengthen our position in
Sweden. The importance of this objective is reflected in our investment in a new poultry
unit in Nurmo, Seinäjoki.
2.
Expand in
convenience foods
Convenience food is a growing market in all our business areas. Our strengths in
convenience food are high quality in all price ranges and strong brands. Sustainable,
reliable and traceable production are our key competitive advantages.
3.
Strengthen in Foodservice,
including fast food
The food service market continues to grow, because people are increasingly eating out.
We are aiming to grow faster than the market. We seek to achieve this by strengthening
our Foodservice customer relationships in all our business areas. In the fast food sector,
our growth recipe is to increase the number of sales points and develop new products.
4.
Grow profitably in Sweden
In Sweden, our goal is to improve the profitability of our operations and achieve growth.
We are seeking growth by increasing our share in retail, and in the food service and fast
food markets. We improve profitability through increased operational efficiency.
5.
Optimize red meat
Our goal is to improve the profitability of red meat, especially in Finland. We seek to
achieve this by improving operational efficiency, product category management and
selection development. Strengthening export customer relationships also plays a key role
in improving profitability.
6.
Drive next level supply chain
efficiency
Our goal is to improve supply chain efficiency in each area, from order to delivery. This is
our goal in all business areas. We are improving efficiency by investing in the latest
technology, using monitoring data and strengthening our employees’ competence.
Major investment in poultry
production progressed according
to plan
Atria’s EUR 155 million investment in the construction of a
new poultry unit at the Nurmo plant proceeded according to
plan. Despite challenges in the availability of construction
materials and components, construction was on schedule
and at the budgeted level. The unit will have a total area of
approximately 36,000 m
2
completed in 2024 at the earliest.
With the largest investment in its history, Atria is responding
to the growing consumption of chicken and aims to
strengthen its position as the market leader in chicken
products in Finland. The new unit will increase Atria
Finland’s poultry production capacity by approximately 40%
as the company is concentrating its poultry production in a
modern, competitive unit. Atria decided to close the
Sahalahti poultry plant by the end of 2024.
Read more about the poultry market on page 18.
ATRIA PLC | STRATEGY
financial statements
Atria Annual Report 2022
Strong balance sheet and financial position maintained despite increasing debt
Thanks to a positive cash flow, Atria’s net debt decreased significantly to approximately EUR 153 million in 2021. In 2022, however, the
debt increased to approximately EUR 235 million. The exceptionally high increase in debt was due to Atria’s large investments: the new
poultry unit in Nurmo, costing approximately EUR 155 million, and Atria Sweden’s production efficiency measures worth approximately
EUR 35 million. Most of these investments will be paid for by the end of 2023. Atria’s investments will also exceed EUR 100 million in
2023, compared to the normal annual level of EUR 45–50 million.
Atria’s balance sheet is very strong. The equity ratio is close to 45%, while the strategic target was 40%. During a period of high
investment by Atria, 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 50,5 %.
During the year under review, Atria had financial facilities of EUR 85 million, all of which were undrawn at the time of closing the
accounts. Short-term financing accounted for about 15% of the total amount. Long-term financing consists of bilateral bank loans,
binding financing limits and loans from pension companies. The average maturity period for financing was 4 years 1 month and the
average interest rate on outstanding debt was 3.5%. 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, Executive Vice President and Deputy CEO
Financial targets
In connection with the adoption of the Group strategy, Atria also updated its financial targets. The new target is to grow faster than the
market. The return on equity target was increased from 8% to 10%. Other targets remained the same as in the previous strategy period.
Atria’s financial targets and actuals 2020–2022
Target
Result 2022
Result 2021
Result 2020
EBIT %
1)
2.9%
3.2%
2.7%
Equity ratio 40%
44.8%
48.7%
46.8%
Return on equity (ROE) 8%
1)
8.9%
8.2%
5.7%
Capital distribution of the adjusted profit for the period 50%
1) 2)
49.0%
49.5%
61.4%
1)
key figure calculation formulas on pages 61-64.
2)
ATRIA PLC | STRATEGY
financial statements
Atria Annual Report 2022
Atria’s sustainability efforts result in concrete actions
Atria updated its sustainability programme in 2021, and the implementation of the revised programme started during the reporting year.
We continue to improve our sustainability performance through three major themes: Planet, Product and People. The main objective
under the Planet theme is Carbon Neutral Atria. Atria has been actively seeking solutions for the use of renewable energy by expanding
its solar park, exploring and investigating the potential of wind power, and by promoting the construction of a biogas plant. Atria has set
sustainability targets for its own production through a number of commitments. These include the Science Based Target (SBTi) climate
commitment and the material efficiency and energy efficiency commitments. In spring 2022, Atria joined the international UN Global
Compact corporate sustainability initiative and was accepted to the Climate Ambition Accelerator training programme. Joining the UN
Global Compact strengthens Atria’s development work in environmental and social responsibility.
At the heart of the product theme is, of course, the food that Atria produces. We want to be part of all the consumers’ mealtimes by
offering them sustainability produced food that respects the environment. For Atria, nutritious and safe food means a transparent and
traceable chain, antibiotic-free production, animal welfare, product safety and taking nutritional considerations into account in product
development. During the reporting year, Atria expanded its production of antibiotic-free pork.
Under the People theme, our most important project is Safely home from Atria, where we have been achieving good results for many
years. During the year under review, Atria started close cooperation with the Association of Friends of the University Children’s
Hospitals. The partnership brings an important message to families with children about supporting children’s and young people’s mental
health – conversations promote children’s emotional wellbeing and interaction, and strengthen family relationships.
Merja Leino
EVP Sustainability, Atria Plc
Read more about Atria and sustainability in the Corporate Responsibility 2022 report.
Atria’s solar park almost doubled its panel output
Atria Finland almost doubled the panel capacity of its solar park at its Nurmo site. Thanks to the expansion, Atria is already able to cover
approximately 8% of its annual electricity consumption with solar power.
Atria’s solar power plant is the largest of its kind in Finland and the new panel technology used in the expansion makes the project
significant for the entire solar energy industry in Finland. Commissioned in 2018, the plant comprises a total of approximately 22,000
solar panels in ground and rooftop installations. In terms of output, these represent an annual electricity production of approximately
5,000 MWh. Thanks to the extension, Atria’s annual solar electricity production is about 9,000 MWh. The completed extension reduces
the overall emissions of the Nurmo plant and improves its energy efficiency, improving Atria’s energy self-sufficiency significantly.
ATRIA PLC | STRATEGY
financial statements
Atria Annual Report 2022
Occupational safety has improved significantly over the
past 5 years
Since 2016, Atria has improved occupational safety through the group-wide Safely Home from Atria programme. The work to
reduce accidents has gone well: the accident frequency rate and the number of accidents that led to an absence from work have
gone down. Over the last five years, the accident frequency rate has been reduced by almost 70%. In terms of accident
frequency, Atria is among the best in its sector in northern Europe.
The Safely Home from Atria programme encourages Atria employees to take responsibility for their own safety and that of their
colleagues. Under the programme, Atria assesses occupational safety risks and their management through jointly defined
procedures. Well-being and safety at work are also monitored using common indicators. Occupational safety also features heavily
in communication, induction, training and day-to-day management, which has contributed to the development of a positive safety
culture at Atria.
The health and safety practices in Atria’s various business areas are governed by local legislation in each country. Health and
safety concerns all Atria positions and workplaces. Our aim is to put safety even higher on the agenda in 2023 and thereby further
improve occupational safety at Atria.
Lars Ohlin
Executive Vice President Human Resources
ATRIA PLC | OPERATING ENVIRONMENT
financial statements
Atria Annual Report 2022
OPERATING
ENVIRONMENT
AND MARKETS
There have been significant changes in Atria’s
operating environment in recent years. Most of
them have been caused by the constraints brought
about by the coronavirus pandemic and the
resulting changes in consumer behaviour. The
rapid inflation resulting from Russia’s war of
aggression that started in 2022 has also changed
purchasing and consumption behaviour.
Despite the changes affecting society as a whole,
changes in the food and grocery market where
Atria operates have remained moderate. Total
meat consumption in Atria’s various market areas
has remained largely stable or increased. Poultry
meat consumption has increased the most and
continues to grow.
ATRIA PLC | OPERATING ENVIRONMENT
financial statements
Atria Annual Report 2022
Changes in the food market are slow
Consumer behaviour in the food market is very conservative; changes between product groups are relatively small and take place slowly.
This has again become evident in recent years that have seen great changes in people’s daily lives during the coronavirus pandemic of
2020–2021 and the price inflation of 2022.
The impact of the coronavirus restrictions on the Foodservice sector was dramatic, causing the market to collapse, while the market for
fresh food products experienced the opposite effect. There, food prices and purchase volumes continued to grow and the value of the
market increased.
The strong price inflation has not led to a collapse in consumption, and the Finnish food market has remained largely positive in terms of
value. Measured in value, only the market for fruit and vegetables, fresh fish and meat-free proteins declined compared to 2021. The
decline in the purchase volume of fresh meat was offset by an increase in the prices per kilo. From Atria’s perspective, it is encouraging
that two of its core product groups are among the three product groups that have increased the most in real terms: ready meals and
poultry products. Atria’s familiar cold cuts and other meat products are also in good positions.
Pasi Luostarinen
Executive Vice President, Marketing & Market Insight
ATRIA PLC | OPERATING ENVIRONMENT
financial statements
Atria Annual Report 2022
Meat consumption in Europe
2001–2031
Total meat consumption in Europe has been
stable in the 2000s. The slight decline in beef
and pork consumption has been balanced by
an increase in poultry consumption.
Consumption varies greatly between countries;
for example, pork consumption per person is
around 29 kg in Finland, around 45 kg in
Germany and around 38 kg in EU countries on
average.
Change in global meat
consumption 2005–2050
By 2050, consumption of all kinds of meal will
increase significantly. Poultry meat
consumption will increase by up to 120% over
this period. Consumption will be driven, in
particular, by population growth and rising living
standards in emerging countries.
ATRIA PLC | OPERATING ENVIRONMENT
financial statements
Atria Annual Report 2022
Growth in poultry meat
consumption in Finland
2000–2040
Poultry meat consumption has grown steadily in
Finland during the 2000s. In 2021, both the
consumption and production of pork will
increase by about 2,3 %. Atria forecasts that
consumption will continue to grow at an
average annual rate of 2.3% until 2030.
Between 2030 and 2040, consumption growth
will level off to just under 1% per year.
Poultry meat consumption in
various countries
In Finland, poultry meat consumption per capita
is slightly higher than the EU average, but
almost half of that in the United States, where
the consumption of poultry meat is much higher
than the consumption of beef or pork.
ATRIA PLC | OPERATING ENVIRONMENT
financial statements
Atria Annual Report 2022
Export accounts are an important sales channel for Atria
Alongside retail sales and Foodservice, export customers are an important sales channel for Atria. During the year under review, Atria
Finland exported a total of approximately 39 million kilos of various types of meat to 33 countries. The main export markets were South
Korea, China and Denmark. Exports amounted to EUR 100 million and accounted for almost 10% of Atria Finland’s net sales.
South Korea
South Korea has been an important and stable export market for Atria for more than 30 years. The country has little domestic meat
production and imports account for a large share of its meat consumption. Atria has traditionally exported pork belly to South Korea. In
early 2022, Atria also obtained export licences for chicken meat. The export of chicken products started well.
China
Atria’s pork exports to China started in 2017 and the country became an important export market for Atria. Prices of meat exports to
China reduced significantly in 2021, and Atria’s exports to China halved in 2022 compared to the previous year. By contrast, trade in
by-products increased and average prices went up. Atria also has licences to export chicken products to China.
Denmark
Atria supplies its Danish partner JN Meat International with Finnish beef, from which the company selects and cuts the best cuts for the
various markets. The company has won the World Steak Challenge several years in a row with Atria’s beef products. In 2022, Atria
beef won gold in three categories.
Japan
Japan is the largest single export market for Atria’s antibiotic-free pork. Atria sells to both Foodservice and consumer goods customers.
In addition to pork, Atria has licences to export chicken products to Japan.
Sweden
Sweden has been an important export market for Atria for decades The main export products are prime cuts of pork and beef. Atria
exports meat both to Swedish industrial customers and for the use of Atria Sweden. Sweden has a low self-sufficiency rate for many
types of meat and therefore imports large quantities of meat. Finnish meat has a good reputation and a significant market position in
Sweden.
BUSINESS AREA REVIEW | ATRIA FINLAND
financial statements
Atria Annual Report 2022
BUSINESS AREA
REVIEWS
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 2022 net sales of EUR 1696.7 million, Atria
Finland accounted for 73.0 %, Atria Sweden for 20.5
% and Atria Denmark & Estonia for 6.5 %.
BUSINESS AREA REVIEW | ATRIA FINLAND
financial statements
Atria Annual Report 2022
Atria Finland
Atria Finland develops, manufactures, markets and sells fresh meat and
other food products and provides services related to them. Atria is the
market leader in the slaughterhouse industry and many of its product
categories in Finland. It also has substantial export operations. In 2022,
Atria Finland had net sales of EUR 1265.3 million and 2,437 employees. All
of the meat used in Atria brands is Finnish.
Brands
Atria Finland’s leading brand is Atria, one of the best-known and most
valuable food brands in Finland.
Net sales
73.0 %
of the Group’s net sales (EUR 1696.7
million)
Number of personnel
65.9 %
of the Group’s personnel
Customers
● Retail trade
● Foodservice customers
● Export customers
● Food industry
● Sibylla concept customers
Core categories
● Fresh and consumer packed meat
● Poultry products
● Cooking products, such as cooking
sausages
● Cold cuts and spreads
● Convenience food
● Animal feed
● Pet food
Atria’s market position
#1
Atria is the market leader in most of its main product categories and in
Finland’s slaughtering industry.
BUSINESS AREA REVIEW | ATRIA FINLAND
financial statements
Atria Annual Report 2022
1106
1265
0
200
400
600
800
1000
1200
1400
18
19
20
21
22
EURmillion
48,1
49,4
4,4
3,9
0,0
1,0
2,0
3,0
4,0
5,0
0
10
20
30
40
50
60
18
19
20
21
22
EUR million
%
Controlled performance in demanding conditions
Atria grew profitably in a controlled manner in a demanding operating environment that underwent rapid changes in
2022. The sharp cost inflation triggered by the war by Russia quickly began to erode the profitability of Atria and the
entire Atria food chain. We managed to agree on sales price increases with all our key customers. These had a
significant impact on both our net sales and operating profit. We were also able to pay our producers higher producer
prices, safeguarding the operating conditions for Finnish meat production.
The sharp rise in food prices was reflected in consumption behaviour in Finland: the sales volumes of the product
groups represented by Atria in consumer goods retail decreased by 2.0%. By contrast, sales value increased by 6.7%.
The product group of convenience foods showed the highest growth. In contrast to the decline in sales volumes in
consumer goods retail, the Foodservice market recovered strongly after the Covid-19 pandemic: the product groups
represented by Atria grew on average by 19.1 % in value. The value of the Foodservice market for poultry products
increased by as much as 29%. Atria’s position in the Finnish market remained strong: we were the market leader in
most of our main product groups in both the consumer goods retail and Foodservice markets. The latest opening in
Atria’s export trade was provided by an authorisation to sell poultry products to South Korea, and the first deliveries
have already been made. Our exports as a whole declined slightly from 2021.
The year 2022 showed how well we are able to adapt to uncertainties and even rapid changes. This was made
evident in our cost-efficient and uninterrupted operations, both within our own organisation and throughout the Atria
food chain.
Mika Ala-Fossi
Executive Vice President, Atria Finland
Net sales (EUR million)
1265.3
(EUR 1105.7 million in 2021)
Atria Finland’s net sales grew by
EUR 159.6 million compared to the
previous year, and amounted to
EUR 1265.3 million. Net sales were
increased by sales price increases
in all Atria’s sales channels and by
sales to Foodservice customers,
which recovered after the Covid-19
pandemic.
EBIT (EUR million)
49.4
(EUR 48.1 million in 2021)
Atria Finland’s EBIT increased from the
previous year by EUR 1.3 million to
EUR 49.4 million. This represented 3.9
% of net sales. Increases in sales prices
supported stable profitability.
BUSINESS AREA REVIEW | ATRIA FINLAND
financial statements
Atria Annual Report 2022
Market for Atria’s main product categories
1)
Finland’s meat and meat product market
2)
Market value (EUR million)
2,835
Market volume (million kg)
378
Market value (EUR million)
3 397
Change, %
+6.3%
Change, %
–2.0%
Change, %
0.0%
(volume)
+8.1%
(value)
1)
Retail trade, consumer-packed and bulk products
2)
Total value of the meat and meat products 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
+2.5%
–6.7%
35.4%
#1
Poultry
+8.5%
–4.2%
43.3%
#1
Cooking
+4.8 %
–2.8%
25.7%
#2
Cold cuts
+6.7%
–2.4%
21.6%
#1
Convenience food
+9.1%
+1.8%
13.8%
#2
Total (vs. 2021)
+6.7% (2.7%)
–2.0% (0.2%)
25.1% (24.0%)
1)
Grocery trade, consumer-packed products
2)
3)
Atria as a supplier
4)
The Finnish barbecue market
1)
Value, approx. (EUR million)
168
Market share of Atria’s barbecue products
30.4%
Market position of Atria’s barbecue product
categories
#1
Change (%)
+4 %
1)
Strong growth in Foodservice sales
The lifting of Covid-19 restrictions in early March gave a
rapid and strong boost to the Foodservice sector. Atria’s
sales to Foodservice customers increased and by the end
of the year sales were well above the pre-pandemic level.
Atria’s supplier share of the Finnish Foodservice market
was strong at 21 percent.
Of Atria’s Foodservice product groups, the pork market
grew most strongly, by almost 30 percent. Atria’s growth in
the market was about 45 percent. The poultry market also
grew by almost 30 percent and Atria’s growth was over 45
percent. The use of cooking products, mainly sausages and
frankfurters in the professional kitchen sector, increased
significantly, with the market growing by about 15 percent
and Atria by about 25 percent.
BUSINESS AREA REVIEW | ATRIA FINLAND
financial statements
Atria Annual Report 2022
Meat production and consumption in Finland in 2022
1)
1)
imports estimated.
2)
Period of comparison 01–11/2021.
Source: Kantar TNS Agri, 2023.
Atria strengthened its convenience food and Foodservice offering with a
share acquisition
Atria acquired 51 percent of the shares in Ab Korv-Görans Kebab Oy. The company makes frozen meat products and
is Atria’s longstanding partner as a contract manufacturer of kebab chips, cooked chicken products and other meat
products made from Finnish raw materials. The partnership will provide Atria with new opportunities to meet the
growing demand for convenience food and the wishes of Foodservice customers. Korv-Görans Kebab was founded in
1988, and its production plant is located in Pietarsaari.
Volume of meat processed
by Atria (million kg)
169.4
The volume of meat processed by Atria
decreased by 7.7 million kilograms to
169.4 million kilos from the previous
year. Poultry processing volumes
decreased by 1.7 million kilos, beef
processing volumes by 1.0 million kilos
and pork processing volumes by 5.0
million kilos. Atria is the market leader
in Finland’s slaughtering industry.
Atria’s delivery reliability (%)
99.91
Atria’s delivery reliability remained at
the previous year’s excellent level of
over 99.9%. Atria’s order-supply chain
was able to respond flexibly to rapid
changes in the type and quantity of
demand in a market characterised by
cost inflation. Atria’s sound
management of the supply chain
increases the predictability of
operations alongside delivery reliability.
BUSINESS AREA REVIEW | ATRIA FINLAND
financial statements
Atria Annual Report 2022
Atria aims for an antibiotic-free pork
production chain
In 2018, Atria started building a verified antibiotic-free pork
production chain in cooperation with producers. Since then,
around 30 percent of Atria’s pig farms have joined the
antibiotic-free production chain. In October 2022, antibiotic-
free production was opened to all Atria pork producers.
The long-term development of our resource management
has enabled the expansion of antibiotic-free production to
meet the expectations of the operating environment. Being
antibiotic-free is an important factor that adds value in the
domestic market for Finnish pork and its importance is also
growing in exports.
The goal is that pork production at all Atria pig farms will
have become verifiably antibiotic-free by the end of 2025.
Read more in Atria’s Corporate Responsibility Report 2022.
3 trends
The following consumer trends in the food products and food industry were among those affecting Atria Finland’s
operations and product range in 2022:
Higher food prices
In 2022, the price of food surged so exceptionally that this overshadowed all other changes in consumer behaviour.
For example, the rise in the consumption of higher-priced convenience food of the last few years came to a halt.
Demand for convenience food is still growing, but now it is mainly for medium-priced products, where Atria has
traditionally had a strong position.
Sustainability endures
Despite the shadow of the pandemic and the war, Finns have a strong appreciation for sustainable business.
Surveys of consumer attitudes show that consumers expect companies to be the ones to solve many of the
development challenges in the field of responsible business. These include both environmental and social
sustainability measures, which Atria is systematically developing in line with its comprehensive sustainability
programme.
Back to restaurants
When the Covid-19 restrictions were lifted, Finland experienced a very strong increase in demand for Foodservice
products and services, particularly in the summer and autumn. People returned in droves to restaurants to eat out
again. The Foodservice market in Finland grew by about 19% and the sales of Atria’s Foodservice products by 20%
compared to the previous year.
BUSINESS AREA REVIEW | ATRIA FINLAND
financial statements
Atria Annual Report 2022
Implementation of Atria’s Group strategy
1)
Strategic priority or target
Implementation of priority or target
Win big in poultry
● The investment of the new poultry plant is on schedule and on budget, with commissioning in 2024.
● We started exporting poultry products to South Korea.
Strong financial performance
● We are concentrating poultry production in the new plant in Nurmo; the Sahalahti plant will be closed down.
Best partner for owner-producers
● We invested in feed production and the development of producer services.
Leader in sustainability
● We almost doubled the panel capacity of our solar park at the Nurmo site.
● We joined the project to construct 45 MW wind farm near the Nurmo plant.
● We improved the energy efficiency of Atria’s existing production plants and invested in advanced energy technology at the new poultry plant.
● We continued to invest in antibiotic-free pork production so that pork production at all Atria pig farms will be antibiotic-free by the end of
2025.
● Our SBTi (Science Based Targets) targets were approved by this global climate initiative.
● Our chicken products with carbon footprint labels were awarded in an international innovation competition.
Expand in
convenience food
● We acquired 51% of Ab Korv-Görans Kebab Oy, a manufacturer of cooked meat products and kebab chips. The acquisition strengthens
Atria’s position in the convenience food segment.
● We developed our offering, also taking into account the specific challenges posed by inflation.
Optimize red meat
● We invested in the export trade of red meat. Value is added by the products being antibiotic-free, hormone-free, salmonella-free, and
traceable, and by emphasising animal welfare.
Strengthen in Foodservice, including fast
food
● We acquired 51% of Ab Korv-Görans Kebab Oy, a manufacturer of cooked meat products and kebab chips. The acquisition strengthens
Atria’s position in the Foodservice and fast food segments.
● We developed new concepts and sales channels in the Sibylla business.
1)
BUSINESS AREA REVIEW | ATRIA SWEDEN
financial statements
Atria Annual Report 2022
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. In 2022, Atria Sweden’s net sales were EUR 356.2
million, and the company had 819 employees. The meat raw material used
in Atria Sweden’s product groups is mainly of domestic origin.
Customers
● Retail trade
● Foodservice customers
● Sibylla concept customers
● Export customers
Core categories
● Cold cuts and spreads
● Cooking sausages
● Fresh poultry products
● Ready-to-eat food
● Vegetable and
delicatessen products
Net sales
20.5 %
of the Group’s net sales (EUR 1696.7
million)
Number of personnel
22.1 %
of the Group’s personnel
Brands
Atria Sweden has several valued brands, the best known ones being
Lönneberga and Sibylla. Sibylla is Atria Plc's most international
brand.
BUSINESS AREA REVIEW | ATRIA SWEDEN
financial statements
Atria Annual Report 2022
352
356
0
50
100
150
200
250
300
350
400
18
19
20
21
22
EURmillion
2,7
2,3
0,8
0,7
-8,0
-6,0
-4,0
-2,0
0,0
2,0
4,0
-8
-6
-4
-2
0
2
4
18
19
20
21
22
EUR million
%
Net sales (EUR million)
356.2
(EUR 351.7 million in 2021)
Atria Sweden’s net sales increased by EUR
4.5 million from the previous year and were
EUR 356.2 million in total. The growth of
net sales in local currencies, excluding the
Russian fast-food business, was 15.4%.
The net sales were strengthened by
increases in retail sales prices. The figure
for the reference year includes the net
sales of the Sibylla Rus LLC subsidiary;
see page 31.
Moderate growth and more efficient operations
Atria grew moderately in the Swedish food market, where a sharp rise in food prices weakened
consumer purchasing power. On the other hand, profitability was weighed down by sharp increases in
raw material prices, and energy prices especially. These could not be fully compensated by increases
in sales prices.
The Swedish retail market for Atria’s main product groups grew significantly more than in the previous
year. For example, the value of the market for sausages and cold cuts increased by around 4% and
the market for poultry products by more than 6%. Atria’s market shares developed positively in this
growth market: Atria’s market share as a supplier of sausages was 20.3%, while the corresponding
figure for cold cuts was 13.3% and 19.1% for fresh chicken products. The overall market for fresh
chicken products has already grown by around 25% in volume over the last four years. The vast
majority of chicken meat sold in Sweden is still frozen. Atria’s performance in the post-Covid
Foodservice and fast food markets was also positive until the second half of the year, when inflation
started to weaken consumer demand. Atria’s withdrawal from the Russian fast food market in May also
reduced the company’s sales.
Despite the exceptional market situation, we made good progress towards the key objective of our
strategy, which is to improve operational efficiency. The centralisation of Atria’s industrial operations
and logistics in the main production site in Sköllersta and the concentration of marketing efforts on the
Lönneberga and Lithells brands will substantially improve our competitiveness.
Jarmo Lindholm
Executive Vice President, Atria Sweden
Adjusted EBIT (EUR million)*
2.3
(EUR 2.7 million in 2021)
*The EBIT adjustment items include a EUR 9.7
million sales gain from an industrial property
located in Malmö, a EUR 1.3 million refund of
an employment pension contribution and EUR
–51.1 million of impairment. Atria Sweden
reported an EBIT of EUR -37.8 million (EUR
5.0 million).
BUSINESS AREA REVIEW | ATRIA SWEDEN
financial statements
Atria Annual Report 2022
Total markets of Atria’s main product categories in Sweden
Market value
(EUR 1,286 million in 2021)
Value change, %
EUR 1,342 million
+4.4%
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 production
1)
Market position
2)
Category
(EUR million)
Value (€)
Volume (%)
Value (€)
Position
Cold cuts and spreads
556
+3.7%
–1.6%
+0.7%
#2
Sausages
477
+3.7%
–1.3%
+1.5%
#2
Poultry products
309
+6.6%
–7.3%
+1.3%
#3
1)
2)
Meat consumption in Sweden
(kg/person) 2002–2022
The share of domestic meat consumed
in Sweden 2002–2022
Source: Jordbruksverket 2022 and 2023. Figures for 2022 are estimates based on 01–09/2022.
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.
This does not include meat such as lamb and game. The
consumption of poultry has increased by 2–4% annually
for the past ten years, whereas the consumption of beef
and pork has decreased.
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.
BUSINESS AREA REVIEW | ATRIA SWEDEN
financial statements
Atria Annual Report 2022
3 trends
The following three consumer trends in the food products and food industry were among those affecting Atria
Sweden’s operations and product range in 2022:
Maximising value
Price and brand loyalty are under pressure as consumers who value affordability seek the highest value in all
purchasing channels. Consumers compare price with quality, but also with personal needs and values such as
health and sustainability.
Beyond the day-to-day
Consumers are looking for exciting and enriching experiences – including unplanned celebrations and pick-me-up
products and activities. When faced with a scary, unpredictable future, consumers are choosing to invest in the
present. Consumers do not want rare, once-in-a-lifetime experiences; they want to find joy in simple everyday
moments.
The war on waste
Consumers are challenging the throw-away culture and value moderation and frugality. They want recyclable
systems and solutions, such as sustainable and environmentally friendly packaging. At a time of economic
uncertainty, consumers and businesses alike are looking for ways to reduce waste. Consumers appreciate brands
that reduce the environmental load and costs, for example by reducing food waste, and are easy to store, transport
and preserve.
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financial statements
Atria Annual Report 2022
Implementation of Atria’s Group strategy
1)
Strategic priority or target
Implementation of priority or target
Win big in poultry
●
●
●
●
Expand in
convenience food
●
●
●
Strengthen in Foodservice,
including fast food
●
●
●
●
Optimize red meat
●
●
materials.
Grow profitably in Sweden
●
competitiveness.
●
plant and building a new logistics centre, and by transferring operations from the Malmö plant
to other Atria plants.
Drive next level supply chain
efficiency
●
competitiveness.
●
building a new logistics centre, and by starting to transfer production from the Malmö plant to
other Atria plants.
Leader in sustainability
●
1)
Atria’s Group strategy 2021–2025 is presented on pages 8–14. The implementation of the strategy at Group level is presented in the
Board of Directors’ report on page 42.
Atria sold its plant property in Sweden
and its fast-food business in Russia
Atria continued its investments to improve production efficiency
in Sweden by an investment of EUR 35 million. The investment
will expand and improve the efficiency of production and logis-
tics operations at Atria Sweden’s largest production plant in
Sköllersta, Örebro. As part of the efficiency programme, Atria
sold the Malmö plant property for around EUR 21 million. The
production at the premises ends during 2023. Atria’s production
in Malmö will be transferred to the Sköllersta plant in Sweden
and the Horsens plant in Denmark. The efficiency programme
is expected to generate annual savings for Atria of around
EUR 3.5 million from 2024 onwards.
Atria sold its Russian fast food subsidiary Sibylla Rus LLC for
around EUR 8 million to Liability Company Agricultural Complex
Mikhailovskiy, a member of the Cherkizovo Group. The trans-
action did not include the Sibylla brand. The net sales of the
fast-food company, which operates in Russia, accounted for
about 2 percent of Atria Group’s net sales and the business
was profitable. The operations are reported in the Atria Sweden
segment.
BUSINESS AREA REVIEW | ATRIA DENMARK & ESTONIA
financial statements
Atria Annual Report 2022
Atria Denmark & Estonia
Atria Denmark & Estonia produces and markets cold cuts, spreads, meat
and meat products mainly for the Danish and Estonian food markets. The
business area also has export activities. It has valued, widely known
brands, many of which are market leaders or hold the second position in
their respective categories. Atria has two production plants in Denmark and
one in Estonia. In 2022, Atria Denmark & Estonia had net sales of EUR
112.9 million and 442 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.
Net sales
6.5 %
of the Group’s net sales
Number of personnel
12.0 %
of the Group’s personnel
Brands
Atria’s main Danish brands are 3-Stjernet and Aalbaek
Specialiteter. In Estonia, the main brand is Maks&Moorits,
complemented by the regional brands VK and Wõro.
Customers
●
●
●
Core categories
●
including cold cuts and spreads
●
●
BUSINESS AREA REVIEW | ATRIA DENMARK & ESTONIA
financial statements
Atria Annual Report 2022
105
113
0
20
40
60
80
100
120
18
19
20
21
22
EUR million
5,1
1,2
4,9
1,1
0,0
1,0
2,0
3,0
4,0
5,0
6,0
0
1
2
3
4
5
6
18
19
20
21
22
EUR million
%
Net sales (EUR million)
112.9
(EUR 104.9 million in 2021)
Atria Denmark & Estonia’s net sales
increased by EUR 8 million year-on-year and
were EUR 112.9 million. Net sales were
primarily boosted by sales price increases. In
Estonia, Atria also increased its sales
volumes.
Market share growth
in Estonia
The value and volume of Atria sales in Estonia
increased exceptionally from the previous year,
but costs increased even more. Inflation in
Estonia went up to over 25%, raw material costs
rose by 28% and energy costs by more than
70%.
As inflation eroded consumers’ purchasing
power, food consumption shifted towards
cheaper and campaign products. Atria’s product
development focused on launching more
competitive products. This, combined with
successful campaigns and lower than average
pricing, led to an increase in Atria’s market share.
Atria’s supplier share by volume increased to
around 20%, bringing the company closer to
market leadership again.
Olle Horn
Executive Vice President, Atria Estonia
A strong market position
maintained in Denmark
Atria kept its strong second position in the large Danish
cold cuts market. The company’s supplier share in the
Danish consumer goods retail trade was 16%. The
market for Atria’s main product groups grew by 3% in
value and remained at the previous year’s level in
volume. Atria’s strong market position was supported in
particular by the Aalbæk brand and its premium organic
products.
Atria’s sales to the Danish Foodservice sector
developed positively at the beginning of the year as the
Covid-19 restrictions were lifted. However, sales
weakened towards the end of the year as consumers cut
back on eating out due to a sharp increase in prices.
Atria’s export activities also suffered from cost inflation,
although exports to England, for example, developed in
line with targets.
Svend Schou Borch
Executive Vice President, Atria Denmark
EBIT (EUR million)
1.2
(EUR 5.1 million in 2021)
The EBIT of Atria Denmark & Estonia
decreased by EUR 3.9 million to EUR 1.2
million. This was 1.1 % of net sales. Strong
increases in raw material and production costs
and a shift in consumption towards lower-priced
product groups weighed on the result. Moving
the production of cold cuts from Malmö to
Horsens in Denmark in October caused
additional costs.
BUSINESS AREA REVIEW | ATRIA DENMARK & ESTONIA
financial statements
Atria Annual Report 2022
The position of Atria’s main categories
on the Danish and Estonian retail markets
Denmark
Category: Cold cuts and spreads
Estonia
Categories: Meat, meat products and convenience foods
Manufacturer share
16.0%
(16.9% in 2021)
Market position
#2
Manufacturer share
20.3%
(18.5% in 2021)
Market position
#2
The markets for Atria’s main product categories in Denmark and Estonia
Value
EUR 692 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
+4.9%
Change in the value of Atria’s main product categories
in Denmark and Estonia on average
Volume change
–1.8%
Average change in
market volumes
Value change
in Denmark
+3.0%
(–0.2% in 2021)
Value change
in Estonia
+6.7%
(1.7% in 2021)
Volume change
–1.1%
(0.1% in 2021)
Volume change
–2.4%
(–0.3% in 2021)
3 trends
The following three consumer trends in the food products and
food industry were among those affecting Atria’s operations and
offering in Denmark and Estonia in 2022:
Affordable
High inflation significantly changed consumer behaviour in
Denmark and Estonia, with the price of food becoming a key
criterion for consumer choices. The winners in the grocery
sector were the discount and cut-price chains, especially in
Denmark.
In both countries, private label products perceived to be of low
price amounted to a larger share of food sales in both
countries. In Estonia, Atria launched a low-priced Kodu (‘home’)
range under the Maks & Moorits brand.
Sustainable
Consumer confidence in the sustainability of domestic
production remained strong, although its importance as a
purchasing criterion declined due to inflation.
The meat raw material used by Atria is predominantly of
domestic origin, both in Denmark and Estonia. In both
countries, production and the entire production chain is as
transparent as possible. In Estonia, Atria has its own pig farms.
Diverse
The share of poultry meat and vegetables of balanced meals
increased. In Denmark, Atria has traditionally had several
products that combine meat and vegetables and continued to
develop new products. In Estonia, Atria launched both new
vegetable-based products and several chicken products.
BUSINESS AREA REVIEW | ATRIA DENMARK & ESTONIA
financial statements
Atria Annual Report 2022
Implementation of Atria’s Group strategy
1)
in Atria Denmark & Estonia 2022
Strategic priority or target
Implementation of priority or target
Win big in poultry
●
under the 3-Stjernet brand.
●
market, especially in the lower price category.
Strong financial performance
●
high energy and raw material costs.
●
material costs.
●
production facilities in Horsens, Denmark. In the longer term, the transfer of
production will improve Atria Denmark’s growth opportunities and
profitability
Leader in sustainability
●
invested in new packaging technology. This enables packaging sizes to be
optimised for more efficient transport.
●
packaging. The company also increased the use of solar energy at its Valga
plant.
●
climate initiative.
Drive next level supply chain efficiency
●
new transport system. The system is based on a single box design and
makes work in the plant and warehouse, as well as customer deliveries,
more efficient.
1)
Board of Directors’ report on page 42.
RESEARCH & DEVELOPMENT
financial statements
Atria Annual Report 2022
RESEARCH AND
DEVELOPMENT
Comprehensive and proactive market and consumer
insight is one of the fundamental prerequisites for
commercial excellence in Atria’s business. For Atria, it
also provides a competitive advantage in which the
company consistently invests.
Atria’s investments in research and development
totalled EUR 13.5 million in 2022.
RESEARCH & DEVELOPMENT
financial statements
Atria Annual Report 2022
Comprehensive market and consumer insight
Atria invested EUR 13.5 million in research and development. The investments were at the same level as the year before. Atria’s
research and product development activities are based on comprehensive market and consumer insight. The company uses data in a
variety of ways to develop both future and existing product categories. In addition to contributing to category and brand management,
comprehensive market and consumer insight is a prerequisite for Atria’s successful marketing and sales management.
In addition to its own research and product development activities, Atria actively participates in food industry research that combines
scientific research with best practices to promote food safety. Other areas of applied research include product and packaging technology
and nutrition.
In 2022, Atria developed the collection and analysis of data related to market price monitoring in particular. In a market where prices have
risen sharply, the monitoring focused on price elasticity, development of individual brands and changes in preferred products and
package sizes, among other things.
Research and product
development
EUR 13.5 million
Atria’s research and product development
expenses decreased by EUR 1.8 million
year-on-year.
Number of new products
195
The number of new products also
includes new packaging and product
support
New products 2022 (2021)
Business area
Number of products
% of net sales
Atria Finland
90 (88)
4.1%
Atria Sweden
69 (66)
3.8%
Atria Denmark & Estonia
36 (72)
3.3%
RESEARCH & DEVELOPMENT
financial statements
Atria Annual Report 2022
ATRIA PLC | INVITATION TO THE ANNUAL GENERAL MEETING
financial statements
Atria Annual Report 2022
ATRIA PLC | INVITATION TO THE ANNUAL GENERAL MEETING
financial statements
Atria Annual Report 2022
Annual General Meeting on 25
April 2023
The Annual General Meeting of Atria Plc will be held on Tuesday, 25 April 2023. Under the Limited
Liability Companies Act, a shareholder has the right to have a matter falling within the competence
of the General Meeting dealt with by the General Meeting if the shareholder so requests in writing
from the Board of Directors well in advance of the meeting so that the matter can be included in the
notice. The demand will be considered to have arrived in time if the Board of Directors has been
notified by 27 February 2023. The demand, with accompanying justification or proposed resolution,
must be sent in writing to Atria Plc, Group Legal Affairs, Läkkisepäntie 23, FI-00620 Helsinki.
The notice of the Annual General Meeting will be published later.
In 2023, Atria Plc will publish its financial results as follows:
Financial statements bulletin 2022
22 Feb 2023
Annual Report 2022
week 10/2023
Interim Report Q1 (3 months)
25 April 2023
Half-year report H1 (6 months)
20 July 2023
Interim report Q3 (9 months)
24 Oct 2023
Atria’s financial information is published in real time on the company website at www.atria.com.
ATRIA PLC | REPORT BY THE BOARD OF DIRECTORS 1 JANUARY – 31 DECEMBER 2022
financial statements
Atria Annual Report 2022
REPORT BY THE BOARD OF DIRECTORS 1 JANUARY – 31 DECEMBER 2022
Strong growth and stable results
for Atria
In terms of net sales growth and profit development, Atria exceeded expectations in 2022. The
events of 24 February in Ukraine made the operating environment difficult, and the predictability of
the market was poor in the spring. Atria’s net sales increased to EUR 1696.7 million. Growth on the
previous year was EUR 156.5 million. Cost inflation was exceptionally high throughout the year,
which led to sales prices increasing from the spring onwards. Group net sales increased due to
stable retail, Foodservice and feed sales volumes and sales price increases. After Russia invaded
Ukraine, Atria decided to withdraw from Russia completely, and the Sibylla fast food business was
sold in the spring of 2022. The sale of the Sibylla business reduced the Group’s net sales and
operating profit.
Atria Group’s adjusted EBIT was EUR 49.0 million, down by EUR 0.2 million from the previous year.
The result was good under the circumstances. The decisive factor in managing the result was the
increase in sales prices. The costs of raw materials, supplies, commodities and external services
were significantly higher than in the previous year. Among commodities, energy costs in particular
increased. Logistics costs were also significantly higher than in the reference period. Producer prices
for meat were significantly higher than in 2021.
The reported EBIT for 2022 was EUR 0.1 million. The EBIT includes impairment of goodwill and
brands of EUR 51.1 million recognised for Atria Sweden at the end of 2022. EBIT includes a EUR
9.7 million non-recurring sales gain from an industrial property located in Malmö and a EUR 1.3
million non-recurring refund of an employment pension contribution. EBIT also includes a EUR 1.9
million sales gain recognised on the sale of the Sibylla Rus fast-food company, which operated in
Russia, and a EUR -10.7 million loss from the exchange rate differences between the Russian
rouble and the euro.
Atria’s investments in the Nurmo plant in Finland and the Sköllersta plant in Örebro, Sweden,
progressed on schedule. In Nurmo, Atria is investing EUR 155 million in a new poultry plant, and in
Sköllersta, EUR 35 million in a meat products plant. In Finland, Atria decided to concentrate its
poultry production entirely in the new Nurmo plant, thereby strengthening its competitiveness in the
poultry business. This means the Sahalahti plant will be closed during 2024.
In Sweden, Atria will restructure its industrial operations and centralise operations from the Malmö
plant to the Sköllersta plant in Örebro. The Malmö plant property was sold in the spring of 2022, and
production in Malmö will end by the end of 2023.
In December, Atria acquired 51% of the shares in Ab Korv-Görans Kebab Oy, based in Pietarsaari,
Finland. Korv-Görans Kebab makes frozen meat products and is Atria’s long-standing partner as a
contract manufacturer of kebab slices, pre-cooked chicken products and other meat products made
from Finnish meat. The business acquisition strengthens Atria’s position in the market for
convenience food and Foodservice products.
Responsible business operations are part of Atria’s strategy and practice. Atria has set itself the goal
of being the forerunner in its industry. In 2022, several projects were launched that are strategically
and operationally important for responsibility. Atria’s climate targets were officially approved by
Science Based Targets in January 2023. Atria’s targets are based on the Paris Climate Agreement
and aim to limit global warming to 1.5 degrees Celsius globally.
Atria’s balance sheet was very strong during the year under review. The equity ratio was 44.8%,
while the strategic target was 40%. 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
50.5%.
In 2022, the exceptional circumstances in the operating environment and in Atria’s production and
offices caused by the COVID-19 pandemic ended. The coronavirus restrictions were lifted, and
markets recovered, with especially significant growth in the Foodservice business compared to the
previous year. Atria’s organisation and people showed excellent adaptability to change and a
willingness to stick to our targets and goals. Atria succeeded in achieving its targets regarding the
pandemic: to continue supplying customers without disruption and to keep its personnel healthy.
The “
Leading Northern European Food Company
” strategy was successfully implemented. The
objectives and priorities defined in the strategy were consistently promoted in all business areas.
Atria’s long-time CEO Juha Gröhn, MSc (Food Sc.), announced his retirement in November. Atria
Plc’s Board of Directors appointed Kai Gyllström, MSc (Econ.), MBA, as the new CEO of Atria Group
as of 1 June 2023. Juha Gröhn will continue as Atria Plc’s President and CEO until 31 May 2023.
Atria’s Board of Directors thanks Juha Gröhn for his successful efforts as Atria’s CEO since 2011.
Juha Gröhn has worked for Atria since 1990 and has held various positions during his distinguished
career with the company. Atria’s Board appreciates how Atria has been able to make difficult
decisions under Juha Gröhn’s leadership that have taken the company forward in a jointly agreed
direction.
ATRIA PLC | REPORT BY THE BOARD OF DIRECTORS 1 JANUARY – 31 DECEMBER 2022
financial statements
Atria Annual Report 2022
Strategy 2021
-
2025: Winning Northern
European Food Company
The principal objective of the revised strategy is for Atria to be the winning food company in northern
Europe with:
●
●
●
●
●
●
The most important changes in the operating environment which influenced the new strategy related
to consumers’ purchasing behaviour. Awareness of sustainable food choices and increased demand
for convenience food, especially poultry, are accentuated in purchasing decisions. The popularity of
the Foodservice channel and private labels is also increasing.
It is essential for the achievement of the objectives to continue investments aiming to improve
commercial excellence, efficiency and Atria’s Way of Work. In addition, it is particularly important for
us to be successful in the six focal points most important in terms of our strategy’s performance.
These focal points are:
●
●
●
●
●
●
Atria’s financial targets in 2021–2025 are as follows:
●
●
●
●
●
Result
Result
Result
Target
2022
2021
2020
EBIT %
1)
2.9%
3.2%
2.7%
Equity ratio 40%
44.8%
48.7%
46.8%
Return on equity (ROE) 10 %
1)
8.9%
8.2%
5.7%
Capital distribution of the adjusted profit for the period 50%
1) 2)
49.0%
49.5%
61.4%
1)
comparability, key figure calculation formulas on pages
61-64.
2)
ATRIA PLC | REPORT BY THE BOARD OF DIRECTORS 1 JANUARY – 31 DECEMBER 2022
financial statements
Atria Annual Report 2022
The main strategic measures in 2022 are set out in the table below:
Strategic target or
priority
Implementation of priority or target
Win big in poultry
●
progresses on schedule – start-up in 2024.
●
●
business in Sweden
●
products in all business areas.
Expanding in convenience
food
●
manufacturer of cooked meat products and kebab slices. The
product range in the convenience food and Foodservice
segments is expanding.
●
Lönneberga and Lithells brands.
●
Optimize red meat
●
products being antibiotic-free, hormone-free, salmonella-free,
and traceable, and by emphasising animal welfare.
●
product ranges.
Strengthening
Foodservice, including fast
food
●
manufacturer of cooked meat products and kebab slices. The
product range in the convenience food and Foodservice
segments is expanding.
●
●
Sibylla business.
Growing profitably in
Sweden
●
the Sköllersta plant in Örebro, Sweden.
●
Leader in sustainability
●
Based Targets initiative.
●
capacity of the plant commissioned in 2018 will almost double.
●
involves the planning of a wind power plant near the Nurmo
plant.
●
the new production plant in Örebro and other production sites.
●
aim is antibiotic-free production on all pig farms within three
years.
●
the Finnish Food and Drink Industries’ Federation.
●
packaging.
●
Estonia.
●
●
efficiency in Denmark.
The best partner for
owner-producers
●
activities of Atria’s own feed company.
●
Committed people
●
performance: “Safely home from Atria”occupational safety
programme was launched in 2017. Excellent programme
results: two thirds of accidents have been eliminated in five
years.
●
●
Strong financial
performance
●
in a new plant in Nurmo; Sahalahti plant will be closed.
●
●
●
Drive next level supply
chain efficiency
●
progresses on schedule – start-up in 2024.
●
in a new plant in Nurmo; Sahalahti plant will be closed.
●
and construction of a new logistics centre.
ATRIA PLC | REPORT BY THE BOARD OF DIRECTORS 1 JANUARY – 31 DECEMBER 2022
financial statements
Atria Annual Report 2022
Financial review 2021
Atria Group’s full-year net sales amounted to EUR 1696.7 million (EUR 1540.2 million). Adjusted
EBIT was EUR 49.0 million (EUR 49.2 million). Consolidated EBIT was EUR 0.1 million (EUR 6.4
million). The EBIT includes a EUR 9.7 million non-recurring sales gain from an industrial property
located in Malmö and a EUR 1.3 million non-recurring refund of an employment pension
contribution. The EBIT also includes a EUR 1.9 million sales gain recognised on the sale of the
Sibylla Rus fast-food company, which operated in Russia, and a EUR -10.7 million translation
difference loss incurred from the exchange rate differences between the Russian rouble and the
euro. The translation difference was recognised in the income statement, but it has no effect on the
Group’s equity ratio or cash flow. At the end of 2022, Atria Sweden recorded impairments totalling
EUR 51.1 million. This has no impact on cash flow.
Adjustments to EBIT for the comparison period total EUR -42.8 million and consist of accumulated
translation differences recognised in the income statement in connection with the sale of the Russian
subsidiary (OOO Pit-Product) EUR -45.1 million and the refund of EUR 2.3 million of employment
pension contributions in Sweden.
Atria Group’s net sales increased thanks to stable retail, Foodservice and feed sales volumes and
sales price increases. Since the spring, sales prices have strengthened in all business areas. The
consolidated adjusted EBIT was weighed down by an increase in the costs of raw materials,
supplies, commodities and external services. Among commodities, energy costs in particular
increased. Producer prices were significantly higher than in the same period last year.
Atria Sweden's impairments were affected by a number of factors. High inflation affecting consumer
behaviour, the discontinuation of fast-food operations in Russia and higher market interest rates
have reduced the present value of Atria Sweden’s cash flow projections. Atria Sweden’s cash flow
forecasts have previously included Sibylla Rus LLC, which operated in Russia. The market interest
rates included in the discount rate used to calculate the present value of the forecasted cash flows
have increased by approximately 2 percentage points. Due to the above reasons, Atria recorded
goodwill impairment allocated to Atria Sweden by approximately EUR 35 million. In addition, Atria
Sweden, in line with its strategy, has decided to streamline the use of its brands. It is discontinuing
four brands (Charkdelikatesser, Pastejköket, Onsala, Lagerbergs) and transferring most of the
products from these brands to the growing Lönneberga and Lithells brands. As a result of the
decision, Atria wrote down the value of its brands by approximately EUR 16 million.
As part of the efficiency programme initiated in 2020, Atria sold the industrial property in Malmö for
EUR 20.4 million at the end of April. Atria will continue its industrial operations at the plant until the
end of its production in the premises during 2023.
In May, Atria divested its subsidiary Sibylla Rus LLC, which was engaged in the fast-food business,
to Limited Liability Company Agricultural Complex Mikhailovskiy, a part of Cherkizovo Group. The
sale price was EUR 8.2 million. The transaction does not include the Sibylla brand. The net sales of
the fast-food company operating in Russia accounted for approximately 2% of Atria Group’s net
sales, and the business was profitable.
In January 2022, Atria Finland received a licence to export poultry products to South Korea. The first
product batch to South Korea was delivered in March.
Atria Finland’s
increased due to stable retail, Foodservice and feed sales volumes and sales price increases. The
growth of Foodservice sales was boosted as COVID-19 restrictions on restaurants were lifted in the
beginning of March. EBIT totalled EUR 49.4 million (EUR 48.1 million). Taking into account the
changes in the operating environment, the operating profit was stable. The increase in net sales
strengthened EBIT. The costs of raw materials, supplies, energy and external services were
significantly higher than in the previous year. Producer prices for meat were markedly higher year-
on-year. Atria’s organisation has shown an excellent ability to adapt to rapid changes and recover
from disruptions during the period under review, resulting in cost-efficient and undisrupted
operations.
Atria Sweden’s
net sales was affected by Atria’s decision to withdraw from the fast-food business in Russia in May
2022. The business was reported in the Atria Sweden segment. The growth of net sales in local
currencies, excluding the Russian fast-food business, was 15.4%. Sales price increases
strengthened net sales. The sales of Foodservice products have increased in step with the lifting of
the COVID-19 restrictions. Adjusted EBIT was EUR 2.3 million (EUR 2.7 million). EBIT was weighed
down by higher costs and weaker consumer purchasing power resulting from inflation. Consumers
prefer products in the lower price range. The sales price increases have not been sufficient to cover
rapidly rising costs. EBIT was EUR -37.8 million (EUR 5.0 million), The EBIT includes a EUR 9.7
million non-recurring sales gain from an industrial property located in Malmö, a EUR 1.3 million non-
recurring refund of an employment pension contribution and EUR –51.1 million of impairment.
Atria Denmark & Estonia’s
EBIT was EUR 1.2 million (EUR 5.1 million). The increase in net sales resulted from higher sales
prices in both Estonia and Denmark. EBIT was weighed down by record-high raw material and
commodity costs. The sales price increases have not been sufficient to cover the rapidly rising costs.
Consumers are now clearly favouring products in lower price categories due to record high inflation.
Events after the period under review
Lars Ohlin, Executive Vice President, Human Resources, and member of Atria Group’s Management
Team will retire as of 1 March 2023.
ATRIA PLC | REPORT BY THE BOARD OF DIRECTORS 1 JANUARY – 31 DECEMBER 2022
financial statements
Atria Annual Report 2022
Key figures
EUR million
2022
2021
2020
Net sales
1,696.7
1,540.2
1,504.0
EBIT
0.1
6.4
40.5
EBIT, %
0.0
0.4
2.7
Adjusted EBIT
49.0
49.2
40.5
Adjusted EBIT, %
2.9
3.2
2.7
Earnings per share, EUR
-0.19
-0.24
0.81
Adjusted earnings per share, EUR
1.43
1.27
0.81
Dividend / share, EUR *
0.70
0.63
0.50
Dividend / profit, % *
-371.4
-257.2
61.4
Adjusted dividend / profit, % *
49.0
49.5
61.4
Return on equity, %
-0.8
-1.2
5.7
Adjusted return on equity, %
8.9
8.2
5.7
Equity ratio, %
44.8
48.7
46.8
Net qearing, %
50.5
32.6
43.8
* The Board's proposal, the key figures in their entirety are presented on page 61-64.
Financing and liquidity
2022 was a year of many changes in the financial markets. Inflation was already on the rise at the
beginning of the year and continued to accelerate towards its end. Central banks were a little slow to
start combating the inflation by raising their rates, which in turn affects market interest rates. In the
euro area, the five-year fixed rate rose from zero to around 3.2%, a major change in one year. Short-
term Euribor rates also rose significantly. For example, the 6-month Euribor, the reference rate for
Atria’s loans, rose from -0.5% at the beginning of the year to around 2.7%. Financial markets also
tightened significantly over the last year due to several uncertainties caused by accelerating inflation,
Russia’s war of aggression in Ukraine, rapidly rising interest rates, a slowdown in economic growth
and a looming recession. Due to increased risk factors, loan margins rose, and some banks
shortened the periods of new loans to large corporations. Money market investors became more
cautious and reduced their investments in commercial papers, which reduced liquidity in the
domestic commercial paper market and increased margins.
During the review period, consolidated free cash flow (operating cash flow – cash flow from
investments) was EUR -47.7 million (EUR 62.4 million). Operating cash flow amounted to EUR 53.8
million (EUR 88.2 million). An increase in working capital weakened the operating cash flow. Cash
flow from investments includes the purchase price of EUR 20.4 million from the sale of the Malmö
plant site and the net cash flow effect of the sale of Sibylla Rus of EUR 7.4 million. The construction
of a poultry plant in Finland, the expansion of the Sköllersta plant in Sweden and the acquisition of
51% of the shares in Ab Korv-Görans Kebab Oy increased the cash flow from investments to EUR
-101.5 million (EUR -25.8 million). The comparison period’s cash flow from investments includes the
EUR 29.3 million net cash flow effect of a divested subsidiary.
Equity ratio at the end of the review period was 44.8% (31/12/2021: 48.7%). Equity increased due to
a change in the fair value of interest rate and electricity derivatives employed as hedging, which
amounted to EUR +19.0 million during the period (EUR +5.7 million). Accumulated translation
differences related to the divested subsidiary, EUR -10.7 million (EUR -45.1 million), were written off
from translation differences to retained earnings. The recognition has no effect on the equity ratio or
cash flow.
In November, Atria drew a EUR 50 million bullet loan linked to responsibility targets, with a maturity
of five years and 1+1 year extension options. The responsibility targets for the loan are the reduction
of carbon emissions and occupational accidents and the improvement of energy efficiency.
The Group’s liquidity remained good and is secured through undrawn committed credit facilities of
EUR 85 million and a EUR 200 million commercial paper programme, which was used for short-term
financing. The Group’s net interest rate expenses were EUR 3.4 million (31/12/2021:
EUR 4.9 million).
Atria has hedged against rising interest rates with interest rate derivatives. At the end of the
financial period, the group’s fixed-interest debt represented 25.7% of the loan portfolio (31/12/2021:
17.0%).
ATRIA PLC | REPORT BY THE BOARD OF DIRECTORS 1 JANUARY – 31 DECEMBER 2022
financial statements
Atria Annual Report 2022
Research and product development
Atria’s main product groups are fresh and consumer packed meat, poultry products, meat products
such as sausages and cold cuts, and convenience food. Atria aims to serve its stakeholders by
exploiting research and development activities in its operations in diverse ways, both in the further
development of existing products and the planning of new ones.
Atria’s expertise in market changes and consumer research is integrated into all commercial
processes. Market and consumer insight is an integral part of strategy work, product development,
marketing and sales. This insight consists of both figures and qualitative data.
Atria has a high level of market insight, and the company aims to improve the usability of this insight
continuously for the processes of product development, sales and marketing. During 2022, the
collection and analysis of data related particularly to market price monitoring was developed.
Consumer response to increased prices was continuously monitored in terms of price elasticity,
changing product choices, brand development and pack sizes.
In 2022,
Atria Finland
sales was 4.1%. The Atria Artesaani range expanded with Fish Patties in Sour Cream Sauce, which
added a fish-based alternative to chicken and pork in the fresh premium ready meals range.
Summer barbecues became even more responsible with the launch of new poultry products in
packaging that uses less plastic than before. In the autumn, the story of the tried and tested one pan
product family continued with Pasta Carbonara and Pepper Pork, making daily lives easier.
Atria Sweden
3.8% of net sales. All new products, including private label products, accounted for 6.5% of total
sales. The most significant innovation in 2022 was a new range of poultry-based products, including
Lönneberga chicken sausages and cold cuts for retail and new sliced chicken sausages for
Foodservice customers.
Packaging development focused on new packaging for cold cuts. The new oven-baked Lönneberga
liver pâté was launched in a new type of packaging made of easily recyclable paper material. The
wallet packs for all sliced cold cuts were revamped using bio-based plastic material to reduce the
use of fossil plastics. This packaging material contains at least 50% bio-plastic made from recycled
cooking oil and wood oil in accordance with the mass balance system certified by the ISCC.
The
Atria Denmark & Estonia
In Denmark, Atria is the second largest producer of cold cuts with a market share of 16.3%. In 2022,
Atria Denmark
net sales. The most successful launch in 2022 was Aalbæk Specialiteter's summer BBQ range
(sausages and spare ribs). Meanwhile, sales of Aalbæk Specialiteter sliced ham, launched in 2021,
continued to grow.
In 2022,
Atria Estonia
net sales. The main innovation in 2022 was the easy-to-use oven-ready meat pack for cooking meat
until it is juicy and tender. The most successful innovations in 2022 were the barbecue sausages
and steaks of the Kodu product family. New flavours and new packaging were launched for Maks &
Moorits sausages. Atria Estonia is the market leader in barbecue sausages with a market share of
36.5% of volume. In 2018, Atria introduced a new manufacturing technology for casings of raw
sausages in Estonia, and in 2022, these casings were used in all Maks & Moorits raw sausages.
Percentage of net sales spent on research and product development in Atria Group in 2022 –
2022 was as follows:
EUR million
2022
2021
2020
Research and product development
13.5
15.3
15.0
% of net sales
0.8 %
1.0 %
1.0 %
ATRIA PLC | REPORT BY THE BOARD OF DIRECTORS 1 JANUARY – 31 DECEMBER 2022
financial statements
Atria Annual Report 2022
Business risks during the review period and
short-term risks
Atria’s business, net sales and results may be affected by a number of uncertainties.
Russia’s war of aggression in Ukraine, which has continued since February 2022, and the sanctions
imposed on Russia continued to cause instability to business in the last quarter. Signs of an
economic downturn added to the uncertainty. Cost inflation and higher market interest rates have
eroded households’ purchasing power and public finances, while increasing costs for businesses.
Atria has seen an increase in raw material and packaging material prices, as well as higher energy
costs. However, Atria’s good customer relations have enabled it to pass on some of the increased
costs to prices.
Increases in fertiliser and energy prices have kept grain prices high and increased costs for meat
producing farms. Energy prices are continuing to rise for the second year running. Russian military
action in Ukraine has contributed to this, as Russia has been a major energy producer for Europe.
Significant volatility in energy prices is expected to continue in the near future. Atria has hedged the
system price risk of electricity in such a way that approx. 80% of the next twelve months' use and
approx. 70% of the following twelve months' use are hedged. The electricity price risk, which is
caused by the regional price difference, has been protected against about 45%. The change in the
fair value of electrical protections subject to hedge accounting is recorded in equity.
Atria is prepared for increased cybercrime and information system failures. Systematic monitoring is
carried out to ensure rapid responses in the event of an incident. At Atria, improving cybersecurity is
an ongoing process.
The COVID-19 virus has been affecting the global economy for three years now. The virus continues
to mutate, forming new variants, and its incidence varies. The virus’s mutation is difficult to predict,
and containing the pandemic through vaccination programmes involves uncertainties. Atria is striving
to prevent the pandemic’s effects on the health of its personnel and to secure safe working
conditions and a disruption-free supply chain.
Atria has a holding of 2% in Majakka Voima, which has become subject to claims for damages due
to the Fennovoima project. Atria believes it is unlikely that the claims will result in any significant
costs for Atria. Atria has written down the value of its shares in Majakka Voima Oy in its accounts in
2021.
Atria Finland exports pork to China. The demand for and price of meat can fluctuate very quickly in
the Chinese market, which is a risk to both volumes and the price level.
African swine fever is present in several European countries as well as in China and Russia. The
occurrences of the highly pathogenic avian influenza detected in Europe have resulted in
uncertainties in the poultry market. Due to the risk of these diseases spreading to Finland, Atria
implements measures to prevent the spread of the diseases at its own production facilities and
contract production farms.
Risks and risk management
The implementation of Atria’s strategy, the achievement of its goals and responsible operations call
for the identification and management of favourable and unfavourable events that affect operations.
Favourable events improve Atria’s result and financial position, while unfavourable events increase
costs and hinder operations.
Atria seeks to prevent unfavourable events and their impact on business operations through risk
management as part of its day-to-day operations. Atria’s risk management policy and process
guidelines determine goals, principles, responsibilities and authorisations for risk management, as
well as operating methods for risk assessment and reporting. More information about Atria’s
framework for risk management is available in the Corporate Governance Statement section of the
Annual Report.
For the purposes of reporting, Atria divides the risks affecting its operations into four categories:
strategic, operational, liability and financial risks.
Strategic risks relate to operational development and the planning and implementation of long-term
business decisions as well as to brands, management systems, the allocation of resources and the
ability to respond to changes in the operating environment. Atria’s Board of Directors participates in
the identification and management of strategic risks.
Operational risks are related to day-to-day business operations in processes, systems and people’s
activities, for example. Everyone at Atria participates in the identification and management of these
risks.
Damage risks are errors, malfunctions and accidents that occur within Atria or in the business
environment and that cause damage or loss. Damage risks are managed through risk assessments,
business continuity planning and insurance.
Financial risks have to do with changes in market prices and the sufficiency of financial assets in the
short and medium terms as well as to counterparties’ ability to meet their financial obligations.
Financial risks are managed in cooperation with financial institutions and by making use of various
financial instruments in minimising risks.
The following table presents a brief summary of the most significant risks related to Atria’s
operations. Individually or combined, these risks may have favourable or unfavourable impacts on
Atria’s business operations, result, financial position, competitiveness and reputation. The risks
shown in the table are presented in random order.
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Risks related to raw materials and their production
Risk description
Risk management
Fluctuation in the demand for meat products, animal diseases, extreme weather phenomena as well as
changes in the rearing costs and capacity of contract producers have an impact on the purchase prices
of the meat raw materials.
There are risks related to the price, availability and quality of energy and other raw materials.
Atria steers the purchasing of meat raw materials centrally and relies on a wide network of suppliers in
the purchasing. Contract producers are furthermore guided in rearing and animal care.
Atria has a centralised purchasing organisation that engages in ongoing cooperation with suppliers to
ensure high quality and availability. Risks are also managed through purchasing conditions, hedging
instruments and certified product safety management.
The quality of raw materials and products and safety in the entire production chain are of primary
importance to Atria.
Atria ensures the safety of its production processes every day and checks that various microbiological,
chemical and physical risk factors are eliminated.
Product safety is ensured in accordance with operating methods required by food safety management
and quality certifications.
Our chicken and pork products, which can be traced back to farms, are raised without antibiotics. The
name of the farm from which the meat comes appears on the product packaging.
Food consumption and production has an environmental impact.
Among other things, the food production chain has an impact on global warming, the eutrophication
and acidification of the environment as well as the loss of biodiversity. In addition, it consumes
nutrients, land areas, energy and water resources.
Environmental impacts and climate change as well as efforts to combat them may have effects on
Atria’s operations, result and reputation. Such effects may include changes in consumption and
business processes, material damage, the need for technological changes, increased regulation and
heavier environmental taxation.
In accordance with its environmental policy, Atria works systematically to minimise its environmental
impact. Atria is committed to reducing its carbon dioxide emissions and other environmental impacts
both in its own production and across the food chain, from the field to the table. A carbon-neutral food
chain by 2035 is Atria’s most important goal
In-depth knowledge of the food chain and its environmental impacts is crucial for Atria. The company
engages in close cooperation with research institutions and other operators in the production chain. In
addition, Atria requires its partners to operate in an environmentally responsible manner.
Atria’s environmental impact is managed in many ways: by increasing energy efficiency, using
renewable energy sources to an increasing degree, reducing waste, developing ecological packaging
solutions, and using water and other natural resources responsibly.
Atria ensures that its operations meet the statutory requirements and promotes the development and
adoption of new technologies.
The health and welfare of animals is important for Atria. An animal disease at a critical point in Atria’s
production chain could interrupt production in the unit concerned and disrupt operations throughout the
chain.
Animal diseases may also result in export and import restrictions imposed on meat products.
Atria ensures animal welfare with quality requirements pertaining to production and purchasing
contracts. Biosafety is continuously developed in cooperation with Atria’s contract producers.
Atria’s multistage self-monitoring procedure aims to detect potential hazards related to animal health
and welfare as early as possible.
In Finland, contract production and the related production guidelines for each species, as well as
traceability, are one of the key aspects of monitoring and further improving the welfare of Atria’s
production animals. Atria’s contract producers have comprehensive group animal disease insurance to
minimise the impacts of any damage to producers.
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Risks related to the geographical area of operation and markets
Risk description
Risk management
The retail trade in the food industry is centralised in Atria’s most important market areas. This enables
Atria to develop and diversify its long-term cooperation with customers.
On the other hand, a decision by a single large customer may have a greater impact on Atria’s
operations.
In risk management, Atria makes use of its good customer cooperation, strong market position, well-
known brands, efficient industrial processes, high-quality products and financial monitoring.
Changes in consumer behaviour may have an impact on both the short-term and long-term demand for
Atria’s products. Consumer behaviour may change as a result of factors such as health aspects, the
economic situation, animal welfare, ethical considerations and climate change. Changes in consumer
behaviour may have positive or negative impacts on Atria’s profitability and the reputation of its brands.
Atria is preparing for changes in demand and consumption habits and the need to adapt its operations
by investing in consumer-oriented and sustainable product development and product portfolio.
In addition, Atria informs consumers about its products, its own operations and its responsibility.
Competitors’ operations and product selections, as well as private labels, affect Atria’s profitability.
Atria develops its product range from a customer-driven perspective, monitors market changes
actively, ensures the efficiency of operations, maintains good delivery reliability and invests in
informative consumer marketing.
Atria’s geographical area of operation exposes the company to risks related to the national economy,
legislation and official regulations in various countries. Global geopolitical risks, pandemics and
epidemics may also have an effect on Atria’s operations.
Atria manages the risk with contracts and by monitoring amendments to legislation and investing in
quality matters. Atria also trains its personnel to identify and minimise risks, relies on the services of
experts and conducts audits.
Personnel risks
Risk description
Risk management
The availability of competent and motivated employees is a risk for Atria’s strategy implementation and
the achievement of its goals.
Atria manages this risk through interesting jobs, its remuneration policy and investments in personnel
development and training. Development needs are also identified through employee surveys.
Epidemics and pandemics have an impact on the personnel’s health.
Health risks are managed with the help of training and preventive measures investing in the safety of
work, protective clothing and masks and the personnel’s healthcare.
Low temperatures and repetitive movements are characteristic of work in the food industry. The work is
often physically demanding and involves cutting machines and tools. This increases the risk of
occupational accidents.
Atria aims to prevent occupational accidents, the risks of occupational disease and the related costs by
investing significantly in safety at work.
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Risks related to information management
Risk description
Risk management
The automation of operational processes, information systems and digitalisation have increased risks
related to the accessibility, functionality, integrity, availability, reliability, identifiability and authentication of
operations and services.
Atria aims to minimise information security risks and accelerate the recovery from such risks with
continuous and systematic monitoring. The company also conducts risk assessments in relation to its
personnel, data communications, software, hardware, accessibility and physical security. Atria also
relies on external experts in the management of information security risks.
A failure to protect personal data or other important data may damage the company’s reputation and result
in financial sanctions and/or liability for damages.
Atria pays special attention to information security through technical protection and audits, and by
providing employees with training and guidelines.
Risks associated with the value chain
Risk description
Risk management
Risks related to human rights, corruption and bribery.
Atria has partnership principles and a procurement policy, whose implementation is monitored
through reviews and audits. The personnel are also trained to identify and report such risks.
Damage risks
Risk description
Risk management
Unforeseeable damage risks at Atria’s production plants in Finland, Sweden, Denmark and Estonia may
interrupt the operations at production plants.
All Atria’s production plants are insured against any physical damage and interruptions in operations
through the Group’s insurance policies. A risk analysis is prepared annually or every two years at key
plants. Continuity planning is in place to limit the potential damage caused by business interruptions.
Financial risks
Risk description
Risk management
Key risks related to the financing of Atria’s operations include currency transaction and conversion risks,
the interest rate risk, the counterparty risk, and the liquidity and refinancing risks.
The goal of financial risk management is to reduce the impact of price fluctuations in financial
markets and other uncertainty factors on the company’s earnings, balance sheet and cash flow, in
addition to ensuring sufficient liquidity. Atria’s financial risk management is discussed in more detail
in Note 29 to the financial statements.
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Administration and operational organisation
The Annual General Meeting (AGM) decided that the composition of the Supervisory Board would
be as follows:
Member Term ends in
Juho Anttikoski 2025
Mika Asunmaa 2025
Lassi-Antti Haarala 2024
Jyrki Halonen 2025
Mika Herrala 2024
Veli Hyttinen 2023
Pasi Ingalsuo 2023
Jussi Joki-Erkkilä 2024
Marja-Liisa Juuse 2024
Juha Kiviniemi 2023
Risto Lahti 2023
Ari Lajunen 2024
Vesa Lapatto 2023
Juha Nikkola 2025
Mika Niku 2024
Ari Pöyhönen 2025
Suvi Rantala 2025
Risto Sairanen 2023
Ola Sandberg 2024
Timo Tuhkasaari 2023
20 members in total
At its constitutive meeting after the Annual General Meeting (AGM), Atria Plc’s Supervisory Board
re-elected Jyrki Halonen as its Chairman and Juho Anttikoski as its Deputy Chairman.
The AGM decided that the Board of Directors would consist of eight (8) members. Nella Ginman-
Tjeder, Jukka Kaikkonen and Pasi Korhonen, whose turn it was to step down, were re-elected as
members of the Board. Mika Joukio was elected as a new member of the Board to replace Jukka
Moisio, who is resigning in the middle of his term, for a term that will last until the end of the 2023
Annual General Meeting. Kjell-Göran Paxal, Ahti Ritola, Leena Laitinen and Seppo Paavola also
continue as members of the Board. At the end of the Annual General Meeting in 2023, Mika Joukio
and Seppo Paavola will step down from the Board, and at the end of the Annual General Meeting in
2024, Leena Laitinen, Kjell-Göran Paxal and Ahti Ritola will do the same. At its constitutive meeting
following the General Meeting, Atria Plc’s Board of Directors elected Seppo Paavola as its Chairman
and Pasi Korhonen as Deputy Chairman.
Atria Plc’s Board of Directors is composed of the following members:
Member Term ends in
Nella Ginman-Tjeder 2025
Jukka Kaikkonen 2025
Pasi Korhonen 2025
Leena Laitinen 2024
Mika Joukio 2023
Seppo Paavola 2023
Kjell-Göran Paxal 2024
Ahti Ritola 2024
Atria Plc’s Management Team was composed of the following people:
●
●
●
●
●
●
●
●
●
The members of the Management Team report to CEO Juha Gröhn.
Atria Plc’s governance is described in more detail in the Corporate Governance Statement on page
129.
Composition of the Nomination Committee
The following people were elected to Atria Plc’s Nomination Committee, appointed by the AGM:
●
●
●
●
●
The Nomination Board elected Juho Anttikoski as Chairman from among its members.
ATRIA PLC | REPORT BY THE BOARD OF DIRECTORS 1 JANUARY – 31 DECEMBER 2022
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Atria Annual Report 2022
Personnel average
2022
2021
2020
Atria Finland
2,437
2,390
2,398
Atria Sweden
819
876
879
Atria Denmark and Estonia
442
445
439
Sold operation, OOO Pit-Product
728
Group total
3,698
3,711
4,444
Salaries and benefits for the period,
Group total (EUR million)
205.6
204.8
199.1
Incentive schemes for management and key
personnel
Long-term share-based incentive scheme 2021–2023
Atria has a long-term incentive scheme for key persons for the period 2021–2023, approved by the
Board of Directors of Atria Plc. The scheme is identical to the scheme for 2018–2020. The share-
based incentive scheme aims to encourage Atria’s management to acquire company shares as well
as to increase the company’s value through their decisions and actions over the long term.
The scheme is based on a share bonus and a cash bonus and is divided into three one-year
periods. The second earning period began on 01/01/2022 and ended on 31/12/2022. The bonuses
for 2022 will be paid in three equal instalments in 2023, 2024 and 2025, partly in company shares
and partly in cash. The cash sum is intended to cover the taxes and tax-like fees arising from the
bonus. The possible bonus awarded by the scheme is based on the company’s earnings per share
(70%) and organic growth (30%). If a person's employment relationship ends before the payment of
the bonus, the bonus may not be paid.
The share-based incentive scheme covers a maximum of 40 people. The maximum value of the
bonuses to be paid on the basis of one earning period is about EUR 2 million. The bonuses to be
paid for the 2022 earning period are estimated at EUR 1.1 million (EUR 1.4 million).
Short-term incentive scheme
The maximum bonus payable under Atria Plc’s short-term incentive scheme is 25% to 50% of an
individual’s annual salary, depending on the performance impact and requirement level of each
individual’s role. The criteria in the bonus scheme are the performance requirements and net sales
at Group level and in the individual’s area of responsibility. In addition to the CEO and other
members of the Group’s Management Team, Atria Plc’s bonus schemes cover around 40 people.
Outlook for 2023
Atria Group’s adjusted EBIT in 2023 is expected to be smaller than in the previous year (EUR 49.0
million).
During 2023, the company will commission a major expansion at its Sköllersta plant in Sweden, and
the phased start-up and testing of the new poultry plant in Nurmo will begin. These measures will
result in additional costs in 2023.
In addition, high costs, weakened consumer purchasing power and global political uncertainty will
continue to affect the business environment in 2023. Atria’s strong market position and strong
brands, good customer relationships and reliable industrial processes will enable stable business
also in 2023.
Flagging notifications
Atria Plc did not receive any flagging notifications in 2022.
Atria Plc’s share capital
The breakdown of the parent company’s share capital is as follows:
Series A shares (1 vote per share)
19,063,747 shares
Series KII shares (10 votes per share)
A series shares have a right of priority to a dividend of EUR 0.17, after which series KII shares are
paid a dividend of up to EUR 0.17. If distributable dividends remain after this, series A and series KII
shares entitle their holders to an equal right to a dividend.
Atria’s Articles of Association include a pre-emptive purchase clause concerning series KII shares. If
series KII shares are transferred to a party outside the company or to a shareholder within the
company who has not previously owned series KII shares, the proposed recipient of the shares must
inform the Board of Directors about this without delay, and KII shareholders have the right to pre-
emptively purchase the shares under certain conditions. In addition, the acquisition of series KII
shares by means of transfer requires the approval of the company. Series A shares have no such
limitations.
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Atria Annual Report 2022
At the end of the financial period on 31 December 2022, the company held a total of 66,182 treasury
shares, representing 0.2% of the shares and 0.1% of the votes in the company. The number of
treasury shares transferred as share incentives during the financial period was 26,003.
Information about shareholding distribution, shareholders and management holdings are provided
under “Shares and shareholders” on pages 59-60.
Valid authorisations to purchase or issue
shares, grant special rights and make
donations
The General Meeting resolved, in accordance with the proposal of the Board of Directors, to
authorise the Board of Directors to resolve on the acquisition of a maximum of 2,800,000 of the
company’s own series A shares in one or more instalments with funds belonging to the company’s
unrestricted equity, subject to the provisions of the Finnish Companies Act on the maximum amount
of treasury shares. The company’s own Series A shares may be acquired for use as consideration in
any acquisitions or other arrangements relating to the company’s business, to finance investments,
as part of the company’s incentive scheme, to develop the company’s capital structure, to be
otherwise further transferred, to be retained by the company, or to be cancelled.
The shares shall be acquired in a proportion other than that of the shareholders’ current
shareholdings in the company in public trading arranged by Nasdaq Helsinki Ltd at the trading price
of the moment of acquisition. The shares shall be acquired and paid according to the rules of
Nasdaq Helsinki Ltd and Euroclear Finland Ltd. The Board of Directors was authorised to decide on
the acquisition of own shares in all other respects.
The authorisation cancels the authorisation granted by the Annual General Meeting on 29 April 2021
to the Board of Directors to decide on the acquisition of the company’s own shares and is valid until
the closing of the next Annual General Meeting, however, no longer than until 30 June 2023.
The General Meeting resolved, in accordance with the proposal of the Board of Directors, to
authorise the Board of Directors to resolve on an issue of a maximum total of 5,500,000 new series
A shares or series A shares possibly held by the company, in one or more instalments, by issuing
shares and/or option rights or other special rights entitling to shares, referred to in Chapter 10,
Section 1 of the Finnish Companies Act. The authorisation can be used for the financing or
execution of any acquisitions or other arrangements or investment relating to the company’s
business, for the implementation of the company’s incentive scheme or for other purposes subject to
the Board of Directors’ decision.
The authorisation includes the Board of Directors’ right to decide on any terms and conditions of the
share issue and the issue of special rights referred to in Chapter 10, Section 1 of the Finnish
Companies Act. The authorisation thus also includes the right to issue shares in a proportion other
than that of the shareholders’ current shareholdings in the company under the conditions provided in
law, the right to issue shares against payment or without charge as well as the right to decide on a
share issue without payment to the company itself, subject to the provisions of the Finnish
Companies Act on the maximum amount of treasury shares.
The authorisation cancels the authorisation granted by the Annual General Meeting on 29 April 2021
to the Board of Directors, and is valid until the closing of the next Annual General Meeting, however,
no longer than until 30 June 2023.
The General Meeting resolved, in accordance with the proposal of the Board of Directors, to
authorise the Board of Directors to donate a maximum of EUR 100,000 of the company’s
distributable funds to support activities of colleges, universities, or other educational institutions or to
support other charitable or similar purposes and at the same time authorised the Board to decide on
payment schedules for donations and other terms of the donation.
Distributable funds and the Board of Directors’
proposal for profit distribution
The parent company’s shareholders’ equity on 31 December 2022 comprises the invested
unrestricted equity fund of EUR 248,252,440.85, the treasury share fund of EUR -769,476.82 and
profits of EUR 22,026,805.29, of which profit for the period totals EUR 6,641,088.80.
The Board of Directors will propose to the Annual General Meeting
that the distributable funds be used as follows:
19,779,644.50
249,730,124.82
269,509,769.32
Other information according to the Companies
Act
During the accounting period, the subsidiaries Mestari Forsman Oy and Ab Botnia Food Oy merged
with Atria Oyj. The Implementation date of the merger was 31 December 2022.
ATRIA PLC | REPORT BY THE BOARD OF DIRECTORS 1 JANUARY – 31 DECEMBER 2022
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Atria Annual Report 2022
Statement on non-financial
information
Securing a sustainable food chain
Corporate responsibility is an integral part of Atria’s business and corporate culture. Sustainability is
integrated into all levels of Atria’s operations: its mission, goals, values, operating strategies,
management and day-to-day work. Through its sustainable operations, the company aims to secure
its current and future operating conditions. In line with the principles of sustainable development, the
company considers the economic, social and environmental aspects of its operations in all its
business areas.
Atria’s chain of good food consists of primary production and the purchasing of raw materials,
industrial production, customers and consumers. The food chain takes into account value creation
and distribution at the various stages of production, the environmental impacts, and the social
impacts related to the food chain and products. The planet, product and people are Atria’s material
sustainability focuses for the development and implementation of responsible business operations.
By investing in the development of corporate responsibility matters relevant to Atria, the company
secures its future operating conditions and creates both financial and social value to society. Direct
financial value arises from the jobs provided by Atria and the dividends paid, and indirect value from
the supply chain and taxes paid. Social value is created by developing the industry in line with the
principles of sustainable development and producing food for the needs of customers and
consumers with the help of trustworthy brands and a trustworthy corporate image. Atria actively
seeks to make an impact on society through trade associations.
Atria’s corporate responsibility is managed at two levels. In Atria Group’s new strategy for 2021–
2025, the company states its goal of leading the way in sustainability. Concrete goals include a
carbon-neutral food chain by 2035, increasing the production of antibiotic-free meat production and a
reduction in carbon dioxide emissions. The shared Code of Conduct and policies are determined at
Group level. The Group also ensures compliance with the Code and the policies and determines the
development projects and strategic target state applicable to all business areas. The annual
reporting related to Atria’s corporate responsibility is also implemented at Group level. The
realisation and continuous improvement of Atria’s responsibility are part of day-to-day operational
management across the business areas. The steering groups of the business areas analyse the
operating environment and key stakeholders’ expectations with regard to responsibility, and also
integrate the implementation of the necessary development measures into their business plans.
Stakeholders are strongly present in the food chain, from raw material procurement all the way to the
finished products and their use. Listening to stakeholders and taking their needs into account is one
of the cornerstones of Atria’s sustainability work. Atria’s responsibility is constructed through
dialogue and is supported by openness and transparency. Atria’s Corporate Responsibility Report
contains a comprehensive description of the company’s sustainability work. The Corporate
Responsibility Report is available on Atria’s website at https://www.atria.fi/en/group/corporate-
responsibility/corporate-responsibility-reporting/. Atria’s reporting is based on the international Global
Reporting Initiative (GRI) standard. Atria has selected the essential measurements and indicators
relevant to its operations and stakeholders from the GRI standard.
The Atria Code of Conduct supports
responsible business operations
Compliance with healthy and sustainable business practices lays the foundation for Atria’s
operations. The Atria Code of Conduct is a set of ethical principles concerning business operations,
stakeholder relations and environmental and social responsibility, approved by Atria Plc’s Board of
Directors. The Code of Conduct is supported by the company’s policies and guidelines that define
and guide operating methods. The Code of Conduct concerns all Atria employees in all business
areas. The Atria Code of Conduct and the corporate policies supporting the Code are based on the
laws and collective agreements of Atria’s countries of operation, and on international agreements
and recommendations concerning responsible operations in terms of human rights and anti-
corruption, for example.
In accordance with its Code of Conduct, Atria has zero tolerance for any type of corruption or
ATRIA PLC | REPORT BY THE BOARD OF DIRECTORS 1 JANUARY – 31 DECEMBER 2022
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Atria Annual Report 2022
bribery. Atria’s employees must not give or receive benefits, gifts or hospitality that could
inappropriately influence business decisions. Atria’s employees have been familiarised with the
Code of Conduct and the policies that support the Code through an induction and HR development
programme that supports their job descriptions.
Respect for human rights is an integral part of Atria’s Code of Conduct and HR policy. Atria respects
and supports internationally recognised human rights principles and requires all its employees,
suppliers and subcontractors to comply with these principles.
Through its Code of Conduct and the policies that support the Code, Atria is committed to the
following international agreements and recommendations:
●
●
protection and the prevention of corruption
●
●
●
(ICC) and the ICC Rules on Combating Corruption
●
Atria expects its business partners to comply with either their own code of conduct or the equivalent
Atria Partnership Code of Conduct within their operations. In addition, procurement contracts
obligate Atria’s partners to meet the company’s requirements for product quality, operating methods
and the supply chain, for example.
Atria assesses the compliance of its contractual partners’ operations before undertaking a
partnership and on a regular basis during the partnership. In addition to the experience gained
during the business relationship, the assessment takes into account risk factors related to financial,
environmental and social responsibility. Atria has the right to audit the operations of its contractual
partners if necessary. In the audits, attention is paid to food safety, as well as environmental and
social responsibility, including human rights and the prevention of corruption and bribery.
Atria has established a Whistleblow channel for its employees and stakeholders to report suspected
breaches of the Code of Conduct or illegal activities. All reports are processed confidentially, and
Atria implements any necessary measures based on the reports. The related indicator is the number
of reports submitted to the whistleblowing channel or to the authorities. During 2022, Atria’s
Whistleblow channel received four reports that were found to be unfounded, i.e. the reports
occurrences did not fall within the scope of the channel
Planet
In accordance with its environmental policy, Atria works systematically to minimise its environmental
impact. Atria is committed to reducing carbon dioxide emissions and other environmental impacts in
its own production and across the food chain. The goals of environmental management at Atria’s
plants have been adjusted to changes in the operating environment. Priorities include energy
efficiency, water efficiency and the prevention of waste and food waste, as well as ensuring statutory
compliance in operations.
Concerning the food chain as a whole, a carbon-neutral food chain by 2035 is Atria’s most important
environmental goal. The means and measures for achieving a carbon-neutral food chain and the key
indicators of environmental responsibility are reported in more detail in the Corporate Responsibility
Report. Producers play a key role in mitigating the environmental impact of primary production. At
the farm level, minimising environmental impacts means farm-specific solutions based on the type of
production. Resource efficiency and good input-output ratios play a key role in terms of the
environment.
The key projects to improve the environmental efficiency of the production chain are discussed in the
business area reviews in the Annual Report and in the Corporate Responsibility Report.
Emissions
Atria Group’s carbon dioxide emissions have been systematically reduced in recent years. In 2022,
measures taken in the challenging operating environment resulted in a 1% increase in carbon
emissions compared to 2021. The long-term decrease in carbon dioxide emissions has resulted from
the increased use of renewable energy sources. For example, the share of bio-based fuels in heat
production has increased.
Energy
Sustainable, efficient energy use reduces carbon dioxide emissions, which facilitate climate change.
Atria Group’s energy consumption was 456,794 was MWh in 2022. Consumption decreased by
2.3%, and consumption per kilo produced decreased by 1.6% year-on-year. The reduction in energy
consumption was partly due to favourable weather conditions, and energy efficiency measures also
curbed energy consumption.
Water
The quality, adequacy and pumping capacity of water are critical for Atria’s operations. Plant-specific
environmental permits determine the threshold values for wastewater quality. All wastewater is
directed to a local wastewater treatment facility. Atria Group’s water consumption in 2022 was
2,885,718 m
3
. Consumption increased by 0.3%, and consumption per kilo produced increased by
ATRIA PLC | REPORT BY THE BOARD OF DIRECTORS 1 JANUARY – 31 DECEMBER 2022
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Atria Annual Report 2022
0.1% compared to 2022. The continuous management of water consumption is part of the plants’
environmental management and continuous improvement.
Materials
Food production is at the core of the circular economy. Side streams that do not end up as products
are directed back to the food chain, as precisely and with as high a value as possible. They are used
in applications of the feed industry, as nutrients, for material recycling or as energy. Atria is a
company that is strongly developing the circular economy. In the Atria chain, 99% of the raw material
flow is utilized. During the concluded strategy period, Atria focused on strengthening its anti-wastage
operating culture. Atria’s internal wastage management aims to improve value creation for material
flows suitable for food production. Atria’s wastage is managed in accordance with the same
principles in all business areas of the Group. Various types of process wastage have been identified
and indicators have been created to monitor them. These are displayed at the departments and daily
management reacts to deviations without delay. Waste is affected both by the actions of our
personnel and by process investments to reduce waste.
Compliance
The operations of Atria’s production plants are subject to environmental permits. All Atria’s
production plants have management systems that meet the requirements of the ISO 14001 standard
for environmental systems and the requirements of the ISO 50001 standard for energy management
systems. The Corporate Responsibility Report includes information about the system certification
status. No regulations were issued by the authorities regarding the operations and no enforcement
measures were imposed during the reporting period. During the reporting period, there was one
ammonia leak at the Nurmo plant in the poultry unit.
Product
For Atria, good food in terms of responsibility means accounting for the expectations set for the
entire food chain in its operations and a commitment to comply with the requirements for its products
and business.
Atria contributes to a safe and sustainable food chain by developing biosecurity throughout the
chain, including animal welfare, animal disease risk management, antibiotic-free production, animal
nutrition, traceability of raw materials, and food safety management in collaboration with its
stakeholders.
Public debate about responsible food production and food safety is increasing the demands on the
systems and verification within the production chain. Atria sees as its responsibility to both deliver on
food safety expectations and to lead the way in showing that animal-based food can be an ethically
sustainable choice for consumers. Other stakeholders are also expecting Atria to show its expertise
on these topics and to develop sustainable food production in its production chain.
More detailed information about Atria’s principles and results concerning the origin and safe
production of food is provided in the Corporate Responsibility Report.
Food safety
Various food safety risks could have dire consequences for both human health and Atria’s business
operations. Atria therefore takes product safety extremely seriously. Atria’s food safety and quality
policy lays the foundation for commitments, goal setting and continuous improvement. The product
safety management systems of Atria’s production plants have FSSC 22000 certification.
During statutory assessments in 2022, no serious shortcomings in operating methods were detected
that could compromise food safety and result in fines or coercive measures imposed by the
authorities. During 2022, Atria had to make a total of five recalls. Three of them took place in Finland
and two in Sweden. No recalls were made in Denmark and Estonia.
Animal welfare
Meat is the most important raw material for Atria’s products. Animal welfare is ensured and proved
throughout Atria’s food chain.
The good treatment of production animals and animal welfare are key operating principles for Atria.
Atria complies with the laws on the treatment and slaughter of animals. Tuoretie Oy carries out Atria
Finland’s animal transport operations. During the year under review, no enforcement actions or
administrative reprimands leading to sanctions were imposed for compliance with animal welfare
legislation related to Atria’s operations and animal transport.
People
Consumers
As a food producer, Atria understands its responsibility towards consumers and public health. The
purity and nutritional quality of food, as well as ethical food chains, are important values for
consumers. People’s well-being is based on healthy and nourishing food. Atria’s main product
categories are fresh and consumer-packed meat and meat products, such as sausages and cold
cuts, as well as convenience foods and poultry products. By participating in applied research in
product and packaging technology and nutrition, Atria can also create innovative products and
concepts for future needs. Further information about the results of Atria’s product development and
research operations is provided on
page 46
.
Employees
The company’s future relies on highly competent employees and well-being at work. We want to
offer a workplace where competent professionals thrive. Our goal is to be one of the most attractive
ATRIA PLC | REPORT BY THE BOARD OF DIRECTORS 1 JANUARY – 31 DECEMBER 2022
financial statements
Atria Annual Report 2022
employers in the food industry. Safety at work is one of the cornerstones of our operations: we
ensure in many different ways that our employees return safely home from Atria. Our long-term goal
is zero accidents across Atria Group.
Our HR policy defines the material aspects of personnel responsibility concerning employment
relationships. These include a fair employment relationship, well-being and safety at work,
competence development, equality, non-discrimination and freedom of association, as well as the
prevention of child labour and forced labour.
In 2022, Atria Group continued to implement the Safely Home from Atria occupational safety
programme. Occupational safety at Atria has improved significantly during the last four years. In
2017, Atria launched the Safely Home from Atria programme to improve safety and reduce the
number of accidents at work. The goal of the programme is to reduce the LTA frequency from 41 in
2017 to 8 in 2025 (Lost Time Accident frequency = number of accidents at work resulting in absence
per million working hours). Consistent work to improve our working methods, practices, routines and,
most importantly, work culture has really paid off. This is clearly reflected in a reduction in the
number of accidents resulting in absence from work. In 2017, Atria’s LTA frequency was 41, while in
2022 it improved to 16, showing a decrease of 61%.
More information about Atria’s responsibility for people is provided in the Corporate Responsibility
Report.
EU taxonomy
European Union member states are working to address the challenges of climate change and
environmental pollution through the EU’s Green Deal programme. One of the programme’s
objectives is to achieve carbon neutrality in the EU by 2050. The EU has developed a classification
system for sustainable economic activity, called the EU taxonomy. The aim of the taxonomy is to
encourage financial markets to allocate capital to environmentally sustainable solutions.
The taxonomy is based on six environmental objectives:
1) climate change mitigation
2) climate change adaptation
3) sustainable use and protection of water and marine resources
4) transition to a circular economy
5) pollution prevention and control
6) protection and restoration of biodiversity and ecosystems
For each environmental objective, sector-specific technical screening criteria have been or will be
developed for determining the conditions under which an economic activity qualifies as contributing
substantially to each objective and for determining whether that economic activity causes no
significant harm to any of the other environmental objectives.
For the first two objectives, an EU Delegated Regulation and associated technical screening criteria
are already in place. By its very nature, the food industry does not contribute significantly to climate
change mitigation or adaptation as defined in the delegated act on climate. Therefore, for the first
two objectives, no screening criteria have yet been defined for the food industry and Atria classifies
the share of its taxonomy-eligible turnover, operating expenditure and investment as zero per cent
for these two objectives.
For the latter four objectives, the EU has not yet adopted a delegated regulation. However, sector-
specific screening criteria have already been defined for these objectives. For the food industry,
technical screening criteria have been defined for the transition to a circular economy and for the
protection and restoration of biodiversity and ecosystems.
In addition, to achieve taxonomy eligibility, a company must meet minimum safeguards (EU
Regulation 2020/852, Articles 3 and 18). The minimum safeguards cover four different areas: human
rights, corruption, fair competition and taxation. The safeguards aim to ensure that companies
conduct their business in accordance with internationally accepted business principles.
Atria has started a process to analyse matters related to the transition to a circular economy,
biodiversity and minimum safeguards.
ATRIA PLC | REPORT BY THE BOARD OF DIRECTORS 1 JANUARY – 31 DECEMBER 2022
financial statements
Atria Annual Report 2022
ATRIA PLC | SHARES AND SHAREHOLDERS
financial statements
Atria Annual Report 2022
BREAKDOWN OF SHAREHOLDINGS
INFORMATION ABOUT SHAREHOLDERS
Shareholders by number of shares held on 31 Dec 2022
Major shareholders on 31 Dec 2022
KII
A
Total
%
Number of shares
Shareholders
Shares
Itikka Co-operative
4,914,281
3,537,652
8,451,933
29.90
Number of
%
1,000 pcs
%
Lihakunta
4,020,200
3,848,073
7,868,273
27.83
1 - 100
7,625
48.21
341
1.21
Mandatum Life Insurance Company Ltd.
1,074,362
1,074,362
3.80
101 - 1 000
6,916
43.73
2,503
8.85
Skandinaviska Enskilda Banken Ab *
781,310
781,310
2.76
1 001 - 10 000
1,197
7.57
2,902
10.27
Pohjanmaan Liha Co-operative
269,500
480,038
749,538
2.65
10 001 - 100 000
66
0.42
1,588
5.62
Etola Group Oy
625,000
625,000
2.21
100 001 - 500 000
4
0.03
859
3.04
Varma Mutual Pension Insurance Company
524,640
524,640
1.86
500 001 - 1 000 000
4
0.03
2,680
9.48
Citibank Europe Plc *
471,198
471,198
1.67
1 000 001 -
3
0.02
17,395
61.54
von Julin Sofia Margareta dödsbo
160,000
160,000
0.84
Total
15,815
100.00
28,268
100.00
Elo Mutual Pension Insurance Company
126,289
126,289
0.45
* Nominee registered
Shareholders by sector on 31 Dec 2022
Major shareholders by voting rights on 31 Dec 2022
Shareholder type
Shareholders
Shares
KII
A
Total
%
Number of
%
1,000 pcs
%
Itikka Co-operative
49,142,810
3,537,652
52,680,462
47.42
Companies
415
2.62
18,696
66.14
Lihakunta
40,202,000
3,848,073
44,050,073
39.65
Financial and insurance institutions
19
0.12
1,274
4.51
Pohjanmaan Liha Co-operative
2,695,000
480,038
3,175,038
2.86
Public corporations
7
0.04
665
2.35
Mandatum Life Insurance Company Ltd.
1,074,362
1,074,362
0.97
Non-profit organisations
93
0.59
291
1.03
Skandinaviska Enskilda Banken Ab *
781,310
781,310
0.70
Households
15,228
96.29
5,982
21.16
Etola Group Oy
625,000
625,000
0.56
Foreign owners
53
0.34
28
0.10
Varma Mutual Pension Insurance Company
524,640
524,640
0.47
Total
15,815
100.00
26,936
95.29
Citibank Europe Plc *
471,198
471,198
0.42
von Julin Sofia Margareta dödsbo
160,000
160,000
0.14
Nominee-registered, total
1,331
4.71
Elo Mutual Pension Insurance Company
126,289
126,289
0.11
* Nominee registered
ATRIA PLC | SHARES AND SHAREHOLDERS
financial statements
Atria Annual Report 2022
MANAGEMENT’S SHAREHOLDING
On 31 December 2022, the members of the Board of Directors and the Supervisory Board,
the CEO and Deputy CEO, as well as the members of the Group’s Management Team held
a total of 87,679 series A shares, or 0.31% of the shares and 0.08% of the voting rights
conferred by shares.
MONTHLY TRADING VOLUME OF SERIES A SHARES IN 2022
Month
Trading, EUR
Trading, shares
Monthly lowest
Monthly highest
January
4,451,230
390,365
10.90
11.68
February
3,494,711
325,540
9.64
11.68
March
3,436,928
347,258
8.93
10.60
April
3,854,546
361,056
10.12
11.52
May
5,007,896
547,428
8.40
11.06
June
1,728,920
199,648
8.24
9.19
July
1,793,744
204,009
8.43
9.29
August
1,030,749
107,762
9.10
9.98
September
874,440
93,763
8.73
9.99
October
6,304,127
706,303
8.70
9.50
November
934,243
100,391
9.01
9.45
December
1,119,237
121,888
9.01
9.37
Total
34,030,771
3,505,411
CHANGES IN THE SERIES A SHARE PRICE 2017-2021 (AVERAGE PRICE)
ATRIA PLC | GROUP’S FINANCIAL INDICATORS
financial statements
Atria Annual Report 2022
ITEMS AFFECTING THE COMPARABILITY
OF THE RESULT, EUR 1,000
2022
2021
EBIT before items affecting comparability
133
6,385
Items affecting comparability of EBIT:
Atria Sweden:
1,270
2,336
9,745
-51,105
Unallogated:
-8,781
-45,109
Total
-48,872
-42,773
Adjusted EBIT
49,005
49,158
Profit before taxes
1,672
4,834
Items affecting comparability
-48,872
-42,773
Adjusted profit before taxes
50,544
47,607
Items affecting comparability of taxes
3,318
Profit for the period attributable
to the owners of parent company
-5,314
-6,900
Total items affecting comparability
-45,554
-42,773
Adjusted profit for the period attributable
to the owners of parent company
40,240
35,873
Adjusted EPS, EUR
1.43
1.27
ATRIA PLC | GROUP’S FINANCIAL INDICATORS
financial statements
Atria Annual Report 2022
FINANCIAL INDICATORS
SHARE ISSUE ADJUSTED INDICATORS PER SHARE
EUR million
31 Dec 22
31 Dec 21
31 Dec 20
31 Dec 19
31 Dec 18
31 Dec 22
31 Dec 21
31 Dec 20
31 Dec 19
31 Dec 18
Net sales
1,696.7
1,540.2
1,504.0
1,451.3
1,438.5
Earnings per share (EPS), EUR
-0.19
-0.24
0.81
0.54
0.58
EBIT
0.1
6.4
40.5
31.1
28.2
Adjusted earnings per share (EPS), EUR
1.43
1.27
0.81
0.54
0.58
% of net sales
0.0
0.4
2.7
2.1
2.0
Shareholders’ equity/share, EUR
15.90
16.08
14.96
14.85
14.69
Adjusted EBIT
49.0
49.2
40.5
31.1
28.2
Dividend/share, EUR*
0.70
0.63
0.50
0.42
0.40
% of net sales
2.9
3.2
2.7
2.1
2.0
Dividend/profit, %*
-371.4
-257.2
61.4
78.4
68.8
Financial income and expenses
-3.4
-4.9
-4.5
-5.6
-6.2
Adjusted dividend/profit, %*
49.0
49.5
61.4
78.4
68.8
% of net sales
-0.2
-0.3
-0.3
-0.4
-0.4
Effective dividend yield, %*
7.6
5.5
5.1
4.2
6.1
Profit before taxes
1.7
4.8
37.3
26.2
22.3
Price/earnings (P/E)
-49.2
-47.0
12.1
18.7
11.3
% of net sales
0.1
0.3
2.5
1.8
1.6
Adjusted price/earnings (P/E)
6.5
9.1
12.1
18.7
11.3
Adjusted profit before taxes
50.5
47.6
37.3
26.2
22.3
Market capitalisation
262.0
325.6
278.4
283.8
186.0
% of net sales
3.0
3.1
2.5
1.8
1.6
Market capitalisation,
Return on equity (ROE), %
-0.8
-1.2
5.7
3.9
4.1
A series
176.7
219.6
187.8
191.4
125.4
Adjusted return on equity (ROE), %
8.9
8.2
5.7
3.9
4.1
Share turnover/1,000 shares
Return on investment (ROI), %
1.1
1.9
7.2
5.3
5.0
A series
3,505
3,536
4,599
3,831
5,696
Adjusted return on investment (ROI), %
7.5
8.3
7.2
5.3
5.0
Share turnover %, series A
18.4
18.6
24.1
20.1
29.9
Equity ratio, %
44.8
48.7
46.8
46.9
47.7
Total number of shares, million
28.3
28.3
28.3
28.3
28.3
Interest-bearing liabilities
265.7
209.9
218.1
228.3
227.2
Number of shares, series A
19.1
19.1
19.1
19.1
19.1
Gearing, %
57.2
44.9
49.7
52.6
53.1
Number of shares, series KII
9.2
9.2
9.2
9.2
9.2
Net gearing, %
50.5
32.6
43.6
51.6
52.1
Average share issue-adjusted
Gross investments
131.4
55.6
45.6
40.1
44.5
number of shares
28.3
28.3
28.3
28.3
28.3
% of net sales
7.7
3.6
3.0
2.8
3.1
Share issue-adjusted number
Average personnel
3,698
3,711
4,444
4,454
4,460
of shares on 31 Dec
28.3
28.3
28.3
28.3
28.3
Research and development costs
13.5
15.3
15.0
15.3
13.7
% of net sales *
0.8
1.0
1.0
1.1
1.0
* Board of Directors’ proposal for 2022 to be submitted
Order stock **
-
-
-
-
-
* Recognised in total as expenditure for the financial year.
Share price development, series A (EUR)
31 Dec 22
31 Dec 21
31 Dec 20
31 Dec 19
31 Dec 18
** Not a significant indicator as orders are generally delivered on the day following
Lowest of the period
8.24
9.85
7.13
6.61
6.42
the placement of the order.
Highest of the period
11.68
13.44
10.86
10.04
13.48
At the end of the period
9.27
11.52
9.85
10.04
6.58
Average rate during the period
9.71
11.60
9.08
8.28
9.58
ATRIA PLC | GROUP’S FINANCIAL INDICATORS
financial statements
Atria Annual Report 2022
CALCULATION FORMULAS OF INDICATORS DESCRIBING ECONOMIC DEVELOPMENT
In addition to the IFRS figures, Atria publishes other widely used alternative financial indicators that can be derived from the income statement and balance sheet.
Principles for calculating financial indicators:
Adjusted EBIT,
In addition to reporting EBIT, profit before taxes and profit for the period the company publishes an adjusted EBIT, adjusted profit
adjusted profit before taxes and
before taxes and adjusted profit for the period indicators to describe the actual financial development of the business and to improve
adjusted profit for the period
comparability between periods. The adjusted figures are determined by adjusting the above items for material items that affect
comparability. These may include events that are not part of ordinary business activities, such as the restructuring of operations,
capital gains and losses attributable to the sale of operations, impairment, and the costs of discontinuing significant operations.
Gross investments
Investments in tangible and intangible assets, including acquired businesses
Free cash flow
=
Cash flow from operating activities - Cash flow from investments
FTE
=
Hours worked during the review period
Number of working days during the review period * normal working hours per day
Return on equity (%)
=
Profit/loss for the accounting period
*
100
Equity (average)
Adjusted return on equity (%)
=
Adjusted profit/loss for the accounting period
*
100
Equity (average)
Return on investment %
=
Profit/loss before tax + interest and other financial expenses
*
100
Equity + interest-bearing financial liabilities (average)
Adjusted return on investment %
=
Adjusted profit/loss before tax + interest and other financial expenses
*
100
Equity + interest-bearing financial liabilities (average)
Equity ratio (%)
=
Shareholders’ equity
*
100
Balance sheet total – advance payments received
Interest-bearing liabilities
=
Loans + lease liabilities
Gearing (%)
=
Interest-bearing liabilities
*
100
Shareholders’ equity
Net interest-bearing liabilities
=
Interest-bearing liabilities - cash and cash equivalents
ATRIA PLC | GROUP’S FINANCIAL INDICATORS
financial statements
Atria Annual Report 2022
Net gearing (%)
=
Interest-bearing liabilities – cash and cash equivalents
*
100
Shareholders’ equity
Earnings per share (basic)
=
Profit for the period attributable to the owners of the parent company
Weighted average of outstanding shares
Adjusted earnings per share (basic)
=
Adjusted Profit for the period attributable to the owners of the parent company
Weighted average of outstanding shares
Equity/share
=
Equity attributable to the owners of the parent company
Undiluted number of shares on 31 Dec
Dividend per share
=
Dividend distribution during the accounting period
Undiluted number of shares on 31 Dec
Dividend/profit (%)
=
Dividend/share
*
100
Earnings per share (EPS)
Adjusted dividend/profit (%)
=
Dividend/share
*
100
Adjusted earnings per share (Adjusted EPS)
Effective dividend yield (%)
=
Dividend/share
*
100
Closing price at the end of the accounting period
Price/earnings (P/E)
=
Closing price at the end of the accounting period
Earnings per share
Adjusted price/earnings (P/E)
=
Closing price at the end of the accounting period
Adjusted earnings per share
Average price
=
Overall share turnover in euros
Undiluted average number of shares traded during the financial period
Market capitalisation
=
Number of shares at the end of the financial period * closing price on 31 Dec
Share turnover (%)
=
Number of series A shares traded during the accounting period
*
100
Undiluted average number of series A shares
ATRIA PLC | IFRS FINANCIAL STATEMENTS
financial statements
Atria Annual Report 2022
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR 1,000
Note
1 Jan -31 Dec 2022
1 Jan -31 Dec 2021
EUR 1,000
Note
1 Jan -31 Dec 2022
1 Jan -31 Dec 2021
Net sales
1, 2
Profit for the period
-3,854
-5,399
Cost of goods sold
7, 8
-1,528,162
-1,363,654
Other items of comprehensive income after tax:
Gross profit
Items not reclassified to profit or loss
Actuarial gains from benefit-based
Sales and marketing expenses
3, 7, 8
-76,648
-80,962
pension obligations
10, 26
Administrative expenses
4, 7, 8
-44,502
-45,775
Changes in the fair value of equity investments
Impairment losses from financial assets
at fair value through other comprehensive
and contractual assets
20
-556
income
-437
Other operating income
5
Items reclassified to profit or loss when
Translation differences from sold operation
6
-10,680
-45,109
specific conditions are met
Other operating expenses
6, 8
-53,287
-3,768
Cash flow hedges
9, 10, 29
EBIT
1, 11
Translation differences from sold operation
33
Other change in translation differences
9, 10, 29
-8,829
-2,397
Financial income
9, 29
Comprehensive income for the period
Financial expenses
9, 25, 29
-11,213
-12,995
Net financial items
-3,402
-4,930
Comprehensive income distribution for the financial period:
Owners of the parent
Income from investments accounted for
Non-controlling interests
using the equity method
16
Total
Profit before taxes
The notes on pages 69–105 are an integral part of the consolidated financial statements.
Income taxes
10, 18
-5,526
-10,233
Profit for the period
-3,854
-5,399
Profit attributable to:
Owners of the parent
11
-5,314
-6,900
Non-controlling interests
Total
-3,854
-5,399
Basic earnings per share, EUR
11
-0.19
-0.24
Earnings per share adjusted by the dilution
effect, earnings per share, EUR
11
-0.19
-0.24
ATRIA PLC | IFRS FINANCIAL STATEMENTS
financial statements
Atria Annual Report 2022
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
ASSETS, EUR 1,000
Note
31 Dec 2022
31 Dec 2021
EQUITY AND LIABILITIES, EUR 1,000
Note
31 Dec 2022
31 Dec 2021
Non-current assets
Equity attributable to the shareholders of the parent company
Property, plant and equipment
12
Share capital
Biological assets
13
Treasury shares
-769
-1,057
Right-of-use assets
14
Other funds
Goodwill
15
Invested unrestricted equity fund
Other intangible assets
15
Translation differences
-18,108
-19,959
Investments in joint ventures and associates
16, 31, 35
Retained earnings
Other financial assets
17, 29
Total
10, 11, 18, 22, 23 ,29
Trade receivables, loans and other receivables
20, 29
Deferred tax assets
10, 18
Non-controlling interests
Total
32, 33
Total equity
Current assets
Non-current liabilities
Inventories
19
Loans
24, 29
Biological assets
13
Lease liabilities
25
Trade and other receivables
20, 29, 32, 33
Deferred tax liabilities
10, 18
Current tax assets
Pension obligations
26
Cash and cash equivalents
21, 29
Other liabilities
27, 29
Total
32, 33
Provisions
27
Total
32, 33
Total assets
1
Current liabilities
Loans
24, 29
Lease liabilities
25
Trade and other payables
28, 31
Current
tax liabilities
Total
32, 33
Total liabilities
1
Total equity and liabilities
The notes on pages 69–105 are an integral part of the consolidated financial statements.
ATRIA PLC | IFRS FINANCIAL STATEMENTS
financial statements
Atria Annual Report 2022
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Non-controlling
Equity
Equity attributable to the owners of the parent company
interest
total
Invested
unrestricted
equity fund
Currency
translation
differences
Note
Share
capital
Treasury
shares
Other funds
Retained
earnings
Total
EUR 1,000
Equity on 1 Jan 2021
-1,206
-1,310
-62,668
Total comprehensive income for the period
-6,900
-6,900
-5,399
-437
-437
-437
29
26
9
Transactions with owners
22
-4,092
23
-149
22
-14,088
-14,088
-527
-14,615
Equity on 31 Dec 2021
-1,057
-19,959
Total comprehensive income for the period
-5,314
-5,314
-3,854
29
26
9
-1
Transactions with owners
22
-4,025
-4,025
-2,641
23
-287
22
-17,767
-17,767
-752
-18,519
Equity on 31 Dec 2022
-769
-18,108
The notes on pages 69-105 are an integral part of the consolidated financial statements.
ATRIA PLC | IFRS FINANCIAL STATEMENTS
financial statements
Atria Annual Report 2022
CONSOLIDATED CASH FLOW STATEMENT
EUR 1,000
Note
1 Jan-31 Dec 2022
1 Jan-31 Dec 2021
Cash flow from operating activities
Payments received from sales
Payments received from other operating income
Payments on operating expenses
-1,623,856
-1,437,358
Interest paid and payments on other
operational financial expenses
9, 25
-7,952
-14,580
Interest payments received and other financial income
9
Direct taxes paid
10
-7,766
-10,510
Total cash flow from operating activities
Cash flow from investments
Investments in tangible and intangible assets
-126,399
-56,011
Proceeds from the sale of tangible and intangible assets
5
Acquired operations
32
-4,248
-76
Sold operations
33
Increase (-) / decrease (+) in long-term loan receivables
-187
-405
Change in other investments
-803
-538
Dividends received
Total cash flow from investments
-101,481
-25,797
Cash flow from financing activities
Drawdown of long-term loans
24
Repayment of long-term loans
24
-27,104
-89,684
Increase (+) / decrease (-) in short-term loans
24
-35,251
Principal elements of lease payments
25
-9,368
-9,528
Acquisition of non-controlling interest
22
-4,021
Contribution by non-controlling interest
22
Dividends paid
22
-18,519
-14,615
Total cash flow from financing activities
10, 18
-32,228
Change in cash and cash equivalents
-27,386
Cash and cash equivalents at the beginning of the financial period
Effect of exchange rate changes on cash flows
Cash and cash equivalents at end of the financial period
21
The notes on pages 69-105 are an integral part of the consolidated financial statements.
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
Notes to the consolidated
financial statements, IFRS
Basic corporate information
The parent company of Atria Group, Atria Plc, is a public limited liability company established in
accordance with the laws of Finland and domiciled in Kuopio, Finland. The company has been listed
on Nasdaq Helsinki Ltd. since 1991. Copies of the consolidated financial statements are available
online at www.atria.com and at the parent company’s head office at Itikanmäenkatu 3, Seinäjoki,
Finland; postal address: P.O. Box 900, 60060 ATRIA, Finland.
Atria Plc and its subsidiaries manufacture and market food products, in particular meat products,
poultry products, ready meals and food concepts. Atria’s main market area covers Finland, Sweden,
Denmark and the Baltic countries. Atria’s subsidiaries are also located in this area. Atria Group’s
reporting segments are Atria Finland, Atria Sweden and Atria Denmark & Estonia.
The financial statements were approved for publication by the Board of Directors on 21 February
2023.
Accounting policies
BASIS OF PREPARATION
The consolidated financial statements have been prepared in accordance with the International
Financial Reporting Standards (IFRS) adopted in the EU. The IAS and IFRS standards valid on 31
December 2022 have been followed, as well as SIC and IFRIC interpretations. The IFRS refer to
standards and interpretations approved for application in the EU in compliance with Regulation (EC)
1606/2002, as referred to in the Finnish Accounting Act and subsequent regulations. The notes to
the consolidated financial statements also comply with Finnish accounting and corporate legislation.
The consolidated financial statements have been prepared on an acquisition cost basis except for
biological assets, financial assets recognised at fair value in other comprehensive income, financial
assets and liabilities measured at fair value through profit or loss, and derivative financial
instruments. From the moment of classification, the assets held for sale are measured at the lower of
their balance sheet value and fair value less cost to sell.
The financial statement data is presented in thousands of euros, with sums rounded off to the
nearest thousand.
ACCOUNTING POLICIES CALLING FOR MANAGEMENT
DISCRETION AND KEY UNCERTAINTY FACTORS RELATED
TO ASSESSMENTS
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES
a) New and amended standards, effective for financial periods beginning
on or after 1 January 2022
No new standards were adopted during the financial year that would have a material effect on the
Group's reported figures.
b) Significant new standards and interpretations that have been issued,
but will not become effective until after 1 January 2022
Classification of Liabilities as Current or Non-current – Amendments to IAS 1
According to IAS 1, in order for an entity to classify a debt as non-current, the entity must have the
right to postpone the payment of the debt for at least twelve months after the end of the reporting
period. The amendments clarify that the expectations of whether the entity will exercise its right to
defer payment of the debt do not affect the classification of financial liabilities as short-term or long-
term. The amendment may affect the classification of a group's debts that have previously used
management's intention as a basis for classification. In addition, the settlement refers to a transfer to
the counterparty that results in the extinguishment of the liability. The transfer could be of cash or
other economic resources or the entity’s own equity instruments unless the settlement option is
classified as equity. The amendment may impact the presentation of the group’s certain convertible
instruments.
Loan arrangements often contain covenants, in case of breach of which the creditor has the right to
demand immediate repayment of the debt. The 2022 amendments clarify that covenants in loan
arrangements, whose compliance is required and assessed only after the reporting date, do not
affect the classification of a liability as short or long-term on the reporting date. However, those
covenants that the entity must fulfill on or before the balance sheet date should be taken into
account when classifying the debt as short-term or long-term, even if the fulfillment of the covenant
is assessed only after the reporting date. The 2022 amendments will also introduce more additional
information requirements for loans that contain covenant terms. The amendments must be applied
retrospectively in accordance with the normal requirements of IAS 8 Principles of Financial
Statements, Changes and Errors in Accounting Estimates. The standard enters into force for fiscal
years starting on or after January 1, 2024.
Atria estimates that other known future amendments or interpretations will not have a material effect
on the company's financial statements.
Accounting policies for the consolidated
financial statements
SUBSIDIARIES
The consolidated financial statements include the parent company Atria Plc and all its subsidiaries.
Subsidiaries are companies controlled by the Group. The Group controls an entity when the Group is
exposed to or entitled to variable returns from its involvement with the entity and can affect those
returns through its power over the entity. Subsidiaries acquired during the financial year are
consolidated from the date the Group has gained control and divested subsidiaries are included up
until the control ends.
Business combinations are treated using the acquisition method of accounting. Consideration
transferred, and the identifiable acquired assets and assumed liabilities of the acquired business are
measured at fair value at acquisition date. Consideration transferred includes the fair value of an
asset or liability arising from a contingent consideration arrangement. The costs of acquisition are
charged to the income statement during the period in which they are incurred, and the related
services are received. The net assets and accepted and contingent liabilities acquired in business
combinations are measured at fair value at the time of the acquisition. The interest of non-controlling
owners in the acquisition target is recognised on acquisition basis either at fair value or based on
their relative share of the identifiable net assets of the acquisition target.
Where the consideration transferred with the non-controlling interest and the fair value of the
previously held interest exceed the fair value of the acquired net assets, the excess is recorded as
goodwill on the balance sheet. If the sum of the consideration, the amount of the non-controlling
interest and previously held interest is less than the fair value of the acquired net assets, the
difference is recorded in the income statement.
All intra-Group transactions, receivables and liabilities and income and expenses are eliminated.
Profits and losses due to intra-Group transactions leading to the recognition of an asset are also
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
eliminated. The accounting policies applied by subsidiaries have been revised to match the Group
policies, where necessary.
The parent company’s changes of ownership of the subsidiaries, which do not lead to a loss of
control, are treated as equity transactions. When shares are purchased from non-controlling
shareholders, the difference between the consideration paid and the balance sheet value of the
share acquired of the net assets of the subsidiary is recognised in equity, as well as changes in the
fair value of put options related to the acquisition of shares. Profit or loss from the sale of shares to
non-controlling shareholders is also recognised in equity, as are changes in the fair value of put
options.
When control or major influence by the Group ceases to exist, any remaining interest is measured at
fair value on the date of the loss of control, and the change in balance sheet value is recognised in
the income statement. This fair value serves as the original balance sheet value when the remaining
interest is later recognised as an associated company, a joint venture or financial assets. In addition,
the amounts of said entity previously recognised in other comprehensive income are treated as if the
Group had directly disposed of the associated assets and liabilities. This may mean that amounts
previously recognised as other comprehensive income are reclassified into the income statement.
ASSOCIATED COMPANIES AND JOINT ARRANGEMENTS
Associated companies are companies in which the group has considerable influence but not control.
Usually, this is based on share ownership, which yields 20 to 50% of the voting rights.
A joint arrangement is an arrangement in which two or more parties have joint control. Investments
in joint arrangements are classified as either joint operations or joint ventures, depending on the
contractual rights and obligations of each investor. A joint operation is a joint arrangement whereby
the parties that have joint control of the arrangement have rights to the assets and obligations for the
liabilities related to the arrangement. A joint venture is a joint arrangement whereby the parties that
have joint control of the arrangement have rights to the net assets of the arrangement. The Group’s
joint arrangements are joint ventures.
Investments in associates and joint ventures are consolidated using the equity method. When using
the equity method, the investment is initially recognised at acquisition cost, and this amount is
increased or decreased to recognise the investor’s share of the subsequent profits or losses of the
investee after the time of acquisition. The Group’s investment in associates and joint ventures
includes any goodwill identified on the acquisition.
If the interest in an associate company is reduced, but significant influence is retained, only a
proportionate share of the amounts previously recognised in other comprehensive income is
reclassified as profit or loss.
The Group’s share of associates’ post-acquisition profits or losses is recognised under operating
profit on the income statement. The balance sheet value of the investment is adjusted accordingly. If
the Group’s share of the loss of an associate is equal to or exceeds its interest in the associate,
including any other unsecured receivables, the Group will not recognise further losses unless it has
a legal or factual obligation to do so or has made payments on behalf of the associate.
FOREIGN CURRENCY TRANSLATION
Items included in the financial statements of each Group company are measured using the currency
of the primary economic environment in which the entity operates (‘the functional currency’). The
consolidated financial statements are presented in euros (EUR), which is the parent company’s
functional currency, and the parent company’s and the Group’s presentation currency.
Foreign currency transactions are translated using the exchange rates prevailing on the date of the
transaction. Foreign currency receivables and liabilities are translated using the exchange rate
prevailing on the last day of the reporting period. Exchange differences arising from translation are
recognised in the income statement and presented in the operating profit. Exchange gains and
losses from forward exchange agreements protecting financial transactions and foreign currency-
denominated loans are included in financial income and expenses, excluding exchange rate
changes of derivative financial instruments that are qualifying cash flow hedges. These exchange
rate differences have been recognised in other comprehensive income.
The income statements and balance sheet items of the Group companies outside the euro area are
accounted for in the currency that is the currency of the operating region of the company in question.
The income statements of Group companies outside the euro area are translated into euros at the
average exchange rate for the reporting period and the balance sheets at the closing exchange rate.
Differences resulting from the translation are recognised as part of translation differences in other
comprehensive income. The translation differences arising from the elimination of the acquisition
costs of subsidiaries outside the euro area and the hedge profits derived from the corresponding net
investments are also recognised in other comprehensive income. When a foreign operation is
partially disposed of or sold, exchange rate differences in equity are recognised in the income
statement.
Goodwill and fair value adjustments arising on the acquisition of the foreign entity are treated as
assets and liabilities of the foreign entity and translated at the closing rate. The exchange differences
arising from this are recognised in other comprehensive income.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are recognised at the cost of purchase or construction less
accumulated depreciation and impairment losses.
If the tangible fixed asset consists of several parts with different useful lives, each part is treated as a
separate asset. The costs arising from replacing the part are capitalised. Other subsequent
expenditure is included in the acquisition cost only if it is probable that the future benefit connected
to the asset will benefit the Group, and the acquisition cost of the asset can be reliably determined.
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
All other repair and maintenance costs are recognised in the income statement as an incurred
expense.
Depreciation is recorded using a straight-line method over the estimated useful lives of the assets as
follows:
Buildings 25–50 years
Machinery and equipment 5–30 years
Other tangible assets 5–10 years
No depreciation is carried out on land and water. Asset items that cannot be recognised under
property, plant and equipment due to their nature or depreciation periods are recognised as other
tangible assets.
The residual value and useful lives of assets are reviewed annually at the closing of the accounts
and, if necessary, adjusted so that the balance sheet value is equal to the recoverable amount.
The depreciation of property, plant and equipment ends when the asset item is classified as
available for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued
Operations.
Gains and losses on the disposal or transfer of property, plant or equipment are included in other
operating income or expenses.
RIGHT-OF-USE ASSETS
The Group has leased properties, machinery and equipment. The lease contracts are made for a
fixed period or are valid until further notice. The contract period for leases valid until further notice is
assessed on a case-by-case basis. The contracts may include options to extend the lease.
A right-of-use asset and a corresponding liability is recognised for leases when the leased asset is
available for use by the Group. Assets and liabilities arising from leases are initially measured at
present value.
Right-of-use assets are measured at acquisition cost, which includes the following items:
●
●
●
●
Lease payments are discounted using the interest rate implicit in the lease. If this interest rate is
unknown, the lessee’s incremental borrowing rate will be used. This is the rate that the lessee would
have to pay to borrow the necessary funds over a similar term and with a similar security.
Depreciation for right-of-use assets is usually recognised on a straight-line basis over the useful life
of the asset, or the lease period if shorter. If it is reasonably certain that the Group will exercise the
purchase option, the useful life will be used as the depreciation period for the asset. The company
assesses the impairment of right-of-use assets in accordance with IAS 36 Impairment of Assets.
Payments related to short-term leases and leases of low-value assets are recognised as expenses
on a straight-line basis. Leases with a term of 12 months or less are considered to be short-term
leases. Atria does not apply the IFRS 16 standard to intangible assets in accordance with IAS 38.
INTANGIBLE ASSETS
Goodwill:
Goodwill represents the Group’s share of the difference between the consideration transferred and
the identifiable acquired assets and assumed liabilities measured at fair value on the acquisition
date. Goodwill is tested annually for impairment. For this purpose, goodwill has been allocated to
cash-generating units. The Group’s cash-generating units are classified based on subsidiaries’
operations and location. These are Atria Finland, Atria Sweden, Atria Denmark and Atria Estonia.
Goodwill is recognised on the balance sheet at cost less impairment losses. An impairment loss
recognised for goodwill is not reversed.
Other intangible assets:
An Intangible asset is initially capitalised on the balance sheet at cost if the cost can be measured
reliably and it is probable that the company will receive future economic benefit from the asset.
Intangible assets with a limited useful life are amortised on a straight-line basis over their estimated
useful lives. Intangible assets with indefinite useful lives are not amortised but are tested annually for
impairment.
●
●
●
●
* Includes software and subscription fees, among other items
IMPAIRMENT OF NON-CURRENT ASSETS
On each balance sheet date, the Group reviews non-current assets for any indications of
impairment. If there are such indications, the amount recoverable from the asset is estimated. The
amount of cash recoverable from goodwill and intangible assets with indefinite useful lives is
assessed annually and whenever there are indications of impairment. The recoverable amount is the
higher of the present value of the future cash flows (value in use) and the fair value of the asset less
costs of disposal. If the recoverable amount cannot be assessed per item, the impairment need is
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
observed on the level of cash-flow generating units – that is, at the lowest unit level that is mainly
independent of other units and at which cash flows can be distinguished from other cash flows.
Impairment loss is recognised if the balance sheet value of the asset is higher than the recoverable
amount. Impairment loss is recognised immediately in the income statement. If the impairment loss
concerns a cash-generating unit, it is first allocated to reduce the goodwill and then to reduce the
other assets of the unit pro rata. The useful life of the depreciated asset is re-evaluated in
connection with the recognition of an impairment loss. An impairment loss recognised for an asset
other than goodwill is reversed if there has been a change in the estimates used to determine the
amount recoverable from the asset. However, the impairment loss may not be reversed in excess of
what the asset’s balance sheet value would be without the recognition of the impairment loss. An
impairment loss recognised for goodwill is never reversed.
INVENTORIES
Inventories are measured at cost or probable net realisable value, whichever is lower. The
acquisition cost is determined using the average price method. The acquisition cost for finished and
unfinished products consists of raw materials, direct labour costs, other direct costs, and the
appropriate share of manufacturing-related variable overheads and fixed overheads at a normal
level of operations. The net realisable value is the estimated selling price in the ordinary course of
business, less the estimated selling expenses.
BIOLOGICAL ASSETS
The Group’s biological assets are living animals. They are measured at fair value less estimated
sales-related expenses. Productive animals are included in tangible assets and other animals are
included in inventories.
The fair value of productive animals has been measured at cost less an expense corresponding to a
reduction of value in use caused by ageing. There is no available market price for productive
animals. The fair value of slaughter animals is equal to their market price, which is based on the
company’s slaughter animal procurement/sales.
FINANCIAL ASSETS
Classification
In accordance with IFRS 9 Financial Instruments, the Group’s financial assets are classified in the
following categories: financial assets at amortised cost, financial assets at fair valuethrough other
comprehensive income and financial assets at fair value through profit or loss. The classification is
based on business models used for the management of the financial assets and on the contractual
cash flows of the financial assets.
The purchases and sales of financial assets are recognised on the transaction date. Financial assets
are classified as non-current assets when they fall due more than 12 months from the closing date. If
the financial assets are intended to be kept for less than 12 months, they are classified as current
assets. The Group derecognises financial assets when it has lost its right to receive the cash flows,
or when it has substantially transferred the risks and rewards of ownership to an external party.
Financial assets recognised at amortised cost and fair value recognised in
other comprehensive income:
Trade receivables, loan receivables and other receivables recognised at amortised cost are
recognised less expected impairment loss. Trade receivables recognised at fair value in other
comprehensive income are recognised at fair value. Changes in fair value are recognised in other
comprehensive income, excluding impairment losses, which are recognised through profit or loss.
Non-current trade receivables and interest-bearing loan receivables are primarily payment time
provided to secure the supply of meat raw material and loans to primary production customers.
These items are subject to the general impairment model. If there is no significant increase in credit
risk, the estimated amount of credit losses is based on the expected credit losses of 12 months and,
in other cases, on credit losses expected for the entire lifetime. Atria’s trade receivables from
consumer goods customers are short-term and do not include significant financial components.
These trade receivables are subject to a simplified method in which the estimated amount of credit
losses is based on the expected credit losses over the receivables’ lifetime.
Some trade receivables in the Group are sold to finance companies. The sold trade receivables are
derecognised on the balance sheet when the finance company has settled the payment for the
receivables and when all material risks and benefits related to the ownership have transferred to the
buyer. Trade receivables that may be sold are classified as financial assets recognised at fair value
in other comprehensive income.
Equity investments recognised at fair value through other comprehensive
income
:
The ‘other financial assets’ account includes equity investments in other companies (both listed and
unlisted shares). The shares are not held for trading. In connection with the original recognition, the
Group has made an irreversible selection of their inclusion in this group. Listed shares are
recognised at fair value, which is based on their stock market price. Unlisted shares are recognised
though valuation methods, or at acquisition price if it essentially corresponds to the fair value. When
the shares are disposed of, the balanceincluded in other comprehensive income is reclassified in
retained earnings and will not berecognised through profit or loss.
At fair value through profit or loss:
Derivatives not subject to hedge accounting are recognised at fair value through profit or loss.
Derivatives are initially recognised on the balance sheet at acquisition price, which is equal to their
fair value, and later at the fair value of the end date of the review period. Both unrealised and
realised profit or loss attributable to changes in the fair value are recognised through profit or loss
during the period in which they occur.
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
Cash and cash equivalents consist of cash, bank deposits withdrawable on demand and other cash.
Credit facilities related to Group accounts are included in non-current financial liabilities.
FINANCIAL LIABILITIES
The Group’s loans are classified either in financial liabilities recognised at amortised cost or in
financial liabilities recognised at fair value through profit or loss. Financial liabilities are classified as
current unless the Group has an absolute right to postpone the payment of the debt to a date at least
12 months from the end date of the review period. Financial liabilities (or parts thereof) are
derecognised on the balance sheet only when the debt no longer exists – that is, when the obligation
specified in the contract has been fulfilled or revoked, or has expired.
Financial liabilities recognised at amortised cost:
Loans taken out by the Group are included in financial liabilities and recognised at amortised cost.
They are initially recognised at fair value, using the effective interest rate method. Following the
initial recognition, loans are recognised at amortised cost. Interest on loans is amortised over the
loan’s maturity period through profit or loss, using the effective interest rate method.
Financial liabilities recognised at fair value through profit or loss:
Financial liabilities recognised at fair value through profit or loss include derivatives that do not meet
the criteria for hedge accounting. Both unrealised and realised profit or loss attributable to changes
in the fair value of derivatives are recognised through profit or loss during the period in which they
occur.
LEASE LIABILITIES
The Group has leased properties, machinery and equipment. When a contract is stablished, the
Group determines whether the contract is a lease contract or includes a lease contract. A lease is a
contract or part of a contract that conveys the right to use the underlying asset for a period of time in
exchange for consideration. Lease contracts are made for a fixed period or are valid until further
notice. The contract period for leases valid until further notice is assessed on a case-by-case basis.
The contracts may include options to extend the lease.
A right-of-use asset and a corresponding liability is recognised for leases when the leased asset is
available for use by the Group. Liabilities arising from leases are initially measured at present value.
Lease liabilities include the net fair value of the following lease payments:
●
●
using the index or price on the contract date
●
●
the option
●
been taken into account in the lease period
●
will be exercised.
Lease payments are discounted using the interest rate implicit in the lease. If this interest rate is not
known, the lessee’s incremental borrowing rate will be used. This is the rate of interest that the
lessee would have to pay to borrow the funds necessary for an asset of a similar value to the right-
of-use asset over a similar term and with a similar security in a similar economic environment.
To determine the incremental borrowing rate, the Group uses, as far as possible, financing that it
has recently been provided by an external party, adjusted for changes in financial circumstances that
have occurred since the financing was granted.
The Group is exposed to possible increases in lease payments based on an index or price level.
These are not taken into account in lease liabilities until their materialisation. When changes in lease
payments based on an index or price level are materialised, lease liabilities are reviewed and are
adjusted against the right-of-use asset.
Lease payments to be made are allocated to equity and financial expenses. Financial expenses are
recognised through profit or loss over the lease period so that the interest rate for the remaining
liabilities remains the same for each reporting period. Payments related to short-term leases and
leases of low-value assets are recognised as expenses on a straight-line basis. Leases with a term
of 12 months or less are considered to be short-term leases. Atria does not apply the IFRS 16
standard to leases of intangible assets that are in accordance with IAS 38.
HEDGE ACCOUNTING
Derivative contracts are initially recognised at fair value on the contract date and are subsequently
remeasured at fair value at the end of each reporting period. The recognition of changes in the fair
value of derivatives depends on whether the derivative instrument qualifies for hedge accounting
and if so, on the hedged item. Derivatives not subject to hedge accounting are defined as hedges of
interest rate, currency or electricity price risks associated with a recognised asset or liability, or a
highly probable forecast transaction (cash flow hedge).
When a derivative is subject to hedge accounting, the Group documents the relationship between
each hedging instrument and the hedged asset, as well as the risk management objective and the
strategy applied to it, at the beginning of the hedging arrangement. Through this process, the
hedging instrument is connected to the assets and liabilities or the forecast transactions related to
the instrument. Risk management objectives and strategies for undertaking various hedge
transactions are also documented. The Group documents its assessment, both at hedge inception
and on an ongoing basis, of whether the derivatives that are used in hedge transactions are highly
effective in offsetting changes in fair values or cash flows of hedged items.
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
The full fair value of a hedging derivative is classified as a non-current asset or liability when the
maturity of the hedged item is more than 12 months and as a current asset or liability when the
remaining maturity of the hedged item is 12 months or less. Derivatives held for trading are classified
as current assets or liabilities.
Valuation principles:
The fair value of forward exchange agreements is calculated by applying the forward rate on the
balance sheet date. The fair value of interest rate swaps is calculated by discounting the future cash
flows using interest rate curves for the currencies in question. Electricity derivatives are measured at
fair value using the market prices at the balance sheet date.
Cash flow hedge:
The effective portion of changes in the fair value of derivatives that are designated and qualify as
cash flow hedges is recognised in other comprehensive income and accumulated in equity. The gain
or loss related to the ineffective portion is recognised immediately in the income statement under the
appropriate item. Gains and losses accumulated in equity are reclassified in the income statement in
the periods when the hedged item affects profit or loss (for example, when the forecast purchase
that is hedged takes place). However, when the forecast transaction that is hedged, results in the
recognition of a non-financial asset (for example, inventories or fixed assets), the gains and losses
previously deferred in equity are transferred from equity and included in the initial acquisition cost of
the asset. The deferred amounts are ultimately recognised in costs of goods sold in the case of
inventories, or in depreciation in the case of fixed assets. When a hedging instrument expires or is
sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss
existing in equity at the time remains in equity and is recognised in the income statement only when
the forecast transaction occurs. When a forecast transaction is no longer expected to occur, the
cumulative gain or loss that was reported in equity is immediately transferred to the income
statement under the appropriate item.
ASSETS CLASSIFIED AS HELD FOR SALE
Non-current assets are classified as held for sale if their balance sheet value is to be recovered
through a sale transaction rather than through continuing use. This condition is regarded as having
been met only when the sale is highly probable, and the asset is available for immediate sale in its
present condition and is subject only to terms that are usual and customary. Furthermore,
management must be committed to the sale, which should be expected to occur within one year of
the date of classification.
Immediately before being classified as held for sale, these assets are measured in accordance with
the applicable IFRS standards. Thereafter, the assets are measured at the lower of their balance
sheet value and fair value less cost to sell. These assets are no longer depreciated after the
classification.
EQUITY
Ordinary shares are presented as share capital. Expenses related to the issue or acquisition of
equity instruments are presented as a deductible item under equity.
If a Group company acquires shares in the company, the consideration paid for them and the
expenses arising directly from the acquisition, taking into account the tax effect, are deducted from
the shareholders’ equity until the shares are either cancelled or reissued. If the shares are reissued,
the consideration received for them less transaction costs directly attributable to the shares is
included in the shareholders’ equity, taking into account the tax effect.
PROVISIONS
A provision is entered when the Group has a legal or constructive obligation as a result of a past
event, and it is probable that an outflow of resources will be required to settle the obligation and the
amount of the obligation can be reliably estimated. Provisions are measured at the present value of
the expenses required to cover the obligation. The amounts of provisions are reviewed on each
balance sheet date and adjusted to correspond to the best estimate at that time. Changes in
provisions are recognised in the income statement in the same item in which the original provision
was entered.
REVENUE RECOGNITION
Atria sells food products, animal feed, traded animals and services. Sales revenue is recognised
based on customer contracts. The contracts specify the contractual obligations and the prices
applicable to them. Atria does not have consolidated contractual obligations or obligations to be met
over time, advance payments or warranty obligations.
Atria recognises both the revenue and the receivable when control over the goods or service is
transferred to the customer. Delivery usually takes place in Finland within 24 hours, and control and
risks are transferred in connection with delivery. In export deals, the company estimates the time
when control transfers to the customer specific to each delivery in accordance with the terms and
time of delivery. Sales prices are not adjusted for the time value of money, because the period
between the handover of the products and the payment made by the customer is less than a year.
Atria always allocates discounts, as well as any refunds following the sale, to the month of delivery,
taking the customers’ full-year volume into account.
In the recognition of sales revenue, Atria has identified two customer groups: consumer goods
customers and primary production customers. Atria presents sales divided into these two revenue
streams as part of the segment information in Note 1 and the division of receivables in Note 20. Atria
considers these two customer groups to be the most material in terms of understanding the nature of
sales revenue and cash flow arising from customer contracts. Most contracts with customers
concern the sale of consumer products. Consumer goods customers are primarily central wholesale
businesses. In addition, Atria sells traded animals and animal feed to primary production customers.
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
EMPLOYEE BENEFITS
Pension obligations:
The Group companies have various local pension arrangements in their countries of operation.
Pension arrangements are classified as either defined contribution plans or defined benefit pension
plans.
In defined contribution plans, the Group makes fixed payments into a separate unit. The Group has
no legal or constructive obligation to make additional payments if the recipient of the payments
cannot pay the pension benefits in question. All plans that do not fulfil these conditions are defined
benefit pension plans.
Payments made into defined contribution plans are recognised in the income statement in the
reporting period to which they apply. The Group’s pension plans are mainly defined contribution
plans. In defined benefit plans the company still has an ongoing obligation for the plan even after the
payment for the period has been made. For arrangements classified as defined benefit plans,
actuarial estimates acquired on a yearly basis serve as the grounds for recognising an expense and
liability or asset in the financial statements. Actuarial gains or losses are recognised as equity
refunds or a charge in other comprehensive income in the financial period in which they occur.
Share-based payments:
The Group has an incentive programme for the management where the payments are made in part
as company shares and in part as cash. The remuneration awarded under the programme is
measured at fair value at the time of awarding and recognised in the income statement as an
expense arising from employee benefits spread over the earning and engagement period. The
amount of money paid in the arrangement is remeasured using the review period’s closing share
price and recognised in the income statement as an expense from employee benefits spread over
from the day of awarding until the money is transferred to the recipient. The final amount of the
expense depends on the extent to which the conditions of the incentive programme are met.
RESEARCH AND DEVELOPMENT EXPENSES
Research expenditure is recognised as an expense in the income statement. Expenditure related to
individual projects is capitalised on the balance sheet when there is enough certainty that the
product in question is technically viable and that the product is likely to generate future economic
benefits. Capitalised development expenditure is recognised in project-specific expenses over the
useful life of the product. The asset is amortised from the time it is ready for use. The Group has no
capitalised development expenses.
GOVERNMENT GRANTS
Grants received as compensation for expenses are recognised in the income statement, while
expenses connected with the grant are entered as costs. Such grants are recognised under other
operating income. The nature of the grants varies between countries, and the grants are only
recognised after all the terms and conditions of the grant have been met, so the company does not
have a repayment obligation arising from grants received.
Government grants – such as grants received for the acquisition of property, plant and equipment –
are recognised as a deduction in the balance sheet value of property, plant and equipment when it is
reasonably certain that the grant will be received and that the Group company fulfils the
prerequisites for receiving the grant. Grants are recognised as income in the form of lower
depreciation during the useful life of the asset.
INCOME TAXES
The consolidated income statement includes the current taxes of Group companies based on
taxable profit for the financial period in line with local tax regulations, as well as adjustments to
previous years’ taxes and changes in deferred taxes. Taxes are entered in the income statement
unless they are related to other comprehensive income or items recognised directly in equity. In
such cases, the tax is also entered in other comprehensive income or directly in equity. Taxes based
on taxable profit for the financial year are calculated using the current tax rate in each country.
Deferred taxes are recognised for all temporary differences between the balance sheet value and
the tax base. The largest temporary differences arise from the depreciation of property, plants and
equipment, and fair value measurements in connection with acquisitions. No deferred tax is
recognised for non-deductible goodwill impairment, and no deferred tax is recognised for the
undistributed profits of subsidiaries if the difference is unlikely to dissolve in the foreseeable future.
Deferred tax is calculated using the tax rates provided on the balance sheet date. Deferred tax
assets are recognised to the amount for which it is likely that taxable profit will be generated in the
future against which the temporary difference can be utilised. Deferred tax assets are recognised for
confirmed losses made by Group companies to the extent in which it is likely that the assets can be
utilised to offset future taxable profits.
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
1. SEGMENT INFORMATION, EUR 1,000
The Group’s operating segments are based on the Group’s internal organisational structure and internal financial reporting, which Atria’s Board of Directors uses in strategic and operative decision-making. The
Board of Directors assesses the performance of the operating segments based on net sales, EBIT and return on capital employed for the year.
The Group has three recognisable geographical segments that differ essentially from one another in terms of the functioning of the markets. Atria Finland, Atria Sweden and Atria Denmark & Estonia. In addition,
Group costs are now reported separately in unallocated items. Group costs consist of personnel and administration costs as well as other revenue and costs that are not allocated to the business areas. A
segment’s assets and liabilities are items that can be directly attributed or reasonably allocated to the segment. The assets of Atria-Invest Oy, which invested in Russian subsidiaries, are presented as unallocated.
Transactions between the segments take place at market prices.
Atria Group's operational structure and financial reporting were changed from January 1, 2021, following Atria's announced sale of OOO Pit-Product, which was part of Atria Russia's business area. Atria Russia
no longer formed an independent business area, and thus was not a reportable segment. OOO Pit-Product was sold in April 2021 and the net sales and EBIT for January-April are reported as unallocated. Sibylla
Rus LLC, which operated in Russia, is reported as part of the Atria Sweden segment. Sibylla Rus's business was sold in May 2022. The net sales and EBIT for January-April are included in Atria Sweden's result.
The Group has two major customers, and the value of the trade with each of them constitutes between 10% and 15% of the Group’s net sales. The net sales in question are reported in the operating segments
Finland, Denmark & Estonia and the unallocated.
Atria Denmark
Operating segments
Atria Finland
Atria Sweden
Unallocated
Eliminations
Group
Financial period that ended on 31 Dec 2022
Net sales
Revenue from consumer products
921,778
341,498
107,933
0
1,371,209
Revenue from primary production
322,955
0
2,543
0
325,498
Revenue from Group companies
20,568
14,748
2,431
0
-37,747
0
Total net sales
1,265,301
356,246
112,907
0
-37,747
1,696,707
EBIT
49,433
-37,754
1,235
-12,781
133
Financial income and expenses
-3,402
Income from joint ventures and associated
4,941
Income taxes
-5,526
Profit for the period
-3,854
Assets
707,720
229,188
112,406
17,032
-26,523
1,039,828
Liabilities
420,522
134,199
47,174
0
-26,523
575,372
Investments
98,345
26,524
6,504
0
0
131,373
Depreciation and impairment
-36,710
-62,849
-4,270
-78
-103,906
* Unallocated includes the classification of the accumulated translation differences EUR -10,7 million of the sold subsidiary in profit or loss.
Atria Sweden's EBIT includes a total of EUR -40.1 million in items affecting comparability.
Items affecting comparability are unaudited.
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
Atria Denmark
Operating segments
Atria Finland
Atria Sweden
Unallocated
Eliminations
Group
Financial period that ended on 31 Dec 2021
Net sales
Revenue from consumer products
832,970
336,054
99,609
10,137
1,278,770
Revenue from primary production
259,065
2,342
261,407
Revenue from Group companies
13,620
15,665
2,950
4,874
-37,108
0
Total net sales
1,105,654
351,718
104,901
15,011
-37,108
1,540,176
EBIT
48,132
5,037
5,112
-51,896
*
6,385
Financial income and expenses
-4,930
Income from joint ventures and associated
3,379
Income taxes
-10,233
Profit for the period
-5,399
Assets
580,940
285,580
103,179
34,587
-42,825
961,461
Liabilities
359,149
139,871
37,602
88
-42,825
493,886
Investments
39,973
11,465
4,117
36
55,590
Depreciation and impairment
-37,095
-14,022
-4,545
-1,441
-57,102
* Includes the classification of the accumulated translation differences of the sold subsidiary (EUR -45.1 million) in profit or loss.
2. NET SALES, 1,000 EUR
2022
2021
Sale of goods:
Revenue from consumer product customers
1,364,130
1,270,742
Revenue from primary product customers
325,478
261,390
Services, rents and other sales:
Revenue from consumer product customers
7,079
8,028
Revenue from primary product customers
21
17
Total
1,696,707
1,540,176
In the recognition of sales revenue, Atria has identified two customer groups: consumer
goods customers and primary production customers. Atria presents sales divided into
these two revenue streams also as part of the segment information in Note 1 and
of receivables in Note 20.
3. R & D EXPENSES, EUR 1,000
2022
2021
Research and development costs recognised
as expenditure
13,495
15,292
% Of net sales
0.8 %
1.0 %
R & D expenses are included in sales and marketing expenses.
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
4. AUDITORS' FEES, EUR 1,000
2022
2021
Firm of authorised public accountants:
Auditing fees
346
379
Reports and statements
4
1
Other services
8
0
Total
358
380
Auditors' fees are included in administrative expenses.
5. OTHER OPERATING INCOME, EUR 1,000
2022
2021
Sale of the real estate in Malmö, Sweden
9,745
Other proceeds from sales of fixed assets
80
113
Grants received
1,991
537
Refund of employment pension contributions in Sweden (FORA)
1,270
2,336
Other
3,291
3,048
Total
16,377
6,033
6. OTHER OPERATING EXPENSES AND TRANSLATION
DIFFERENCES FROM SOLD OPERATION, EUR
1,000
2022
2021
Impairment of goodwill and trademarks value in Atria Sweden
51,105
Planned depreciation of intangible assets
2,910
3,601
Sold operation *
10,680
45,109
-1,899
Other
1,171
167
Total
63,967
48,877
* Sale of Sibylla RUS LLC in 2022 and sale of OOO Pit Product in 2021.
7. PERSONNEL EXPENSES, EUR 1,000
2022
2021
Expenses from employee benefits:
Salaries
205,562
204,784
Pension costs - defined-contribution plans
30,405
31,036
Pension costs - defined-benefit plans
-197
-198
Other staff-related expenses
22,546
22,910
Total
258,315
258,532
Information on employee benefits for managerial employees is presented in Note 31.
Expenses from employee benefits by function:
Costs of goods sold
200,819
200,617
Sales and marketing expenses
30,089
31,124
Administrative expenses
27,408
26,790
Total
258,315
258,532
Group personnel on average by business area (FTE):
Finland
2,437
2,390
Sweden
819
876
Denmark & Estonia
442
445
Total
3,698
3,711
8. DEPRECIATION AND IMPAIRMENT, EUR 1,000
2022
2021
Depreciation and write-offs by function:
Costs of goods sold
42,083
44,487
Sales and marketing expenses
1,119
2,498
Administrative expenses
6,690
6,517
Other operating expenses (Note 6) *
54,015
3,601
Total
103,906
57,102
* Includes EUR 51,1 million impairment on goodwill and trademarks in 2022.
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
9. FINANCIAL INCOME AND EXPENSES, EUR 1,000
2022
2021
Financial income:
Interest income from financial assets
measured at amortised cost
1,667
1,534
Exchange rate gains from financial liabilities and
loan receivables measured at amortised cost
1,296
1,143
Changes in the value of financial assets recognised
4,839
5,373
Other financial income
8
16
Total
7,811
8,066
Financial expenses:
Interest expenses from financial liabilities measured
at amortised cost
-4,519
-4,166
Interest expenses from lease liabilities (Notes 14, 25)
-555
-580
Exchange rate losses from financial liabilities and
loan receivables measured at amortised cost
-5,218
-2,345
Other financial expenses
-118
-1,081
Impairment from loan receivables measured
at amortised cost (Note 20)
210
-548
Changes in the value of financial assets recognised
at fair value through profit or loss
-1,012
-4,276
Total
-11,213
-12,995
Total financial income and expenses
-3,402
-4,930
Items related to financial instruments and recognised
in other items of total comprehensive income before taxes:
Changes in fair value of equity instruments at fair value
through other comprehensive income
0
-437
Cash flow hedges
23,731
7,186
Translation differences
1,851
42,712
Total
25,582
49,461
10. INCOME TAXES, EUR 1,000
2022
2021
Taxes in the income statement:
Taxes based on the taxable profit for the period
10,294
10,692
Retained taxes
-36
-16
Deferred tax
-4,731
-443
Total
5,526
10,233
Reconciliation of taxes in the income statement and
taxes calculated at the parent company's tax rate:
Profit before taxes
1,672
4,834
Taxes calculated with the parent company’s 20.0% tax rate
334
967
Effect of foreign subsidiaries’ deviating tax rates
-551
-710
Effect of tax-free income
-2,421
-202
Effect of costs that are non-deductible in taxation
2,136
9,022
7,210
42
1,723
Effect of income from joint ventures/associates
-988
-676
Adjustments to taxes for previous periods
-29
-16
Other changes
-208
126
Taxes in income statement
5,526
10,233
* Includes the effect of non-deductible expenses related to the sold subsidiary in year 2021.
Taxes recognised in other items
Before
Tax
After
of total comprehensive income
tax
effects
tax
2022:
Cash flow hedges
23,731
-4,746
18,985
Actuarial gains from pension obligations
1,335
-275
1,060
Total
25,066
-5,021
20,045
2021:
Cash flow hedges
7,186
-1,438
5,745
Actuarial gains from pension obligations
200
-41
159
Total
7,386
-1,480
5,907
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
11. EARNINGS PER SHARE
2022
2021
Profit (+) / loss (-) for the financial period attributable
to the owners of the parent company (EUR 1,000)
-5,314
-6,900
Weighted average of shares for
the period (1,000 shares)
28,194
28,172
Basic earnings per share, EUR
-0.19
-0.24
Earnings per share adjusted
by the dilution effect, EUR
-0.19
-0.24
Basic earnings per share are calculated by dividing the parent company’s shareholder’s profit for the
period by the weighted average number of outstanding shares.
When calculating the earnings per share adjusted by the dilution effect, the dilution effect from all
potential dilutive conversions of ordinary shares is taken into account in the weighted average
number of shares.
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
12. PROPERTY, PLANT AND EQUIPMENT, EUR 1,000
Land and
Buildings and
Machinery and
Other
Acquisition
2022
water
structures
equipment
tangible assets
in progress
Total
Acquisition cost 1 Jan
5,995
472,773
692,745
16,112
34,208
1,221,833
Acquired operations
81
6,515
3,063
29
407
10,095
Sold operations
0
0
-8
-11,474
-22
-11,504
Increases
0
7,895
21,863
173
121,572
151,504
Decreases
-2,429
-4,751
-3,099
0
-27,831
-38,110
Exchange differences
-63
-3,548
-13,007
0
115
-16,504
Acquisition cost 31 Dec
3,584
478,884
701,557
4,840
128,449
1,317,315
Cumulative depreciation and impairment 1 Jan
0
-268,291
-554,692
-13,345
-25
-836,353
Sold operations
0
0
8
11,474
0
11,482
Decreases
0
-340
139
-884
0
-1,085
Depreciation
0
-10,421
-25,689
-458
0
-36,569
Impairment
0
-78
-4
0
0
-82
Exchange differences
0
2,409
9,668
-27
0
12,049
Cumulative depreciation and impairment 31 Dec
0
-276,722
-570,569
-3,240
-25
-850,556
Balance sheet value 1 Jan 2022
5,995
204,482
138,053
2,767
34,183
385,480
Balance sheet value 31 Dec 2022
3,584
202,163
130,988
1,600
128,424
466,758
Land and
Buildings and
Machinery and
Other
Acquisition
2021
water
structures
equipment
tangible assets
in progress
Total
Acquisition cost 1 Jan
8,455
491,771
713,758
15,511
9,697
1,239,191
Sold operations
-2,623
-25,507
-22,990
-666
-77
-51,863
Increases
227
7,502
10,736
529
51,718
70,711
Decreases
0
0
-5,088
-2
-27,266
-32,356
Exchange differences
-65
-992
-3,671
740
137
-3,851
Acquisition cost 31 Dec
5,995
472,773
692,745
16,112
34,208
1,221,832
Cumulative depreciation and impairment 1 Jan
0
-266,006
-565,901
-11,766
-25
-843,699
Sold operations
0
9,626
21,179
550
0
31,355
Decreases
0
0
13,922
2
0
13,924
Depreciation
0
-11,683
-26,382
-1,493
0
-39,557
Impairment
0
-860
-95
-7
0
-962
Exchange differences
0
632
2,585
-631
0
2,586
Cumulative depreciation and impairment 31 Dec
0
-268,291
-554,692
-13,345
-25
-836,353
Balance sheet value 1 Jan 2021
8,455
225,764
147,857
3,745
9,672
395,493
Balance sheet value 31 Dec 2021
5,995
204,482
138,053
2,767
34,183
385,480
The tangible assets used as loan collateral amount to EUR 12.8 million (6.8 million).
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
13. BIOLOGICAL ASSETS, EUR 1,000
2022
2021
Biological assets:
Productive
680
568
Consumable
4,286
3,624
At the end of the period
4,967
4,192
The period change
775
-58
Amounts of biological assets at the end of the period:
Boars, sows, gilts / qty
3,661
3,659
Pigs for fattening / qty
28,261
30,004
Chicken eggs and chicks / 1,000 qty
4,285
3,227
Production of agricultural products during the period:
Pork / 1,000 kg
4,902
5,132
Chicks / 1,000 qty
45,428
46,144
The fair value of productive biological assets is based on the original acquisition price less a cost
corresponding to the reduction of value in use due to the ageing of the animals. The fair value of
slaughter animals equals their market price, which is based on the company’s slaughter animal
procurement/sales in the local. Fair values are classified as Level 3.
14. RIGHT-OF-USE ASSETS, EUR 1,000
Right-of-use assets acquired
Machinery and
through leases in 2022
Real estate
equipment
Total
Opening balance 1 Jan
18,371
12,007
30,378
Increases
5,251
5,057
10,308
Decreases
-622
-489
-1,110
Depreciation
-5,148
-4,471
-9,619
Balance sheet value 31 Dec
17,852
12,105
29,957
Right-of-use assets acquired
Machinery and
through leases in 2021
Real estate
equipment
Total
Opening balance 1 Jan
26,056
7,641
33,697
Increases
3,999
9,006
13,005
Decreases
-6,457
-88
-6,544
Depreciation
-5,227
-4,552
-9,780
Balance sheet value 31 Dec
18,371
12,007
30,378
In 2022, outgoing cash flow arising from leases was EUR 9.9 million (10.1 million),
of which EUR 0.6 million (0.6 million) is recognised in cash flow from operating
activities and EUR 9.3 million (9.5 million) is recognised in cash flow from
financing activities.
Liabilities related to leases are presented in Note 25.
Rents
2022
2021
Other variable payments
related to leases
593
503
Rents recognised as costs during the financial period:
From short-term leases
2,186
878
From low-value leases
740
797
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
15. GOODWILL AND OTHER INTANGIBLE ASSETS, EUR 1,000
Customer
Other tangible
2022
Goodwill
Trademarks
relationship
assets
Total
Acquisition cost 1 Jan
177,667
72,146
18,856
50,906
319,575
Acquired operations
3,509
0
0
0
3,509
Increases
0
0
0
1,877
1,877
Decreases
0
0
-9,977
-86
-10,063
Exchange differences
-7,864
-3,660
-333
-485
-12,342
Acquisition cost 31 Dec
173,312
68,486
8,546
52,211
302,555
Cumulative depreciation
and impairment 1 Jan
-14,929
-10,805
-15,779
-37,855
-79,367
Depreciation on decreases
0
0
9,977
-102
9,875
Depreciation
0
-1,097
-1,338
-3,999
-6,435
Impairment
-35,098
-16,105
0
0
-51,203
Exchange differences
1,739
1,421
259
196
3,614
Cumulative depreciation 31 Dec
-48,288
-26,586
-6,881
-41,760
-123,515
Balance sheet value 1 Jan 2022
162,739
61,341
3,078
13,050
240,208
Balance sheet value 31 Dec 2022
125,024
41,900
1,665
10,451
179,040
Customer
Other tangible
2021
Goodwill
Trademarks
relationship
assets
Total
Acquisition cost 1 Jan
180,152
75,522
19,027
48,744
323,445
Sold operations
0
-2,350
0
-879
-3,229
Increases
0
0
0
9,877
9,877
Decreases
-340
-31
-79
-6,718
-7,168
Exchange differences
-2,144
-995
-91
-119
-3,349
Acquisition cost 31 Dec
177,667
72,146
18,856
50,906
319,575
Cumulative depreciation
and impairment 1 Jan
-15,323
-10,526
-13,808
-35,026
-74,684
Sold operations
0
750
0
0
750
Depreciation on decreases
340
0
79
857
1,276
Depreciation
0
-1,130
-2,108
-3,717
-6,955
Impairment
0
-86
0
-3
-89
Exchange differences
54
187
59
34
334
Cumulative depreciation 31 Dec
-14,928
-10,805
-15,779
-37,855
-79,367
Balance sheet value 1 Jan 2021
164,829
64,996
5,218
13,718
248,761
Balance sheet value 31 Dec 2021
162,739
61,341
3,078
13,050
240,208
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
Goodwill and intangible assets with indefinite useful lives are allocated
to the Group’s cash-generating units as follows:
Goodwill
Trademarks
2022
2021
2022
2021
Atria Finland
31,847
28,436
2,500
2,500
Atria Sweden
57,306
98,431
19,264
34,340
Atria Denmark
35,872
35,872
13,340
13,340
Atria Estonia
2,857
2,857
Total
125,024
162,739
37,961
53,037
Impairment testing:
Key assumptions for 2022
Atria Finland
Atria Sweden
Atria Denmark
Atria Estonia
Long-term net sales growth rate
1.0 %
1.0 %
1.0 %
1.0 %
Discount rate defined before taxes
6.0 %
7.1 %
5.4 %
7.4 %
Key assumptions for 2021
Atria Finland
Atria Sweden
Atria Denmark
Atria Estonia
Long-term net sales growth rate
1.0 %
1.0 %
1.0 %
1.0 %
Discount rate defined before taxes
3.6 %
5.9 %
3.2 %
2.6 %
The recoverable amount of a cash-generating unit is defined on the basis of value-in-use
calculations. These calculations, which use cash flow forecasts based on management-approved
budgets and strategic targets, are defined before taxes and extend over a five-year period. Cash
flows after this period are extrapolated using the growth rates presented above.
The most important assumptions used in Atria’s impairment testing for cash flow forecasts are
growth in net sales and long-term EBITDA and EBIT margins. The growth and profitability
assumptions used are based on the net sales growth rates and profitability levels that business
areas will experience in the near future. EBIT margins are expected to be close to the Group’s
targeted level of 5%.
Growth rate assumptions are moderate in all market areas. Due to the relatively stable development
of the food industry and moderately optimistic growth forecasts, it is unlikely that the growth rate
assumptions will generate impairment losses in the future.
High inflation affecting consumer behaviour, the exit of fast food operations in Russia, and increased
market interest rates have weakened the present value of Atria Sweden's cash flow forecasts. Atria
Sweden's cash flow forecasts have previously included Sibylla Rus LLC, which operated in Russia.
The market interest rates included in the discount rate used to calculate the present value of the
forecasted cash flows have increased by approximately 2 percentage points. Due to the above-
mentioned reasons, Atria wrote down goodwill of Atria Sweden by approximately EUR 35 million. In
addition, according to its strategy, Atria Sweden has decided to intensify the use of brands and to
end the support of four brands (Charkdelikatesser, Pastejköket, Onsala, Lagerbergs) and to move
most of the products of these brands under the growing Lönneberga and Lithells brands. As a result
of the decision, Atria wrote down the value of the brands by approximately EUR 16 million.
In Atria Sweden, with regard to operating profit margins, an impairment loss must be recorded if the
long-term level falls short of the assumed level or the discount rate rises with unchanged cash flow
forecasts. In Atria Denmark, with regard to operating profit margins, an impairment loss must be
recorded if the long-term level remains 23 percent of the assumed level or the discount rate
increases by 1.0 percentage points with unchanged cash flow forecasts. The difference between
Atria Denmark's value in use and book value was EUR 19.2 million. In addition to the market interest
rate, the discount rate is influenced by e.g. also country and company specific risk premiums. In
2022, the country risk premiums used by the company increased due to global market uncertainty.
It is the company’s view that no potential change to be expected would result in the recognition of an
impairment in Atria Finland or Atria Estonia.
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
16. INVESTMENTS IN JOINT VENTURES AND ASSOCIATES
1,000 EUR
2022
2021
Effect on the Group’s earnings
Associates
34
7
Joint ventures
4,907
3,372
Total
4,941
3,379
Balance sheet values in the consolidated statement of financial position
Associates
2,663
2,751
Joint ventures
17,312
14,404
Total
19,975
17,156
Material investment in a joint venture:
Honkajoki Oy is a recycling facility for animal-based raw materials in Honkajoki, Finland. The
company has subsidiaries: Findest Protein Oy, GMM Finland Oy and Remsoil Oy. Atria Plc owns
50% of the company and exercises joint control in it with HKScan Finland. Honkajoki Group’s
figures, which are reported according to the Finnish Accounting Standards (FAS), have been
consolidated using the equity method.
Summary of Honkajoki Group’s results:
Net sales
66,062
53,135
EBIT
12,435
8,624
Profit before taxes
12,244
8,413
Profit for the period
9,824
6,686
Summary of Honkajoki Group’s balance sheet:
Assets
Non-current assets
36,020
27,326
Current assets
16,318
19,742
Total assets
52,338
47,068
Liabilities
Non-current liabilities
6,981
9,090
Current liabilities
11,396
9,840
Total liabilities
18,376
18,930
Net assets
33,962
28,138
Reconciliation of the summary of financial
information for Honkajoki Group:
Profit for the period
9,824
6,686
Share of non-controlling interest
-51
2
Income from joint venture (50%)
4,886
3,344
Net assets 1 Jan
28,138
22,672
Profit for the period
9,824
6,686
Other changes
Dividend distribution
-4,000
-1,220
Net assets 31 Dec
33,962
28,138
Share of non-controlling interest
278
227
Share of joint venture (50%)
16,842
13,955
Non-material investments in joint ventures:
Balance sheet value in the consolidated
statement of financial position
471
449
Effect on earnings in the consolidated income statement
21
28
The joint ventures and associates are listed in Note 35.
17. OTHER FINANCIAL ASSETS, EUR 1,000
2022
2021
Other financial assets 1 Jan
844
1,201
Increases
62
80
Decreases
-10
-437
Other financial assets 1 Dec
896
844
Other financial assets are classified as financial assets recognised at fair value
through comprehensive income. Other financial assets include unlisted shares.
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
18. DEFERRED TAX ASSETS AND LIABILITIES,
EUR 1,000
2022
2021
Deferred tax assets:
Tax asset to be realised in more than 12 months
661
1,831
Tax asset to be realised within 12 months
278
1
Total
939
1,831
Deferred tax liabilities:
Tax liability to be realised in more than 12 months
32,962
37,159
Tax liability to be realised within 12 months
3,312
270
Total
36,274
37,429
Deferred tax assets by balance sheet item:
Intangible and tangible assets
47
113
Trade and other receivables
488
603
Interest-bearing and non-interest-bearing liabilities
149
793
Recognised losses *
254
322
Total
939
1,831
Deferred tax liabilities by balance sheet item:
Intangible and tangible assets
30,343
37,007
Financial assets
9
4
Inventories
31
43
Trade and other receivables
5,790
309
Interest-bearing and non-interest-bearing liabilities
101
66
Total
36,274
37,429
Change in deferred taxes:
Recognised in the income statement
4,731
443
Recognised in other items of total comprehensive income
-5,020
-1,480
Acquired operations (Note 32)
-182
0
Sold operations (Note 33)
186
2,831
Exchange differences
547
377
Total
262
2,171
* Deferred tax assets EUR 0.3 million from recognized losses will expire in year 2032.
Deferred tax assets for unused tax losses are recognised to the amount for which obtaining tax
benefits on the basis of taxable profit is likely. Unrecognised deferred tax assets were EUR 0.0
million (0.0 million).
19. INVENTORIES, EUR 1,000
2022
2021
Materials and supplies
71,661
49,906
Unfinished products
4,683
3,727
Finished products
73,903
55,201
Other inventories
2,517
811
Total
152,764
109,646
In the accounting period, inventory was recorded as an expense of
EUR 2.5 million (EUR 1.5 million) due to inventory losses.
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
20. TRADE RECEIVABLES, LOANS AND
OTHER RECEIVABLES, EUR 1,000
2022
2021
Balance
Balance
Non-current:
sheet value
sheet value
Trade receivables from primary production customers
2,749
3,066
Loan receivables from primary production customers
1,174
777
Other receivables
685
626
Derivative instruments - in hedge accounting
12,838
1,618
Derivative financial instruments – not in hedge accounting
803
Total
18,250
6,086
Non-current receivables are divided between currencies as follows:
EUR
17,565
5,460
SEK
655
595
Other
31
31
Total
18,250
6,086
Current:
Trade receivables from consumer goods customers
58,974
58,068
Trade receivables from primary production customers
31,857
22,608
Loan receivables from primary production customers
3,698
2,866
Other loan receivables
514
508
Other receivables
15,127
12,638
Derivative instruments – in hedge accounting
16,876
4,546
Derivative financial instruments – not in hedge accounting
1,686
163
Accrued credits and deferred charges
6,174
5,584
Total
134,906
106,981
Current receivables are divided between currencies as follows:
EUR
99,694
72,674
SEK
19,471
17,686
RUB
0
6,091
DKK
7,968
5,245
USD
5,648
3,910
Other
2,126
1,376
Total
134,906
106,981
The currency risk on receivables is a relatively low, because the majority of these
currency denominated items are held by companies in their functional currency,
except for receivables denominated in USD.
Fair values do not deviate significantly from balance sheet values. The maximum
credit risk for loans and other receivables is equivalent to their balance sheet value.
Material items in accrued credits and deferred charges consist of prepaid expenses
of purchase invoices, lease receivables and tax amortisations.
Financial assets and liabilities by category are presented in Note 29.
Receivables from consumer goods customers:
Breakdown of
trade receivables
Trade
Change
by age and
receivables
in credit
Net
Expected
expected credit losses in
before
loss
trade
credit
2022
provisions
provision
receivables
losses, %
Not due
52,580
0
52,580
0.0 %
Overdue
Less than 30 days
5,504
0
5,504
0.0 %
30–60 days
355
0
355
0.0 %
61–90 days
158
0
158
0.0 %
More than 90 days
173
204
376
-117.8 %
Total
58,770
204
58,974
-0.3 %
Provision for credit risk from
trade receivables on 1 Jan
556
Cancelled provisions
-204
Total on 31 Dec
352
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
Breakdown of
trade receivables
Trade
Change
by age and
receivables
in credit
Net
Expected
expected credit losses in
before
loss
trade
credit
2021
provisions
provision
receivables
losses, %
Not due
53,240
0
53,240
0.0 %
Overdue
Less than 30 days
4,138
0
4,138
0.0 %
30–60 days
405
0
405
0.0 %
61–90 days
83
0
83
0.0 %
More than 90 days
598
-397
200
66.5 %
Total
58,465
-397
58,068
0.7 %
Provision for credit risk from
trade receivables on 1 Jan
766
Increase in provision
397
Sold operations
-639
Exchange differences
32
Total on 31 Dec
556
Receivables from primary production:
Breakdown of
trade receivables
Trade
Change
by age and
receivables
in credit
Net
Expected
expected credit losses in
before
loss
trade
credit
2022
provisions
provision
receivables
losses, %
Not due
29,932
200
30,132
-0.7 %
Overdue
Less than 30 days
2,167
0
2,167
0.0 %
30–60 days
313
0
313
0.0 %
61–90 days
138
0
138
0.0 %
More than 90 days
1,915
-59
1,856
3.1 %
Total
34,465
141
34,606
-0.4 %
Provision for credit risk from
trade receivables on 1 Jan
2,326
Increase in provision
59
Cancelled provisions
-200
Total on 31 Dec
2,185
Breakdown of
trade receivables
Trade
Change
by age and
receivables
in credit
Net
Expected
expected credit losses in
before
loss
trade
credit
2021
provisions
provision
receivables
losses, %
Not due
22,140
76
22,216
-0.3 %
Overdue
Less than 30 days
1,351
0
1,351
0.0 %
30–60 days
220
0
220
0.0 %
61–90 days
89
0
89
0.0 %
More than 90 days
2,034
-235
1,799
11.5 %
Total
25,833
-159
25,674
0.6 %
Provision for credit risk from
trade receivables on 1 Jan
2,167
Increase in provision
235
Cancelled provisions
-76
Total on 31 Dec
2,326
Loan receivables:
At the end of the financial period, loan receivables from primary production customers
were EUR 4.9 million (3.6 million). The net effect of credit loss entries on loan receivables
was EUR +0.2 million (-0.5 million).
Advances received:
At the end of the financial period, advances from primary production customers
amounted to EUR 2.5 million (2.1 million) (Note 28).
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
21. CASH AND CASH EQUIVALENTS, EUR 1.000
2022
2021
Cash in hand and at banks
31,009
57,332
22. SHAREHOLDERS’ EQUITY, EUR 1,000
Shares and share capital
Shares are divided into A and KII series, which differ in terms of voting rights. A series shares have
one vote per share and KII series shares have ten votes per share. A series shares have a right of
priority to a dividend of EUR 0.17, after which series KII shares are paid a dividend of up to EUR
0.17. If there is still more dividend available for distribution, A and KII series shares have the same
entitlement to the dividend. All issued shares have been paid in full. The share has no nominal value
or a maximum number.
Number of shares outstanding (1,000)
A series
KII series
Total
1 Jan 2021
18,958
9,204
28,162
Share incentives *
13
13
31 Dec 2021
18,972
9,204
28,176
Share incentives *
26
26
31 Dec 2022
18,998
9,204
28,202
* Note 23
Reserves included in shareholders’ equity:
Treasury shares
The treasury shares reserve contains the acquisition cost of own shares held by the Group. In 2008
and 2009, the Group’s parent company, Atria Plc, acquired 145,102 series A shares on the stock
exchange for an acquisition cost of EUR 1.3 million. The number of treasury shares transferred as
part of the share incentive scheme of the Group’s key personnel in 2022 was 26,003 (13,126
shares). At the end of the year, the parent company held a total of 66,182 treasury shares (92,185).
Other funds
2022
2021
Fair value fund
-437
-437
Hedging fund
22,920
5,967
6,357
-420
-5,855
-1,110
Total hedging fund
23,422
4,438
Total other funds
22,985
4,001
The other funds item includes the fair value reserve and hedging fund. Financial assets at fair value
through other comprehensive income are recognised in the fair value reserve. Other funds item also
includes a hedge fund in which the effective portions of changes in the fair value of the derivative
financial instruments used for hedging are recognised. Hedge accounting results for currency and
commodity derivatives are transferred from equity to the income statement for adjustment of
purchase expenses and, correspondingly, the hedging result for interest rate derivatives is
transferred for adjustment of interest expenses.
Invested unrestricted equity fund
This reserve contains other equity investments and the share subscription price to the extent that it
is not recognised in share capital according to a separate decision, as well as the value of shares
earned based on the share incentive scheme, calculated at the rate of the grant date.
Translation differences
The following are recognised: the translation differences from the translation of the financial
statements of foreign subsidiaries, as well as the translation of fair value adjustments of goodwill,
assets and liabilities arising in conjunction with the acquisition of the said companies. Profits and
losses arisen from hedges of net investments in foreign operations are also recognised as
translation differences when the hedge accounting criteria are met.
Dividend per share paid for the period
2022
2021
Dividend/share, EUR
Dividend distributed by the parent company
17,767
14,088
The Board of Directors proposes to the Annual General Meeting to be held on 25 April
2023 that a dividend of EUR 0.70 per share be distributed, totalling EUR 19,779,644.50.
Share of non-controlling interest
2022
2021
Non-controlling interest 1 Jan
12,945
16,062
Profit for the period
1,459
1,501
Distribution of dividend
-752
-527
Ab Korv-Görans Kebab Oy's 49% minority share *
1,360
Contribution by non-controlling interest **
0
871
Acquisition of non-controlling interest ***
25
-4,962
Non-controlling interest 31 Dec
15,037
12,945
* Note 32
** Includes the non-controlling interest in EUR 0.3 million of the established Nautasuomi Oy
and an increase in share capital of EUR 0.6 million in A-Farmers Ltd.
*** Atria increased its ownership in Well-Beef Kaunismaa Ltd by 20 per cent through share
transactions made on 19th of March, 2021. Atria now owns 90 per cent of Well-Beef
Kaunismaa's stock. The purchase price was EUR 4.0 million. In addition, the value of the put
option on the company's minority shareholders (10%) was revalued. The value of the put option
on December 31, 2021 was EUR 2.1 million and it is recorded in long-term interest-free liabilities.
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
23. SHARE-BASED PAYMENTS, EUR 1,000
Atria has a long-term incentive plan for key personnel approved by Atria Plc's Board of Directors.
The share-based incentive scheme aims to encourage Atria’s management to acquire company
shares as well as to increase the company’s value through their decisions and actions over the long
term.
The scheme is based on a share bonus and a cash bonus and is divided into three one-year
periods. The possible bonus in the scheme is based on the company’s earnings per share (70%)
and organic growth (30%). The bonuses for each period are paid in equal installments over three
years following the earning period. The cash proportion covers any taxes and tax-like payments
incurred by the person due to the bonus.
The share-based incentive scheme covers a maximum of 40 people. The bonuses to be paid for the
2022 earning period are estimated at EUR 1.1 million (EUR 1.4 million).
Earning period:
2022
2021
Grant date
14 Feb 2022
15 Feb 2021
Earning period begins
1 Jan 2022
1 Jan 2021
Earning period ends
31 Dec 2022
31 Dec 2021
Maximum number of shares granted as remuneration
47,400
46,400
Earnings criteria:
70.0 %
70.0 %
30.0 %
30.0 %
Achievement of earnings criteria, %
100.0 %
100.0 %
Share incentives earned
47,400
46,400
Share price listed on grant date, EUR
10.88
11.42
Share price listed on balance sheet date, EUR
9.27
11.52
24. LOANS, EUR 1,000
2022
2021
Balance
Balance
sheet value
sheet value
Non-current:
Loans from financial institutions
232,447
176,079
Total
232,447
176,079
Current:
Loans from financial institutions
1,270
171
Pension fund loans
0
2,000
Other loans
1,416
774
Total
2,686
2,946
Loans total
235,133
179,025
The fair values of loans do not deviate significantly from the balance sheet values.
Financial liabilities by category are presented in Note 29.
With fixed interest rates
25.7 %
17.0 %
With variable interest rates
74.3 %
83.0 %
Average interest rate
3.53%
1.18%
Long-term loans mature as follows:
2023
1,092
2024
2,732
92
2025
26,674
25,092
2026
61,011
60,017
2027
80,705
Later
61,326
89,786
Total
232,447
176,079
Short-term and long-term loans by currency:
EUR
150,095
100,446
SEK
61,957
58,836
DKK
22,856
19,321
Other
225
421
Total
235,133
179,025
Part of the euro-denominated debt has been converted into foreign-currency-denominated
debt with forward exchange agreements.
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
Reconciliation of loans
2021
Proceeds
Repayments
Total cash flows
Acquired
subsidiary
Other changes
2022
Long-term loans
176,079
75,000
-25,104
49,897
6,471
0
232,447
Short-term loans
4,067
-4,067
-4,067
0
0
-1,121
97,274
-94,879
2,395
1,412
2,686
Total Short-term loans
2,946
97,274
-98,946
-1,672
1,412
0
2,686
Total
179,025
172,274
-124,049
48,225
7,883
0
235,133
25. LEASE LIABILITIES, EUR 1,000
2022
2021
Lease liabilities
Long-term
20,795
21,282
Short-term
9,754
9,587
Total
30,549
30,868
Reconciliation of lease liabilities:
Liabilities 1 Jan
30,868
Payments
-9,368
Increases
9,049
Liabilities 31 Dec
30,549
The interest expenses from lease liabilities recognised during the period were
EUR 0.6 million (0.6 million). A maturity analysis of payments related to lease liabilities is
presented in Note 29.
26. PENSION OBLIGATIONS, EUR 1,000
2022
2021
The defined benefit pension obligation on the balance sheet is determined as follows:
Present value of funded obligations
4,769
6,708
Present value of funded obligations
Deficit(+) / Surplus(-)
4,769
6,708
Pension obligation in the balance sheet
4,769
6,708
Benefits paid
-197
-198
Interest expenses
115
72
Pension costs in the profit and loss account
-83
-126
Items recognised in other items of total comprehensive
income due to reassessment
-1,335
-200
Pension costs in total comprehensive income
-1,335
-200
Changes to liabilities in the balance sheet:
Liability of the ITP2 pension arrangement on Jan 1
6,708
7,185
Pension costs in the income statement and
total comprehensive income
-1,417
-327
Exchange differences
-522
-150
At the end of the period, on 31 Dec
4,769
6,708
Actuarial assumptions used (%):
Discount rate
3.70
1.80
Inflation rate
2.00
2.20
The Group’s Swedish companies have defined benefit pension arrangements (ITP2). Most of the
ITP2 pension arrangements are provided by the occupational pension insurance company Alecta as
multi-employer arrangements, so the funds and liabilities within them cannot be allocated to an
individual company. For this reason, the ITP2 pension arrangements managed by Alecta are treated
as defined contribution plans in the financial statements. The remaining ITP2 pension arrangements
are financed through the FPG/PRI system, and they are treated as defined benefit plans as of the
2011 accounting period.
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
27. OTHER NON-CURRENT LIABILITIES
AND PROVISIONS, EUR 1,000
2022
2021
Other non-current liabilities:
Other liabilities *
6,529
2,466
Derivative instruments - in hedge accounting
336
512
Accruals and deferred income
43
65
Total
6,907
3,043
* Other liabilities include the current value, EUR 6.1 million (EUR 2.1 million), of the put option
related to the minority share in the subsidiaries.
Other non-current liabilities are mainly in euros.
Financial liabilities by class are presented in Note 29.
Provisions:
Provisions 1 Jan 2022
0
Cost of goods sold
487
Other operating expenses
113
Provisions 31 Dec 2022
600
28. CURRENT TRADE AND OTHER PAYABLES, EUR 1,000
AND OTHER PAYABLES, EUR 1,000
2022
2021
Trade payables
145,059
129,524
Advances received (Note 20)
2,529
2,062
Other liabilities
53,149
48,519
Derivative instruments - in hedge accounting
101
104
Derivative financial instruments - not in hedge accounting
300
210
Accruals and deferred income
56,788
54,948
Total
257,927
235,367
Material items in accrued liabilities consist of personnel expenses and the amortisation
of debt interests.
Financial liabilities by class are presented in Note 29.
Current liabilities consist of the following currencies:
EUR
194,122
175,506
SEK
55,248
49,416
RUB
0
3,734
DKK
7,506
5,465
PLN
530
1,021
USD
278
199
Other
242
25
Total
257,927
235,367
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
29. FINANCIAL RISK MANAGEMENT
The treasury policy approved by the Board of Directors defines the general principles of financial risk
management. The Board has delegated the management of financial risks to the Treasury
Committee, while the practical management of financial risks is centralised in the Group’s Treasury
unit. The goal of financial risk management is to reduce the impact that price fluctuations in the
financial markets and other uncertainty factors have on earnings, the balance sheet and cash flow,
as well as to ensure sufficient liquidity. Treasury, together with the business areas, aims to identify,
assess and hedge against all risks in accordance with the treasury policy. The main risks related to
financing are interest rate risk, currency risk, liquidity and refinancing risk, and credit risk.
Commodity risks and capital structure management are also discussed at the end of this section.
Interest rate risk
Interest rate risk is managed by dividing financing into instruments with floating and fixed interest
rates and by hedging with interest rate derivatives. During the financial year, the Group used interest
rate swaps and interest rate cap agreements for interest rate risk management. The Group links
interest rate risk management to the interest cover ratio that is forecast by dividing the 12-month
rolling operating margin by the forecast net interest rate expenses. The lower the EBITDA is in
relation to net financial costs, the larger the share of debt that must have a fixed interest rate.
Consolidated interest-bearing debt on the balance sheet date amounted to EUR 265.7 million (209.9
million). The interest-bearing debt includes EUR 235.1 million (179.0 million) in loans and EUR 30.5
million (30.9 million) in lease liabilities. Fixed-rate loans accounted for EUR 60.3 million (30.4
million), or 25.7% (17.0%), of the loans. The ratio of debt with fixed and floating interest rates is at
the level defined by the Group’s treasury policy.
The interest rate risk is mainly related to the Group’s interest-bearing liabilities, because the amount
of money market investments is low, as is the related interest rate risk. The Group’s cash flows from
operating activities are to a large extent independent of fluctuations in interest rates. At the balance
sheet date, Atria Plc had one EUR 30 million interest rate cap agreement with an interest rate cap of
0.5%. The agreement is valid until 27 December 2023 and is included in the share of the loan
portfolio with a fixed interest rate. The interest rate cap agreement is not subject to hedge
accounting. In addition, the company has entered into two interest rate swap agreements of EUR 30
million that will come into effect in the future, one of which came to effect on 31 October 2022 are
subject to hedge accounting. Interest rate swaps are subject to hedge accounting and their detailed
information is:
An interest rate swap amounting to EUR 30 million for the period 27 December 2023 – 23 June
2027, where Atria pays a fixed interest rate of 0.686% and receives the 6-month Euribor rate. The
interest rate swap hedges a EUR 30 million floating rate loan maturing on 25 September 2027,
which will be included in fixed rate interest-bearing debt from 27 December 2023, when the interest
rate swap becomes effective.
An interest rate swap amounting to EUR 30 million for the period 31 October 2022 to 1 November
2027, where Atria pays a fixed interest rate of 0.182% and receives the 6-month Euribor rate. The
interest rate swap hedges a EUR 30 million portion of a EUR 60 million floating rate loan maturing
on 2 May 2028. The interest rate swap agreement has been included in fixed rate interest-bearing
debt from 31 October 2022, when the interest rate swap becomes effective.
The sensitivity analysis of net interest rate expenses is based on a 1% change in interest rates,
which is considered to be reasonably realistic. It is calculated for year-end interest-bearing, floating
rate net liabilities that are expected to remain the same over the financial period. EUR 30 million
interest rate cap agreement and EUR 30 million interest rate swap agreement are taken into
accounts in the calculation. In simulations, the same change in interest rate is used for all
currencies. On 31 December 2022, net floating rate liabilities excluding lease liabilities amounted to
EUR 142.8 million (91.3 million). At the end of 2022, a +/-1% increase in interest rates corresponded
to a change of EUR +/-1.4 million in the Group's annual interest rate expenses (+/-0.9 million). The
effect on equity would be EUR 2.0 million (2.5 million) with an increase of 1% and EUR -2.1 million (-
2.6 million) with a decrease of 1%.
Currency risk
Atria Group operates in many currency zones and is exposed to currency-related risks. Currency
risks arise from forecast transactions, assets and liabilities recognised on the balance sheet, and
from net investments in foreign subsidiaries. The subsidiaries hedge the currency risk related to
commercial operational items according to their currency risk policy for each business area. Each
currency risk policy has been approved by the Treasury Committee.
In Finland and Sweden, hedge accounting is applied to the currency hedges mentioned above.
Currency risk is monitored according to the 12-month rolling cash flow forecast, and hedges are
carried out for periods of 1 to 6 months using forward exchange agreements. The cash flows hedged
during this time are expected to occur and affect profit or loss. Transaction risks arise from, for
example, transaction risks from the euro-denominated meat raw material imports of Atria’s
companies in Sweden. In Atria’s Finnish operations, currency flows and risks are relatively low and
are mainly related to exports denominated in USD and SEK. Most of the businesses’ trade
receivables are in their own functional currencies.
The Group’s net investments in the operations of foreign subsidiaries are exposed to currency risks.
The Treasury Committee decides on net investment hedges on a case-by-case basis. On the
balance sheet date, there were no derivative agreements in force for net investment hedging.
The parent company grants financing to the subsidiaries in their home currencies and has hedged
the currency-denominated loan receivables from the subsidiaries with forward exchange agreements
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
During the financial year, translation differences recognised in the consolidated statement of
comprehensive income amounted to EUR +1.9 million (+42,7 million). During the financial year, Atria
sold its Russian subsidiary LLC Sibylla Rus. The accumulated translation differences related to the
company were EUR -10.7 million on 30 April 2022. These translation differences were transferred
from translation differences in comprehensive income to other operating expenses. At the end of the
year, the value of net investments exposed to fluctuations of the rouble was EUR 0.0 million (11.0
million).
If, at the end of the financial year, the euro had been 10% weaker/stronger than the Swedish krona
(all other factors being equal), profit before taxes would have been EUR 0.8 million higher/lower due
to the Swedish subsidiaries’ unhedged euro-denominated net position of accounts receivable and
accounts payable (0.6 million). The effect on equity would have been EUR 0.2 million higher/lower
(0.4 million). Sensitivity analyses also take into account the effects of currency derivatives, which
offset the effects of change in exchange rates.
Liquidity and refinancing risk
Atria Plc’s Treasury raises the majority of the Group’s interest-bearing financing. Liquidity and
refinancing risks are managed through a balanced loan maturity distribution and by having sufficient
committed credit facilities with sufficiently long periods of validity at hand, by using several financial
institutions and instruments to raise financing and by keeping a sufficient amount of cash funds. Atria
uses commercial papers for short-term financing and liquidity management. Unused committed
credit facilities totalled EUR 85.0 million (85.0 million) at the end of the year, and EUR 200 million of
the EUR 200 million commercial paper programme had not been used at the end of the financial
year (200.0 million). The average maturity of the Group’s loans and committed credit facilities was 4
years 1 months (4 years 11 months).
The main covenant used in loan agreements is a minimum equity ratio covenant of 28%. The
Group’s equity ratio has been around 40% for many years, and the Group will continue to ensure an
equity ratio higher than the level required by the covenant. According to the terms of loan
agreements, the compliance of covenants is reported to lenders quarterly.
According to the Group management’s view, there was no significant liquidity accumulation in
financial assets or financial sources.
The table below shows the maturity analysis for financial liabilities and derivative financial
instruments (undiscounted figures). The payment of derivative liabilities and assets are related to
forward exchange agreements, and interest payments are related to interest rate swaps.
EUR 1,000
Maturity, 31 Dec 2022
< 1
> 5
year
years
years
Total
Loans
Instalments
0
93,130
139,316
232,446
Interest payments
8,565
30,565
140
39,269
Lease
payments
Instalments and interests
9,187
19,440
1,895
30,523
Derivative
Electricity derivatives
336
336
financial
Interest rate swaps
1,751
487
2,238
instruments *
Currency derivatives**
- Capital payments
95,811
95,811
- Capital income
-98,089
-98,089
Other liabilities
Instalments
6,369
6,529
12,898
Trade payables
Payments
145,059
0
145,059
Total
Total payments
264,991
151,750
141,838
558,579
Total income
-98,089
0
0
-98,089
Net payments
166,902
151,750
141,838
460,491
EUR 1,000
Maturity, 31 Dec 2021
< 1
> 5
year
years
years
Total
Loans
Instalments
2,946
85,815
90,264
179,025
Interest payments
2,210
9,734
512
12,456
Lease
payments
Instalments and interests
10,147
19,761
1,568
31,476
Derivative
Electricity derivatives
92
92
financial
Interest rate swaps
833
193
1,027
instruments*
Currency derivatives**
- Capital payments
91,714
91,714
- Capital income
-91,934
-91,934
Other liabilities
Instalments
5,668
2,466
8,134
Trade payables
Payments
129,524
0
129,524
Total
Total payments
242,209
118,701
92,537
453,447
Total income
-91,934
0
0
-91,934
Net payments
150,276
118,701
92,537
361,514
* There is an agreement on the offsetting right with all derivative counterparties.
The figures for derivative liabilities and assets presented in the table are gross amounts.
If the figures were offset, derivative liabilities would amount to EUR 31.5 million (5.5million).
** Forward exchange agreements implemented in gross amounts.
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
Credit risk
Credit risk is managed at Group level in accordance with the Group’s risk management policy
approved by the Board of Directors. The credit risk related to financing (counterparty risk) is
managed by selecting only well-established highly rated counterparties with good credit ratings. The
Group’s liquid assets are only invested with counterparties that meet the criteria mentioned above.
This is also the procedure when entering into financing and derivative agreements. The credit risk
related to derivatives is also reduced by the fact that all payments related to interest rate derivatives
are net payments. Atria has only made derivatives with banks that are among Atria’s main lenders.
The credit risk of the Group’s operative business is related to our customers, of which the main ones
are large retail chains. Part of the Group’s trade receivables are related to feed and animal trading in
primary production. The credit risk related to this is higher, but also more dispersed. The Group’s
trade receivables are also dispersed over several market areas and many customers. To secure the
supply of domestically produced meat raw material in Finland, Atria has granted financing to meat
producers. The interest-bearing loan receivables are primarily related to these loans.
Credit loss risk is managed with securities, such as credit insurance policies and bank guarantees,
as well as with advance invoicing. Each business area has been assigned a separate credit policy
that takes into account the special features of the market area. Credit risk is examined and
monitored on a case-by-case basis for major customers and customer groups. More detailed
information about trade receivables is provided in Note 20.
Commodity risk
The Group is exposed to commodity risks, with the most significant commodities being meat raw
material and electricity. Fluctuations in the price of meat raw material affect profitability in the short
term, but efforts are made to pass on the price increases to sales prices as soon as possible.
Fluctuations in the price of electricity are hedged with forward electricity agreements according to the
Group’s electricity procurement policy. The hedging levels in the policy are shown in the table below.
Period Minimum Maximum
1-12 months 70% 100%
13-24 months 40% 80%
25-36 months 0% 50%
37-48 months 0% 40%
49-60 months 0% 30%
Hedge accounting in accordance with the IFRS is applied to electricity hedges. On 31 December
2022, the volume protected was 497,713 MWh (543,456 MWh), with a nominal value of EUR 14.8
million (EUR 12.4 million). The value, EUR 22.6 million (6.0 million), of the effective portion of
electricity derivatives which meet the criteria for hedge accounting were recognised in the equity
hedge fund.
If the market price for electricity derivatives changed by +/-10% from the level of 31 December 2022,
the effect on equity would be EUR +/-3.8 million (+/-1.8 million), on the assumption that all hedges
are 100% effective.
Capital structure management
In capital structure management, the Group aims to ensure normal operating conditions under all
circumstances and to maintain an optimal capital structure in terms of capital costs.
The Group monitors the development of its capital structure primarily through the equity ratio, for
which the Group has set a target level of 40%. Based on this equity ratio, the company estimates
that the availability and total cost of new capital are optimal.
Equity ratio is affected by the balance sheet total and equity. The company is able to affect the
balance sheet total and, thereby, the capital structure through the management of working capital,
the amount of investments and the sale of business operations or assets. Correspondingly, the
company can affect the amount of its own equity through dividend distribution and share issues. The
equity ratio was 44.8% (31 December 2021: 48.7%).
In the assessment of investments and divestments, the Group uses the Group’s weighted average
cost of capital (WACC) as reference. This way, the Group seeks to ensure that its assets generate at
least an amount corresponding to the average cost of its capital.
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
Values of financial assets and liabilities by category:
EUR 1,000
Recognised
Recognised at fair
Recognised at fair
Derivatives
at amortised
value though
value through total
in hedge
Balance sheet
2022 Balance sheet item
cost
profit or loss
comprehensive income
accounting
value in total
Non-current assets
Trade receivables
2,749
2,749
Other financial assets
896
896
Loan receivables
1,174
1,174
Other receivables *
685
685
Derivative financial instrument
803
12,838
13,641
Current assets
Trade receivables
87,422
3,409
90,831
Loan receivables
4,207
4,207
Other receivables *
4,777
4,777
Derivative financial instruments
1,686
16,876
18,562
Cash and cash equivalents
31,009
31,009
Total financial assets
132,025
2,489
4,305
29,714
168,533
Non-current liabilities
Loans
232,447
232,447
Lease liabilities
20,795
20,795
Other liabilities **
6,529
6,529
Derivative financial instruments
336
336
Current liabilities
Loans
2,686
2,686
Lease liabilities
9,754
9,754
Trade payables
145,059
145,059
Other liabilities **
6,369
6,369
Derivative financial instruments
300
101
402
Total financial liabilities
423,638
300
0
437
424,376
* Do not include VAT or income tax assets
** Do not include VAT or income tax liabilities
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
EUR 1,000
Recognised
Recognised at fair
Recognised at fair
Derivatives
at amortised
value though
value through total
in hedge
Balance sheet
2021 Balance sheet item
cost
profit or loss
comprehensive income
accounting
value in total
Non-current assets
Trade receivables
3,066
3,066
Other financial assets
844
844
Loan receivables
777
777
Other receivables *
625
625
Derivative financial instrument
1,618
1,618
Current assets
Trade receivables
79,266
1,410
80,676
Loan receivables
3,374
3,374
Other receivables *
4,331
4,331
Derivative financial instruments
163
4,546
4,709
Cash and cash equivalents
57,332
57,332
Total financial assets
148,770
163
2,254
6,163
157,351
Non-current liabilities
Loans
176,079
176,079
Lease liabilities
21,282
21,282
Other liabilities **
2,466
2,466
Derivative financial instruments
512
512
Current liabilities
Loans
2,946
2,946
Lease liabilities
9,587
9,587
Trade payables
129,524
129,524
Other liabilities **
5,668
5,668
Derivative financial instruments
210
104
315
Total financial liabilities
347,551
210
0
616
348,377
* Do not include VAT or income tax assets
** Do not include VAT or income tax liabilities
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
Fair value hierarchy:
EUR 1,000
Balance sheet item
2022
Level 2
Level 3
Non-current assets
Financial assets at fair value through
other comprehensive income
– Unlisted shares
896
896
Derivative financial instruments
13,641
13,641
Current assets
Derivative financial instruments
18,562
18,562
Total
33,100
32,203
896
Non-current liabilities
Derivative financial instruments
336
336
Current liabilities
Derivative financial instruments
402
402
Total
738
738
0
Balance sheet item
2021
Level 2
Level 3
Non-current assets
Financial assets at fair value through
other comprehensive income
– Unlisted shares
844
844
Derivative financial instruments
1,618
1,618
Current assets
Derivative financial instruments
4,709
4,709
Total
7,170
6,326
844
Non-current liabilities
Derivative financial instruments
512
512
Current liabilities
Derivative financial instruments
315
315
Total
827
827
0
Level 1: Prices listed on active markets for identical assets and liabilities
The fair value of financial instruments traded in active markets is based on market prices listed on
the closing date. Markets are regarded as active if listed prices are readily and regularly available
from the stock exchange, broker, industry group, price information service or supervisory authority,
and these prices represent actual and regularly occurring market events between independent
parties. The current purchase price is used as the listed market price for financial assets.
Level 2: Fair values can be determined either directly (i.e. as prices) or indirectly (i.e. derived
from prices)
A fair value is established through valuation techniques for financial instruments that are not traded
in active markets (such as OTC derivatives). These valuation techniques make maximum use of
observable market information, when available, and rely as little as possible on company-specific
assessments. If all significant input required for determining the fair value of the instrument is
observable, the instrument is on level 2.
Level 3: Fair values are not based on verifiable market prices
If one or more significant piece of input information is not based on observable market information,
the instrument is classified as level 3. Assessments by external parties are used to measure
financial instruments and, if such assessments are not available, the company’s own
calculations/assessments are used.
Changes in financial instruments belonging to level 3:
Unlisted shares
2022
2021
Opening balance 1 Jan
844
1,201
Increases
62
80
Decreases
-10
-437
Closing balance 31 Dec
896
844
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
Derivative financial instruments:
Fair values of derivative instruments
Derivative
Derivative
Net
Net
assets
liabilities
fair value
fair value
EUR 1,000
2022
2022
2022
2021
Forward exchange agreements
Cash flow hedges under hedge
accounting
46
18
28
-82
Other hedges
1,686
0
1,686
-47
Interest rate swaps and interest rate cap agreements,
due in more than one year
Cash flow hedges under hedge
accounting
6,357
6,357
-420
Interest rate cap agreements
803
803
31
Electricity derivatives
Cash flow hedges under hedge
accounting
23,311
719
22,592
6,049
Total
32,203
738
31,466
5,531
Nominal values of derivative financial instruments
EUR 1,000
2022
2021
Forward exchange agreements
Cash flow hedges under hedge accounting
11,020
13,763
Other hedges
83,125
78,005
Interest rate swaps and interest rate cap agreements
Cash flow hedges under hedge accounting
60,000
60,000
Interest rate cap agreements
30,000
30,000
Electricity derivatives
Cash flow hedges under hedge accounting
14,825
12,365
Other hedges
Total
198,969
194,133
30. CONTINGENT LIABILITIES, EUR 1,000
Debts with mortgages or
other collateral given as security
2022
2021
Loans from financial institutions *
8,648
1,186
Pension fund loans
4,337
4,170
Total
12,985
5,356
Mortgages and other securities given
as comprehensive security
Real estate mortgages *
6,180
1,186
Corporate mortgages *
3,600
Total
9,780
1,186
Contingent liabilities not included in the balance sheet
Guarantees
87
83
* Growth is due to the acquired subsidiary (note 32).
31. RELATED PARTY TRANSACTIONS, EUR 1,000
Atria Group’s related parties include the members of the Board of Directors and the Supervisory
Board, the CEO, the Deputy CEO and other members of the management team, their immediate
families and the companies in which they have a controlling interest. Other related parties include
the Group’s joint ventures and associated companies, as well as the shareholding co-operatives
Itikka Co-operative, Lihakunta and Pohjanmaan Liha Co-operative and the subsidiaries of these
companies.
Group companies, Group joint ventures and associates are presented in more detail in Note 35.
All business transactions that are entered into with related parties and are not eliminated in the
consolidated financial statements are recognised as related party transactions.
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
Transactions with related
Joint
Other
parties and related-party
ventures and
related
assets and liabilities
associates
party
Total
1 Jan–31 Dec 2022
Sale of goods
9,661
11,311
20,971
Sale of services *
1,771
185
1,956
Rental income
4,820
0
4,820
Purchase of goods
17,205
18,460
35,665
Purchase of services
68,529
105
68,634
Rental costs
6,125
5,385
11,509
31 Dec 2022
Trade receivables
1,293
481
1,774
Other receivables
4
0
4
Interest-bearing liabilities
0
557
557
Trade payables
7,058
-208
6,850
Transactions with related
Joint
Other
parties and related-party
ventures and
related
assets and liabilities
associates
party
Total
1 Jan–31 Dec 2021
Sale of goods
6,030
12,689
18,720
Sale of services
9
186
195
Rental income
4,797
0
4,797
Purchase of goods
13,699
18,638
32,337
Purchase of services
59,596
57
59,653
Rental costs
5,874
5,423
11,296
31 Dec 2021
Trade receivables
928
792
1,720
Other receivables
3
0
3
Interest-bearing liabilities
0
262
262
Trade payables
6,248
-232
6,015
The sale of goods and services to related parties is based on the Group’s valid
price lists. The largest expense item under purchase of services is formed by
the logistics services purchased from Tuoretie Oy.
Employee benefits and fees of the Group’s key managerial
personnel (on an accrual basis)
2022
2021
Short-term employee benefits
3,420
3,603
Post-employment benefits (group pension
benefits)
300
406
Share-based incentives
520
594
Total
4,240
4,604
The key personnel in the Group’s management are the members of the Board of Directors and the
Supervisory Board, the CEO, the Deputy CEO and the other members of the Group’s Management
Team. For the CEO and Deputy CEO, the retirement age is 63 years.
Group pension benefits have been arranged for the members of Atria Group’s Management Team
who are within the scope of Finnish social security. The retirement age of the group pension
insurance is 63 years for the members of the Management Team. The pension plan is contribution
defined, and the annual payment is based on the monthly salary (monetary salary and fringe
benefits) of the insured.
Incentive schemes for management
Long-term incentive scheme:
Atria Plc has a long-term incentive scheme for key persons. The share-based incentive scheme
aims to encourage Atria’s management to acquire company shares as well as to increase the
company’s value through their decisions and actions over the long term.
The scheme is based on a share bonus and a cash bonus and is divided into three one-year
periods. The possible bonus in the scheme is based on the company’s earnings per share (70%)
and organic growth (30%). The bonuses for each period are paid in equal instalments over three
years following the earning period, The cash proportion aims to cover any taxes and tax-like
payments incurred by the person due to the bonus. The share-based incentive scheme covers a
maximum of 40 people. The bonuses to be paid for the 2022 earning period are estimated at EUR
1.1 million (EUR 1.4 million).
Short-term incentive scheme:
The maximum amount of bonus for the short-term incentive plan of Atria Plc is 25–50% of the annual
salary, depending on the effect on the result and the level of competence required to perform the
duties. The criteria in the bonus system comprise Group-level and business area specific operating
profit and net sales targets. In addition to the CEO and other members of the Management Team,
Atria Plc’s bonus scheme covers approximately 40 people.
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
Salaries, benefits and pension contributions for
Salaries
Supplementary
the members of the Supervisory Board and the
pension
Board of Directors, the CEO and the Deputy CEO
benefits
contributions
Total
Members of the Supervisory Board:
Halonen Jyrki, Chair
23
23
Anttikoski Juho, Deputy Chair
14
14
Other members of the Supervisory Board
99
99
Total
135
0
135
Members of the Board of Directors:
Paavola Seppo, Chair
74
74
Korhonen Pasi, Deputy Chair
46
46
Ginmann-Tjeder Nella
35
35
Joukio Mika, member since May 2022
21
21
Kaikkonen Jukka
36
36
Laitinen Leena
32
32
Moisio Jukka, member until May 2022
13
13
Paxal Kjell-Göran
40
40
Ritola Ahti
56
56
Total
351
0
351
CEO:
Gröhn Juha
874
117
991
Deputy CEO:
Back Tomas
449
62
512
32. ACQUIRED OPERATIONS, EUR 1,000
Atria Finland Ltd bought 51.0% of AB Korv-Görans Kebab Oy's shares on 30 Dec 2022. Atria gained
control over the company. Korv-Görans Kebab manufactures frozen meat products and is a long-
term partner of Atria as a contract manufacturer of kebab chips, cooked chicken products and other
meat products made from Finnish raw materials. Ripe, bulk-frozen kebab chips are the company's
main products. In addition, the company manufactures cooked meat and chicken products, kebab
skewers and cooked minced meat products. Korv-Görans Kebab's production facility is located in
Pietarsaari, Finland and was founded in 1988. The company built new premises in 2019. The
company employs 65 people permanently.
Atria's goal is to strengthen its position in the convenience food and Foodservice products market.
Atria has a long-term cooperation with Korv-Görans Kebab. The ownership in the company brings
new opportunities for Atria to respond to the growth of the convenience food market and the
development of the Foodservice market and the wishes of customers. The deal combines the
flexible operating method of a small operator with the know-how and market position of a large
company.
Atria has the obligation to redeem the remaining 49% of the shares during 2028 at the earliest if the
non-controlling owners decide to exercise their put option. A liability has been recorded for the
redemption obligation, which is valued at the present value of the estimated obligation (see note 27).
The acquisition has no significant impact on Atria's financial position or result.
Ab Korv-Görans Kebab Oy
2022
Acquisition price for the share of 51%
4,924
Assets and liabilities of the company, fair values employed in the acquisition:
Property, plant and equipment
10,095
Investments
2
Inventories
2,844
Current receivables
1,095
Cash and cash equivalents
427
Total assets
14,463
Deferred tax liabilities
182
Non-current liabilities
6,471
Current liabilities
5,035
Total liabilities
11,687
Net assets
2,775
Share of non-controlling interest 49 % *
1,360
Goodwill from acquisition
3,509
* Atria records the non-controlling interests according to the relative ownership.
Future changes in the share of non-controlling interest, which do not lead to
a loss of control, are treated as internal arrangements in equity.
0
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
The total purchase price to be paid in cash
4,924
Part of the purchase price to be paid later
250
The company’s cash and cash equivalents
427
Effect of the acquisition on cash flow on 31 Dec 2022
4,248
The calculation is preliminary because the acquisition took place at the end
of the financial year. Purchase price has not yet been fully allocated to the
identifiable net assets. Identifiable net assets and goodwill are expected to
be specified in the 2023 reporting.
33. SOLD OPERATIONS, EUR 1,000
In May, 2022 Atria divested its subsidiary Sibylla Rus LLC, engaged in the fast-food business, to
Limited Liability Company Agricultural Complex Mikhailovskiy, which is part of Cherkizovo Group.
The transaction price was EUR 8.2 million. The transaction does not include the Sibylla brand. The
net sales of the Russian fast-food company have accounted for approximately 2 per cent of Atria
Group’s net sales and the business has been profitable. The fast-food operations have been
reported in the Atria Sweden segment.
Atria recognised a sales gain of EUR 1.9 million on the transaction. An accumulated translation
difference loss of EUR 10.7 million was also recognised on the sale. The translation difference is
recognised in the income statement, but it has no effect on the Group’s equity ratio or cash flow.
Sibylla Rus LLC
2022
Asset 30 Apr 2022
Property, plant and equipment
977
Right-of-use assets
744
Deferred tax assets
51
Inventories
1,496
Trade and other receivables
6,598
Cash and cash equivalents
823
Total assets
10,689
Liabilities 30 Apr 2022
Long-term lease liabilities
627
Deferred tax liabilities
238
Short-term lease liabilities
164
Short-term trade and other payables
3,750
Total liabilities
4,779
Consideration received:
Cash
8,193
Sold net assets
-5,910
Transactions costs
-382
Result on sale before reclassification of accumulated
translation differences
1,901
Reclassification of foreign currency translation reserve
-10,680
Loss on sale
-8,779
Cash flow from sold operations:
Received payment
8,193
Company´s cash and cash equivalents
-823
Total
7,370
OOO Pit-Product:
In February 2021, Atria concluded the sale of its Russian subsidiary OOO Pit-Product to Limited
Liability Company Agricultural Complex Mikhailovskiy, which belongs to the Cherkizovo Group. The
divestment, which transferred ownership of OOO Pit-Product to the buyer, was completed on 30
April 2021. OOO Pit-Product's assets and liabilities are presented as assets held for sale and
liabilities related to assets in the March 2021 interim report. The divestment does not include Atria
Russia's other subsidiary, Sibylla Rus LLC. The purchase price was EUR 31.8 million. The
divestment has an impact of around EUR 35 million on Atria Group's net sales. The business has
been showing a loss. The divested business had approximately 720 employees.
Cumulated translation differences associated with Pit-Product stood at EUR -45.1 million on 30 April
2021. The translation differences have accumulated from exchange rate fluctuations during the Pit-
Product holding. Atria purchased Pit-Product in 2005. At that time, one euro corresponded to around
RUB 34. At the time of the transaction, one euro was worth RUB 90. When divesting a foreign
subsidiary, the cumulative translation differences associated with said subsidiary, which have
already been recognised in equity, are recognised through profit or loss. Since the cumulated
translation differences already reduced the Group's equity, this recognition had no impact on the
Group's equity ratio or cash flow.
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
OOO Pit-Product
2021
Asset 30 Apr 2021
Property, plant and equipment
20,793
Right-of-use assets
240
Other intangible assets
1,636
Inventories
7,567
Trade and other receivables
4,475
Cash and cash equivalents
1,438
Total assets
36,149
Liabilities 30 Apr 2021
Long-term lease liabilities
134
Deferred tax liabilities
1,841
Short-term lease liabilities
131
Short-term trade and other payables
3,421
Total liabilities
5,527
Consideration received:
Cash
31,775
Sold net assets
-30,623
Transactions costs
-1,026
Result on sale before reclassification of accumulated
translation differences
126
Reclassification of foreign currency translation reserve
-45,109
Loss on sale
-44,982
Cash flow from sold operations:
Received payment
31,775
Company´s cash and cash equivalents
-1,438
Total
30,337
34. EVENTS AFTER THE PERIOD UNDER REVIEW
Lars Ohlin, Executive Vice President, Human Resources, and member of Atria Group’s Management
Team will retire as of 1 March 2023.
ATRIA PLC | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
financial statements
Atria Annual Report 2022
35. GROUP COMPANIES, GROUP JOINT VENTURES AND ASSOCIATES
The most significant subsidiaries of Atria Group are Atria Finland Ltd, Atria Sverige AB, Atria Danmark
A/S and Atria Eesti AS, all of which are manufacturers of foodstuffs as well as A-Farmers Ltd, which is
responsible for animal procurement and trading, and A-Rehu Oy, which manufactures animal feed.
Group companies
Share of
Share of
by business area
Domicile
holding (%)
votes (%)
Atria Finland:
A-Liha Jyväskylä Oy
Finland
100.0
100.0
A-Lihatukkurin Oy
Finland
100.0
100.0
A-Logistics Ltd
Finland
100.0
100.0
A-Pekoni Nurmo Oy
Finland
100.0
100.0
A-Pihvi Kauhajoki Oy
Finland
100.0
100.0
A-Rehu Oy *
Finland
51.0
51.0
A-Sikateurastamo Oy
Finland
100.0
100.0
Atria Plc
Finland
Atria Finland Ltd
Finland
100.0
100.0
Atria-Chick Oy
Finland
100.0
100.0
Atria-Lihavalmiste Oy
Finland
100.0
100.0
Atria-Tekniikka Oy
Finland
100.0
100.0
Atria-Tuoreliha Oy
Finland
100.0
100.0
Atria-Valmisruoka Oy
Finland
100.0
100.0
A-Farmers Ltd *
Finland
97.9
99.0
Best-In Oy
Finland
100.0
100.0
Domretor Oy
Finland
100.0
100.0
Fastighets Ab Görans, as of 30 Dec 2022 *
Finland
51.0
51.0
Kauhajoen Teurastamokiinteistöt Oy
Finland
100.0
100.0
Well Beef Ltd *
Finland
90.0
90.0
Kiinteistö Oy Tievapolku 3
Finland
100.0
100.0
Korv-Görans Kebab Oy, as of 30 Dec 2022 *
Finland
51.0
51.0
Liha ja Säilyke Oy
Finland
100.0
100.0
Nautasuomi Oy *
Finland
51.0
51.0
Rokes Oy
Finland
100.0
100.0
Sahalahden Broiler Oy
Finland
100.0
100.0
Suomen Kalkkuna Oy
Finland
100.0
100.0
Atria Sweden:
Atria Concept SP Z.o.o
Poland
100.0
100.0
Atria Concept UK Ltd
UK
100.0
100.0
Atria Korea LLC
Republic of Korea
100.0
100.0
Atria Sverige AB
Sweden
100.0
100.0
Atria Sweden AB
Sweden
100.0
100.0
Sibylla Sweden AB
Sweden
100.0
100.0
Atria Denmark & Estonia:
Atria Danmark A/S
Denmark
100.0
100.0
Atria Denmark Holding A/S
Denmark
100.0
100.0
Atria Eesti AS
Estonia
100.0
100.0
Atria Farmid OÜ
Estonia
100.0
100.0
OÜ Atria **
Estonia
100.0
100.0
Unallocated:
Atria-Invest Oy
Finland
100.0
100.0
* Note 22, 32
** Dormant company
The consolidated financial statements include all subsidiaries.
Share of
Share of
Group joint ventures and associates
Domicile
holding (%)
votes (%)
Group joint ventures:
Honkajoki Oy *
Finland
50.0
50.0
Länsi-Kalkkuna Oy
Finland
50.0
50.0
Group associates:
Findest Protein Oy
Finland
33.1
33.1
Finnpig Oy
Finland
49.0
49.5
Foodwest Oy
Finland
24.5
24.5
Kiinteistö Oy Itikanmäen Teollisuustalo
Finland
12.6
12.6
Transbox Oy
Finland
25.7
25.7
Tuoretie Oy
Finland
33.3
33.3
* Reported as a significant joint venture (Note 16).
ATRIA PLC | PARENT COMPANY FINANCIAL STATEMENTS (FAS)
financial statements
Atria Annual Report 2022
PARENT COMPANY FINANCIAL STATEMENTS, FAS
INCOME STATEMENT, EUR 1,000
Note
1 Jan–31 Dec 2022
1 Jan–31 Dec 2021
NET SALES
38,859
37,705
Other operating income
5,786
5,892
Personnel expenses
-5,349
-5,555
Depreciation and impairment
-22,269
-21,999
Other operating expenses
-6,501
-5,618
EBIT
10,526
10,426
Financial income and expenses
-25,748
2,143
PROFIT/LOSS BEFORE APPROPRIATIONS
AND TAXES
-15,221
12,569
Appropriations
31,827
20,675
Income taxes
-9,965
-6,282
PROFIT/LOSS FOR THE PERIOD
6,641
26,963
ATRIA PLC | PARENT COMPANY FINANCIAL STATEMENTS (FAS)
financial statements
Atria Annual Report 2022
BALANCE SHEET, EUR 1,000
A s s e t s
Note
31 Dec 2022
31 Dec 2021
FIXED ASSETS
Intangible assets
7
10
6,382
7,643
Total intangible assets
6,389
7,653
Tangible assets
297,650
231,357
Investments
267,832
355,125
3,520
3,520
615
624
Total investments
271,967
359,270
Non-current receivables
164,142
146,500
TOTAL FIXED ASSETS
740,147
744,779
CURRENT ASSETS
Current receivables
61,579
40,403
Cash in hand and at bank
29,844
55,984
TOTAL CURRENT ASSETS
91,423
96,386
T o t a l a s s e t s
831,570
841,166
L i a b i l i t i e s
Note
31 Dec 2022
31 Dec 2021
EQUITY
Share capital
48,055
48,055
Treasury shares
-769
-1,057
Invested unrestricted equity fund
248,252
248,540
Retained earnings
15,386
6,190
Profit/loss for the period
6,641
26,963
TOTAL EQUITY
317,565
328,691
ACCRUED APPROPRIATIONS
Depreciation difference
76,188
84,756
LIABILITIES
Non-current liabilities
225,000
175,420
Current liabilities
212,817
252,299
TOTAL LIABILITIES
437,817
427,719
T o t a l l i a b i l i t i e s
831,570
841,166
ATRIA PLC | PARENT COMPANY FINANCIAL STATEMENTS (FAS)
financial statements
Atria Annual Report 2022
CASH FLOW STATEMENT, EUR 1,000
1 Jan–31 Dec 2022
1 Jan–31 Dec 2021
CASH FLOW FROM OPERATING ACTIVITIES
Payments received from sales
39,295
37,133
Other business revenue
5,786
5,892
Payments on operating expenses
-12,629
-7,106
Cash flow from operating activities
32,452
35,919
Dividends received
54,785
2,195
Interest received and other financial income
-1,681
4,654
Interest paid and financial expenses
-2,366
-7,974
Tax paid
-4,201
-5,559
Cash flow from operating activities
78,989
29,235
CASH FLOW FROM INVESTMENTS
Investments in tangible and intangible assets
-87,297
-37,100
Investments in subsidiaries
-852
-72,457
Change in Group receivables
-29,350
95,046
Change in loan receivables
0
5
Cash flow from investments
-117,499
-14,507
CASH FLOW FROM FINANCING ACTIVITIES
Drawdown of long-term loans
50,000
120,000
Repayment of long-term loans
-2,000
-89,000
Drawdown of short-term loans
109,919
65
Repayment of short-term loans
-109,985
-34,972
Change in other liabilities
24
0
Change in Group liabilities
-42,822
23,443
Received or given Group contributions
25,000
15,000
Dividends paid
-17,767
-14,088
Cash flow from financing activities
12,370
20,448
1 Jan–31 Dec 2022
1 Jan–31 Dec 2021
CASH FLOW FROM OPERATING ACTIVITIES
78,989
29,235
CASH FLOW FROM INVESTMENTS
-117,499
-14,507
CASH FLOW FROM FINANCING ACTIVITIES
12,370
20,448
TOTAL
-26,140
35,176
Change in cash and cash equivalents
Cash and cash equivalents 1 Jan
55,984
20,807
Cash and cash equivalents 31 Dec
29,844
55,984
Change
-26,140
35,176
ATRIA PLC | PARENT COMPANY FINANCIAL STATEMENTS (FAS)
financial statements
Atria Annual Report 2022
1. PRINCIPLES APPLIED IN PREPARING THE FINANCIAL STATEMENTS
General principles applied in preparing the financial statements
Atria Plc’s financial statements have been drawn up in accordance with Finland’s accounting Act and
the other rules and regulations pertaining to the compilation of financial statements (FAS).
Information concerning the Group
Atria Plc is the parent company of Atria Group, and its domicile is in Kuopio, Finland. Copies of Atria
Plc’s consolidated financial statements are available at the company’s head office at Itikanmäenkatu
3, Seinäjoki; postal address: P.O. Box 900, 60060 ATRIA, Finland.
Valuation principles
In the balance sheet, tangible and intangible assets are entered at their direct acquisition cost less
planned depreciation and value adjustments. Depreciation is implemented on a straight-line basis
over the service life of the assets. Contributions received for the acquisition of tangible assets are
recognised as a decrease in acquisition costs. These contributions are not significant.
The depreciation periods are as follows:
Buildings Seinäjoki 40 years
Machinery and equipment Seinäjoki 10 years
Software 5 years
Other long-term items 10 years
Investments under non-current assets are originally entered at acquisition price. The book value of
investments is assessed annually in connection with the preparation of the financial statements and,
if the criteria of Chapter 5, section 13 of the Accounting Act are met, revaluations can be made as
necessary.
Items presented in foreign currencies
Items expressed in foreign currencies have been converted into euro at the exchange rate quoted by
the European Central Bank. The exchange differences of the realised currency-denominated loans
are presented under financial items.
Financial assets and liabilities
Financial instruments are measured primarily in accordance with chapter 5, section 2 of the
Accounting Act. Receivables at nominal value, although at a maximum probable value. Securities
and others of the kind falling under the scope of financial assets at acquisition cost or, if their
probable normal value on the closing date is less than that, at this value. Liabilities at nominal value
or, if the debt is tied to an index or some other basis for comparison, to the value higher than the
nominal value pursuant to the changed basis for comparison.
Derivative financial instruments
Of financial instruments, derivatives are measured at fair value in accordance with the alternative
practice presented in chapter 5, section 2a of the Accounting Act. Derivatives are accounted for as
hedging. The company enters into derivative contracts mainly to hedge against fluctuations in
interest rates and currency exchange rates. The derivatives used are forward exchange agreements
and interest rate swaps. The company recognises derivatives at fair value on the balance sheet
when the derivative contract enters into force Interest rate swaps have been recognised in
accordance with this principle since the 2018 financial year. Derivatives are measured at fair value
on the balance sheet date, and gains and losses arising from the valuation difference are recognised
in financial income and expenses in the income statement.
ATRIA PLC | PARENT COMPANY FINANCIAL STATEMENTS (FAS)
financial statements
Atria Annual Report 2022
2. NOTES TO THE INCOME STATEMENT, EUR 1,000
1 Jan–31 Dec 2022
1 Jan–31 Dec 2021
2.1 NET SALES
38,859
37,705
The company’s rental income is presented as net sales because it corresponds
with the present nature of the company’s operations.
2.2 OTHER OPERATING INCOME
Service charges from Group companies
5,486
5,808
Other
300
84
Total
5,786
5,892
2.3 PERSONNEL EXPENSES
Average number of personnel
Office personnel in Finland
19
19
Personnel expenses
Salaries:
CEO, Executive Vice President and Deputy CEO
and members of the Board
1,466
1,375
Members of the Supervisory Board
82
61
Other salaries
2,802
2,841
Total
4,350
4,277
Pension costs
860
1,127
Other staff-related expenses
139
151
Total
999
1,278
Total personnel expenses
5,349
5,555
Pension commitments of the members of the Board of Directors and the CEO:
The company’s statutory pensions are defined contribution plans and have been arranged
through an insurance company (see Note 31 to the consolidated financial statements).
1 Jan–31 Dec 2022
1 Jan–31 Dec 2021
2.4 DEPRECIATION AND IMPAIRMENT
Depreciations of tangible and intangible assets
22,269
21,999
Depreciation specification per balance sheet item included in section 3.1.
2.5 OTHER OPERATING EXPENSES
Other operating expenses
6,501
5,618
Including administration, marketing, energy, cleaning,
operational and other costs as well as fees paid to auditors.
Fees paid to auditors/PricewaterhouseCoopers Oy
Auditing fees
191
158
Other fees
3
0
Total
194
158
2.6 FINANCIAL INCOME AND EXPENSES
Return on long-term investments:
From Group companies
52,661
1,493
From other companies
2,124
702
Total
54,785
2,195
Other interest and financial income:
From Group companies
4,242
3,305
From other companies
5,445
4,989
Total
9,687
8,294
ATRIA PLC | PARENT COMPANY FINANCIAL STATEMENTS (FAS)
financial statements
Atria Annual Report 2022
1 Jan–31 Dec 2022
1 Jan–31 Dec 2021
Interest expenses and other financial expenses:
To Group companies
-303
-3
Impairment of investments in fixed assets *
-88,078
-437
To other companies
-1,839
-7,906
Total
-90,220
-8,346
Total financial income and expenses
-25,748
2,143
Interest expenses and other financial expenses
include exchange rate gains/losses (net)
-92
112
* In 2022 pursuant to Chapter 5, section 13 of the Accounting Act, the company has reduced the
value of the shares of Atria-Invest Oy, which had invested in Russian subsidiaries, on Atria Plc’s
balance sheet. The impairment is due to the divestment of the Russian business. The reduction in
value has no effect on the financial statements of Atria Group.
2.7 APPROPRIATIONS
Difference between planned depreciation and
depreciation implemented in taxation
8,569
-4,325
Group contributions received
23,259
25,000
Total
31,827
20,675
2.8 INCOME TAXES
Income taxes for the accounting period
9,965
6,290
Taxes for previous financial periods
0
-8
Total
9,965
6,282
3. NOTES TO THE BALANCE SHEET, EUR 1,000
3.1 INTANGIBLE AND TANGIBLE
31 Dec 2022
31 Dec 2021
ASSETS
Intangible assets:
Intangible rights
Acquisition cost 1 Jan
1,483
1,483
Acquisition cost 31 Dec
1,483
1,483
Cumulative depreciation 1 Jan
-1,473
-1,470
Depreciation for the period
-3
-3
Cumulative depreciation 31 Dec
-1,476
-1,473
Balance sheet value 31 Dec
7
10
Other long-term expenditure
Acquisition cost 1 Jan
39,997
38,291
Increases
1,337
1,717
Decreases
-86
-11
Acquisition cost 31 Dec
41,248
39,997
Cumulative depreciation 1 Jan
-33,424
-30,794
Depreciation for the period
-2,622
-2,629
Cumulative depreciation 31 Dec
-36,046
-33,424
Balance sheet value 31 Dec
5,202
6,573
Advance payments and
acquisitions in progress
Acquisition cost 1 Jan
1,070
416
Changes +/-
109
655
Acquisition cost 31 Dec
1,180
1,070
Balance sheet value 31 Dec
1,180
1,070
Total intangible assets
6,389
7,653
ATRIA PLC | PARENT COMPANY FINANCIAL STATEMENTS (FAS)
financial statements
Atria Annual Report 2022
31 Dec 2022
31 Dec 2021
Tangible assets:
Land and water
Acquisition cost 1 Jan
1,179
1,179
Decreases
-178
0
Acquisition cost 31 Dec
1,001
1,179
Balance sheet value 31 Dec
1,001
1,179
Buildings and structures
Acquisition cost 1 Jan
333,925
330,720
Increases
2,631
3,205
Decreases
-3
0
Acquisition cost 31 Dec
336,554
333,925
Cumulative depreciation 1 Jan
-196,449
-189,563
Depreciation for the period
-6,927
-6,886
Cumulative depreciation 31 Dec
-203,376
-196,449
Balance sheet value 31 Dec
133,178
137,476
Machinery and equipment
Acquisition cost 1 Jan
404,552
396,288
Increases
12,242
8,285
Decreases
-51
-21
Acquisition cost 31 Dec
416,743
404,552
Cumulative depreciation 1 Jan
-341,068
-328,695
Depreciation for the period
-12,613
-12,373
Cumulative depreciation 31 Dec
-353,680
-341,068
Balance sheet value 31 Dec
63,063
63,485
Other tangible assets
Acquisition cost 1 Jan
3,794
3,794
Acquisition cost 31 Dec
3,794
3,794
Cumulative depreciation 1 Jan
-2,478
-2,370
Depreciation for the period
-105
-108
Cumulative depreciation 31 Dec
-2,582
-2,478
Balance sheet value 31 Dec
1,212
1,316
31 Dec 2022
31 Dec 2021
Advance payments
and acquisitions in progress
Acquisition cost 1 Jan
27,901
4,630
Changes +/- *
71,295
23,270
Acquisition cost 31 Dec
99,196
27,900
Balance sheet value 31 Dec
99,196
27,900
Total tangible assets
297,650
231,357
Non-depreciated acquisition cost of machinery
and equipment
63,063
63,485
The share of items other than production machinery and equipment is not significant in amount.
The acquisition costs of completely depreciated and scrapped items are presented as decreases.
* Growth due to the new poultry factory to be built in Nurmo.
3.2 INVESTMENTS
Parent company
Parent company
Group companies:
holding %
holding %
Ab Botnia Food Oy, Seinäjoki *
100
100
Atria Concept UK Ltd, United Kingdom
100
100
Atria Denmark Holding A/S, Denmark
100
100
Atria Eesti AS, Estonia
100
100
Atria Korea LLC, Republic of Korea
100
100
Atria Sweden AB, Sköllersta, Sweden
100
100
Atria Finland Ltd, Kuopio
100
100
Atria-Invest Oy, Seinäjoki
100
100
A-Farmers Ltd, Seinäjoki
97.9
97.9
Best-In Oy, Kuopio
100
100
Kauhajoen Teurastamokiinteistöt Oy, Kauhajoki
100
100
Kiinteistö Oy Tievapolku 3, Helsinki
100
100
Liha ja Säilyke Oy, Forssa
63.2
63.2
Mestari Forsman Oy, Seinäjoki *
100
100
OÜ Atria, Estonia
100
100
Rokes Oy, Forssa
100
100
Suomen Kalkkuna Oy, Seinäjoki
100
100
ATRIA PLC | PARENT COMPANY FINANCIAL STATEMENTS (FAS)
financial statements
Atria Annual Report 2022
31 Dec 2022
31 Dec 2021
Joint ventures and associates:
Foodwest Oy, Seinäjoki
24.5
24.5
Honkajoki Oy, Honkajoki
50.0
50.0
Kiinteistö Oy Itikanmäen Teollisuustalo, Seinäjoki
12.6
12.6
Länsi-Kalkkuna Oy, Säkylä
50.0
50.0
Transbox Oy, Helsinki
18.6
18.6
Tuoretie Oy, Seinäjoki
33.3
33.3
* Merged with Atria Plc, the completion date of the merger was 31 December 2022.
3.3 RECEIVABLES
Non-current receivables:
Derivatives
7,160
0
Receivables from group companies:
Loan receivables
156,981
146,500
Total non-current receivables
164,142
146,500
Current receivables:
Trade receivables
27
20
Other receivables
2,621
251
Accrued credits and deferred charges
1,727
259
Receivables from group companies:
Trade receivables
2,613
3,056
Other receivables
30,091
11,146
Accrued credits and deferred charges
24,500
25,670
Total current receivables
61,579
40,403
Material items included in accrued credits and deferred charges:
– group contributions
23,259
25,000
– interest accruals
1,241
674
– valuation of forward contracts
1,392
140
– other
336
115
Total
26,227
25,929
3.4 EQUITY
31 Dec 2022
31 Dec 2021
Share capital 1 Jan
48,055
48,055
Share capital 31 Dec
48,055
48,055
Total restricted equity
48,055
48,055
Treasury shares 1 Jan
-1,057
-1,206
Share incentives
287
149
Treasury shares 31 Dec
-769
-1,057
Invested unrestricted equity fund 1 Jan
248,540
248,689
Change
-287
-149
Invested unrestricted equity fund 31 Dec
248,252
248,540
Retained earnings 1 Jan
33,153
20,278
Distribution of dividends
-17,767
-14,088
Retained earnings 31 Dec
15,386
6,190
Profit/loss for the period
6,641
26,963
Retained earnings 31 Dec
22,027
33,153
Total unrestricted equity
269,510
280,636
Total equity
317,565
328,691
At the end of the financial period on 31 December 2022, the company held a total of 66,182
treasury shares, representing 0.2% of the shares and 0.1% of the votes in the company. The
number of treasury shares transferred as share incentives during the financial period was 26,003
Calculation of distributable funds:
Invested unrestricted equity fund
248,252
248,540
Retained earnings
15,386
6,190
Profit/loss for the period
6,641
26,963
Treasury shares
-769
-1,057
Total
269,510
280,636
ATRIA PLC | PARENT COMPANY FINANCIAL STATEMENTS (FAS)
financial statements
Atria Annual Report 2022
The breakdown of the share capital is as follows:
Number of
EUR 1,000
Number of
EUR 1,000
Series A (1 vote per share)
19,063,747
32,408
19,063,747
32,408
Series KII (10 votes per share)
9,203,981
15,647
9,203,981
15,647
Total
28,267,728
48,055
28,267,728
48,055
3.5 ACCRUED APPROPRIATIONS
31 Dec 2022
31 Dec 2021
Depreciation difference
76,188
84,756
3.6 NON-CURRENT LIABILITIES
Loans from financial institutions
225,000
175,000
Accruals and deferred income
0
420
Total non-current liabilities
225,000
175,420
3.7 CURRENT LIABILITIES
Loans from financial institutions
0
61
Pension fund loans
0
2,000
Trade payables
6,575
7,701
Other payables
886
643
Accruals and deferred income
9,671
3,367
Liabilities to Group companies:
Trade payables
546
571
Other payables
195,131
237,953
Accruals and deferred income
7
3
Total current liabilities
212,817
252,299
Material items included in accruals and deferred income:
– accruals of salaries and social security payments
2,201
1,891
– interest accruals
920
544
– valuation of forward contracts
6
187
– amortised taxes
6,265
499
– other
286
250
Total
9,679
3,371
4. OTHER NOTES, EUR 1,000
4.1 SECURITIES GIVEN, CONTINGENT LIABILITIES
31 Dec 2022
31 Dec 2021
AND OTHER LIABILITIES
Contingent liabilities and other liabilities not included in the balance sheet
Guarantees
On behalf of Group companies
38,251
36,933
Total
38,251
36,933
Other leases
Within one year
769
756
Within more than one year and a maximum of five years
1,125
1,263
After more than five years
2,261
2,194
Total
4,155
4,213
ATRIA PLC | PARENT COMPANY FINANCIAL STATEMENTS (FAS)
financial statements
Atria Annual Report 2022
4.2 VAT LIABILITIES
The company has made property investments as referred to in the Value Added Tax Act.
The remaining verification liability of these investments was assessed for each
verification period on 31 December 2022.
Year of completion
of the investment
Remaining amount of verification liability
2013
87
2014
93
185
2015
419
628
2016
569
758
2017
447
559
2018
270
324
2019
433
505
2020
1,116
1,275
2021
4,230
4,759
2022
11,884
Total
19,461
9,081
The company is obliged to verify reductions in VAT on property investments
if the taxable use of the properties decreases during the verification period.
4.3 INTEREST RATE SWAP AND INTEREST RATE CAP AGREEMENTS
Interest rate swap agreement:
Asset being hedged: A loan of EUR 60 million, 28 April 2021 – 2 May 2028, interest 6-month Euribor
Hedging derivative: Interest rate swap with a nominal value of EUR 30 million; the company receives
a 6-month Euribor rate and pays a fixed interest rate. The fair value of the agreement on the closing
date is EUR 4,002,078. The cash flow from the interest rate swap is recognised in the income
statement with the same periods as the interest flows from the hedged loan.
Hedging derivative: Interest rate swap with a nominal value of EUR 30 million; the company receives
a 6-month Euribor rate and pays a fixed interest rate. The fair value of the agreement on the closing
date is EUR 2,355,007. The cash flow from the interest rate swap is recognised in the income
statement with the same periods as the interest flows from the hedged loan. The derivative enters
into force on 27 December 2023.
Interest rate cap agreement:
Asset being hedged: A loan of EUR 30 million, 22 September 2020 – 25 September 2027, interest 6-
month Euribor
Hedging derivative: Interest rate cap agreement with a nominal value of EUR 30 million; interest rate
cap 0.5%, reference rate 6-month Euribor. Should the 6-month Euribor exceed the 0.5% interest rate
cap, the bank pays the derivative for the exceeding portion as calculated for the nominal amount.
The fair value of the agreement on the closing date is EUR 803,404. The cash flow from the interest
rate cap agreement is recognised in the income statement with the same periods as the interest
flows from the hedged loan.
4.4 DERIVATIVE FINANCIAL INSTRUMENTS
Fair values of derivative
Derivative
Derivative
Net fair
Net fair
financial instruments:
assets
liabilities
value
value
31 Dec 2022
31 Dec 2022
31 Dec 2022
31 Dec 2021
Forward exchange agreements
(maturity less than a year)
1,392
-6
1,385
-47
Interest rate swaps and cap agreements
7,160
7,160
-420
Total
8,552
-6
8,546
-467
Nominal values of derivative
financial instruments:
31 Dec 2022
31 Dec 2021
Forward exchange agreements
83,125
78,005
Interest rate swaps
60,000
60,000
Interest rate cap agreements
30,000
30,000
Total
173,125
168,005
The grounds employed to determine the fair value of derivative financial instruments are
consistent with the Group’s principles. Detailed information concerning derivatives
(including risk management and hierarchy levels) are presented in Note 29
to the consolidated financial statements.
ATRIA PLC | PARENT COMPANY FINANCIAL STATEMENTS (FAS)
financial statements
Atria Annual Report 2022
Fair value hierarchy:
Balance sheet item
31 Dec 2022
Level 1
Level 2
Level 3
Current assets
Derivative financial instruments
8,552
8,552
Non-current liabilities
Current liabilities
Derivative financial instruments
-6
-6
Balance sheet item
31 Dec 2021
Level 1
Level 2
Level 3
Current assets
Derivative financial instruments
140
140
Non-current liabilities
Interest rate swaps
-420
-420
Current liabilities
Derivative financial instruments
-187
-187
Level 1: Input for identical assets and liabilities, prices quoted on
functional markets.
Level 2: Quoted prices belonging to levels other than level 1, observable for
assets and liabilities either directly or indirectly.
Level 3: Assets and liabilities subject to input not based on verifiable
market prices.
On the balance sheet date, 31 December 2022, the company had EUR 0.6 million
(EUR 0,6 million on 31 December 2021) in other financial assets, in addition to derivatives,
consisting of unlisted shares. These belong to level 3.
ATRIA PLC | SIGNATURES
financial statements
Atria Annual Report 2022
Signatures to the financial statements and annual report
Helsinki, 21 February 2023
Seppo Paavola Nella Ginman-Tjeder
Chair
Mika Joukio Jukka Kaikkonen
Pasi Korhonen Leena Laitinen
Kjell-Göran Paxal Ahti Ritola
Juha Gröhn
CEO
Note to the financial statement
A report on the audit performed has been issued today.
Helsinki, 3 March 2023
PricewaterhouseCoopers Oy
Firm of authorised public accountants
Samuli Perälä
Authorised public accountant
ATRIA PLC | AUDITOR’S REPORT
financial statements
Atria Annual Report 2022
Report on the Audit of the Financial Statements
To the Annual General Meeting of Atria Plc
Report on the audit of the financial statements
Opinion
In our opinion
●
International Financial Reporting Standards (IFRS) as adopted by the EU
●
regulations governing the preparation of the financial statements in Finland and comply with statutory requirements.
Our opinion is consistent with the additional report to the Board of Directors.
What we have audited
We have audited the financial statements of Atria Plc (business identity code 0841066-1) for the period of 1 January to 31 December 2022. The financial statements
comprise:
●
including a summary of significant accounting policies
●
Basis for opinion
We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good auditing practice are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the parent company and of the group companies in accordance with the ethical requirements that are applicable in Finland and are relevant to our
audit, and we have fulfilled our other ethical responsibilities in accordance with these requirements. To the best of our knowledge and belief, the non-audit services that
we have provided to the parent company and to the group companies are in accordance with the applicable law and regulations in Finland and we have not provided
non-audit services that are prohibited under Article 5(1) of Regulation (EU) No 537/2014. The non-audit services that we have provided are disclosed in note 4 to the
Financial Statements.
ATRIA PLC | AUDITOR’S REPORT
financial statements
Atria Annual Report 2022
Our audit approach
Overview
●
Overall group materiality: 3,400,000 euros.
●
Audit scope: The audit scope included the parent company of the Group and subsidiaries in Finland, Sweden,
Estonia and Denmark.
The following items have been recognised as key audit matters:
●
●
●
●
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular, we considered where
management made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events
that are inherently uncertain.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the financial statements are free
from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of the financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall group materiality for the consolidated financial
statements as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent
of our audit procedures and to evaluate the effect of misstatements on the financial statements as a whole.
Overall group materiality
3,400,000 euros
How we determined it
Materiality has been determined taking into consideration net sales, gross profit and profit before taxes.
ATRIA PLC | AUDITOR’S REPORT
financial statements
Atria Annual Report 2022
Rationale for the materiality
benchmark applied
We chose profit before taxes as the main benchmark because, in our view, it is the benchmark commonly used
by users of the financial statements to measure the performance of the group. We have also chosen net sales
and gross margin as benchmarks as we consider these to be relevant for the users of the financial statements
when assessing the performance of the group.
How we tailored our group audit scope
We tailored the scope of our audit, taking into account the structure of the group, the accounting processes and controls, and the industry in which the group operates.
Atria group had three reportable segments during the financial year: Atria Finland, Atria Sweden and Atria Denmark and Estonia. Our audit scope included the parent
company and subsidiaries in Finland, Sweden, Estonia and Denmark.
We have pre-defined the types of audit procedures aimed at the financial information of each part of the group. In cases where a group component auditor has performed
the audit work, we have instructed their work with group audit instructions which have included e.g. our risk assessment, materiality, audit approach and centralized audit
procedures.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These
matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters.
As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters consideration of whether there was
evidence of bias that represented a risk of material misstatement due to fraud.
Key audit matter in the audit of the group
How our audit addressed the key audit matter
Revenue recognition
Refer to the Accounting policies for the consolidated financial statements
and Notes 1 and 2
Atria has identified two client segments: consumer product clients and
primary production clients. Sales revenue is recognised based on
customer contracts. The contracts specify the contractual obligations and
the prices applicable to them.
Revenue recognition is considered a key audit matter in the audit of the
group due to the financial significance of net sales in the financial
statements.
Our audit procedures included for example the following procedures:
We evaluated the internal control activities and controls over
revenue recognition and assessed the appropriateness of the
accounting policies related to revenue recognition by comparing
those to the applicable accounting standards.
We tested the cut-off of individual sales transactions by comparing
to delivery documents and by checking significant credit notes
issued after year-end.
We tested discounts and rebate accruals on a sample basis.
We tested a sample of other revenue transactions based on the
results of data analysis procedures.
ATRIA PLC | AUDITOR’S REPORT
financial statements
Atria Annual Report 2022
Valuation of goodwill and trademarks with indefinite useful lives
Refer to Accounting policies for the consolidated financial statements and
Note 15
The group tests annually goodwill and the intangible assets with indefinite
useful lives for possible impairment. Goodwill in the Atria Group
consolidated balance sheet totalled to 125 million euros and trademarks
with indefinite useful lives to 38 million euros at 31 December 2022.
Impairment testing for goodwill and other intangible assets are subject to
significant management judgement. The fair value of intangible assets is
determined based on estimates of future cash flows. Key assumptions in
these estimates include e.g. growth in net sales, profitability levels, and
discount rates.
The valuation of goodwill and trademarks with indefinite useful lives is
considered a key audit matter in the audit of the group due to its financial
significance as well as due to the high degree of management judgement
involved in the impairment testing.
Our audit procedures included for example the following procedures:
We discussed the accounting policies and significant
management’s estimates and assumptions.
Where possible, we compared the key variables of discount rate
and long-term growth rate of net sales to information generally
available at the market.
We reconciled the estimates of future cash flows to the strategy
information approved by the board of directors.
We tested the appropriateness of the key assumptions applied to
the cash flow estimates and consistency of accounting policies in
relation to previous accounting periods.
We assessed the historical accuracy of management’s estimates
including growth of net sales and profit margin by comparing these
to actual results for the period.
We tested mathematical accuracy of the calculations.
We assess the appropriateness of the information presented in the
consolidated financial statements.
Valuation of inventories
Refer to Accounting policies for the consolidated financial statements and
Note 19
Inventories are measured at the lower of cost or probable net realisable
value. The cost for finished and unfinished products consists of raw
materials, direct labour costs, other direct costs and the appropriate share
of manufacturing-related variable overheads and fixed overheads at a
normal level of operations. The net realisable value is the estimated selling
price in the ordinary course of business, less the estimated selling
expenses.
Valuation of inventories is considered a key audit matter in the audit of the
group due to its financial significance and as it includes judgement as
described in the accounting principles.
Our audit procedures included for example the following procedures:
-
We evaluated the internal key controls of inventories and the purchasing
process.
-
We tested the appropriateness of the accounting principles relating to
valuation of inventories.
-
We tested price variances of single inventory items on a sample basis.
-
We tested the appropriateness of key assumptions used in the valuation
of inventory and the mathematic accuracy of the calculations.
Key audit matter in the audit of the parent company
How our audit addressed the key audit matter
ATRIA PLC | AUDITOR’S REPORT
financial statements
Atria Annual Report 2022
Valuation of subsidiary shares and loan receivables
Refer to Accounting Policies and Notes to the parent company financial
statements 3.2 and 3.3
Value of shares in subsidiaries in the Atria Plc financial statements at 31
December 2022 totalled 268 million euros and long-term loan receivables
from group companies 157 million euros. Valuation of shares in
subsidiaries and loan receivables in accordance with the Accounting Act is
subject to management judgement. These valuations include significant
management judgement in relation to for example subsidiaries projected
future cash flows.
Valuation of subsidiary shares and loan receivables is considered a key
audit matter in the audit of the parent company due to its financial
significance as well as due to the high degree of management judgement
involved in the valuation.
Our audit procedures included for example the following procedures:
-
We assessed the book value of Atria Plc’s shares in subsidiaries
based on the subsidiary’s equity and the management estimates
of the projected future cash flows.
-
We discussed with the management the most significant
assumptions used in the valuation of shares in subsidiaries and
assessed the assumptions of the valuation calculations.
-
We evaluated the reliability of estimates from previous years by
comparing those to the actual results for the period.
There are no significant risks of material misstatement referred to in Article 10(2c) of Regulation (EU) No 537/2014 with respect to the audit of the
consolidated financial statements or the parent company financial statements.
Responsibilities of the board of directors and the managing director for the financial statements
The Board of Directors and the Managing Director are responsible for the preparation of consolidated financial statements that give a true and fair view in accordance
with International Financial Reporting Standards (IFRS) as adopted by the EU, and of financial statements that give a true and fair view in accordance with the laws and
regulations governing the preparation of financial statements in Finland and comply with statutory requirements. The Board of Directors and the Managing Director are
also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the Board of Directors and the Managing Director are responsible for assessing the parent company’s and the group’s ability to
continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting. The financial statements are
prepared using the going concern basis of accounting unless there is an intention to liquidate the parent company or the group or to cease operations, or there is no
realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with good auditing practice will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.
ATRIA PLC | AUDITOR’S REPORT
financial statements
Atria Annual Report 2022
As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
●
those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
●
purpose of expressing an opinion on the effectiveness of the parent company’s or the group’s internal control.
●
●
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the parent company’s or the group’s ability
to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of
our auditor’s report. However, future events or conditions may cause the parent company or the group to cease to continue as a going concern.
●
underlying transactions and events so that the financial statements give a true and fair view.
●
consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit
opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements
of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public interest benefits of such communication.
Other Reporting Requirements
Appointment
PricewaterhouseCoopers Oy or auditors employed by it were first appointed as auditors by the annual general meeting on 10 May 1999.
Other information
The Board of Directors and the Managing Director are responsible for the other information. The other information comprises the report of the Board of Directors and the
information included in the Annual Report, but does not include the financial statements and our auditor’s report thereon.
ATRIA PLC | AUDITOR’S REPORT
financial statements
Atria Annual Report 2022
Our opinion on the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. With respect to the report of
the Board of Directors, our responsibility also includes considering whether the report of the Board of Directors has been prepared in accordance with the applicable laws
and regulations.
In our opinion
●
●
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing
to report in this regard.
Helsinki 3 March 2023
PricewaterhouseCoopers Oy
Authorised Public Accountants
Samuli Perälä
Authorised Public Accountant
ATRIA PLC | AUDITOR’S REPORT
financial statements
Atria Annual Report 2022
Translation of the Finnish language original
Independent Auditor’s Reasonable Assurance Report on Atria Plc’s ESEF Financial
Statements
To the Management of Atria Plc
We have been engaged by the Management of Atria Plc (business identity code 0841066-1) (hereinafter also “the Company”) to perform a reasonable assurance
engagement on the Company’s consolidated IFRS financial statements for the financial year 1 January - 31 December 2022 in European Single Electronic Format
(“ESEF financial statements”) version
743700XLYONPSKO15Z91-2022-31-12-FI.zip.
Management’s Responsibility for the ESEF Financial Statements
The Management of Atria Plc is responsible for preparing the ESEF financial statements so that they comply with the requirements as specified in the Commission
Delegated Regulation (EU) 2019/815 of 17 December 2018 (“ESEF requirements”). This responsibility includes the design, implementation and maintenance of internal
control relevant to the preparation of ESEF financial statements that are free from material noncompliance with the ESEF requ irements, whether due to fraud or error.
Our Independence and Quality Management
We have complied with the independence and other ethical requirements of the International Code of Ethics for Professional Accountants (including International
Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code), which is founded on fundamental principles of integrity,
objectivity, professional competence and due care, confidentiality and professional behaviour.
Our firm applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality management including
policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Our Responsibility
Our responsibility is to express an opinion on the ESEF financial statements based on the procedures we have performed and the evidence we have obtained.
We conducted our reasonable assurance engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised)
Assurance
Engagements Other than Audits or Reviews of Historical Financial Information
. That standard requires that we plan and perform this engagement to obtain reasonable
assurance about whether the ESEF financial statements are free from material noncompliance with the ESEF requirements.
A reasonable assurance engagement in accordance with ISAE 3000 (Revised) involves performing procedures to obtain evidence about the ESEF financial statements
compliance with the ESEF requirements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material noncompliance of
the ESEF financial statements with the ESEF requirements, whether due to fraud or error. In making those risk assessments, we considered internal control relevant to
the Company’s preparation of the ESEF financial statements.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
ATRIA PLC | AUDITOR’S REPORT
financial statements
Atria Annual Report 2022
Opinion
In our opinion, Atria Plc’s ESEF financial statements for the financial year ended 31 December 2022 comply, in all material respects, with the minimum requirements as
set out in the ESEF requirements.
Our reasonable assurance report has been prepared in accordance with the terms of our engagement. We do not accept, or assume responsibility to anyone else,
except for Atria Plc
for our work, for this report, or for the opinion that we have formed.
Helsinki, 3 March 2023
PricewaterhouseCoopers Oy
Authorised Public Accountants
Samuli Perälä
Authorised Public Accountant (KHT)
ATRIA PLC | GENERAL INFORMATION ABOUT THE COMPANY IN ACCORDANCE WITH ESEF
financial statements
Atria Annual Report 2022
Registered Company address
Home country
Name or other identifier of the reporting entity
A description of the change in the name or other
identifier of the reporting entity since the end of
the previous reporting period
The legal form of the company
Company domicile
Head office
A description of the nature and main activities of
the company
Name of the parent company
Name of the parent company of the entire group
ATRIA PLC | CORPORATE GOVERNANCE STATEMENT
financial statements
Atria Annual Report 2022
CORPORATE GOVERNANCE STATEMENT
AND REMUNERATION REPORT
Other Governance
Internal control, risk management and internal audit
144
Internal control
144
Risk management
144
Internal audit
145
Auditing
145
Insider policy
145
Related-party transactions
146
Communications
146
Remuneration Report
147
Shortly about the Remuneration Policy
147
Shortly about the remuneration in 2022
147
Development of Atria’s financial performance and
remuneration
147
Remuneration of the members of the Supervisory
Board
148
Remuneration of the members of the Board of
Directors
150
Remuneration of CEO and Deputy CEO
151
Financial communications
153
Contact details
154
Contents
Corporate Governance Statement
Articles of Association
129
Shareholder agreement
129
Governing Bodies
Annual General Meeting
129
Shareholders’ Nomination Board
130
Supervisory Board
131
Board of Directors
133
Duties of Board of Directors
133
Meeting practices and information flow
133
Composition of the Board of Directors
134
Principles concerning the diversity of the Board of
Directors and the Supervisory Board
138
Diversity of the Board of Directors
138
Diversity of the Supervisory Board
138
Implementation of the diversity principles
138
Board Committees
138
CEO
139
Management Team
139
Remuneration
144
ATRIA PLC | CORPORATE GOVERNANCE STATEMENT
financial statements
Atria Annual Report 2022
1. Corporate Governance Statement
Atria Plc (“Atria” or “the company”) is a Finnish public company, and the responsibilities and
obligations of its governing bodies are determined by Finnish law. The parent company, Atria Plc, and
its subsidiaries constitute the international Atria Group. The company is domiciled in Kuopio.
Responsibility for the administration and operations of Atria Group lies with the governing bodies of
the parent, Atria Plc. These are the Annual General Meeting, the Supervisory Board, the Board of
Directors and the CEO.
Decision-making and governance at Atria comply with the Finnish Limited Liability Companies Act,
the Securities Markets Act, the Auditing Act and the Accounting Act and other regulations pertaining
to listed companies, as well as with Atria Plc’s Articles of Association and the rules of procedure of
Atria’s Board and Board committees. Atria is also bound by EU-level regulations and Nasdaq Helsinki
Ltd’s rules, as well as by orders and guidelines issued by the Financial Supervisory Authority. Atria
follows the Securities Market Association’s (SMA) Corporate Governance Code, which came into
effect on 1 January 2020. The Corporate Governance Code is available on the SMA website at
www.cgfinland.fi.
In accordance with the ‘comply or explain’ principle, the company departs from the recommendations
of the Corporate Governance Code as follows (the execptions are explained under the relevant
items):
●
Board member is three years in accordance with Atria’s Articles of Association.
●
members on the Board of Directors are independent of the company.
●
three members on the Nomination and Remuneration Committee is independent of the
company.
The Corporate Governnace Statement is presented as a report separate from the Board of Director’s
Report. The Corporate Governance Statement is available on the company’s website at
www.atria.com (Investors -> Corporate Governance).
1.1 Articles of Association
The Articles of Association and the redemption clause are available on the company’s website at
www.atria.com (Investors > Corporate Governance).
1.2 Shareholder Agreement
Lihakunta and Itikka Co-operative, two of Atria’s shareholders, have agreed to ensure that they are
both represented on the Supervisory Board in proportion to their holdings of Series KII shares in the
company, and that all members of the Supervisory Board are appointed by them, unless it has been
separately agreed on a case-by-case basis that some Supervisory Board members are selected from
among candidates designated by other shareholders. It has also been agreed that when the Chair of
the Supervisory Board and the Vice Chair of the Board of Directors are appointed by one of these two
parties, the Chair of the Board of Directors and the Vice Chair of the Supervisory Board are appointed
by the other party.
Regarding the distribution of Board positions, it has been agreed that each of the parties may
nominate three ordinary members and their deputy members to the Board of Directors. The
agreement also includes stipulations on the mutual proportion of shareholding and on the procedures
followed when either party acquires more series KII shares directly or indirectly. According to the
agreement, the acquisition of series A shares is not considered in the evaluation of the mutual
proportion of shareholding.
Furthermore, Lihakunta, Itikka Co-operative and Pohjanmaan Liha Co-operative, which hold shares in
Atria, have agreed to ensure that Pohjanmaan Liha Co-operative has one representative on the
Supervisory Board. The agreement also includes stipulations on Pohjanmaan Liha Co-operative’s
shareholding.
The company is not aware of any other shareholder agreements.
Despite the above, the Annual General Meeting, as stated in section 3 below, decides on the number
of members of the company’s Supervisory Board and of the Board of Directors and their election.
2. Annual General Meeting
The Annual General Meeting is Atria Plc’s highest decision-making body. At the General Meeting,
shareholders decide, among other things, on the approval of the financial statements and the use of
the profit shown on the balance sheet; the discharge of the members of the Board of Directors and of
the Supervisory Board, as well as the CEO, from liability; the number of members of the Supervisory
Board and of the Board of Directors, and their election and remuneration; acceptance of
Remuneration Report (and Remuneration Policy, in case needed) and the election and remuneration
of the auditor.
The Annual General Meeting is held annually by the end of June on a date designated by the Board
of Directors, and the agenda includes matters that are to be processed by the Annual General
Meeting in accordance with the Limited Liability Companies Act and the Articles of Association and
any other proposals mentioned in the notice of the meeting. Extraordinary General Meetings may be
convened as needed.
ATRIA PLC | CORPORATE GOVERNANCE STATEMENT
financial statements
Atria Annual Report 2022
Under the Limited Liability Companies Act, a shareholder has the right to have a matter falling within
the competence of the Annual General Meeting dealt with by the Annual General Meeting if the
shareholder so demands in writing from the Board of Directors well in advance of the meeting, so that
the matter can be mentioned in the notice. Where applicable, the shareholder must submit a request
to have the matter dealt with by the Annual General Meeting by the date set by the company, which is
published on the company’s website at www.atria.com. The request, together with the accompanying
justification or proposed resolution, must be sent in writing to Atria Plc, Group Legal Affairs, P.O. Box
900, FI-60060 ATRIA.
The Annual General Meeting is convened by the Board of Directors. In accordance with the
company’s Articles of Association, the Annual General Meeting is held in the company’s domicile,
Kuopio, or in Helsinki. The notice to convene the Annual General Meeting is communicated by
publishing the notice on the company’s website and by a company announcement at the earliest
three (3) months and at the latest three (3) weeks before the Annual General Meeting, but
nevertheless no later than nine (9) days prior to the record date for the Annual General Meeting. In
addition, the Board of Directors may decide to publish the notice, or a notification concerning the
delivery of the notice, in one or more Finnish national newspapers determined by the Board of
Directors, or in any other manner it may decide.
The company’s Annual General Meeting for 2022 was held in Helsinki on 3 May 2022 at Atria’s office.
The meeting was attended, either in person or by a representative, by a total of 57 holders of A
shares, representing a total of 9,134,084 shares and votes, and three (3) holders of KII shares,
representing a total of 9,203,981 shares and 92,039,810 votes. The minutes of the meeting, as well
as other documents related to the meeting, are available on Atria’s website at www.atria.com
(Investors > Annual General Meeting).
3. Shareholders’ Nomination Board
Atria Plc has a Shareholders’ Nomination Board. Atria Plc’s Annual General Meeting on 3 May 2012
established a Nomination Board and confirmed its written rules of procedure. The rules of procedure
were amended by the Annual General Meeting on 6 May 2014 and 27 April 2017. In accordance with
its charter, the Nomination Board is charged with preparing proposals concerning the remuneration of
the Board of Directors and Supervisory Board and the election of the members of the Board of
Directors for the next Annual General Meeting.
Shareholders or their representatives who own Series KII shares are selected for the Nomination
Board, as well as the largest holder of Series A shares who does not own Series KII shares, or a
representative of such a shareholder. The right to nominate a representative to the Nomination Board
is determined on the basis of the shareholder register maintained by Euroclear Finland Ltd in
accordance with the situation on the first banking day of the September preceding the Annual
General Meeting. The Chair of the Board of Directors will also be appointed on the Nomination Board
as an expert member.
If a shareholder does not wish to exercise their right to nominate a member, the right will be
transferred to the next largest series A shareholder in accordance with the shareholder register, who
would not otherwise have the right to nominate a member. Some shareholders are obligated to notify
the company of certain changes in shareholding when necessary under the Finnish Securities
Markets Act (notification obligation). Such shareholders may present a written request to the
company’s Board of Directors by the end of August for the holdings of corporations or foundations
controlled by the shareholder, or the shareholder’s holdings in several funds or registers, to be
combined when calculating voting rights.
The Nomination Board is convened by the Chair of the Board of Directors, and the Nomination Board
elects a Chair from among its members. The Nomination Board will present its proposal to the Board
of Directors by the first day of the February preceding the Annual General Meeting.
On 23 September 2022, the owners of Atria’s KII shares and the largest owner of series A shares
nominated the following members on the Nomination Board: Juho Anttikoski (Itikka Co-operative),
Pasi Korhonen (Lihakunta), Ola Sandberg (Pohjanmaan Liha Co-operative) and Timo Sallinen
(Varma Mutual Pension Insurance Company). Juho Anttikoski was elected as Chair of the Nomination
Board, and Seppo Paavola, Chair of Atria’s Board of Directors, serves as an expert member of the
Nomination Board.
The Nomination Board, which prepared the proposal for the 2023 Annual General Meeting, convened
2 times. The Nomination Board submitted its proposals for the Annual General Meeting to be held on
25 April 2023 to the Board of Directors on 12 January 2023. The proposals were published by means
of a stock exchange release on 12 January 2023.
Name
Year of
birth
Education
Main
occupation
Attendance
at meetings
Shareholding
on 31 Dec 2022
Pasi
Korhonen
1975
Farmer
2/2
0
Juho
Anttikoski
1970
Farmer
2/2
4,000
Ola
Sandberg
1981
Agrologist
Farmer
2/2
90
Timo Sallinen
1970
MSc (Econ)
SVP,
Investments
(listed equities)
2/2
0
ATRIA PLC | CORPORATE GOVERNANCE STATEMENT
financial statements
Atria Annual Report 2022
4. Supervisory Board
In accordance with Atria Plc’s Articles of Association, the company has a Supervisory Board elected
by the Annual General Meeting. The Supervisory Board consists of a minimum of 18 and a maximum
of 21 members, who are elected for a term of three years at a time. The Supervisory Board elects a
Chair and a Vice Chair from amongst its members for a term of one year at a time. The Supervisory
Board meets four times a year on average.
The duties of the Supervisory Board are specified in the Limited Liability Companies Act and Atria’s
Articles of Association. The key duties of the Supervisory Board are as follows:
●
●
or important in principle.
●
General Meeting
The Board of Directors has deemed all members of the Supervisory Board to be dependent of Atria,
as they are either full-time farmers who have – or are members of the operative management of a
company that has – a customer, supplier or cooperation relationship with Atria Group that is
significant for the entrepreneur/company in question.
All members of the Atria Supervisory Board are also members of Board of Directors or Supervisory
Board of Atria`s significant shareholder Itikka Co-operative`s, significant shareholder Lihakunta`s or
Co-operative Pohjanmaan Liha. The Board of Directors has deemed that the members of Atria’s
Supervisory Board who are also members of the Board of Directors of a significant shareholder (Itikka
Co-operative or Lihakunta) are dependent of a significant shareholder. Membership of the
Supervisory Board of a significant shareholder alone has not been deemed to constitute dependence.
Atria has a Supervisory Board because Atria`s shareholders representing moren than 50 % of the
votes granten by the company`s shares have expressed their satisfaction with the current model
based on the Supervisory Board, because it brings a far-reaching perspective on the company’s
operations and decision-making. The company believes that understanding its business requires a
deep familiarity with and commitment to meat operations from its Supervisory Board members.
In 2022, Atria Plc’s Supervisory Board met four times, and the average attendance of the members
was 98,75%.
ATRIA PLC | CORPORATE GOVERNANCE STATEMENT
financial statements
Atria Annual Report 2022
On 31 December 2022, Atria Plc’s Supervisory Board consisted of the following 20 members:
Name
Year of
birth
Member
since
Education
Main
occupation
Attendance
at meetings
Shareholding on
31 Dec 2022
Independence of the company and its significant shareholders
Juho Anttikoski
1970
2009
Farmer
4/4
4,000
Dependent of the company
Mika Asunmaa
1970
2005
Farmer
4/4
11,000
Dependent of the company and significant shareholder (Itikka Co-operative)
Lassi-Antti
Haarala
1966
2006
Agrologist
Farmer
4/4
6,000
Dependent of the company and significant shareholder (Itikka Co-operative)
Jyrki Halonen
1961
2019
Agricultural
technician
Farmer
4/4
250
Dependent of the company
Mika Herrala
1974
2021
M.Sc
(Biophysics)
Farmer
4/4
100
Dependent of the company
Veli Hyttinen
1973
2010
Agrologist
Farmer
4/4
1,500
Dependent of the company and significant shareholder (Lihakunta)
Pasi Ingalsuo
1966
2004
Agrologist
Farmer
4/4
4,000
Dependent of the company and significant shareholder (Itikka Co-operative)
Jussi Joki-
Erkkilä
1977
2016
Agricultural
entrepreneur
3/4
0
Dependent of the company
Marja-Liisa
Juuse
1963
2015
Farmer
4/4
250
Dependent of the company
Juha Kiviniemi
1972
2010
M.Sc. (Agr)
Farmer
4/4
300
184
Dependent of the company and significant shareholder (Itikka Co-operative)
Risto Lahti
1990
2020
B.Sc. (Food
Science)
CEO
4/4
57
Independent of the company and dependent of significant shareholders
(Itikka Co-operative and Lihakunta)
Ari Lajunen
1975
2013
M.Sc. (Agr)
Farmer
4/4
0
Dependent of the company and significant shareholder (Lihakunta)
Vesa Lapatto
1968
2020
Agrologist
Dairy farmer
4/4
0
Dependent of the company
Juha Nikkola
1976
2018
M.Sc. (Agr)
Farmer
4/4
100
Dependent of the company and significant shareholder (Itikka Co-operative)
Mika Niku
1970
2009
Farmer
4/4
300
Dependent of the company and significant shareholder (Lihakunta)
Ari Pöyhönen
1970
2020
M.Sc. (Agr)
Farmer
4/4
1,000
Dependent of the company
Suvi Rantala
1977
2022
B.Ba.
(Business
Administration)
3/3
controlling company
518
Dependent of the company
Risto Sairanen
1960
2013
Farmer
4/4
0
Dependent of the company and significant shareholder (Lihakunta)
Ola Sandberg
1981
2018
Agrologist
Farmer
4/4
90
Dependent of the company
Timo Tuhkasaari
1965
2002
Farmer
4/4
600
Dependent of the company
ATRIA PLC | CORPORATE GOVERNANCE STATEMENT
financial statements
Atria Annual Report 2022
5. Board of Directors
In accordance with the Articles of Association, Atria’s Board of Directors has a minimum of five (5)
and a maximum of nine (9) members. The term of office of a member of Atria’s Board of Directors
departs from the term of one year specified in recommendation 6 of the Corporate Governance
Code. As per the Articles of Association, the term of a member of the Board of Directors is three
(3) years. Shareholders representing more than 50% of the votes have stated that the term of
three (3) years is appropriate for the long-term development of the company and have not seen
the need to shorten the term from that specified in the Articles of Association. As an exception to
recommendation 10 of the Corporate Governance Code, three of the eight members on the Board
of Directors are independent of the company. It is the company’s view that an understanding of
Atria’s business requires in-depth knowledge of and commitment to the meat industry from the
majority of the Board’s members.
The Chair and the Vice Chair of the Board of Directors are nominated in accordance with the
shareholder agreement of Lihakunta and Itikka Co-operative.
5.1 Duties of the Board of Directors
Atria’s Board of Directors is responsible for the company’s administration and its appropriate
organisation. The Board of Directors is responsible for the appropriate organisation of the
supervision of the company’s accounting and asset management. To this end, the Board of
Directors has confirmed written rules of procedure concerning the duties of the Board, the matters
to be dealt with, meeting practices and the decision-making procedure. According to the rules of
procedure, the Board of Directors discusses and decides on significant matters related to the
company’s strategy, investments, organisation and financing. The rules of procedure lay down the
following key duties for the Board of Directors:
●
●
●
that exceed one million euros
●
●
supervision
●
evaluating the company’s financial reporting system
●
are implemented
●
effectiveness of internal control and auditing as well as the risk management systems
●
●
principal terms of their employment contracts
●
●
●
services other than auditing services provided by the auditor
●
financial statements and consolidated financial statements
●
part of day-to-day operations, such as considerable expansion or contraction of business or
other material changes to operations, the taking of long-term loans and the sale and
pledging of fixed assets
●
between the company and its related parties with requirements concerning ordinary
business activities and market terms
●
remit of the Board of Directors
●
Governance Code.
The Board of Directors assesses its operations and working methods regularly by conducting a
self-evaluation once a year.
5.2 Meeting practices and information flow
The Board of Directors meets at regular intervals around 10 times during the term in accordance
with a separate meeting schedule confirmed in advance by the Board, and when necessary. In
2022, the Board of Directors met 16 times. The average attendance of the members of the Board
of Directors was 99%.
During the meetings of the Board of Directors, the CEO gives a review of the financial situation of
the Group by business area. The review also covers forecasts, investments, organisational
changes and other issues that are important for the Group.
ATRIA PLC | CORPORATE GOVERNANCE STATEMENT
financial statements
Atria Annual Report 2022
5.3 Members of the Board of Directors 31 December 2022
Name
Seppo Paavola, Chair
Pasi Korhonen, Vice Chair
Year of birth
1962
1975
Education
Agrologist (secondary school graduate)
Main occupation
Farmer
Farmer
Relevant work
experience
●
●
Farmer
Member of the Board
since
2012
2016
Concurrent key positions
of trust
●
●
●
●
Perhonjokilaakso Co-operative Bank, former Kaustinen Co-operative Bank)
2002–present
●
●
●
●
●
present
Past key positions of
trust
●
●
●
2012–2017
●
●
Independence
Dependent of the company, independent of the significant shareholders
Dependent of the company and significant shareholders
Shareholding on 31
December 2022
4,400
0
Share-based rights in the
company
None
None
Attendance in meetings
16/16
16/16
ATRIA PLC | CORPORATE GOVERNANCE STATEMENT
financial statements
Atria Annual Report 2022
Name
Nella Ginman-Tjeder
Jukka Kaikkonen
Year of birth
1959
1963
Education
M.Sc. (Econ.)
Agrologist
Main occupation
Eira Hospital Ltd, Managing Director
Farmer, beef producer
Relevant work
experience
●
●
●
●
Member of the Board
since
2016
2020
Concurrent key
positions of trust
●
●
●
Past key positions of
trust
●
●
●
●
●
Independence
Independent of the company and significant shareholders
Dependent of the company and significant shareholders
Shareholding on 31
December 2022
0
500
Share-based rights in
the company
None
None
Attendance in
meetings
16/16
16/16
ATRIA PLC | CORPORATE GOVERNANCE STATEMENT
financial statements
Atria Annual Report 2022
Name
Leena Laitinen
Mika Joukio
Year of birth
1970
1964
Education
M.Sc. (Econ.)
M.Sc. (Tech.), MBA
Main occupation
President and CEO of Alko Inc. 2017–present
CEO of Metsä Board Corporation 2014-present
Relevant work
experience
●
●
●
●
●
●
●
●
2006–2012
●
various management positions 1990–2006
Member of the
Board since
2021
2022
Concurrent key
positions of trust
●
●
●
●
●
●
●
2019-present
●
Past key positions
of trust
●
2019-2021
●
●
●
Independence
Independent of the company and significant shareholders
Independent of the company and significant shareholders
Shareholding on 31
December 2022
0
0
Share-based rights
in the company
None
None
Attendance in
meetings
16/16
11/11
ATRIA PLC | CORPORATE GOVERNANCE STATEMENT
financial statements
Atria Annual Report 2022
Name
Kjell-Göran Paxal
Ahti Ritola
Year of birth
1967
1964
Education
Agrologist
B.Ba. (Business Administration)
Main occupation
Farmer, piglet and pork producer
Farmer, beef producer
Relevant work
experience
●
●
●
Member of the Board
since
2012
2018
Concurrent key
positions of trust
●
●
present
●
●
●
●
●
●
●
●
●
●
present
Past key positions of
trust
●
●
●
2009
●
speaking Agricultural Producers in Finland 1999–2001
●
●
●
●
Bank 2004–2017
Independence
Dependent of the company, independent of the significant shareholders
Dependent of the company and significant shareholders
Shareholding on 31
December 2022
2,566
0
Share-based rights in
the company
None
None
Attendance in
meetings
15/16
16/16
ATRIA PLC | CORPORATE GOVERNANCE STATEMENT
financial statements
Atria Annual Report 2022
The Board of Directors has deemed that the following members of the Board are dependent of
Atria: Seppo Paavola, Jukka Kaikkonen, Ahti Ritola, Pasi Korhonen and Kjell-Göran Paxal. These
members are either full-time farmers who have – or are members of the operative management of
a company that has – a customer, supplier or cooperation relationship with Atria Group that is
significant for the entrepreneur/company in question.
Of the Board members, Ahti Ritola is a member of the Board of Directors of Itikka Co-operative, a
significant shareholder, and Pasi Korhonen and Jukka Kaikkonen are members of the Board of
Directors of Lihakunta, a significant shareholder. They are therefore dependent of a significant
shareholder. Seppo Paavola is a member of the Supervisory Board of Itikka Co-operative, a
significant shareholder. Membership of the Supervisory Board of a significant shareholder alone
has not been deemed to constitute dependence of a significant shareholder. The members of the
Board of Directors are obliged to provide the Board with information sufficient to assess their skills
and independence and to notify the Board of any changes to the information.
5.4 Principles concerning the diversity of the Board of
Directors and the Supervisory Board
Diversity is part of Atria’s responsible business operations. When planning the composition of
Atria’s Board of Directors and/or Supervisory Board, diversity is considered from a variety of
perspectives, and the company’s development needs and the scope of its business operations are
taken into account.
When selecting the members of the Board of Directors and/or Supervisory Board, the goal is that
the members’ broad-based expertise and the composition of the Board support the development
of Atria’s current and future business operations. A constructively questioning and challenging
Board of Directors and Supervisory Board create added value for the company’s operations. This
also brings diversity to their work. Atria seeks to promote the selection of members who are as
qualified as possible and have broad and varied experience in various fields and to ensure that
candidates of both genders have equal opportunities to be selected on the Board. Atria’s goal is to
ensure that both genders are represented on the Board of Directors and the Supervisory Board,
and that the representative of the minority gender is given preference if two candidates are equally
competent. In addition to the aforementioned areas, the selection considers the candidates’ ability
to spend a sufficient amount of time on their Board duties.
5.4.1. Diversity of the Board of Directors
The selection aims to ensure that the Board has core competence from a variety of fields within
the value chain of Atria’s business operations, a wide range of experience of entrepreneurship and
business activities, as well as know-how and understanding of international business required by
the company’s strategy. Rather than every member of the Board being qualified in all of the
aforementioned areas, the aim is that every Board member possesses some skills in one or more
of the aforementioned areas. The diversity of the Board of Directors is furthermore supported by
the members’ other complementary skills, their training and experience from different occupational
fields and industries, as well as by a consideration of the Board members’ age and gender
distribution. In addition to the aforementioned areas, the selection considers the candidates’ ability
to spend a sufficient amount of time on their Board duties.
5.4.2 Diversity of the Supervisory Board
When selecting members of the Supervisory Board, the goal is to consider their expertise in the
meat industry and its various types of production. Diversity is also ensured by selecting members
who represent various areas of Finland. In addition, the age and gender distribution of the
members of the Supervisory Board are considered, along with other skills that support the Board’s
work.
5.4.3. Implementation of the diversity principles
To achieve the goals for the principles on diversity, the company has sought and seeks to actively
communicate these goals to Atria’s shareholders. During the 2022 financial year, two members of
the Board of Directors were women, and the other members were men, meaning that the minority
gender represented 25% of all Board members. During the 2022 financial year, two members of
the Supervisory Board were women, and the other members were men, meaning that the minority
gender represented 10% of all Supervisory Board members. The share of women in the
Supervisory Board has grown compared to the previous year. The company’s goal of both
genders being represented has therefore been met. The company’s other goals concerning the
diversity of the Board of Directors and the Supervisory Board have also been met with regard to
the Board members’ in-depth knowledge of the meat business and commercial and industrial
operations, and the Supervisory Board members’ expertise in the meat industry and various types
of production, as well as geographical representation.
6. Board Committees
The Board of Directors may decide to establish committees to handle duties designated by the
Board. The Board confirms the committees’ rules of procedure.
The Board of Directors has one committee: the Nomination and Remuneration Committee. The
Board of Directors appoints the members of the Committee from among its members in
accordance with the Committee’s rules of procedure. The Committee has no autonomous
decision-making power. The Board of Directors makes decisions on the basis of the Committee’s
preparations and proposals. The Committee reports regularly to the Board of Directors, which
supervises the operations of the Committee.
The aim of the Nomination and Remuneration Committee is to prepare the CEO’s, the Deputy
CEO’s and the management’s terms of employment, ensure objective decisionmaking, promote
the achievement of the company’s goals through bonus schemes, increase the company’s value
and ensure that bonus schemes are transparent and systematic. The aim of the Nomination and
ATRIA PLC | CORPORATE GOVERNANCE STATEMENT
financial statements
Atria Annual Report 2022
Remuneration Committee is also to ensure that the performance bonus systems are linked to the
company’s strategy and the results achieved.
The Nomination and Remuneration Committee has three (3) members. The Nomination and
Remuneration Committee consists of the Chair, Vice Chair and one member of the Board of
Directors elected by the Board in accordance with its rules of procedure. As an exception to
recommendations 17 and 18 of the Corporate Governance Code, one (1) of the members of the
Nomination and Remuneration Committee is independent of the company. The Nomination and
Remuneration Committee is composed of members of the Board of Directors.
The Chair of the Nomination and Remuneration Committee is Seppo Paavola, and the other
members are Pasi Korhonen and Nella Ginman-Tjeder. In 2022, the Nomination and
Remuneration Committee met six times, and its members’ average attendance was 100% as
follows: Seppo Paavola 6/6, Pasi Korhonen 6/6 and Nella Ginman-Tjeder 6/6.
According to its rules of procedure, the Nomination and Remuneration Committee has the
following duties:
●
●
●
Directors to decide on
●
to the CEO and bringing them before the Board of Directors
●
and bringing them before the Board of Directors
●
management and bringing them before the Board of Directors
●
approval and assessing their functionality and the achievement of the systems’ goals
●
approved bonus schemes and recommending a solution
●
applicable, in other bonus-related documents
●
presenting the remuneration policy and report at the Annual General Meeting and answering
any questions concerning the policy and report with regard to the remuneration of the CEO
and the Deputy CEO
●
The Chair of the Nomination and Remuneration Committee convenes the Committee as needed.
At the meetings, the matters falling under the duties of the Committee are reviewed. The
Nomination and Remuneration Committee may invite other people to join its meetings if deemed
necessary, and may use external experts to assist the Committee in fulfilling its duties.
As mentioned in section 4 above, Atria’s Annual General Meeting has established a separate
Shareholders’ Nomination Board to prepare proposals concerning the election and remuneration
of the members of the Board of Directors, as well as the remuneration of the members of the
Supervisory Board for the next Annual General Meeting.
7. CEO
The company’s CEO in charge of managing its day-to-day operations in accordance with the
instructions and orders issued by the Board of Directors and informing the Board of Directors of
the development of the company’s operations and financial performance. The CEO also is also
responsible for ensuring the legality of the company’s accounting and the reliability of asset
management. The CEO is appointed by the Board of Directors, which decides on the terms of
their service contract.
Since March 2011, Atria’s CEO has been Juha Gröhn, MSc (Food Sc). Atria also has a Deputy
CEO. Tomas Back has served as Deputy CEO since 2018. Atria Board of Directors decided on
30
th
1 June 2023, as Juha Gröhn retires on 31 May 2023.
8. Management Team
Atria Group has a Management Team chaired by the CEO. The Management Team assists the
CEO in planning the operations and in operational management. The duties of the Management
Team include, among others, preparing strategic plans and putting them into practice, handling
significant projects and organisational changes, as well as reviewing and implementing the
Group’s risk management measures in their respective areas of responsibility. In 2022, the
Management Team met nine times
.
ATRIA PLC | CORPORATE GOVERNANCE STATEMENT
financial statements
Atria Annual Report 2022
Management Team on 31 December 2022
Name
Juha Gröhn, CEO
Tomas Back, CFO, deputy CEO, Executive Vice President,
Atria Denmark
Joined Atria in
1990
2007
Year of birth
1963
1964
Education
M.Sc. (Food Sc.)
M.Sc. (Econ)
Relevant work
experience
●
●
●
2010
●
●
●
2003
●
●
●
●
present
●
●
●
●
●
●
Concurrent key
positions of trust
●
(ETL) 2012– present
●
●
●
Past key positions
of trust
●
(ETL) 2013–2015
●
●
Industry Association 2012–2018
●
●
2018
Shareholding on
31 December 2022
30,879
4,372
ATRIA PLC | CORPORATE GOVERNANCE STATEMENT
financial statements
Atria Annual Report 2022
Name
Mika Ala-Fossi,
Executive Vice President, Atria Finland
Jarmo Lindholm,
Executive Vice President, Atria Sweden
Joined Atria in
2000
2002
Year of birth
1971
1973
Education
Meat industry technician
M. Sc. (Econ.)
Relevant work
experience
●
●
2011
●
●
●
●
●
●
●
●
Development, Atria Plc, Commercial Director, Atria Finland Ltd, 2005–2010
●
●
●
Concurrent key
positions of trust
●
●
Board of Directors 2011–present
●
●
present
●
●
2020–2022
Past key positions of
trust
●
2012–2018
Shareholding on 31
December 2022
3,432
3,512
ATRIA PLC | CORPORATE GOVERNANCE STATEMENT
financial statements
Atria Annual Report 2022
Name
Olle Horm
Executive Vice President, Atria Estonia
Lars Ohlin
Executive Vice President, Human Resources
Joined Atria in
2012
2007
Year of birth
1967
1958
Education
Engineer
B.A. (International Business Administration)
Relevant work
experience
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
Concurrent key
positions of trust
●
●
Past key positions
of trust
Shareholding on 31
December 2022
3,002
ATRIA PLC | CORPORATE GOVERNANCE STATEMENT
financial statements
Atria Annual Report 2022
Name
Pasi Luostarinen
Executive Vice President, Marketing & Market Insight
Merja Leino
Executive Vice President, Sustainability
Joined Atria in
2000
1996
Year of birth
1966
1960
Education
M.Sc. (Econ)
PhD (Food Chemistry)
Relevant work
experience
●
●
●
Meat Products, Atria Plc and Atria Finland 2007–2011
●
●
●
●
●
●
●
●
Sustainability, Atria Finland 2016–2019
●
Atria Finland 2011–2016
●
convenience food), Atria Plc 2007–2011
●
●
Finland 1999–2000
●
●
●
●
●
Concurrent key
positions of trust
●
●
Past key positions
of trust
●
●
●
Shareholding on 31
December 2022
4,456
4,015
ATRIA PLC | CORPORATE GOVERNANCE STATEMENT
financial statements
Atria Annual Report 2022
9. Remuneration
Atria has prepared a remuneration report in compliance with the Corporate Governance Code that
came into effect on 1 January 2020. The statement is available on the company’s website at
www.atria.com (Investors > Corporate Governance).
10. Internal control, risk management and
internal audit
10.1 Internal control
The purpose of internal control within the Atria Group is to support the implementation of Atria’s
strategy and the achievement of its goals, and to ensure Atria’s operations´ appropriateness and
efficiency and the reliability of financial reporting. Internal control also ensures compliance with
legislation, regulations, agreements and Atria’s values, as well as internal procedures and
principles.
Atria has strategic and annual financial goals which steer the entire Group’s operations. These
goals are set to all business areas, and they have been approved as part of the strategy process
or the annual goal-setting process. The achievement of the financial goals is monitored on a
monthly, quarterly and yearly basis.
Atria uses Group policies, principles and guidelines for internal control and related steering. The
company ensures compliance with the guidelines and rules by providing training. In addition,
internal control is supported by internal audit and risk management. Approval procedures, user
rights and controls are also part of internal control.
The reliability of financial and business reporting is ensured through the documentation of financial
processes and by means of financial management guidelines, as well as control practices and the
related guidelines. The control practices consist of both preventive and investigative measures.
Typical control practices include approval procedures, verification, reconciliation, operational
inspections, the protection of assets, the separation of jobs and the administration of user rights.
The Group’s CEO and Board of Directors are responsible for the appropriate organisation of
internal control. The Board of Directors is responsible for ensuring that Atria has internal control
principles and their governance and monitoring in place. Each business area is responsible for
arranging effective and appropriate control procedures.
10.2 Risk management
Risk management supports the implementation of Atria’s strategy and the achievement of its
goals, as well as organisation developing in the operating environment defined in Atria’s strategy.
Risk management also aims to prevent unfavourable events and safeguard business continuity.
Atria defines risk as the impact of uncertainty on the company’s objectives. Risks can cause
positive or negative deviations from set goals. For reporting purposes, Atria’s risks are divided into
four categories: strategic risks, operational risks, liability risks and financial risks. Risks are also
divided into internal and external risks depending on whether they are posed by factors external to
the Group or by internal factors. Risk management is guided by the company’s risk management
policy, which has been approved by the Board of Directors, and by the ISO 31000 and ISO 31010
standards as applicable. The recommendations of the Securities Market Association (SMA) for
listed companies have also been observed in the arrangement of risk management. The risk
management policy specifies Atria’s risk management goals, principles, responsibilities and
authorisations, along with the principles of risk assessment and reporting. More detailed
guidelines for operating methods concerning risk identification and reporting are provided in Atria’s
risk management process guidelines.
Risk management is part of Atria’s day-to-day business operations, and risk management enables
the company to consider the impact of uncertainty on its operations when making decisions. Risk
management at Atria Group is based on consistent risk identification, assessment and reporting,
and risk management is part of the annual planning process. Communication related to risks
complies with the Group’s communication plan. Risks are managed in accordance with the
specified approved principles in all business areas and Group operations.
The Board of Directors approves the Risk Management Policy and any changes to the policy, and
supervises the implementation of the principles specified in the policy. The Group’s CEO is
responsible for the appropriate organisation of risk management at Atria, and the CFO sees to the
development of the risk management and reporting framework.
Board of Directors and the members of the Group’s Management Team are responsible for
identifying and assessing strategic risks and for implementing risk management in their respective
areas of responsibility. The management teams of the business areas are responsible for
identifying and assessing operational risks and for implementing risk management in their
respective business areas. The Group’s Treasury Committee is responsible for identifying and
assessing financial risks and for implementing risk management throughout the Group.
When preparing an annual plan for internal audit, key observations from the risk assessments
made as part of the Group’s planning process are taken into account. Every Atria employee is
responsible for identifying and assessing risks associated with their work and any other risks that
they encounter, and for drawing attention to and preventing such risks.
ATRIA PLC | CORPORATE GOVERNANCE STATEMENT
financial statements
Atria Annual Report 2022
Major risks and uncertainties known to the Board of Directors are discussed in more detail in the
Board of Directors’ report under ‘Risk management at Atria’.
10.3 Internal audit
Internal Audit evaluates and inspects the effectiveness of the Group’s internal control system, the
relevance and efficiency of the activities, and compliance with guidelines. It also aims to promote
the quality of operations and the process, ensure the achievement of Atria’s goals and the
effectiveness of risk management and highlight best practices and development opportunities in
various functions.
Internal Audit assesses the following areas:
●
●
●
●
●
●
●
The results of internal auditing are documented and discussed with the audited area of operation
and Group management. A summary of the audit results is presented to the Board of Directors at
least once a year. Regular discussions are held with the auditor to ensure that the audit activities
cover a sufficiently wide range of operations and to avoid overlapping audit operations.
The Board of Directors approves the annual plan for internal auditing. The preparation of the audit
plan is guided by risk management, issues identified as part of the Group’s internal reporting,
goals related to improving the quality and efficiency of the operations, and current issues in the
company’s operating environment. Atria’s Group Control function is responsible for internal
auditing in cooperation with an external service provider. Where necessary, separate studies
commissioned by the Board of Directors or the Group’s management will be conducted.
11. Auditing
In line with its Articles of Association, the company has one (1) auditor. Its auditor must be an
audit firm approved by the Finnish Patent and Registration Office. The auditor’s term of service
ends at the close of the Annual General Meeting following their election.
The auditor is responsible for auditing the Group’s accounts, its financial statements, and
administration.
The auditor provides Atria’s shareholders with an auditor’s report in accordance with the law, in
connection with the company’s financial statements, reports regularly to the Board of Directors
and management, and presents the audit plan. The auditor participates in a Board meeting at
least once a year.
PriceWaterhouseCoopers Oy Ab, were appointed as the company's Auditor on 3 May 2022, with
Authorized Public Accountant Mr. Samuli Perälä as the principally responsible auditor, until the
end of the next Annual General Meeting. Remuneration is paid to the auditor according to an
invoice approved by the company.
Auditor’s remuneration for the 2022 financial year
In 2022, the Group paid EUR 346,000 to PricewaterhouseCoopers Ltd. as the auditor’s
remuneration. For non-audit services, EUR 12,000, was paid in 2022.
12. Insider policy
Atria complies with Nasdaq Helsinki Ltd’s Guidelines for Insiders. In addition, Atria’s Board of
Directors has confirmed Atria’s insider guidelines, which complement other insider guidelines and
include instructions concerning insiders and insider administration. The company’s insider
guidelines have been distributed to all persons discharging managerial duties as defined by the
company, as well as to the people involved in the preparation of financial reporting. The guidelines
are also available on the company’s intranet.
Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on
market abuse (Market Abuse Regulation) has been applied since 3 July 2016. Atria has not
established a permanent insider register. Insider information is managed by means of project-
specific insider registers that are established and maintained as needed. All projectspecific
insiders are informed about their insider status in writing and provided with the appropriate insider
instructions.
Atria has determined that the members of the Board of Directors, the members of the Supervisory
Board, the CEO, the Deputy CEO and the CFO satisfy the definition of personnel discharging
managerial duties with a notification obligation. The company maintains a list of the personnel
discharging managerial duties and their related parties.
The company maintains registers of managers subject to the notification obligation and their
related parties, as well as of Atria’s project-specific insiders when necessary. The company’s legal
department and CFO monitor compliance with the insider guidelines. The right of personnel
discharging managerial duties and involved in the preparation of financial reporting to trade in the
company’s financial instruments has been restricted in such a way that the aforementioned people
may not trade in the company’s shares 30 days prior to the publication of an interim report and a
release of the financial statements and further should the period between the end of a review
period and the publication of the report/release exceed 30 days.
ATRIA PLC | CORPORATE GOVERNANCE STATEMENT
financial statements
Atria Annual Report 2022
13. Related-party transactions
Atria’s business operations may include regular business transactions with its related parties. The
ordinary business activities of Atria Group’s primary production companies may include the sale
and purchase of animals, grain and feed to and from people included in Atria’s related parties. In
addition, Atria Group’s companies may purchase and sell services and raw materials from and to
companies included in Atria’s related parties.
The company has defined its related parties and maintains a list of such related parties. The
related parties have been provided with the necessary guidelines. Each person included in Atria’s
related parties is responsible for ensuring that Atria has up-to-date information about their related
parties. The company updates its list of related parties at least once a year by sending an
information request to the people included in its related parties. The communities included in
Atria’s related parties are checked in connection with this.
Decision-making guidelines have been prepared for business transactions with related parties.
These guidelines enable Atria to identify related party transactions and the related requirements
and to assess in advance whether the transaction is part of is ordinary business activities. The
purpose of the guidelines is to ensure the careful preparation of related party transactions and the
acquisition of any reports, statements and/or assessments necessary for the preparation, as well
as decision-making in accordance with the disqualification regulations.
Atria has a monitoring and reporting system for related party transactions, and control measures
are also targeted regularly at related party transactions. Related party transactions are reported
annually to the Board of Directors to ensure that the transactions are part of the company’s
ordinary business activities and are conducted on market terms.
14. Communications
The aim of Atria’s investor communications is to ensure that the markets have accurate and
sufficient information to determine the value of Atria’s shares at all times. Another aim is to provide
the financial markets with comprehensive information to enable active participants in the capital
markets to create an overview of Atria as an investment.
Silent period
Atria has established a silent period for its investor relations communications. The silent period
covers 30 calendar days prior to the publication of interim reports and annual reports and, if there
are more than 30 days between the end of the review period and the publication of the
report/release, the period in question. Atria will not issue any statements on its financial standing
during this period.
Investor information
Atria publishes financial information in real time on its website at www.atria.com. The website
contains annual reports, interim reports, and press and stock exchange releases. Information
about the company’s largest shareholders is updated regularly on the website. The disclosure
policy approved by Atria’s Board of Directors describes the key principles and procedures followed
by Atria as a listed company in its communications with the media, capital markets and other
stakeholders. Atria’s disclosure policy is available in its entirety on the company’s website at
www.atriagroup.com, under Investors, Disclosure Policy.
ATRIA PLC | CORPORATE GOVERNANCE STATEMENT
financial statements
Atria Annual Report 2022
361
375
749
807
1137
1245
1540
1697
0
200
400
600
800
1000
1200
1400
1600
1800
18
19
20
21
22
Atria Group Net Sales cumulative, EUR million
Q1
Q2
Q3
Q4
Remuneration report 2022
This Remuneration Report includes information concerning the remuneration of the Board of
Directors, Supervisory Board, CEO and deputy CEO of Atria Plc during 1 January 2022 – 31
December 2022. This Report describes the remuneration of our governing bodies according to
Finnish Securities Market Act, Liability Companies Act and Corporate Governance Code 2020
published by Finnish Securities Market Association.
1. Shortly about our Remuneration Policy
The Remuneration Policy of Atria Oyj was presented for the Annual General Meeting held on April,
29, 2020. The Policy is applied until the Annual General Meeting in 2024, unless the Board decides
to bring it to the General Meeting earlier.
The objective of remuneration in Atria is to attract, motivate and retain the right people capabilities
and leadership necessary to achieve performance and strategic goals. The structure of the total
remuneration should be aligned with the long-term value creation of Atria, the business strategy, the
financial results as well as the employee’s contribution. Remuneration is based on predetermined
and measurable performance and result criteria.
The long-term goal of Atria is to secure and improve profitability, boost growth and increase the
Company’s value. Remuneration at Atria aims to promote the Company´s long-term financial
success, competitiveness and the favourable development of shareholder value. Remuneration is
based on performance, results and contribution to Atria. Remuneration should be understandable,
consistent, transparent, internally fair and non-discriminating. Remuneration complies with statutory
regulations and good corporate governance.
During 1 January 2022 - 31 December 2022 Atria has followed its Remuneration Policy and the
Policy has been seen to support our long term targets well. In the remuneration policy, it is described
that the board can, based on its own discretion, temporarily deviate from any part of the policy, on
the recommendation of the nomination and remuneration committee, e.g. in connection with the
change of CEO or deputy CEO. According to the Remuneration Policy, the temporary deviation must
be explained in the annual remuneration report. If it has been decided to deviate from the policy, and
the deviation is not considered temporary, the company will present the revised policy to the next
annual general meeting.
2. Shortly about the remuneration in 2022
No major changes have been made in the remuneration of Board of Directors’ or Supervisory
Board’s or CEO’s or Deputy CEO’s remuneration during 2022. Minor salary increases have been
made in line with the market development. No changes have been made in the STI or LTI
conditions. Atria's Board of Directors has temporarily deviated from the Remuneration policy in
connection with the selection of a new CEO, and the deviation is described in more detail in section
6 of this report. In other respects, the policy has not been deviated from during 2022 and no
remuneration recovery has been done.
3. Development of Atria’s financial
performance and remuneration
In terms of growth and earnings, 2022 was strong for Atria. Atria's net sales rose to EUR 1,697
million, an increase of EUR 156 million on the previous year. In terms of results, the year 2022 is
better than what the situation looked like especially in the winter and spring. Adjusted EBIT was EUR
49.0 million.
Remuneration for Atria’s governing bodies and remuneration per FTE during past five years is
described below.
ATRIA PLC | CORPORATE GOVERNANCE STATEMENT
financial statements
Atria Annual Report 2022
6,6
2,3
19,1
20,5
38,9
36,9
49,2
49,0
0,0
10,0
20,0
30,0
40,0
50,0
60,0
18
19
20
21
22
Atria Group adjusted EBIT cumulative, EUR million
Q1
Q2
Q3
Q4
Paid remunarations, EUR
2018
2019
2020
2021
2022
Supervisory Board
102,600
111,300
101,800
114,900
134,700
Board of Directors
347,300
345,100
337,850
332,700
351,400
CEO
744,301
735,964
758,257
939,995
991,110
Deputy CEO
338,543
406,314
426,949
504,929
511,657
Remuneration per FTE *
43,791
44,852
46,146
55,723
55,382
* Remuneration paid to the personnel of the subsidiaries sold in 2022 and 2021
are not included in the reported figures.
4. Remuneration of the members of the
Supervisory Board
The Annual General Meeting 2022 decided on the remuneration of the members of the Supervisory
Board, on the basis of the proposal prepared to the Annual General Meeting by the Shareholders’
Nomination Board as follows:
●
●
●
●
●
Meeting compensation and compensation for loss of working time is paid for meetings of
Supervisory Board and for Chairman and Deputy Chairman for those Board of Director`s meeting
where they attend to carry out the tasks of Supervisory Board. The members of the Supervisory
Board have no share incentive plans or share-based bonus schemes, nor are they entitled to any
other financial benefits besides the remunerations decided on by the Annual General Meeting.
ATRIA PLC | CORPORATE GOVERNANCE STATEMENT
financial statements
Atria Annual Report 2022
In 2022 monthly fees and meeting fees paid to the members of the Board of Directors (including being a member of the Board of another company that is part
The members of the Supervisory Board
Atria Plc
A-Farmers Ltd
A-Rehu Oy
Total
Monthly
Meeting
Monthly
Meeting
Monthly
Meeting
fees
fees
fees
fees
fees
fees
Halonen Jyrki, chairman
18,000
4,500
22,500
Anttikoski Juho, deputy chairman
9,000
4,500
13,500
Asunmaa Mika
2,400
5,100
7,500
Haarala Lassi-Antti
2,400
2,400
Herrala Mika
2,700
2,700
Hyttinen Veli
2,700
7,800
3,600
14,100
Ingalsuo Pasi
3,000
5,100
8,100
Joki-Erkkilä Jussi
2,100
2,100
Juuse Marja-Liisa
2,700
2,700
Kiviniemi Juha
2,400
2,400
Lahti Risto
1,200
1,200
Lajunen Ari
3,300
3,300
Lapatto Vesa
2,700
2,700
Nikkola Juha
2,400
2,400
Niku Mika
2,700
15,600
5,100
23,400
Panula Heikki, until 2 May 2022
300
300
Pöyhönen Ari
3,000
3,000
Rantala Suvi, as of 3 May 2022
2,100
2,100
Sairanen Risto
3,000
5,100
5,100
13,200
Sandberg Ola
2,400
2,400
Tuhkasaari Timo
2,700
2,700
ATRIA PLC | CORPORATE GOVERNANCE STATEMENT
financial statements
Atria Annual Report 2022
5. Remuneration of the members of the Board of Directors
The Annual General Meeting 2022 decided on the remuneration of the members of the Board of Directors, on the basis of the proposal prepared to the Annual General Meeting by the Shareholders’ Nomination
Board as follows:
●
●
●
●
●
●
Meeting compensation and compensation for loss of working time is paid for members of Board of Directors beside of Board meetings also for meetings of Remuneration and Nomination Committee and those
meetings of Supervisory Board where Board members attended. Remuneration is handled in the form of monetary compensation. The members of the Board of Directors have no share incentive plans or share-
based bonus schemes, nor are they entitled to any other financial benefits besides the remunerations decided on by the Annual General Meeting.
In 2022 monthly fees and meeting fees paid to the members of the Board of Directors (including being a member of the Board of another company that is part
of the same Group) were as follows:
The members of the Board
Atria Plc
A-Farmers Ltd
A-Rehu Oy
Total
Monthly
Meeting
Monthly
Meeting
Monthly
Meeting
fees
fees
fees
fees
fees
fees
Paavola Seppo, chairman
57,600
15,900
73,500
Korhonen Pasi, deputy chairman
31,200
14,700
45,900
Ginman-Tjeder Nella
26,400
8,400
34,800
Joukio Mika, as of 3 May 2022
17,600
3,600
21,200
Kaikkonen Jukka
26,400
9,600
36,000
Laitinen Leena
26,400
5,400
31,800
Moisio Jukka, until 2 May 2022
11,000
1,800
12,800
Paxal Kjell-Göran
26,400
9,600
3,600
39,600
Ritola Ahti
26,400
10,200
15,600
3,600
55,800
ATRIA PLC | CORPORATE GOVERNANCE STATEMENT
financial statements
Atria Annual Report 2022
6. Remuneration of CEO and deputy CEO
The remuneration of Atria Plc’s management aims to promote the company’s long-term financial
success and competitiveness and the favorable development of shareholder value.
The remuneration of the CEO and the Deputy CEO consists of base salary (including fringe
benefits), short-term incentive (STI) and long-term incentive (LTI), pension and other benefits. The
pension arrangement is payment based and the amount of pension is based on the annual earnings
of CEO as decided by the Board of Directors of Atria. The amount of the pension is based on the
monetary salary and fringe benefits without short- or long-term incentives. For the members of Atria
Group Management Team, belonging to Finnish social security, there has been agreed a group
pension arrangement accepted by the Atria Board of Directors. The retirement age based on the
group pension arrangement is at least 63 years. According to the pension arrangement agreement, if
the legislation concerning pension changes, the retirement age is altered. CEO and Deputy CEO
have nevertheless the right with certain conditions to retire at the age of 60. The pension
arrangement is payment based and the amount of pension is based on the annual earnings as
decided by the Board of Directors (including monetary salary and fringe benefits without cash
payments of incentive schemes).
The CEO’s period of notice is six months for both parties. If the Company terminates the contract,
the CEO is entitled to the salary for the period of notice and severance pay, which together
correspond to 18 months’ salary. There are no terms and conditions for any other compensation
based on the termination of employment. The Deputy CEO’s period of notice is six months for both
parties. If the Company terminates the contract, the Deputy CEO is entitled to the salary for the
period of notice and severance pay, which together correspond to 14 months’ salary. There are no
terms and conditions for any other compensation based on the termination of employment. The
remuneration of the new CEO, Kai Gyllström, will also follow the principles described above.
Temporarily deviating from the remuneration policy, Kai Gyllström was additionally paid a one-time
signing bonus of 200,000 euros in connection with the signing of the CEO contract in 2022. The
purpose of the award is to replace Gyllström's fees, which Gyllström has to give up when he leaves
his former employer.
Short-term incentive plan
The maximum amount of bonus pay under Atria’s short-term incentive plan is 25 to 50% of the
annual salary, depending on the effect on the results and the level of competence required for the
role. The criteria in the bonus pay plan are the performance requirements and net sales at Group
level and in the area of responsibility of the person concerned
Long-term incentive plans
In 2020, Atria Plc’s Board of Directors decided on the long-term incentive program for management
and key personnel for the period 2021-2023. The programme is principally the same as in 2018–
2020. The purpose of the share-based incentive plan is to encourage Atria's management to acquire
the company's shares and to increase the company's long-term value increase through its decisions
and operations.
The programme is based on incentives paid in shares and cash, and it is divided into three earnings
periods of one year, with the first earning period was 1 January 2021-31 December 2021 and the
second earning perio 1 January 2022-31 December 2022. The bonuses, partly in the form of shares
in the company and partly in cash, will be paid in three equal instalments during the following three
years after the earning period. The cash sum is intended to cover the taxes and tax-like fees arising
from the bonus. The potential reward of the plan is based on the company's earnings per share EPS
(70%) and organic growth (30%). If the person's employment or business relationship ends before
the reward is paid, the reward may not be paid.There are no restrictions regarding the ownership of
paid shares.
ATRIA PLC | CORPORATE GOVERNANCE STATEMENT
financial statements
Atria Annual Report 2022
The total paid salary for CEO during 2022 was EUR 874,030 and for deputy CEO EUR 449,227. The proportion of variable remuneration actually paid in 2022 was 35% for the CEO and 28% for the Deputy CEO
of the total paid remuneration.
The remuneration of the CEO and the deputy CEO in 2022 was as follows:
Element
CEO
Deputy CEO
Base salary (including fringe
benefits)
EUR 569,403
EUR 321,563
Pension benefits
EUR 117,080
EUR 62,430
2022 paid short-term
incentives
EUR 154.927 (paid in 2022)
EUR 91,711 (paid in 2022)
2022 earned short-term
incentives
EUR 155,483 (earned in 2022)
EUR 81,388 (earned in 2022)
2022 paid long-term
incentives
EUR 149,700
EUR 35,953
EUR 90,201 paid in cash + 5,771 shares at EUR 10.31 / 22 March 2022,
EUR 21,663 paid in cash + 1,386 shares at EUR 10.31 / 22 March 2022,
cash and shares both earned based on earning periods 2019, 2020 and 2021.
cash and shares both earned based on earning periods 2019, 2020 and 2021.
In years 2020, 2021 and 2022
earned long-time
EUR 435,513
EUR 104,534
incentives, not paid
Earned from earning periods 2020, 2021, 2022.
Earned from earning periods 2020, 2021, 2022.
Total value 47,287 shares (part of the shares is given as cash equivalent), with
Total value 11,350 shares (part of the shares is given as cash equivalent), with
share value EUR 9.21 (share value per 31 December 2022, total value EUR 435,513.
share value EUR 9.21 (share value per 31 December 2022), total value EUR 104,534.
Shares/cash equivalent will be paid in 2023.
Shares/cash equivalent will be paid in 2022, 2023 and 2024.
Other benefits
No other benefits during 2022
No other benefits during 2022
ATRIA PLC | FINANCIAL COMMUNICATIONS
financial statements
Atria Annual Report 2022
Financial communications
The aim of Atria’s investor reporting is to ensure that the market has at all times correct and sufficient information
available to determine the value of Atria’s share. In addition the aim is to provide the financial markets with versatile
information, based on which those active in the capital markets can form a justified image of Atria as an investment
object.
Atria has established a silent period for its investor relations communications; this period covers 30 calendar days
prior to the publication of interim reports and annual reports and, if there are more than 30 days between the end of
the review period and the publication of the report/release, the period in question. Atria will not issue any statements
on its financial standing during this period.
Investor information
Atria publishes financial information in real time on its web pages at www.atria.com. Here you can find annual
reports, interim reports and press and company announcements. The company’s largest shareholders and insiders
as well as their holdings are updated regularly to the web pages.
Company announcements
Atria Plc published a total of 25 company announcements or investor news in 2022. The releases can be found on
the Atria Group website www.atria.com.
Disclosure policy
The disclosure policy approved by the Atria Board of Directors describes the key principles followed by Atria as a
listed company in its communications with the capital markets and other stakeholders. The disclosure policy is
available in full on the company’s website.
Atria Plc’s IR contact person:
Hanne Kortesoja
Group Vice President, Communication & IR
Tel: + 358 400 638 839
e-mail: hanne.kortesoja@atria.com
Atria’s performance has been monitored by at
least the following analysts:
●
Tel: +358 9 5300 5484
e-mail: firstaname.lastaname@nordea.com
●
Tel: +358 10 252 4408
e-mail: firstaname.lastaname@pohjola.fi
ATRIA PLC
financial statements
Atria Annual Report 2022
Contact details
ATRIA PLC
Head office:
Itikanmäenkatu 3, Seinäjoki
P.O. Box 900, FI-60060 ATRIA, Finland
Tel. +358 20 472 8111
firstname.lastname@atria.com
www.atria.com
Other units:
Rahikkatie 95
FI-61850 Kauhajoki, Finland
Ankkuritie 2, Kuopio
P.O. Box 147, 70101 Kuopio, Finland
Pusurinkatu 48
FI-30100 Forssa, Finland
Suluntie 1
FI-40340 Jyväskylä, Finland
Isoniementie 79
FI-36420 Sahalahti, Finland
Domretor Oy
Leipomonkuja 6
FI-62200 Kauhava, Finland
ATRIA SWEDEN
Head office:
Löfströms allé 5
SE-172 66 Sundbyberg, Sweden
Tel. +46 00 482 30 10
firstname.lastname@atria.com
www.atria.se
Office Deli & Export
Nellickevägen 20 B
SE-412 63 Göteborg, Sweden
Tel. +46 00 482 36 10
Office Foodservice
Florettgatan 18
SE-254 67 Helsingborg, Sweden
Tel. +46 10 482 35 10
Office and production plants:
Sockenvägen 40
SE-697 74 Sköllersta, Sweden
Tel. +46 00 482 30 10
Skogholmsgatan 12
SE-213 76 Malmö, Sweden
Tel. +46 00 482 35 10
Furumovägen 110
SE-294 76 Sölvesborg, Sweden
Tel. +46 010 482 30 00
Hjälmarydsvägen 2
SE-573 38 Tranås, Sweden
Tel. +46 00 482 37 10
Maskingatan 1
SE-511 62 Skene, Sweden
Tel. +46 00 482 38 10
Johannelundsgatan 44
SE-501 10 Borås, Sweden
Tel. +46 10 482 38 10
Östanåkravägen 2
SE-342 62 Moheda, Sweden
Tel. +46 10 482 37 10
Fordonsgatan 3
SE-692 71 Kumla, Sweden
Tel. +46 010 482 30 00
Atria Concept
Spółka z o.o
Ul.Czestochowska 24
32-085 Modlnica, Poland
Tel. +48 12 661 20 33
ATRIA DENMARK
Langmarksvej 1
DK-8700 Horsens
Denmark
Tel. +45 76 28 25 00
Aage Jensen Bakken 1
DK-8700 Horsens, Denmark
Tel. +45 76 28 25 00
Anlaegsvej 3,
DK-7323 Give, Denmark
Tel. +45 76 28 25 00
firstname.lastname@atria.com
www.atria.dk
ATRIA ESTONIA
Atria Eesti AS
Metsa str. 19
EE-68206 Valga, Estonia
Tel. +372 767 9900
info.estonia@atria.com
firstname.lastname@atria.com
www.atria.ee
Other units:
Pärnu mnt 158
EE-11317 Tallinn, Estonia
ATRIA FINLAND
Head office:
Atriantie 1, Seinäjoki
P.O. Box 900, FI-60060 ATRIA, Finland
Tel. +358 20 472 8111
info@atria.com
firstname.lastname@atria.com
www.atria.com
Invoicing address:
P.O. Box 1000
FI-60061 ATRIA, Finland
Financial administration:
Itikanmäenkatu 3, Seinäjoki
P.O. Box 900, FI-60060 ATRIA, Finland
Sales Service Centre:
Itikanmäenkatu 3, Seinäjoki
P.O. Box 900, FI-60060 ATRIA, Finland
Commercial functions:
Läkkisepäntie 23
FI-00620 Helsinki, Finland