Atria: Strong Q2 with successful pricing actions - Nordea

Atria reported Q2 adjusted EBIT of EUR 13.8m versus our estimate of EUR 2.7m (Refinitiv consensus EUR 10.6m). Q2 net sales of EUR 432m were up 12% y/y and came 5% above our estimate. Adjusted EBIT increased in Finland and Sweden. The company has been successful in pricing actions and sales structure has been more favourable with recovery of foodservice channel. Export sales declined y/y. Producer prices paid by Atria have increased some 30% y/y and the company has done more price increases after the review period.

The Finnish poultry investment is progressing according to the planned schedule. Q2 reported EBIT included EUR 12.8m capital gains and EUR 10.7m translation loss related to exit from Russian fast-food business. H1 operating cash flow was EUR -12.6m (EUR 19.3m a year ago) due to increase in working capital.

Atria maintained its outlook intact and expects adjusted EBIT to decline in 2022 (after EUR 49.2m in 2021) while we have modelled EUR 33m. We view strong Q2 results positively while we note higher expectations for H2 as we have expected price increases to take full effect in H2, while it appears that the company has been very successful with its pricing actions already in Q2.

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