Atria: Substantial cost headwinds for 2022 - Nordea

Q1 earnings were better than feared, but substantially higher-than-expected cost headwinds create uncertainty for the remainder of the year. In Q4, the company anticipated cost headwinds of around EUR 60m, while it now expects closer to EUR 200m annually. We believe costs will normalise somewhat during 2022 but remain elevated. Demand has remained solid in the retail channel, while a foodservice recovery should support the mix development. The poultry investment is proceeding according to plan and on budget. We believe Q2 will be a tough quarter with lagging price increases, while H2 is more dependent on how consumer demand evolves when price increases start to materialise. We derive a fair value range of EUR 11.5-14.0 (11.4-13.9) per Atria share. Marketing material commissioned by Atria.

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