Atria: Volume development in focus following the high inflation - Nordea

Atria will report its Q3 on 26 October. Following the sharp food inflation, we are 5% above Refinitiv consensus on top line and 10% above on adjusted EBIT for Q3. We believe the company has been able to mitigate cost inflation with price increases, leaving the key focus on volume development. In addition to grocery trade, strong foodservice recovery should support development in Q3, while sales mix might be burdened by lower sale of higher price point items. However, we note the importance of volume development, which we believe has remained solid in Q3. Exports to China have most likely remained low, although price levels of pork in China have improved clearly since spring, which could support development going forward. To our understanding, investments in Finland and Sweden are proceeding according to the plans. We even believe the Finnish poultry investment (EUR 155m) could be slightly ahead of the original plan and the company could start to ramp-up the facility already during 2023.

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