Atria: A solid Q3 driven by successful price - Nordea

Atria reported Q3 adjusted EBIT of EUR 16.2m in line with our estimate (Refinitiv consensus EUR 14.8m). Q3 net sales of EUR 439m were up 13% y/y and came 1% above our estimate (+6% versus consensus). Adjusted EBIT increased in Sweden and declined in Finland, and Denmark & Estonia. The company has seen good development in foodservice channel while retail sales have levelled off with some business lines and product groups showing downward trend. Producer prices paid by Atria have increased some 30% y/y and the company has adapted to changing operating environment well. The Finnish poultry investment is progressing according to the planned schedule. Q3 reported EBIT included EUR +0.3m of items affecting comparability, related to refund of pension contribution in Sweden. Q3 operating cash flow was EUR 7.6m (EUR 22.6m a year ago) and continued to be burdened by 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 45m (consensus EUR 44m). We believe Q3 report warrants slightly positive consensus revisions while we note uncertainty over volume development in important Q4 due to high inflation.