Atria: Changing segment reporting ahead of divestment of Pit-Products - Nordea

Atria announced changes to its group structure and segment reporting today. The company has agreed to sell its Russian retail and foodservice subsidiary Pit-Product, while it retains its Sibylla operations in Russia. Following the divestment that is estimated to take place during H1 2021, Atria will report Russian Sibylla operations as part of Atria Sweden. The change will be implemented in reporting as of January 1, 2021. According to restated figures, we note that Russian Sibylla operations net sales were EUR 31.2m, while EBIT was EUR 2.8m in 2020. We have anticipated EUR 33.6m sales and EUR 2.4m EBIT from Russian Sibylla operations in 2022E. Hence, it seems that Sibylla profitability (around 9% EBIT margin in 2020) is somewhat above our expectations, although this will have on only a small impact on the group level. However, we note that Pit-Product’s EBIT was -5.7m in 2020 and hence the divestment should su pport earnings after the completion of the divestment. Atria guides for EUR 37-43m adjusted EBIT in 2021 (EUR 40.5m in 2020), while we expect EUR 46m given easing of restrictions, continuing efficiency improvements and tailwind from the divestment in H2. Atria will report its Q1 tomorrow, 29 April, at 08:00 EET.