Atria: CMD event did offer additional information about costs and growth outlook - Nordea

Atria hosted its annual CMD event yesterday. Presentations concentrated on Atria Finland and Sweden segments. The company is proceeding according to its 2020-25 strategy and aims to improve its performance with investments into poultry, expansion in convenience food and strengthening food service. Poultry remains the key growth driver with expected 2.3% average volume growth in 2020-30 in Finland. The company has been able to find new export channels to mitigate lower export to China and sees good opportunities within these markets. The EUR 155m poultry investment to Finland should be operational in 2024, while the EUR 30m Swedish restructuring investment should be finalised by the end of 2023. Sibylla operations have recovered from COVID-19 slump, while the company is aiming to increase its footprint in fast food market. In short term, mounting cost inflation will have impact on Atria’s profitability, while th e company aims to mitigate cost increases through operational efficiency and price increases. In 2022, Atria expects costs to be EUR 40-50m above 2021 level. We have a fair value range of EUR 12.6-15.5 per Atria share.