Atria: Strong start for the year - Nordea

Atria reported a strong Q1 adjusted EBIT of EUR 6.6m, +94% / +107% versus Refinitiv consensus and Nordea, respectively. Q1 net sales of EUR 361m were up 1% y/y and came slightly above our expectations. 94% EBIT beat in Q1 was mainly attributable to Finland, where retail sales and especially export to China increased. Eastern had a positive sales effect and EBIT improved in all business areas. Retail sales increased by almost 10%, while foodservice sales were down around 20% y/y. The company changes its reporting structure ahead of the divestment of Pit-Products that is estimated to be finalised during H1. Russian Sibylla operations will be reported under Atria Sweden, while Pit-Products is reported in Unallocated. Sibylla has been performing well in Russia as we calculate EUR 31m net sales and EUR 2.8m EBIT in 2020, indicating around 9% EBIT margin (Group adjusted EBIT margin was 2.7% in 2020). The company will d ecide over EUR 30m investment project in Sweden by the end of June. Atria reiterated its EUR 37-43m adjusted EBIT guidance for 2021 (EUR 40.5m in 2020), which we find conservative given strong Q1, possible easing of restrictions, continuing efficiency improvements and tailwind from the divestment in H2.
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