Atria Russia CMD2019 IlariHyyrynen · Atria Russia 27.11.2019 Ilari Hyyrynen, Executive Vice...

27.11.2019

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Atria Capital Markets DayAtria Russia27.11.2019

Ilari Hyyrynen, Executive Vice President Atria Russia

Contents

1. Q3 2019 results & Atria Russia

2. Russian market update

3. BA Russia strategic focus areas and actions taken

CMD 27.11.2019 / Ilari Hyyrynen, Atria Russia2

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Q3 2019 results &Atria Russia

Atria Russia, Q3/2019

• The decline in net sales was caused by low performance in retail.• Development of Food Service has been very positive (+17%) Q3 y-o-y.• Sibylla Concept sales has been positive (+6%) Q3 y-o-y.• Raw-meat price turbulence has stabilized and sales price increases have taken place in all

business segments.• Macroeconomic indicators have developed moderately, but real disposable income continues

to decline.

4

MEUR Q3 Q1–Q3 FY

2019 2018 2019 2018 2018

Net sales

20.7 19.4 54.9 55.2 75.1

EBIT 0.4 -0.8 -2.0 -1.4 -4.0

CMD 27.11.2019 / Ilari Hyyrynen, Atria Russia

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Atia Russia, locations SPb


SPb,Office, Admin

Gorelovo,Manufacturing & warehousing

Sinyavino,Manufacturing

Moscow:Sales OfficeLogistics Center (3PL)

Manufacturing sites

6

Sinyavino• 9 644 m²

• 13 buildings (1-2 with all administration and manufacturing, 11 service buildings)

• Capacity is 250 tons of products per month


Experts have acknowledged “Atria Russia” factory in Gorelovo to be the most

technically advanced meat processing plant in north-western Russia

Gorelovo

• 22 000 m2

• Meat processing plant and logistics center.

• Factory layout copies Atria’s production site in Nurmo, Finland.

• Capacity is 115 tons of products per day.

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Business segments and brands

Retail

7CMD 27.11.2019 / Ilari Hyyrynen, Atria Russia

Food Service Fast Food Concept

Russian market update

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Macro Economics

9

2018 2019E 2020B

GDP growth rate 2.3 1.3 1.7

Consumer prices 2.9 4.7 3.0

Private consumption (HICP) 0.1 0.1 1.5

Unemployment rate 4.8 4.6 4.5

• Source: Ministry of economical development of Russia, latest forecast dated 30/09/19, basic scenario.• Analysts expect no growth of GDP in part of commodities and retail


FMCG and retail development


Retail formats R12 / August 2019:• Hypermarkets - 4.6%• Supermarkets - 0,8%• Discounters + 83%• Specialty stores + 24,3%• Convinience stores + 9,5%

FMCG segment R12 / August 2019:- Revenue +2.8%- Volume < 0,0%

Retail 1-8 / 2019:- Revenue +1.5% (+2.8%)- Volume <0,0%

Meat category:• Delicacies -3,2 %• Fresh meat -6,4%• Sausages and

frankfurters -1,8%

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Market trends- From hypermarkets to convenience stores

- Sustainability

- Healthy Food

- Quality

- Food safety and origin of the products and

raw-materials

- Ready meals getting more popular

- Out of home and On-the-go

- Promo sales accounts ~70 % of offtake


Market Share, Saint Petersburg

12 CMD 27.11.2019 / Ilari Hyyrynen, Atria Russia

St.Pete Top-10 Brands in Value. Jan-Aug 2019 vs Jan-Aug 2018

1. Ostankino 17%

(Papa Moshet included)

2. Velikoluksky 11%

3. Cherkizovo 6,9%

…

8. Atria 5 %

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Market Shares, Moscow


Msk Top-10 Brands in Value. Jan-Aug 2019 vs Jan-Aug 2018

1. Ostankino 15%

2. Klinski 9%

3. Velkom 8,3%

…

17. Atria 1,2%

BA Russia Strategic focus areas and actions taken

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15

Atria’s Healthy Growth in RussiaStrategic actions and implications

• Re-launch of Pit-Product, focus on Food Service and Sibylla expansion

• Enables the growth and profitability improvement

• Enhance employer image,secureprofessional and well-motivated staff


Category and Brand management

Atria Way of Work and Way of Leading (HR)

Sales Excellence

Operations efficiency improvements

Atria Russia focus areas and growth drivers.

Retail Food-service

Fast Food

Serving Retail

partners in Russia with premium

and added value

assortment.

Geographic expansion

with a broad portfolio of categories

and corporate

brand.

Shop in Shop concept.

Continuous growth and

geographical expansion,

export included, by

extended assortment.

16

Growth Growth


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Actions taken according to strategy• The Sibylla concept has grown as planned.

The number of Sibylla sales outlets has

increased being above 4 000.

• Foodservice sector has grown significantly,

profitability improved.

• Pit-Product re-branding done, active

marketing and promo campaigns started.

• Maintenance investments done for

manufacturing sites and machinery to secure

efficient processes and material flows.


Key Commercial actions to be taken

18

Portfolio

Price

Place

Promotion

People

• New premium novelties.

• SKU optimization

• High‐end positioning in Premium segment.

• Focus on Modern Retail.• Regional expansion to

Golden cities.

• Secure premium positioning.

• Improve cooperation with Federal Key Accounts.

• Launch new added value assortment. • SKU optimization to increase

profitability.

• Product‐driven promotion in addition to Price‐driven promotion.

• North‐West region in focus. • First listings to Moscow.

• Promote Finnishness by new Pit.• Launch Social responsibility project.

• Improve efficiency of Sales. Route to market.

• Utilization of gathered market insight data for promo actions and marketing.

• Efficient NPD process –together with KA’s.

• Improve profitability.

• Frozen – all Russia.• Chilled – North West &

Center regions.

• Promote international roots.

• Professionalism of sales and marketing team –B2B KAM model in focus.

• Efficient assortment development and expansion

• Maintain profitability.

• Russia & CIS.

• POS promotion.

• B2B KAM model & Professionalism.


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Thank You – Kiitos – Спасибо!

Atria Russia CMD2019 IlariHyyrynen · Atria Russia 27.11.2019 Ilari Hyyrynen, Executive Vice...

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