Finnish meat products group Atria has lowered its profit and sales forecast for the remainder of the year.
In a statement today (15 October), the firm said it will record impairments totalling EUR10.4m (US$14.6m) allocated to good will. The impairments will have no effects on the cash flow, Atria said. As a result of Atria Russia's impairment losses and weakened prospects of results, the group's EBIT for 2010 is estimated to be lower than that for 2009. Atria Group's net sales are also expected to remain "somewhat below" last year's level, it said. Previously, Atria had estimated the group's EBIT and net sales in 2010 to remain at the 2009 level. "The prices of meat raw materials in Russia have risen significantly during the period August-September," the firm said in a statement. "The price rises are expected to continue strong for the remainder of the year, which further weakens Atria Russia's prospects of results. The aim is to transfer the rise of raw material prices to the prices of end products, which may have a negative impact on the Q4/2010 net sales development." Atria will publish its third quarter financial report on 27 October.