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Altia hails profitability despite sales slide
Finnish state-owned drinks group Altia Corporation increased operating profit in 2015, despite net sales falling 10.7%.
Pekka Tennilä, Altia CEO, is “satisfied” with the firm’s 2015 results
The firm, which produces, markets, sells, imports and exports alcoholic beverages in the Nordics and Baltics, saw 2015 net sales total €380.7 million, down from €426.3 million in 2014.
Altia attributed the declines to market environment, strategic changes to its product portfolio, and a negative exchange rate effect.
Despite the “expected impact on net sales”, operating profit excluding non-recurring items increased to €23.6 million, up from €17.9 million in 2014.
The Board of Directors proposed dividends of EUR 10.4 million to be paid for the financial year 2015.
Altia is currently implementing a strategy introduced in 2014 to drive business operations, competitiveness and profitability.
In line with the strategy, the company reduced the number of own-brands and partner brands in the portfolio.
“I am glad to see that the transformation of Altia has clearly progressed in 2015 in accordance with the strategy,” said Pekka Tennilä, Altia CEO, in the financial statement.
“The short-term focus has been on pricing, procurement, supply chain efficiencies and overall cost management in all areas of the business. As a result profitability improved clearly with EBITDA at 10 % level.
“Despite major restructurings and impairment losses in 2013–2014, we are satisfied with the rapid recovery, strong balance sheet and the strengthening of all key balance sheet ratios.”
Looking ahead, Altia expects the 2016 decline in net sales to be smaller than on 2015. “Assuming market conditions do not deteriorate, operating profit excluding non-recurring items and relative profitability are expected to further improve from the year 2015,” the Group says in its statement.