2022-08-11 08:00:00 CEST

2022-08-11 08:00:10 CEST


REGULATED INFORMATION

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Olvi Oyj - Half Year financial report

Olvi Group's half-year report 1 January to 30 June 2022 (6 months)


OLVI PLC                 Half-year report 11 August 2022 at 9 am

Olvi Group's half-year report 1 January to 30 June 2022 (6 months)

Half-year report in brief

Olvi Group's sales volume and net sales developed strongly during the second
quarter, in line with the favourable trend that prevailed in the first quarter.
The Group's operating profit decreased during the review period, but the
previous year's level was achieved in the second quarter despite significant and
rapid cost increases. The impact of higher costs has been successfully reduced
through price increases in all markets. The Group's solvency has remained
strong, thus enabling future growth investments.

Near-term outlook unchanged

The operating profit from continuing operations is expected to remain at the
previous year's good level. However, business operations involve significant
uncertainties due to the availability of raw materials, packaging materials and
energy and the increase in costs.

Olvi publishes its near-term outlook for continuing operations, which include
the company's reporting segments in Finland and the Baltic Sea region. Its
business operations in Belarus are presented as discontinued operations / assets
held for sale in accordance with IFRS 5 and will therefore not be included in
the near-term outlook.

The Group's key ratios (continuing operations)

               4-6/   4-6/   Change, %  1-6/   1-6/   Change, %  1-12/

               2022   2021   /pp        2022   2021   /pp        2021
Sales volume,  188.7  159.2  18.5       323.5  271.7  19.0       574.5
Mltr
Net sales,     127.0  102.0  24.5       211.8  171.4  23.5       364.8
MEUR
Gross profit,  48.6   44.7   8.7        79.9   72.9   9.6        151.7
MEUR
% of net       38.3   43.8              37.7   42.5              41.6
sales
Operating      15.4   15.5   -0.4       20.0   21.9   -8.3       45.1
profit, MEUR
% of net       12.2   15.2              9.5    12.8              12.4
sales
Profit for     10.8   10.9   -0.3       14.7   16.4   -10.2      36.7
the period,
MEUR
% of net       8.5    10.7              6.9    9.5               10.1
sales
Earnings per   0.52   0.52   -1.2       0.71   0.79   -10.7      1.77
share, EUR
Investments,   8.9    8.1    9.9        17.1   14.2   20.3       26.8
MEUR
Equity per                              14.45  12.86  12.4       14.19
share, EUR
Equity ratio,                           53.7   54.6   -0.9       60.7
%
Gearing, %                              -11.6  -22.9  -11.3      -16.6

Key ratios for the Group, including assets held for sale

                        4-6/   4-6/   Change, %  1-6/   1-6/   Change, %  1-12/

                        2022   2021   /pp        2022   2021   /pp        2021
Sales volume, Mltr      278.4  249.8  11.4       467.2  413.7  12.9       853.7
Net sales, MEUR         168.8  132.0  27.9       272.7  217.3  25.5       462.2
Operating profit, MEUR  26.7   20.6   29.4       33.1   28.7   15.4       59.4
% of net sales          15.8   15.6              12.1   13.2              12.9

Assets held for sale are discussed in more detail under item 12 of Table 5 in
the table section of the half-year report bulletin.

Business development

Lasse Aho, Managing Director:

Business development during the second quarter

Demand for Olvi Group's products continued to be strong in the second quarter.
The sales of non-alcoholic products in particular continued to grow rapidly in
line with the strategy. Investments in new brands and new spring season products
have been well received in the market. The sales volume increased by 18.5%, and
growth was achieved in all geographical reporting segments as retail demand
remained strong and sales to the hotel, restaurant and catering (HoReCa) sector
and cross-border trade recovered following the lifting of sales channel and
travel restrictions related to the coronavirus pandemic. Exports to Russia have
ceased. Exports to other markets grew as planned. Net sales increased by 24.5%.
Excluding the acquisitions made in 2021, the sales volume increased by 7.8% and
the net sales by 17.7%. Because of the strong and sudden increase in costs,
price increases have been implemented as far as possible in each market and
sales channel. Net sales increased in all markets. Cost increases could not yet
be fully transferred to prices.

Production costs in raw materials, packaging materials, energy and fuel began to
increase significantly during the coronavirus pandemic and have continued to do
so because of the war in Ukraine. There have been challenges in the availability
of materials. Salaries have increased, especially in the Baltics. Profitability
management has been challenging due to the rapidly changing operating
environment and inflation. The operating profit was EUR 15.4 million and
remained close to the previous year's level, decreasing by only 0.4%, as the
impact of cost increases was partly offset by the price increases implemented.

Business development during the first half of the year

During the first half of the year, the sales volume increased by 19.0% and net
sales grew by 23.5%. The market shares remained at a good level or continued to
improve in many product categories. In addition, new business operations - such
as Vestfyen in Denmark and Piebalgas and the Everest water brand in Latvia -
generated growth for the Group as planned.

The operating profit was EUR 20.0 million, decreasing by 8.3% from the previous
year. The company's performance improved significantly during the second
quarter. Price increases have been implemented in response to cost increases. In
addition, operational efficiency is being continuously improved through targeted
investments and operational measures.

During the first half of the year, Olvi continued its strategic investments in
growing its production and storage capacity and strengthened its future
competitiveness by implementing strategic reform projects related to
sustainability and digitalisation, for example. Olvi aims to achieve carbon
-neutral operations in its Iisalmi plant during 2023. Business capabilities are
being improved in terms of data-based management and digitalisation.

Segment-specific business development

Business operations developed favourably in Finland in the second quarter as
sales to the hotel, restaurant and catering (HoReCa) sector and cross-border
trade recovered following the lifting of restrictions related to the coronavirus
pandemic. Retail demand also remained strong. The sales volume increased by
3.3%, which is a good achievement, considering the impact of the warm early
summer on the volume in the previous year, which is reflected in the figures for
the comparison period. The sales volume increased by 2.1% during the first half
of the year. Successes in 2022 include hard seltzers, in which Olvi is the
market leader by a clear margin. Net sales grew by 9.7% as cost increases were
partially transferred to customer prices during the spring. Net sales have
increased by 8.6% since the beginning of the year. Operating profit increased by
9.6% during the second quarter but decreased by 3.0% during the first half of
the year. The comparable operating profit improved, because costs related to
remuneration were recognised in the previous year and there were no such costs
in the reporting period. In operational terms, it has been challenging to reach
the previous year's profitability level because of cost pressures and the timing
of price increases.

In the Baltic Sea region reporting segment, the sales volume increased by 35.0%
and net sales grew by 46.1% in the second quarter. Excluding the acquisitions
made in 2021, the sales volume increased by 15.8% and the net sales by 31.5%.
The sales volume and net sales improved in all countries of operation and
especially in Latvia. The sales of Everest water and Piebalgas beers have
increased business operations in Latvia as planned. Export sales opportunities
in new markets were successfully seized. The sales volume increased by 39.6% and
net sales grew by 47.6% during the first half of the year. Denmark, which was
not included in the previous year's comparison figures, is significantly
contributing to the growth of the segment. Investments support sales growth. A
new brewhouse is being built in Lithuania, the storage capacity in Estonia and
Latvia has been expanded significantly, and production is being modernised in
Denmark. The purpose of these measures is to ensure a strong market position in
the future. Energy and fuel costs have increased steeply. Combined with the
increase in raw material and packaging material prices and availability
problems, this has reduced profitability. The integration in Denmark is still in
progress. The operating profit decreased by 6.5% in the second quarter and has
decreased by 8.5% since the beginning of the year.

Seasonal nature of operations

The nature of the Group's business operations involves seasonal fluctuation. The
net sales and operating profit of the geographical reporting segments are not
accumulated steadily. Instead, they fluctuate in accordance with the special
characteristics of the seasons of the year and product seasons.

Sales development

Olvi Group's sales volume grew by 19.0% in January-June, totalling 323.5 (271.7)
million litres. The growth focused on the Baltic Sea region segment, which did
not include Denmark in the comparison period.

Sales volume,  4-6/2022  4-6/2021  Change, %  1-6/2022  1-6/2021  Change, %
Mltr
Finland        75.1      72.7      3.3        130.7     127.9     2.1
Baltic Sea     128.4     95.0      35.0       218.3     156.4     39.6
region
Eliminations   -14.7     -8.5                 -25.5     -12.6
Continuing     188.7     159.2     18.5       323.5     271.7     19.0
operations,
total

The Group's net sales increased by 23.5% in January-June and were EUR 211.8
(171.4) million.

Net sales,    4-6/2022  4-6/2021  Change, %  1-6/2022  1-6/2021  Change, %
MEUR
Finland       58.9      53.7      9.7        100.5     92.5      8.6
Baltic Sea    76.1      52.1      46.1       124.7     84.5      47.6
region
Eliminations  -8.0      -3.8                 -13.5     -5.6
Continuing    127.0     102.0     24.5       211.8     171.4     23.5
operations,
total

Financial performance

The Group's operating profit in January-June was EUR 20.0 (21.9) million, or
9.5% (12.8%) of net sales. The operating profit was burdened by rapidly
increasing production costs related to energy, raw materials, packaging
materials and logistics in particular. It has not been possible to transfer the
cost increases immediately to the prices of end products because of the pricing
periods in the retail sector, among other reasons.

Operating     4-6/2022  4-6/2021  Change, %  1-6/2022  1-6/2021  Change, %
profit, MEUR
Finland       8.8       8.0       9.6        11.4      11.7      -3.0
Baltic Sea    7.3       7.8       -6.5       9.6       10.5      -8.5
region
Eliminations  -0.6      -0.3                 -0.9      -0.4
Continuing    15.4      15.5      -0.4       20.0      21.9      -8.3
operations,
total

The Group's profit after taxes in January-June was EUR 14.7 (16.4) million.

Earnings per share calculated from the profit attributable to the owners of the
parent company were EUR 0.71 (0.79) in January-June.

Balance sheet, financing and investments

Olvi Group's balance sheet total at the end of June 2022 was EUR 563.4 (493.6)
million. Equity per share at the end of June 2022 was EUR 14.45 (12.86). The
equity ratio was 53.7% (54.6%), and gearing was -11.6% (-22.9%). The Group's
liquidity indicator, the current ratio, remained almost at the same level as
before, at 1.0 (1.1).

Interest-bearing liabilities amounted to EUR 8.9 (3.6) million at the end of
June. The increase is due to Vestfyen's short-term interest-bearing loans in
Denmark. Of the interest-bearing liabilities, short-term liabilities accounted
for EUR 7.0 (1.3) million.

Olvi Group's expansion and replacement investments totalled EUR 17.1 (14.2)
million in January-June. Of the investments, EUR 6.2 million were made in
Finnish companies and EUR 10.9 million in subsidiaries in the Baltic Sea region.
Olvi Group has continued its investments in continuing operations as planned and
has invested in increasing and diversifying its production and storage capacity
and in modernising its production facilities and making them more
environmentally friendly. In addition, investments have been made to ensure
continuity in terms of energy solutions in the Baltic countries in particular.

Personnel

The average number of personnel in Olvi Group's continuing operations was 1,468
(1,210) in January-June. The Group's average number of personnel increased by
21.3%, mainly because of the acquisition of Piebalgas and Vestfyen in 2021.

Olvi Group's average number of personnel by segment:

                   4-6/2022  4-6/2021  Change, %  1-6/2022  1-6/2021  Change, %
Finland            476       437       8.9        441       404       9.2
Baltic Sea region  1,067     848       25.8       1,027     806       27.4
Total              1,543     1,285     20.1       1,468     1,210     21.3

Board of Directors and management

No changes took place in Olvi plc's Board of Directors and management during the
review period.

By means of a separate stock exchange release issued on 20 June 2022, Olvi plc
announced that it had appointed a new Managing Director due to the retirement of
its current Managing Director. Patrik Lundell will take over as Olvi's Managing
Director on 1 January 2023. Lasse Aho will continue as Managing Director until
31 December 2022. Patrik Lundell, MBA, will join Olvi from Starbucks, where he
served as the Director of the Channel Business Development unit for operations
in Europe, Africa and the Middle East. He has previously worked for several
international companies, holding various positions at Unilever, PepsiCo and
Scottish & Newcastle, for example.

The Managing Director of the Estonian subsidiary will change on 1 September
2022. Tarmo Noop, who has led the company very successfully as its Managing
Director for 25 years, will be followed by Jaanus Vihand. He has more than 20
years of experience in managerial positions in the food industry and the retail
sector. In 2019, he was selected as the best Managing Director in Estonia.

Other events during the review period

Changes in the Group structure

No significant changes took place in Olvi's subsidiary holdings during
January-June 2022.

Business risks and their management

Impacts of the war in Ukraine

The war in Ukraine has significantly increased business risks. There have been
challenges in the availability of packaging materials because of the coronavirus
pandemic, and the war in Ukraine has worsened the situation, especially in terms
of cans and glass bottles. So far, there have been no significant losses of
sales. The prices of packaging materials have continued to increase because of
higher production and logistics costs. The prices of packaging materials begun
to increase during the coronavirus pandemic. In addition, the prices of raw
materials have increased rapidly, especially for barley and sugar, and
availability has decreased in the market. The price of energy has multiplied for
electricity and gas during the first half of the year, particularly in the
Baltic Sea region segment, which affects production costs. The price of oil has
increased fuel prices, which are directly reflected in logistics costs. The
company will respond to the increase in costs by continuing price increases
until the end of the year. Olvi has been actively seeking alternative suppliers
and is working to improve the efficiency of its production operations.

Consumer prices have risen rapidly during 2022, especially in Europe as a result
of the war in Ukraine. General cost inflation is reducing consumers' purchasing
power and thereby affecting consumer behaviour. The focus of consumption is
shifting towards more affordable product options. In addition, overall
consumption may decrease. This may have an impact on business growth
opportunities over the long term.

The possible end of Russian energy imports to Europe has been taken into account
in Olvi's operations, especially in the Baltic region. Alternative energy
solutions have been sought, and production plants have been successfully adapted
to any energy-related changes to ensure uninterrupted production.

The war in Ukraine has significantly changed the business environment in Russia
and Belarus. In accordance with the stock exchange release issued by Olvi's
Board of Directors on 5 March 2022, Olvi has stopped exports to Russia from all
its countries of operation and has started careful planning to divest its
business operations in Belarus. The end of exports to Russia, the increase in
production and logistics costs caused by the war and the divestment of business
operations in Belarus are having a significant impact on the Group's business
operations. The business operations of its company in Belarus are affected by
the sanctions imposed by the EU and by the end of exports to Russia. However,
successful efforts have been made to continue the Belarusian company's
operational and maintenance activities by ensuring sufficient procurement
locally. The situation concerning the divestment of business operations in
Belarus is discussed in more detail under item 12 of Table 5 in the table
section of the half-year report bulletin.

Coronavirus pandemic

There are uncertainties in forecasting the development of business operations,
because it has been difficult to predict the spill over effects of the
coronavirus pandemic. These effects are related to sales channel restrictions
imposed to prevent the spread of the coronavirus pandemic and to travel
restrictions, for example, as well as to changes in overall demand. In addition,
there have been major challenges in global production and transport chains in
terms of availability and cost pressures. These have continued because of the
strict measures related to the coronavirus pandemic in China, among other
reasons. During the first half of 2022, there were still significant sales
channel restrictions related to the coronavirus pandemic in Olvi's countries of
operation, but these restrictions were lifted at the beginning of the second
quarter. The recovery of consumer demand has begun, especially in the hotel,
restaurant and catering (HoReCa) sector and cross-border trade.

Preparedness

Olvi Group has drawn up several scenarios and is prepared to respond to changing
situations through various measures. Preparations have been made for production
disruptions and continuity plans have been drawn up for, among other things, the
availability of personnel, raw materials and energy. Investments are in progress
to ensure the availability of energy, in case of possible sanctions. The company
has also made efforts to ensure the availability of raw materials and packaging
materials.

A more detailed description of the normal risks related to business operations
is provided in the Board of Directors' report and the notes to the financial
statements and on the company website (Investors > Olvi as an investment > Risks
and risk management).

Events after the review period

There are no significant events to report after the review period.

OLVI PLC
Board of Directors

More information:
Lasse Aho, Managing Director, Olvi plc, tel. +358 290 00 1050 or +358 400 203
600
Tiina-Liisa Liukkonen, CFO, Olvi plc, tel. +358 290 00 1050 or +358 41 505 4779

TABLES:
- Consolidated statement of comprehensive income, Table 1
- Consolidated balance sheet, Table 2
- Consolidated statement of changes in equity, Table 3
- Consolidated cash flow statement, Table 4
- Notes to the half-year report bulletin, Table 5

DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Key media outlets
www.olvi.fi

OLVI GROUP                                            TABLE 1
CONSOLIDATED STATEMENT
OF COMPREHENSIVE
INCOME
EUR 1,000
                        4-6/2022  4-6/2021  1-6/2022  1-6/2021  1-12/202
                                                                1

Gross sales             294,385   260,773   498,359   446,320   924,637
Excise taxes and other  -167,365  -158,732  -286,606  -274,909  -559,871
adjustments
Net sales               127,020   102,041   211,753   171,411   364,766

Cost of sales           -78,414   -57,343   -131,870  -98,529   -213,079

Gross profit            48,606    44,698    79,883    72,882    151,687

Logistics, sales and    -25,305   -21,357   -44,318   -37,259   -77,723
marketing expenses
Administrative          -7,960    -7,827    -15,849   -13,998   -29,954
expenses
Other operating income  98        -5        331       238       1,070
and expenses
Operating profit        15,438    15,508    20,046    21,863    45,080

Financial income        85        16        106       24        46
Financial expenses      -177      49        -235      20        -302
Share of the profit of  0         0         0         0         44
associated companies
and joint ventures
Profit before tax       15,347    15,572    19,917    21,907    44,868

Income taxes            -4,498    -4,685    -5,223    -5,542    -8,198
Profit for the period,  10,849    10,887    14,695    16,365    36,670
continuing operations
Profit for the period,  8,561     4,090     10,201    5,484     11,691
assets held for sale
PROFIT FOR THE PERIOD   19,410    14,977    24,895    21,849    48,361

Other items of
comprehensive income
that may
be later reclassified
to profit or loss:
Translation             13,858    1,192     5,809     2,600     5,366
differences related to
foreign
subsidiaries
Income taxes related    -188      -19       -66       -44       -85
to items
TOTAL COMPREHENSIVE     33,080    16,150    30,638    24,405    53,642
INCOME FOR THE PERIOD

Distribution of the
profit for the period:
- Owners of the parent  19,013    14,808    24,497    21,644    47,862
company
- Non-controlling       397       169       398       205       499
interest

Distribution of
comprehensive income
for the
period:
- Owners of the parent  32,250    15,944    30,060    24,120    52,977
company
- Non-controlling       830       206       578       285       665
interest

Earnings per share
calculated from profit
attributable to owners
of the parent company,
EUR
- Undiluted,            0.52      0.52      0.71      0.79      1.77
continuing operations
- Diluted, continuing   0.52      0.52      0.71      0.79      1.77
operations
- Undiluted, assets     0.40      0.19      0.48      0.25      0.54
held   for sale
- Diluted, assets held  0.40      0.19      0.48      0.25      0.54
  for sale

OLVI GROUP                                             TABLE 2
CONSOLIDATED BALANCE SHEET
EUR 1,000                    30 Jun 2022  30 Jun 2021  31 Dec 2021
ASSETS
Non-current assets
Tangible assets              196,888      173,352      190,627
Goodwill                     22,204       22,204       22,204
Other intangible assets      11,845       9,807        12,355
Shares in associated         980          974          1,018
companies
Other investments            888          880          888
Loans receivable and other   2,069        2,026        1,393
long-term receivables
Deferred tax assets          1,415        632          1,452
Total non-current assets     236,290      209,876      229,937

Current assets
Inventories                  56,104       40,417       47,164
Accounts receivable and      125,349      101,478      86,270
other receivables
Income tax receivables       22           215          0
Cash and cash equivalents    44,079       65,142       50,640
Total current assets         225,553      207,252      184,075
Non-current assets held for  101,540      76,429       76,231
sale
TOTAL ASSETS                 563,383      493,557      490,242

EQUITY AND LIABILITIES
Equity attributable to
owners of the parent
company
Share capital                20,759       20,759       20,759
Other reserves               1,387        1,387        1,387
Treasury shares              -1,075       -400         -438
Translation differences      -48,165      -56,366      -53,727
Retained earnings            326,092      300,914      326,016
                             298,998      266,294      293,997
Non-controlling interest     3,798        3,079        3,627
Total equity                 302,796      269,373      297,624

Non-current liabilities
Financial liabilities        1,984        2,321        1,913
Other liabilities            3,999        4,588        3,985
Deferred tax liabilities     13,760       11,031       13,943

Current liabilities
Financial liabilities        6,961        1,275        1,269
Accounts payable and other   209,507      183,194      158,164
payables
Income tax liability         3,243        3,268        872
Liabilities related to non   21,132       18,508       12,471
-current assets held for
sale
Total liabilities            260,586      224,184      192,617
TOTAL EQUITY AND             563,383      493,557      490,242
LIABILITIES

OLVI GROUP
TABLE 3
CONSOLIDATED
STATEMENT OF
CHANGES IN
EQUITY
EUR 1,000      Share    Other     Reserve   Fair     Translation  Earnings
Attributable  Total
               capital  reserves  for       value    differences            to
non
                                  treasury  reserve
-controlling
                                  shares
interest
Equity 1 Jan   20,759   1,092     -438      295      -53,728      326,016
3,627         297,624
2022
Comprehensive
income:
     Profit                                                       24,497    398
24,895
for the
period
     Other
items of
comprehensive
income:
                                                     5,629                  180
5,809
Translation
differences
                                                     -66
-66
Income taxes
related to
items
Total                                                5,563        24,497    578
30,638
comprehensive
income for
the period
Business
transactions
with
shareholders:
     Dividend                                                     -24,855   -175
-25,030
payment
                                  -637
-637
Acquisition
of treasury
shares
     Share                                                        518
518
-based
incentives,
value of work
performance
                                                                  -84
-84
Adjustment
for previous
periods
Business                          -637                            -24,421   -175
-25,233
transactions
with
shareholders,
total
Changes in
holdings in
subsidiaries:
                                                                  -232
-232
Acquisition
of non
-controlling
interest
     Change                                                       232       -232
0
in non
-controlling
interest
Changes in                                                        0         -232
-232
holdings in
subsidiaries,
total
Equity 30 Jun  20,759   1,092     -1,075    295      -48,165      326,092
3,798         302,796
2022

EUR 1,000      Share    Other     Reserve   Fair     Translation  Earnings
Attributable  Total
               capital  reserves  for       value    differences            to
non
                                  treasury  reserve
-controlling
                                  shares
interest
Total equity   20,759   1,092     -1,802    295      -58,842      303,465
3,165         268,132
1 Jan 2022
Comprehensive
income:
     Profit                                                       21,644    205
21,849
for the
period
     Other
items of
comprehensive
income:
                                                     2,520                  80
2,600
Translation
differences
                                                     -44
-44
Income taxes
related to
items
Total                                                2,476        21,644    285
24,405
comprehensive
income for
the period
Business
transactions
with
shareholders:
     Dividend                                                     -22,771   -346
-23,117
payment
     Share                                                        296
296
-based
incentives,
value of work
performance
                                  -874
-874
Acquisition
of treasury
shares
     Issue of                     1,687                           -1,614
73
treasury
shares to
personnel
     Sale of                      589
589
treasury
shares to
personnel
                                                                  -105      -26
-131
Adjustment
for previous
periods
Business                          1,402                           -24,194   -372
-23,164
transactions
with
shareholders,
total
Changes in
holdings in
subsidiaries:
    Change in                                                     -1        1
0
non
-controlling
interest
Changes in                                                        -1        1
0
holdings in
subsidiaries,
total
Equity 30 Jun  20,759   1,092     -400      295      -56,366      300,914
3,079         269,373
2021

OLVI GROUP                                         TABLE 4

CONSOLIDATED CASH FLOW STATEMENT
EUR 1,000
                                         1-6/2022  1-6/2021  1-12/2021

Profit for the period, continuing        14,695    16,365    36,670
operations
Profit for the period, assets held for   10,201    5,484     11,691
sale
Adjustments:
     Depreciation and impairment         12,533    13,058    27,006
     Other adjustments                   8,568     7,047     10,251
Change in net working capital:
     Change in accounts receivable and   -47,052   -32,277   -5,878
other receivables
     Change in inventories               -13,310   -6,825    -8,684
     Change in accounts payable and      44,246    55,330    28,561
other liabilities
Interest paid                            -544      -186      -594
Interest received                        140       108       268
Dividends received                       5         2         3
Taxes paid                               -3,446    -1,997    -9,687
Cash flow from operating activities (A)  26,036    56,109    89,607

Investments in tangible and intangible   -17,835   -16,816   -31,213
assets
Proceeds from the sale of tangible and   377       881       1,068
intangible assets
Acquisition of shares from non           -378      0         0
-controlling interest
Acquisition of shares in subsidiaries,   0         -2,094    -11,121
associated companies and joint ventures
Expenditure on other investments         0         -30       -30
Dividends received                       38        21        21
Cash flow from investing activities (B)  -17,798   -18,038   -41,275

Loan withdrawals                         6,864     0         884
Repayment of loans                       -1,125    -1,295    -12,371
Acquisition of treasury shares           -637      -874      -874
Sale of treasury shares to personnel     0         589       551
Dividends paid                           -12,587   -11,734   -23,240
Cash flow from financing activities (C)  -7,485    -13,314   -35,050

Increase (+) / decrease (-) in cash and  753       24,757    13,282
cash equivalents (A+B+C)

Cash and cash equivalents 1 Jan          58,741    45,096    45,096
Impact of exchange rate changes          197       164       363
Cash and cash equivalents 30 Jun / 31    59,691*   70,017    58,741
Dec

   * The cash flow statement includes both continuing operations and assets held
for sale.

OLVI GROUPTABLE 5

NOTES TO THE HALF-YEAR REPORT

The half-year report has been prepared in accordance with IAS 34, applying the
same accounting principles that were applied to the 2021 financial statements
(31 December 2021), with the exception of IFRS 5 (Non-current Assets Held for
Sale and Discontinued Operations), which has been applied as a new standard. In
accordance with IFRS 5, the Belarusian operations have been classified as non
-current assets held for sale. More detailed information about the impacts of
the classification is provided in Note 12.

Olvi has changed its segment reporting in accordance with IFRS 8 (Operating
Segments) from 1 January 2022 onwards. The comparison information has been
changed accordingly.

The figures in the half-year report are presented in thousands (1,000) of euros.
For presentation, individual figures and totals have been rounded up to the next
full thousand, which causes differences in totals. Exchange rates obtained from
the Central Bank of Belarus have been used as the exchange rate for the
Belarusian rouble. The key ratios have been calculated by using accurate euro
-denominated figures. The information published in the half-year report has not
been audited.

1. SEGMENT
INFORMATION
SEGMENTS' NET
SALES AND
PROFIT 1
-6/2022
EUR 1,000      Finland  Baltic Sea region  Eliminations  Group total

INCOME
External       99,840   111,913            0             211,753
sales
     Beverage  99,031   111,913            0             210,944
sales
               809                                       809
Equipment
services
Internal       664      12,824             -13,488       0
sales
Total net      100,504  124,737            -13,488       211,753
sales

Total profit   29,170   6,164              -20,639       14,695
for the
period
SEGMENTS' NET
SALES AND
PROFIT 1
-6/2021
EUR 1,000      Finland  Baltic Sea region  Eliminations  Group total

INCOME
External       92,070   79,341             0             171,411
sales
     Beverage  91,613   79,341             0             170,954
sales
               457                                       457
Equipment
services
Internal       443      5,166              -5,609        0
sales
Total net      92,513   84,507             -5,609        171,411
sales

Total profit   28,230   7,468              -19,333       16,365
for the
period

2. RELATED PARTY
TRANSACTIONS

Management's
employee benefits

Board members' and
the Managing
Director's salaries
and other short
-term employee
benefits
EUR 1,000            1-6/2022     1-6/2021   1-12/2021
Managing Director    407          758        939
Chair of the Board   36           36         73
Other Board members  86           86         172
Total                529          880        1,184
3. SHARES AND SHARE
CAPITAL
                     30 Jun 2022        %

Series A shares,     16,989,976   82.0
number of shares
Series K shares,     3,732,256    18.0
number of shares
Total                20,722,232   100.0

Total number of      16,989,976   18.5
votes, Series A
shares
Total number of      74,645,120   81.5
votes, Series K
shares
Total number of      91,635,096   100.0
votes

Votes per Series A   1
share
Votes per Series K   20
share

The registered share capital totalled EUR 20,759 thousand on 30 June 2022.

A dividend of EUR 1.20 per share for 2021 (EUR 1.10 per share for 2020),
totalling EUR 24.9 (22.8) million, will be paid on shares in Olvi plc. The
dividend will be paid in two instalments. The first instalment, EUR 0.60 per
share, was paid on 20 April 2022. The second instalment, EUR 0.60 per share,
will be paid on 2 September 2022. Series K shares and Series A shares provide
their holders with equal rights to dividends. The Articles of Association
include a redemption clause concerning Series K shares.

4. TREASURY SHARES

On 30 March 2022, Olvi plc's Annual General Meeting (AGM) decided to authorise
the Board of Directors to decide, within one year of the AGM, on the acquisition
of Series A shares in the company with distributable funds. The authorisation
covers up to 500,000 Series A shares and revokes previous unused authorisations
to acquire treasury shares.

The AGM also decided to authorise the Board of Directors to decide on the issue
of up to 1,000,000 new Series A shares and the transfer of up to 500,000 Series
A shares held by the company. This authorisation revokes previous unused
authorisations to transfer treasury shares held by the company.

At its meeting on 23 May 2022, the Board of Directors of Olvi plc decided to
initiate a scheme to acquire treasury shares based on the authorisation issued
by the Annual General Meeting on 30 March 2022. On this basis, the Board will
repurchase a maximum of 20,000 Series A shares. The acquisition of shares began
on 30 May 2022 and ended on 14 June 2022.

At the end of the review period, Olvi plc held a total of 29,404 of its own
Series A shares as treasury shares. The total acquisition price of treasury
shares was EUR 1,075.4 thousand. The treasury shares do not provide the company
with voting rights. The Series A shares held by Olvi plc represent 0.14% of all
shares in the company and 0.03% of all votes provided by the shares in the
company. The treasury shares account for 0.17% of all Series A shares in the
company and the votes provided by all Series A shares in the company.

5. SHARE-BASED REWARDS

By means of a stock exchange release issued on 27 May 2022, Olvi plc's Board of
Directors announced two new share-based incentive schemes for the Group's key
employees. The aim of incentive plans is to support the achievement of Olvi's
targets, retain key employees in the company and provide them with incentive
schemes that are based on earning and accumulating shares.

The Performance Share Plan 2022-2024 consists of one performance period. During
the 2022-2024 performance period, the rewards are based on the Group's
cumulative EBIT in euros, the Group's cumulative sales volume of non-alcoholic
products and the reduction of CO2 emissions in the Group's entire value chain
compared with the 2021 level. The net amount of rewards to be paid based on the
performance period will
amount to a maximum of 10,670 Olvi plc Series A shares. During the 2022-2024
performance period, 16 people, including the Managing Director and the other
Olvi Management Team members, belong to the target group for the performance
period.

The Matching Share Plan for new key employees consists of one matching period,
covering the 2022-2023 financial years. In the plan, the target group is offered
an opportunity to receive matching shares for their personal investment in Olvi
plc Series A shares. The rewards based on the plan will be paid after the end of
the matching period. The net amount of rewards to be paid for the matching
period will amount to a maximum of 2,000 Olvi plc Series A shares. Around 10
people belong to the target group of the plan.

6. NUMBER OF SHARES*          1-6/2022    1-6/2021             1-12/2021
  - Average                   20,708,869  20,700,288           20,706,610
  - At the end of the period  20,692,828  20,712,828           20,712,828
* The treasury shares held by the company have been deducted.

7. TRADING IN SERIES A SHARES ON
THE NASDAQ HELSINKI
                                     1-6/2022   1-6/2021   1-12/2021
Trading in Series A shares in Olvi,  1,438,181  1,146,330  1,812,283
number of shares
Total value of trading, EUR 1,000    52,513     54,729     89,417
Proportion of the trading out of     8.5        6.7        10.7
the total number of Series A
shares, %

Average share price, EUR             36.58      47.77      49.35
Closing price, EUR                   32.35      50.70      51.20
Highest price, EUR                   52.00      55.50      55.70
Lowest price, EUR                    29.40      43.10      43.10

8. FOREIGN AND
NOMINEE
-REGISTERED
HOLDINGS 30 JUNE
2022
                  Book-entry shares   Number of votes     Shareholders
                  number      %       number      %       number  %
Finnish, total    16,344,735  78.88   87,257,599  95.22   20,433  99.57
Foreign, total    65,155      0.31    65,155      0.07    77      0.38
Nominee           495,616     2.39    495,616     0.54    6       0.03
-registered
(foreign), total
Nominee           3,816,726   18.42   3,816,726   4.17    5       0.02
-registered
(Finnish), total
Total             20,722,232  100.00  91,635,096  100.00  20,521  100.00

9. LARGEST SHAREHOLDERS 30 JUNE 2022
                                              Series K   Series A    Total
%       Number of   %

votes
1. Olvi Foundation                            2,363,904  890,613     3,254,517
15.71   48,168,693  52.57
2. The estate of Heikki                       903,488    103,280     1,006,768
4.86    18,173,040  19.83
Hortling*
3. Timo Einari Hortling                       212,600    49,152      261,752
1.26    4,301,152   4.69
4. Marit Hortling-Rinne                       149,064    14,234      163,298
0.79    2,995,514   3.27
5. Nordea Bank Abp, nominee-registered                   2,003,344   2,003,344
9.67    2,003,344   2.19
6. Skandinaviska Enskilda Banken Ab (publ),              1,773,223   1,773,223
8.56    1,773,223   1.94
Helsinki branch, nominee-registered
7. Varma Mutual Pension Insurance Company                828,075     828,075
4.00    828,075     0.90
8. Ilmarinen Mutual Pension Insurance                    683,000     683,000
3.30    683,000     0.75
Company
9. Pia Johanna Hortling                       23,388     25,366      48,754
0.24    493,126     0.54
10. Jens Einari Hortling                      23,388     16,216      39,604
0.19    483,976     0.53
Others                                        56,424     10,603,473  10,659,897
51.42   11,731,953  12.79
Total                                         3,732,256  16,989,976  20,722,232
100.00  91,635,096  100.00
* The shareholding includes shares held by
the shareholder and the entities controlled
by them.

Olvi did not receive any flagging notifications under chapter 2, section 10 of
the Securities Markets Act in January-June 2022.

10. PROPERTY, PLANT AND EQUIPMENT
EUR 1,000
                               1-6/2022  1-6/2021    1-12/2021

Opening balance                190,627   168,833   168,833
Additions                      16,615    15,298    43,203
Deductions and transfers       -90       -1,324    -1,951
Depreciation and amortisation  -10,260   -9,455    -19,458
Exchange rate differences      -4        0         0
Total                          196,888   173,352   190,627

11. CONTINGENT LIABILITIES
EUR 1000
                                           30 Jun 2022  30 Jun 2021  31 Dec 2021

Pledged assets and contingent liabilities
   On the company's own behalf             10,004       1,938        10,007

Lease and rental liabilities:
   Maturing in less than a year            1,294        805          1,012
   Maturing within 1-5 years               1,399        637          550
Total lease and rental liabilities         2,693        1,442        1,562

Other liabilities                          60           60           60



12. NON-CURRENT ASSETS HELD FOR SALE

Classification and accounting principles

Olvi strongly condemns the Russian attack on Ukraine. At its meeting on 5 March
2022, Olvi plc's Board of Directors decided to divest the company's business
operations in Belarus and start preparations to sell Lidskoe Pivo, a subsidiary
in which Olvi plc has a holding of 96.36%. Since the interim report for
January-March 2022 (31 March 2022), Lidskoe Pivo has been classified as
discontinued operations / assets held for sale in accordance with IFRS 5 (Non
-current Assets Held for Sale and Discontinued Operations). The divestment of
Lidskoe Pivo is expected to be highly probable within the next 12 months.

The divestment in Belarus will cause the Group's business operations to reduce
significantly. In 2021, Belarus represented 33.2% of the Group's sales volume,
21.1% of its net sales and 24.3% of its operating profit. In addition, the
planning and implementation of the divestment will cause non-recurring costs.
Following the Board's decision, Olvi stopped investments in Lidskoe Pivo, ended
its significant Russian exports and started identifying potential buyers and
negotiating the divestment of the business. The process has progressed as
planned and is being actively promoted. Local and international legislation and
the employees will be taken into account during the process.

The classification in accordance with IFRS 5 has required management discretion.
Permission from the local authorities and the competition regulator is required
for the divestment. These are two separate processes. The Belarusian authorities
have a pre-emptive right in company acquisitions. In June, the Belarusian
Government announced additional restrictions on the sale of companies under
Western ownership for shareholders from countries that have imposed sanctions.
Despite the new restrictions, the company's management believes, based on the
information currently available and the negotiations carried out with the local
authorities, that it is possible to implement the divestment in accordance with
the 12-month period previously determined.

Income statement, assets held for sale

EUR 1,000
                                             1-6/2022  1-6/2021  1-12/2021

Net sales                                    60,911    45,862    97,464
Expenses                                     -47,884   -39,065   -83,105
Operating profit                             13,027    6,797     14,359
Financial items                              -814      -15       -115
Profit before tax                            12,213    6,782     14,244
Income taxes                                 -2,012    -1,298    -2,553
Profit for the period, assets held for sale  10,201    5,484     11,691

Olvi's sales volume in Belarus decreased by 1.0% in the second quarter, but its
net sales grew by 39.5%. Since the beginning of the year, the sales volume has
increased by 1.0% and net sales have grown by 32.8%. The sales volume is
affected by the end of Russian exports in particular. On the other hand,
domestic demand has remained at a good level, and Lidskoe Pivo's market share
has increased. Significant price increases were implemented during the spring,
which caused net sales to grow. Price increases were made in response to the
uncertain situation in the operating environment. Production costs have
increased significantly, and the impact of sanctions is reflected in the
availability of materials in particular. The operating profit increased by
120.3% during the second quarter and has increased by 92.0% since the beginning
of the year. Increased net sales, the adjustment measures and the significantly
stronger exchange rate have a positive impact on the comparable operating profit
in euros. In addition, depreciation is not recognised for assets held for sale
in accordance with the IFRS. The impact of this depreciation on the result would
have been EUR 1.8 million. The adjustment measures have not affected the number
of personnel.

Balance sheet, assets held for sale

EUR 1,000
                          30 Jun 2022  30 Jun 2021  31 Dec 2021

Consolidated goodwill     4,072        3,597        3,762
Intangible assets         376          208          341
Tangible assets           41,543       37,630       38,729
Loans receivable and      289          307          338
other long-term
receivables
Deferred tax assets       252          3            36
Inventories               17,229       10,174       11,445
Current receivables       22,167       19,635       13,479
Cash in hand and at bank  15,612       4,875        8,101
Non-current assets held   101,540      76,429       76,231
for sale

EUR 1,000
                            30 Jun 2022  30 Jun 2021  31 Dec 2021

Non-current financial       17           0            0
liabilities
Deferred tax liabilities    5            71           0
Current financial           6            19           3
liabilities
Accounts payable and other  19,181       17,309       12,468
payables
Income tax liability        1,923        1,109        0
Liabilities related to non  21,132       18,508       12,471
-current assets held for
sale

Other information concerning assets held for sale

1,000 euros/litres
                                     1-6/2022  1-6/2021  1-12/2021

Sales volume                         143,737   141,977   279,197
Average number of personnel          849       816       832
Earnings per share, EUR, undiluted   0.48      0.25      0.54
Earnings per share, EUR, diluted     0.48      0.25      0.54
Cash flow from operating activities  7,955     4,380     12,847
Cash flow from investing activities  -637      -2,697    -5,043
Cash flow from financing activities  -6        -2,474    -5,569

13. CALCULATION PRINCIPLES FOR KEY RATIOS

In its summary of key ratios (page 1), the Group presents key ratios directly
derived from the consolidated income statement (net sales, operating profit,
profit for the period and their proportions of net sales, as well as earnings
per share). (Earnings per share = Profit for the period attributable to owners
of the parent company / Average number of shares during the period, adjusted for
share issues).

In addition to its IFRS-based consolidated financial statements, Olvi plc
presents Alternative Performance Measures that describe the financial
performance of its business operations and provide a comparable overview of the
company's profitability, solvency and liquidity.

The Group has applied the European Securities and Markets Authority's (ESMA) new
guidelines (effective since 3 July 2016) on Alternative Performance Measures and
has determined such measures as follows:

The Group presents sales volume data in millions of litres as an Alternative
Performance Measure that supports net sales. Sales volume is an important and
widely used indicator in the industry that describes the scope of operations.

Earnings per share = Equity attributable to owners of the parent company /
Number of shares at the end of the period, adjusted for share issues.

Equity ratio, % = 100 * (Equity attributable to owners of the parent company +
non-controlling interest) / (Balance sheet total).

Gearing, % = 100 * (Interest-bearing debt - Cash in hand and at bank) / (Equity
attributable to owners of the parent company + Non-controlling interest).



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