2016-04-28 08:00:59 CEST
2016-04-28 08:00:59 CEST
REGULATED INFORMATION
Olvi Oyj - Interim report (Q1 and Q3)
OLVI GROUP’S INTERIM REPORT, 1 JANUARY TO 31 MARCH 2016 (3 MONTHS)
Olvi Group's overall performance in the first quarter was good. Operating
profit and net profit for the period increased, and the company's financial
position became stronger.
Iisalmi, 2016-04-28 07:59 CEST (GLOBE NEWSWIRE) -- OLVI PLC
INTERIM REPORT 28 APRIL 2016 at 9:00 am
OLVI GROUP’S INTERIM REPORT, 1 JANUARY TO 31 MARCH 2016 (3 MONTHS)
INTERIM REPORT IN BRIEF
Olvi Group’s overall performance in the first quarter was good. Operating
profit and net profit for the period increased, and the company’s financial
position became stronger.
January to March 2016 in brief:
- Olvi Group’s sales volume increased by 1.4 percent to 116.9 (115.3) million
litres
- The Group’s net sales increased by 1.1 percent and amounted to 62.2 (61.5)
million euro
- The Group’s operating profit increased by 15.9 percent and amounted to 4.4
(3.8) million euro
- Olvi Group’s earnings per share stood at 0.14 (0.07) euro per share
- The equity ratio remained good at 58.7 (56.7) percent
Olvi retains the earnings outlook for 2016 presented in connection with the
disclosure of the financial statements for 2015, and estimates that the Group’s
sales volume and net sales for 2016 will increase slightly compared to the
previous year. Operating profit for 2016 is estimated to be on a par with the
previous year or increase slightly.
CONSOLIDATED KEY RATIOS
1-3/ 2016 1-3/ 2015 Change % / pp 1-12/ 2015
--------------------------------------------------------------------------------
Sales volume, Mltr 116.9 115.3 1.4 579.9
--------------------------------------------------------------------------------
Net sales, MEUR 62.2 61.5 1.1 310.5
--------------------------------------------------------------------------------
Gross margin, MEUR 8.8 7.7 14.9 54.5
--------------------------------------------------------------------------------
% of net sales 14.2 12.5 17.6
--------------------------------------------------------------------------------
Operating profit, MEUR 4.4 3.8 15.9 38.2
--------------------------------------------------------------------------------
% of net sales 7.1 6.2 12.3
--------------------------------------------------------------------------------
Net profit for the period 2.7 1.3 101.3 22.2
--------------------------------------------------------------------------------
% of net sales 4.4 2.2 7.2
--------------------------------------------------------------------------------
Earnings per share, EUR 0.14 0.07 100.0 1.08
--------------------------------------------------------------------------------
Gross capital expenditure, MEUR 5.5 6.5 -15.2 26.0
--------------------------------------------------------------------------------
Equity per share, EUR 8.69 9.01 -3.6 8.92
--------------------------------------------------------------------------------
Equity to total assets, % 58.7 56.7 2.0 59.4
--------------------------------------------------------------------------------
Gearing, % 18.9 34.6 -15.7 18.3
--------------------------------------------------------------------------------
BUSINESS DEVELOPMENT
LASSE AHO, MANAGING DIRECTOR:
Olvi Group’s business developed favourably in the first quarter. Sales volume
and net sales increased slightly, and operating profit as well as net profit
improved.
The positive earnings development that started in Finland in the latter half of
last year continued in January-March. The sales volume increased clearly and we
gained more market share. Operating profit improved on the previous year; in
addition to sales success, cost savings contributed to this.
The year has started well in the Baltic states seen as a whole. Profitability
in Estonia is at a healthy level and the company continues its active and
innovative product development. In Latvia, profitability is on a planned growth
track and the operating profit for January-March improved clearly on the
previous year. The Lithuanian market and its first-quarter sales figures have
been negatively impacted by the challenges involved with the introduction of a
new national package deposit system. Otherwise the business in Lithuania
progressed according to plan. Earnings remained on the previous year’s level.
The situation in Belarus is more challenging than in the other units. The
Belarusian currency continued to devaluate after the year-end, and the exchange
rate difference was substantial when compared to the same period last year; the
rate was approximately 40 percent weaker than in January-September 2015.
Earnings fell short of the previous year particularly in the start of the
quarter. The operating environment is expected to remain challenging but we are
seeking earnings improvement through cost savings as well as sales operations,
for example by putting effort into exports to Russia.
In addition to the good earnings development in the first quarter, other key
figures also developed favourably. Cash flow from operations was clearly better
than last year, the Group’s equity grew stronger and debt was reduced compared
to the same period a year earlier.
Investments in January-March are lower than last year, and this is according to
plan. The most important investment in the first quarter is an extension of
warehouse facilities in Lithuania, which will provide substantial cost savings.
Investments and process developments in recent years have significantly
improved our production and logistics operations. This makes it possible to
increase sales volume and operate smoothly and cost-efficiently also during the
summer season.
SEASONAL NATURE OF THE OPERATIONS
The Group’s business operations are characterised by seasonal variation. The
net sales and operating profit from the reported geographical segments do not
accumulate evenly but vary according to the time of the year and the
characteristics of each season.
SALES DEVELOPMENT
Olvi Group’s sales volume increased by 1.4 percent to 116.9 (115.3) million
litres. Sales volume increased in Finland and Estonia.
Sales volume, million litres 1-3/2016 1-3/2015 Change %
------------------------------------------------------------
Finland (Olvi plc) 35.2 29.9 17.6
------------------------------------------------------------
Estonia (AS A. Le Coq) 25.9 25.2 2.5
------------------------------------------------------------
Latvia (A/S Cēsu Alus) 13.1 13.9 -6.3
------------------------------------------------------------
Lithuania (AB Volfas Engelman) 16.5 17.5 -6.1
------------------------------------------------------------
Belarus (OAO Lidskoe Pivo) 29.8 32.5 -8.1
------------------------------------------------------------
Eliminations -3.5 -3.8 7.3
------------------------------------------------------------
Total 116.9 115.3 1.4
------------------------------------------------------------
The Group’s net sales increased slightly and totalled 62.2 (61.5) million euro.
Net sales increased in Finland, Estonia and Latvia.
Net sales, million euro 1-3/2016 1-3/2015 Change %
------------------------------------------------------------
Finland (Olvi plc) 23.8 21.2 12.2
------------------------------------------------------------
Estonia (AS A. Le Coq) 16.1 15.2 5.5
------------------------------------------------------------
Latvia (A/S Cēsu Alus) 6.2 6.0 3.8
------------------------------------------------------------
Lithuania (AB Volfas Engelman) 6.8 7.4 -7.5
------------------------------------------------------------
Belarus (OAO Lidskoe Pivo) 11.0 13.4 -18.0
------------------------------------------------------------
Eliminations -1.7 -1.7 -2.2
------------------------------------------------------------
Total 62.2 61.5 1.1
------------------------------------------------------------
EARNINGS DEVELOPMENT
The Group’s operating profit for January-March increased by 15.9 percent and
amounted to 4.4 (3.8) million euro, or 7.1 (6.2) percent of net sales.
Operating profit in Finland improved by 0.5 million euro, in Latvia by 0.4
million euro and in Estonia by 0.2 million euro. However, a decrease of 0.5
million euro was seen in Belarus.
Operating profit, million euro 1-3/2016 1-3/2015 Change %
------------------------------------------------------------
Finland (Olvi plc) 1.2 0.7 71.3
------------------------------------------------------------
Estonia (AS A. Le Coq) 2.4 2.2 12.1
------------------------------------------------------------
Latvia (A/S Cēsu Alus) 0.4 0.0 774.6
------------------------------------------------------------
Lithuania (AB Volfas Engelman) 0.1 0.1 -1.3
------------------------------------------------------------
Belarus (OAO Lidskoe Pivo) 0.2 0.7 -69.0
------------------------------------------------------------
Eliminations 0.1 0.1 -8.0
------------------------------------------------------------
Total 4.4 3.8 15.9
------------------------------------------------------------
The Group’s January-March profit after taxes doubled and amounted to 2.7 (1.3)
million euro.
Earnings per share calculated from the profit belonging to parent company
shareholders in January-March improved to 0.14 (0.07) euro per share.
BALANCE SHEET, FINANCING AND INVESTMENTS
Olvi Group’s balance sheet total at the end of March 2016 was 309.0 (332.9)
million euro. Equity per share at the end of March 2016 stood at 8.69 (9.01)
euro. The equity to total assets ratio was 58.7 (56.7) percent. The gearing
ratio declined clearly to 18.9 (34.6) percent. The current ratio, which
represents the Group’s liquidity, was 0.9 (1.2).
The amount of interest-bearing liabilities at the end of March was 40.8 (69.5)
million euro, including current liabilities of 18.9 (32.9) million euro.
Olvi Group’s gross capital expenditure in January-March amounted to 5.5 (6.5)
million euro. The parent company Olvi accounted for 1.2 million euro, the
Baltic subsidiaries for 3.5 million euro and Lidskoe Pivo in Belarus for 0.8
million euro of the total.
PRODUCT DEVELOPMENT
Research and development includes projects to design and develop new products,
packages, processes and production methods, as well as further development of
existing products and packages. The R&D costs have been recognised as expenses.
The main objective of Olvi Group’s product development is to create new
products for profitable and growing beverage segments.
NEW PRODUCTS
Finland
The launch of Kane’s Soda Pop soft drinks, started in the autumn, continued
with the new flavour Pasadena Pinch. A new package variant for Olvi Vichy was
introduced: for the first time ever, a 0.33-litre recyclable plastic deposit
bottle was produced at Olvi. A new version of Olvi Vichy was also introduced:
Lemon-Lime with added magnesium. The TEHO Sport range of energy bars saw the
introduction of Apple-Cinnamon, also with added magnesium. In beers, we
launched Olvi APA, an American Pale Ale. The long drink range saw the
introduction of A. Le Coq Bitter Lemon at the Finnish retail strength of 4.7%.
Subsidiaries
A. Le Coq in Estonia introduced the totally alcohol-free beer A. Le Coq Premium
(0.0%). A new 0.25-litre glass bottle was also introduced; it can be opened by
twisting the cap, no bottle opener is required. The package is used for A. Le
Coq Premium Nippel, which is a beer with more hops compared to the normal A. Le
Coq Premium. In ciders, FIZZ Lemon Sorbet was launched. The Kane’s Soda Pop
soft drink was also launched in Estonia in two flavours: cola and lemon. The Le
Coq Coctail range of alcoholic beverages was complemented with Sex On the
Beach. Aura waters saw the introduction of Birch Sap and Apple, which contains
genuine birch sap.
Cēsu Alus in Latvia launched a caffeine-free energy drink under its Dynami:t
brand.
Volfas Engelman in Lithuania launched two specialty beers: the Belgian-type
Volfas Engelman Flandrijos and Meister Rūšinis. Meister Radler Strawberry was a
new introduction to Radler beverages. In ciders, FIZZ Lemon Sorbet was
launched, similar to Estonia. Vitamineral Water Performance Vitality was also a
new introduction.
Lidskoe Pivo in Belarus responded to the increased demand for specialty beers
with three new products: Lidskoe Wheat, Lidskoe Wheat Dark and Koronet Red Ale.
PERSONNEL
Olvi Group’s average number of personnel in January-March was 1,818 (1,873).
The Group’s average number of personnel decreased by 55 people or 2.9 percent.
The average number decreased by 46 people in Finland and 19 people in Belarus.
Olvi Group’s average number of personnel by country:
1-3/2016 1-3/2015 Change %
---------------------------------------
Finland 290 336 -13.7
---------------------------------------
Estonia 321 317 1.3
---------------------------------------
Latvia 202 199 1.5
---------------------------------------
Lithuania 229 226 1.3
---------------------------------------
Belarus 776 795 -2.4
---------------------------------------
Total 1,818 1,873 -2.9
---------------------------------------
MANAGEMENT AND AUDITORS
During the review period of January-March 2016, Olvi plc’s Board of Directors
consisted of Chairman Heikki Hortling, M.Sc. (Econ), Vice Chairman Esa Lager,
M.Sc. (Econ), LL.M., and other members Jaakko Autere, M.Sc. (Econ), Nora
Hortling, M.Sc. (Econ), Elisa Markula, M.Sc. (Econ), and Heikki Sirviö,
Honorary Industrial Counsellor, M.Sc. (Engineering).
The Chairman of Olvi plc’s Board of Directors, Heikki Hortling, Honorary
Industrial Counsellor, M.Sc. (Econ), passed away on 10 April 2016. As of 14
April 2016, the company’s Board of Directors consists of Chairman Esa Lager,
M.Sc. (Econ), LL.M., Vice Chairperson Nora Hortling, M.Sc. (Econ), as well as
members Jaakko Autere, M.Sc. (Econ), Elisa Markula, M.Sc. (Econ), and Heikki
Sirviö, Honorary Industrial Counsellor, M.Sc. (Engineering).
The company’s auditor is the authorised public accounting firm
PricewaterhouseCoopers Oy, with Sami Posti, Authorised Public Accountant, as
auditor in charge.
MANAGEMENT
The Management Group of Olvi plc consists of Lasse Aho, Managing Director
(Chairman), Ilkka Auvola, Sales Director, Olli Heikkilä, Marketing Director,
Pia Hortling, Product Development and Purchasing Director, Kati Kokkonen, Chief
Financial Officer, Lauri Multanen, Production Director, as well as Marjatta
Rissanen, Customer Service and Administrative Director.
The Managing Directors of the subsidiaries are:
AS A. Le Coq, Tartu, Estonia - Tarmo Noop
A/S Cēsu Alus, Cēsis, Latvia - Eva Sietiņsone
AB Volfas Engelman, Kaunas, Lithuania - Marius Horbačauskas
OAO Lidskoe Pivo, Lida, Belarus - Audrius Mikšys
The Managing Directors of the subsidiaries report to Lasse Aho, the Managing
Director of Olvi plc. The Management Group of each subsidiary consists of the
corresponding Managing Director and two to four sector directors.
OTHER EVENTS DURING THE REVIEW PERIOD
New incentive plan for key personnel
Olvi plc’s Board of Directors has decided on a new share-based incentive plan
for the Group’s key employees. The aim of the new plan is to combine the
objectives of the shareholders and the key employees in order to increase the
value of the company, to commit the key employees to the company, and to offer
them a competitive reward plan based on earning the company’s shares.
The performance period for the share-based incentive plan is two years. The
prerequisite for receiving reward is that a key employee purchases the
company’s Series A shares up to the maximum number determined by the Board of
Directors. Furthermore, entitlement to a reward is tied to the continuance of
employment or service upon reward payment. Rewards will be paid partly in the
company’s Series A shares and partly in cash in 2018. The cash proportion is
intended to cover taxes and tax-related costs arising from the rewards to the
key employees.
The plan is directed to approximately 50 people. The rewards to be paid on the
basis of the plan are in total an approximate maximum of 60,000 series A shares
in Olvi plc and a cash payment needed for taxes and tax-related costs arising
from the shares.
Changes in corporate structure
There were no changes in Olvi’s holdings in subsidiaries in January-March 2016.
Olvi’s holdings in the subsidiaries are
31 Mar 2016 31 Dec 2015 Change
---------------------------------------------------------------
AS A. Le Coq, Estonia 100.00 100.00 -
---------------------------------------------------------------
A/S Cēsu Alus, Latvia 99.87 99.87 -
---------------------------------------------------------------
AB Volfas Engelman, Lithuania 99.58 99.58 -
---------------------------------------------------------------
OAO Lidskoe Pivo, Belarus 94.57 94.57 -
---------------------------------------------------------------
Furthermore, A. Le Coq has a 49.0 percent holding in AS Karme and 20.0 percent
holding in Verska Mineraalvee OÜ in Estonia.
SHARES
Olvi’s share capital at the end of March 2016 stood at 20.8 million euro. The
total number of shares was 20,758,808, of these 17,026,552 or 82.0 percent
being publicly traded Series A shares and 3,732,256 or 18.0 percent Series K
shares.
Each Series A share carries one (1) vote and each Series K share carries twenty
(20) votes. Series A and Series K shares have equal rights to dividends.
Detailed information on Olvi’s shares and share capital can be found in the
tables attached to this interim report, in Table 5, Section 4.
The total trading volume of Olvi A shares on Nasdaq OMX Helsinki Ltd (Helsinki
Stock Exchange) in January-March 2016 was 327,567 (832,730) shares, which
represented 1.9 (4.9) percent of all Series A shares. The value of trading was
7.4 (18.9) million euro.
The Olvi A share was quoted on Nasdaq OMX Helsinki Ltd at 25.10 (23.90) euro at
the end of March 2016. In January-March, the highest quote for the Series A
share was 25.48 (24.36) euro and the lowest quote was 20.30 (20.51) euro. The
average price in January-March was 22.65 (22.71) euro.
At the end of March 2016, the market capitalisation of Series A shares was
427.4 (406.9) million euro and the market capitalisation of all shares was
521.0 (496.1) million euro.
The number of shareholders at the end of March 2016 was 10,045 (10,423).
Foreign holdings plus foreign and Finnish nominee-registered holdings
represented 23.1 (21.2) percent of the total number of book entries and 5.2
(4.8) percent of total votes.
Foreign and nominee-registered holdings are reported in Table 5, Section 9 of
the tables attached to this interim report, and the largest shareholders are
reported in Table 5, Section 10.
Treasury shares
Olvi acquired 5,500 of its own Series A shares in January-March. The purchase
price was 120,139 euro. At the end of the reporting period, Olvi held 11,124
Series A shares as treasury shares. The total purchase price of treasury shares
was 228,162 euro. Treasury shares held by the company itself are ineligible for
voting.
Detailed information on treasury shares is provided in Table 5, Section 6 of
the tables attached to this interim report.
Flagging notices
During January-March 2016, Olvi has not received any flagging notices in
accordance with Chapter 2, Section 10 of the Securities Markets Act.
BUSINESS RISKS AND THEIR MANAGEMENT
Risk management
Risk management is a part of Olvi Group’s everyday management and operations.
The objective of risk management is to ensure the realisation of the company’s
strategy and secure its financial development and the continuity of business.
The task of risk management is to operate proactively and create operating
conditions in which business risks are managed comprehensively and
systematically in all of the Group companies and all levels of the
organisation.
Business risks and uncertainties in the near term
The most substantial factor hampering the predictability of Olvi Group’s
business relates to Belarus and its economic and political outlook for the next
few years. Furthermore, negative development of the Russian economy may impose
challenges on the Belarusian operating environment.
Operations in Belarus involve foreign exchange risks arising from the cash
flows of purchases and sales in foreign currency, as well as the investment in
the Belarusian subsidiary and the conversion of its income statement and
balance sheet items into euro. The Group’s other foreign exchange risks can be
considered minor.
Other short-term risks and uncertainties are related to continuing negative
development of the general economic circumstances, changes in the competitive
situation, as well as the impacts these may have on the company’s operations.
In addition to the risks described above, there have been no significant
changes in Olvi Group’s business risks. A more detailed description of the
risks is provided in the Board of Directors’ report and the notes to the
financial statements, as well as in the Investors/Corporate Governance section
of the company’s Web site.
EVENTS AFTER THE REVIEW PERIOD
Annual General Meeting
Olvi plc’s Annual General Meeting of 14 April 2016 adopted the financial
statements and granted discharge from liability to the members of the Board of
Directors and Managing Director for the accounting period that ended on 31
December 2015.
In accordance with the Board’s proposal, the General Meeting decided that a
dividend of 0.70 (0.65) euro be paid on each A and K share for the accounting
period 2015. The dividend according to the resolution accounts for 64.8 (41.4)
percent of Olvi Group’s consolidated earnings per share. The dividend will be
paid to shareholders registered in Olvi plc’s register of shareholders held by
Euroclear Finland Ltd on the record date of the dividend payment, 18 April
2016. The dividends will be paid on 28 April 2016.
The General Meeting decided that the Board of Directors shall have five (5)
members. Jaakko Autere, Nora Hortling, Esa Lager, Elisa Markula and Heikki
Sirviö were re-elected as Members of the Board.
All decisions made at the General Meeting can be found in the bulletin released
on 14 April 2016.
Organisation of the Board of Directors
At its organising meeting held on 14 April 2016, the Board elected Esa Lager as
the Chairman of the Board and Nora Hortling as the Vice Chairperson of the
Board.
NEAR-TERM OUTLOOK
Olvi estimates that the Group’s sales volume and net sales for 2016 will
increase slightly on the previous year. Operating profit for 2016 is estimated
to be on a par with the previous year or increase slightly.
OLVI PLC
Board of Directors
Further information:
Lasse Aho, Managing Director, Olvi plc
Phone +358 290 00 1050 or +358 400 203 600
TABLES:
- Statement of comprehensive income, Table 1
- Balance sheet, Table 2
- Changes in shareholders’ equity, Table 3
- Cash flow statement, Table 4
- Notes to the interim report bulletin, Table 5
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Key media
www.olvi.fi
OLVI GROUP TABLE 1
INCOME STATEMENT
EUR 1,000
1-3/2016 1-3/2015 1-12/2015
Net sales 62163 61514 310494
Other operating income 458 567 1743
Operating expenses -53820 -54420 -257732
Depreciation and impairment -4390 -3856 -16348
Operating profit 4411 3805 38157
Financial income 571 612 281
Financial expenses -1385 -2812 -11641
Share of profit in associates 0 0 21
Earnings before tax 3597 1605 26818
Taxes *) -888 -260 -4598
NET PROFIT FOR THE PERIOD 2709 1345 22220
Other comprehensive income items:
Translation differences related to
foreign subsidiaries -6843 -4971 -14620
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -4134 -3626 7600
Distribution of profit:
- parent company shareholders 2902 1426 22334
- non-controlling interests -193 -81 -114
Distribution of comprehensive income:
- parent company shareholders -3776 -3315 8358
- non-controlling interests -358 -311 -758
Earnings per share calculated from the profit belonging
to parent company shareholders, EUR
- undiluted 0.14 0.07 1.08
- diluted 0.14 0.07 1.08
*) Taxes calculated from the profit for the review period.
OLVI GROUP TABLE 2
BALANCE SHEET
EUR 1,000 31 Mar 31 Mar 31 Dec
2016 2015 2015
ASSETS
Non-current assets
Tangible assets 193172 189000 185240
Goodwill 15435 17465 16017
Other intangible assets 4457 4471 4183
Shares in associates 1146 1125 1146
Financial assets available for sale 549 549 543
Loans receivable and other non-current 303 334 310
receivables
Deferred tax receivables 161 158 147
Total non-current assets 215223 213102 207586
Current assets
Inventories 34225 46472 42236
Accounts receivable and other receivables 52170 67909 51232
Income tax receivable 236 831 236
Other non-current assets held for sale 580 421 421
Liquid assets 6564 4192 12786
Total current assets 93775 119825 106911
TOTAL ASSETS 308998 332927 314497
SHAREHOLDERS’ EQUITY AND LIABILITIES
Shareholders’ equity held by parent company shareholders
Share capital 20759 20759 20759
Other reserves 1092 1092 1092
Treasury shares -228 -8 -108
Translation differences -43618 -27705 -36940
Retained earnings 202283 192847 200415
180288 186985 185218
Share belonging to non-controlling interests 1046 1882 1447
Total shareholders’ equity 181334 188867 186665
Non-current liabilities
Financial liabilities 21913 36607 24179
Other liabilities 0 2 4
Deferred tax liabilities 7456 5705 6777
Current liabilities
Financial liabilities 18910 32938 22683
Accounts payable and other liabilities 79324 68664 74153
Income tax liability 61 144 36
Total liabilities 127664 144060 127832
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 308998 332927 314497
OLVI GROUP
TABLE 3
CHANGES IN SHAREHOLDERS’ EQUITY
Share Others Treasu Transl Retain Share of Total
capita reserv ry ation ed non-controllin
l es shares differ earnin g interests
accoun ences gs
t
EUR 1,000
Shareholders’ 20759 1092 -8 -22964 191408 2252 192539
equity 1 Jan
2015
Comprehensive
income:
Net profit for the 1426 -81 1345
period
Other comprehensive
income items:
Translation -4741 -230 -4971
differences
Total comprehensive -4741 1426 -311 -3626
income for the period
Transactions with shareholders:
Payment of -59 -59
dividends
Share-based 13 13
incentives
Total transactions with 13 -59 -46
shareholders
Shareholders’ 20759 1092 -8 -27705 192847 1882 188867
equity 31 Mar
2015
Share Others Treasu Transl Retain Share of Total
capita reserv ry ation ed non-controllin
l es shares differ earnin g interests
accoun ences gs
t
EUR 1,000
Shareholders’ 20759 1092 -108 -36940 200415 1447 186665
equity 1 Jan
2016
Comprehensive
income:
Net profit for the 2902 -193 2709
period
Other comprehensive
income items:
Translation -6678 -165 -6843
differences
Total comprehensive -6678 2902 -358 -4134
income for the period
Transactions with
shareholders:
Payment of -41 -41
dividends
Acquisition of treasury -120 -120
shares
Share-based 14 14
incentives
Change in accounting -1048 -2 -1050
policies
Total transactions with -120 -1034 -43 -1197
shareholders
Shareholders’ 20759 1092 -228 -43618 202283 1046 181334
equity 31 Mar
2016
Other reserves include the share premium account, legal reserve and
other reserves.
OLVI GROUP TABLE 4
CASH FLOW STATEMENT
EUR 1,000
1-3/2016 1-3/2015 1-12/2015
Net profit for the period 2709 1345 22220
Adjustments to profit for the period 4773 7807 28684
Change in net working capital -2988 -7257 14169
Interest paid -219 -2391 -1113
Interest received 61 40 228
Taxes paid -145 256 -2520
Cash flow from operations (A) 4191 -200 61668
Investments in tangible and intangible
assets -4875 -6459 -25100
Sales gains from tangible and intangible
assets 122 43 249
Expenditure on other investments -5 0 -16
Cash flow from investments (B) -4758 -6416 -24867
Withdrawals of loans 99 10686 20360
Repayments of loans -5634 -3397 -35250
Acquisition of treasury shares -120 0 -64
Dividends paid 0 0 -13514
Increase (-) / decrease (+) in current interest-
bearing business receivables 6 -2 -8
Increase (-) / decrease (+) in long-term
loan receivables 0 0 26
Cash flow from financing (C) -5649 7287 -28450
Increase (+)/decrease (-) in liquid assets -6216 671 8351
(A+B+C)
Liquid assets 1 January 12786 4382 4382
Effect of exchange rate changes -6 -861 53
Liquid assets 31 Mar/31 Dec 6564 4192 12786
OLVI GROUP
TABLE 5
NOTES TO THE INTERIM REPORT
Except for the changes detailed below, the accounting policies used for this
interim report are the same as those used for the annual financial statements
2015. The accounting policies are presented in the Annual Report 2015, which
was published on 24 March 2016.
The Group has adopted the following new or revised standards and
interpretations in 2016:
-- Annual improvements to IFRS 2012–2014
-- Disclosure Initiative – amendments to IAS 1 Presentation of Financial
Statements
The above changes in standards do not have any substantial effect on the income
statement or balance sheet. Some changes in standards may affect the scope of
information disclosed in the notes.
Other changes in accounting policies as of 1 January 2016
As of 1 January 2016, Olvi Group adopts the general industry practice of
presenting recyclable beverage packages in tangible assets when they meet the
criteria of IAS 16. This means that starting from 1 January 2016, property,
plant and equipment includes not only the recyclable packages in inventory but
also Olvi plc’s share of the package stock in accordance to shares determined
by the Ekopulloyhdistys association, as well as packages held by the clients of
subsidiaries, which the Group is obliged to repurchase. The repurchase
obligation related to packaging used by clients will be presented as a current
liability on the balance sheet.
The information in the interim report is presented in thousands of euros (EUR
1,000). For the sake of presentation, individual figures and totals have been
rounded to full thousands, which causes rounding differences in additions. The
information disclosed in the interim report is unaudited.
1. SEGMENT INFORMATION
SALES VOLUME BY GEOGRAPHICAL SEGMENT (1,000 litres)
1-3/2016 1-3/2015 1-12/2015
Olvi Group total 116883 115273 579901
Finland 35182 29926 148029
Estonia 25865 25229 123871
Latvia 13051 13924 68122
Lithuania 16479 17541 84877
Belarus 29849 32474 175129
- sales between segments -3543 -3821 -20127
NET SALES BY GEOGRAPHICAL SEGMENT (EUR 1,000)
1-3/2016 1-3/2015 1-12/2015
Olvi Group total 62163 61514 310494
Finland 23772 21190 102869
Estonia 16077 15245 75790
Latvia 6221 5992 31188
Lithuania 6804 7354 35843
Belarus 10992 13399 73550
- sales between segments -1703 -1666 -8746
OPERATING PROFIT BY GEOGRAPHICAL SEGMENT (EUR 1,000)
1-3/2016 1-3/2015 1-12/2015
Olvi Group total 4411 3805 38157
Finland 1188 694 7839
Estonia 2430 2167 15913
Latvia 402 46 2987
Lithuania 96 95 2610
Belarus 226 728 8838
- eliminations 69 75 -30
2. PERSONNEL ON AVERAGE 1-3/2016 1-3/2015 1-12/2015
Finland 290 336 336
Estonia 321 317 336
Latvia 202 199 206
Lithuania 229 226 233
Belarus 776 795 829
Total 1,818 1873 1940
3. RELATED PARTY TRANSACTIONS
Employee benefits to management
Salaries and other short-term employee benefits to the Board of Directors and
Managing Director
EUR 1,000
1-3/2016 1-3/2015 1-12/2015
Managing Director 104 85 350
Chairman of the Board 17 22 83
Other members of the Board 41 33 150
Total 162 140 583
4. SHARES AND SHARE CAPITAL
31 Mar 2016 %
Number of A shares 17026552 82.0
Number of K shares 3732256 18.0
Total 20758808 100.0
Total votes carried by A shares 17026552 18.6
Total votes carried by K shares 74645120 81.4
Total number of votes 91671672 100.0
Votes per Series A share 1
Votes per Series K share 20
The registered share capital on 31 March 2016 totalled 20,759 thousand euro.
Olvi plc’s Series A and Series K shares received a dividend of 0.65 euro per
share for 2014 (0.65 euro per share for 2013), totalling 13.5 (13.5) million
euro. The dividends were paid on 30 April 2015. The Series K and Series A
shares entitle to equal dividend. The Articles of Association include a
redemption clause concerning Series K shares.
5. SHARE-BASED PAYMENTS
Olvi Group has two active share-based incentive plans for key personnel. The
aim of the share-based incentive plans is to combine the objectives of the
shareholders and the key employees in order to increase the value of the
company, to make the key employees committed to the company, and to offer them
a competitive reward plan based on earning the company’s shares.
The bonuses for the performance periods (2014-2016/2017) will be paid in 2017
partially in Olvi plc Series A shares and partially in cash. The plan is
directed to approximately 50 people. The rewards to be paid on the basis of the
plan are in total an approximate maximum of 40,000 series A shares in Olvi plc
and a cash payment needed for taxes and tax-related costs arising from the
shares. The share-based incentive plan includes one three-year performance
period, calendar years 2014–2016. The potential reward from the performance
period 2014–2016 will be based on Olvi Group’s cumulative operating profit,
also known as earnings before interest and taxes (EBIT). Furthermore, the new
plan includes one three-year performance period, beginning on 1 July 2014 and
ending on 30 June 2017. The prerequisite for receiving reward for this
performance period is that a key employee purchases the company’s Series A
shares up to the maximum number determined by the Board of Directors.
Furthermore, entitlement to a reward is tied to the continuance of employment
or service upon reward payment. From January to March 2016, accounting entries
associated with the performance period from 1 July 2014 to 30 June 2017 were
recognised for a total of 22.3 thousand euro.
On 24 February 2016, Olvi plc’s Board of Directors decided on a new share-based
incentive plan for the Group’s key personnel. The performance period for the
share-based incentive plan is two years. The prerequisite for receiving reward
is that a key employee purchases the company’s Series A shares up to the
maximum number determined by the Board of Directors. Furthermore, entitlement
to a reward is tied to the continuance of employment or service upon reward
payment. Rewards will be paid partly in the company’s Series A shares and
partly in cash in 2018. The cash proportion is intended to cover taxes and
tax-related costs arising from the rewards to the key employees. The plan is
directed to approximately 50 people. The rewards to be paid on the basis of the
plan are in total an approximate maximum of 60,000 series A shares in Olvi plc
and a cash payment needed for taxes and tax-related costs arising from the
shares. No related accounting entries have been made during the period under
review because the performance period has not started yet.
Olvi Group does not have any other share-based plans or option plans.
6. TREASURY SHARES
Olvi plc held a total of 5,624 of its own Series A shares on 1 January 2016.
Olvi acquired 5,500 of its own Series A shares in January-March. The purchase
price was 120,139 euro. At the end of the reporting period, Olvi held 11,124
Series A shares as treasury shares. The total purchase price of treasury shares
was 228,162 euro. Treasury shares held by the company itself are ineligible for
voting.
Series A shares held by Olvi plc as treasury shares represented 0.054 percent
of the share capital and 0.012 percent of the aggregate number of votes. The
treasury shares represented 0.065 percent of all Series A shares and associated
votes.
On 14 April 2016, the General Meeting of Shareholders of Olvi plc decided to
revoke any unused authorisations to acquire treasury shares and authorise the
Board of Directors of Olvi plc to decide on the acquisition of the company’s
own shares using distributable funds. The authorisation is valid for one year
starting from the General Meeting and covers a maximum of 500,000 Series A
shares.
The Annual General Meeting also decided to revoke all existing unused
authorisations for the transfer of own shares and authorise the Board of
Directors to decide on the issue of a maximum of 1,000,000 new Series A shares
and the transfer of a maximum of 500,000 Series A shares held as treasury
shares.
7. NUMBER OF SHARES *) 1-3/2016 1-3/2015 1-12/2015
- average 20747916 20757684 20757645
- at end of period 20747684 20757684 20753184
*) Treasury shares deducted.
8. TRADING OF SERIES A SHARES ON THE HELSINKI STOCK
EXCHANGE
1-3/2016 1-3/2015 1-12/2015
Trading volume of Olvi A shares 327567 832730 2036830
Total trading volume, EUR 1,000 7418 18922 48413
Traded shares in proportion to
all Series A shares, % 1.9 4.9 12.0
Average share price, EUR 22.65 22.71 23.76
Price on the closing date, EUR 25.10 23.90 22.19
Highest quote, EUR 25.48 24.36 27.20
Lowest quote, EUR 20.30 20.51 20.51
9. FOREIGN AND NOMINEE-REGISTERED HOLDINGS ON 31 MARCH 2016
Book entries Votes Shareholders
qty % qty % qty %
Finnish total 15972177 76.94 86885041 94.78 9982 99.37
Foreign total 393104 1.89 393104 0.43 54 0.54
Nominee-registered (foreign) 98592 0.48 98592 0.11 4 0.04
total
Nominee-registered (Finnish) 4294935 20.69 4294935 4.68 5 0.05
total
Total 20758808 100.00 91671672 100.00 10045 100.00
10. LARGEST SHAREHOLDERS ON 31 MARCH 2016
Series Series A Total % Votes %
K
1. Olvi Foundation 2363904 890613 3254517 15.68 48168693 52.54
2. Hortling Heikki 903488 103280 1006768 4.85 18173040 19.82
Wilhelm *)
3. The Heirs of 187104 25248 212352 1.02 3767328 4.11
Hortling Kalle Einari
4. Hortling Timo Einari 165824 35308 201132 0.97 3351788 3.66
5. OP Corporate Bank plc, nominee 2153872 2153872 10.38 2153872 2.35
reg.
6. Hortling-Rinne Marit 102288 3380 105668 0.51 2049140 2.24
7. Nordea Bank Finland plc, 1883632 1883632 9.07 1883632 2.05
nominee register
8. Mutual Pension Insurance 849218 849218 4.09 849218 0.93
Company
Ilmarinen
9. Varma Mutual Pension Insurance 828075 828075 3.99 828075 0.90
Company
10. AC Invest Oy 460000 460000 2.22 460000 0.50
Others 9648 9793926 9803574 47.22 9986886 10.90
Total 3732256 17026552 20758808 100.00 91671672 100.00
*) The figures include the shareholder’s own holdings and shares held by parties
in his control.
11. PROPERTY, PLANT AND EQUIPMENT
EUR 1,000
1-3/2016 1-3/2015 1-12/2015
Opening balance 185240 192149 192149
Additions 18472 6393 25495
Deductions and transfers -695 -32 -390
Depreciation -4161 -3645 -15495
Exchange rate differences -5684 -5865 -16519
Total 193172 189000 185240
12. CONTINGENT LIABILITIES
EUR 1,000
31 Mar 2016 31 Mar 2015 31 Dec 2015
Pledges and contingent liabilities
For own commitments 2352 2397 2352
Leasing and rental liabilities:
Due within one year 1344 1140 1402
Due within 1 to 5 years 1227 767 1179
Due in more than 5 years 3 5 4
Leasing and rental liabilities total 2574 1912 2585
Package liabilities 0 2598 3234
Other liabilities 2000 2000 2000
13. CALCULATION OF FINANCIAL RATIOS
Equity to total assets, % = 100 * (Shareholders’ equity held by parent company
shareholders + non-controlling interests) / (Balance sheet total – advances
received)
Earnings per share = Profit belonging to parent company shareholders / Average
number of shares during the period, adjusted for share issues
Equity per share = Shareholders’ equity held by parent company shareholders /
Number of shares at end of period, adjusted for share issues
Gearing, % = 100 * (Interest-bearing debt – cash in hand and at bank) /
(Shareholders’ equity held by parent company shareholders + non-controlling
interests)
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