2007-04-26 11:21:43 CEST
2007-04-26 11:21:43 CEST
REGULATED INFORMATION
Olvi Oyj - Quarterly report
OLVI GROUP'S INTERIM REPORT, 1 JANUARY TO 31 MARCH 2007 (3 MONTHS)
Olvi Group's profitability improved substantially in comparison with
the corresponding period last year. Olvi Group's net sales amounted to
39.8 (31.9) million euro, an increase of 24.6%. Operating profit in
the period under review amounted to 3.6 (2.0) million euro, an
increase of 1.6 million euro. The Group's gross capital expenditure
amounted to 4.6 (6.1) million euro, and its equity to total assets
ratio stood at 48.9 percent (48.4%). Earnings per share amounted to
0.26 (0.12) euro. Olvi Group's overall market position strengthened
clearly in all of the company's operating areas.
OLVI GROUP'S KEY INDICATORS
Change
1-3/2007 1-3/2006 MEUR/EUR 1-12/2006
Net sales, MEUR 39.8 31.9 + 7.9 170.3
Operating profit, MEUR 3.6 2.0 + 1.6 18.5
Gross capital expenditure, MEUR 4.6 6.1 - 1.5 20.9
Equity to total assets, % 48.9 48.4 49.6
Earnings per share, EUR 0.26 0.12 + 0.15 1.43
Equity per share, EUR 7.71 6.61 + 1.11 7.46
Gearing, % 52.7 58.6 47.3
The calculation of per-share indicators in this financial statements
bulletin takes into account the effect of Olvi plc's April 2006 bonus
issue on the previous year's indicators, which means that the
indicators for 2006 are comparable with those for 2007.
SALES VOLUME, NET SALES AND EARNINGS
Olvi Group's sales from January to March amounted to 67.2 (57.2)
million litres, representing an increase of 10.0 million litres or
17.5 percent on the previous year. Sales in both Finland and the
Baltic states increased intensively. The sales growth compared to the
previous year was 26.5 percent in Finland and 14.5 percent in the
Baltic states.
Sales volumes by market area (million litres):
1-3/2007 1-3/2006 1-12/2006
Olvi Group total 67.2 57.2 303.4
Finland 26.7 21.1 110.1
Estonia 27.7 25.0 127.8
Latvia 9.3 6.6 42.7
Lithuania 8.4 8.0 42.2
Sales between segments -4.9 -3.5 -19.5
Consolidated net sales from January to March amounted to 39.7 (31.9)
million euro, representing an increase of 7.8 million euro or 24.6
percent on the previous year. Net sales in Finland improved by 3.4
million euro or 21.3 percent. Net sales in the Baltic states improved
by a total of 5.2 million euro or 30.2 percent.
Net sales by geographical segments (million euro):
1-3/2007 1-3/2006 1-12/2006
Olvi Group total 39.7 31.9 170.3
Finland 19.3 15.9 79.5
Estonia 14.0 11.3 61.5
Latvia 4.3 2.7 18.6
Lithuania 4.1 3.2 18.2
Net sales between
segments -2.0 -1.2 -7.5
Consolidated operating profit amounted to 3.6 (2.0) million euro,
representing an increase of 1.6 million euro on the corresponding
period last year. The improvement in operating profit was particularly
attributable to substantial earnings improvements in the parent
company Olvi plc and the subsidiaries in Latvia and Lithuania.
Operating profit by geographical segments (million euro):
1-3/2007 1-3/2006 1-12/2006
Olvi Group total 3.6 2.0 18.5
Finland 1.5 1.1 7.1
Estonia 1.8 1.6 9.3
Latvia 0.1 -0.3 0.8
Lithuania 0.2 -0.2 1.2
Eliminations 0.0 -0.1 0.1
In the period under review, earnings after taxes improved by 1.4
million euro to 2.7 (1.3) million euro.
Owing to the seasonal character of the brewing industry, the first
quarter accounts for approximately one-fifth of full-year net sales.
Most of the result will be made during the next two quarters.
Parent company Olvi plc
Total sales of the parent company Olvi plc in the review period
amounted to 26.7 (21.1) million litres, which is 5.6 million litres or
26.5 percent more than a year earlier. The most important factors
contributing to the increased sales volume were increased promotional
sales carried out in a controlled manner, as well as new products. In
terms of litres sold, the greatest increase was seen in beers, while
the greatest proportional increase was in energy drinks and long
drinks. Sales of soft drinks also increased substantially.
According to a study by A.C. Nielsen, Olvi plc's market share in the
main product groups (beers, ciders and mineral waters) in grocery
shops was 19.2 (18.1) percent in January-March.
The parent company's net sales from January to March 2007 amounted to
19.3 (15.9) million euro, representing an increase of 3.4 million euro
or 21.3 percent on the previous year.
Olvi plc's operating profit for the period under review was 1.5 (1.1)
million euro or 8.0 (6.6) percent of net sales. The operating profit
improved by 0.4 million euro or 46.0 percent on the previous year. The
operating profit improvement was first and foremost attributable to
efficiency improvements in production and logistics brought by
increased growth in volumes.
The earnings in January-March include 0.4 (0.5) million euro of write-
downs on inventories.
AS A. Le Coq
The total sales of the Estonian subsidiary AS A. Le Coq in January-
March amounted to 27.7 (25.0) million litres, representing an increase
of 2.7 million litres or 10.8 percent on the previous year. Sales
volumes increased in all product groups, but the greatest proportional
increases were seen in long drinks and energy drinks. Sales of juices
and waters also increased substantially.
The good sales volume and price development resulted in that AS A. Le
Coq's net sales in the period under review came to 14.0 (11.3) million
euro, an increase of 2.7 million euro or 23.4 percent on the previous
year.
The Estonian subsidiary's operating profit for the period under review
was 1.8 (1.6) million euro or 12.6 (13.7) percent of net sales. The
operating profit increased by 0.2 million euro or 13.9 percent
compared to the previous year.
A/S Cesu Alus
The total sales of A/S Cesu Alus operating in Latvia amounted to 9.3
(6.6) million litres in January-March, representing an increase of 2.7
million litres or 41.1 percent. In terms of litres sold, the greatest
increase was seen in beers, but the sales of ciders, energy drinks,
long drinks and waters also increased substantially on the previous
year.
A/S Cesu Alus's net sales from January to March increased by 58.7
percent to 4.3 (2.7) million euro. The company's operating profit
amounted to 0.1 (-0.3) million euro, representing an increase of 0.4
million euro or 133.4 percent on the previous year.
AB Ragutis
The total sales of AB Ragutis operating in Lithuania increased to 8.4
(8.0) million litres during the period under review. The aggregate
increase in sales amounted to 0.3 million litres or 4.2 percent
compared to the previous year. The greatest proportional increase of
sales was seen in long drinks and juices, in which the sales volume
almost doubled. The company has an approximate market share of 11
percent in the Lithuanian beer market and 56 percent in the cider
market.
In the period under review, AB Ragutis's net sales increased by 0.9
million euro to 4.1 (3.2) million euro, representing an increase of
29.7 percent. AB Ragutis's operating profit in January-March amounted
to 0.2 (-0.2) million euro, representing an increase of 0.4 million
euro or 185.4 percent on the previous year.
FINANCING AND INVESTMENTS
Olvi Group's balance sheet total at the end of the period under review
was 163.7 (141.6) million euro. Equity per share in January-March
stood at 7.71 (6.60) euro. The equity ratio improved from 48.4 percent
to 48.9 percent. The amount of interest-bearing liabilities was 44.4
(43.1) million euro, including current liabilities of 19.5 (7.4)
million euro.
During the period under review, Olvi Group's gross capital expenditure
amounted to 4.6 million euro (6.1 million euro). The parent company
Olvi plc accounted for 0.4 million euro and the subsidiaries in the
Baltic states for 4.2 million euro of the total. The greatest
investments in 2007 will be made in filling and packaging lines for
recyclable non-refillable plastic bottles at the parent company Olvi
plc and the brewery in Estonia, as well as extensions to storage
facilities in Latvia and Lithuania.
PRODUCT DEVELOPMENT AND NEW PRODUCTS
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.
Olvi plc launched several new products to the market in late March and
early April, including new FIZZ Coolers, Strawberry-Vanilla and Light
Lime-Grapefruit ciders, as well as Olvi Grapefruit Long Drink sold in
grocery shops. Two new flavours, Pineapple and Grapefruit,
complemented the Classic soft drink range. Owing to substantial
increase in the canned beer market, OLVI Tumma and A. Le Coq Premium
beers were also launched in cans. The 0.33 litre Sandels beer can is
now available in 24-can suitcases, and the 0.5 litre Heineken can is
available in 6-packs.
The product and package ranges have also been expanded and reformed in
the Baltic states owing to increased production capacity and
developing markets. ACE juices saw the launch of a new Kiwi-Lime
product, while the FIZZ range was complemented by Raspberry and the
long drink segment by Red Grapefruit.
PERSONNEL
Olvi Group's average number of personnel in January-March was 1,142
(1,048), 343 (314) of them in Finland, 401 (368) in Estonia, 201 (180)
in Latvia and 197 (186) in Lithuania. The number of personnel
increased by an average of 94 people or 9.0 percent on the previous
year.
GROUP STRUCTURE
At the end of March, Olvi plc's wholly owned Estonian subsidiary AS A.
Le Coq Group held 97.89 (97.34) percent of the Latvian brewery A/S
Cesu Alus and 99.56 (94.31) percent of the Lithuanian company AB
Ragutis. AS A. Le Coq Group holds the entire stock of the Estonian
brewery AS A. Le Coq. The parent company Olvi plc has one wholly
owned subsidiary in Finland, Olvin Juomaa Oy.
SHARE CAPITAL AND OLVI PLC SHARES
Olvi plc's registered share capital on 31 March 2007 was 20,758,808
euro and the total number of shares was 10,379,404. There were
1,866,128 Series K shares and 8,513,276 Series A shares. The nominal
value of both Series K and Series A shares is 2.00 euro. Each Series
K share carries 20 votes at General Meetings, while each Series A
share carries one vote. The shares entitle to equal dividend. Olvi
plc's Articles of Association include a redemption clause concerning
Series K shares.
A total of 867,682 Olvi plc A shares changed hands at Helsinki Stock
Exchange from January to March 2007, totalling 18.7 million euro in
trading volume. The traded shares represented 10.2 percent of the
total number of Series A shares. The average share price was 21.55
euro, with a high of 25.50 euro quoted in February and a low of 19.50
euro quoted in January.
ANNUAL GENERAL MEETING 3 APRIL 2007
At their Annual General Meeting held on 3 April 2007, the shareholders
of Olvi plc adopted the closing of the accounts for the year 2006 and
granted discharge from liability to the members of the Board of
Directors and Managing Director as regards the fiscal year 2006.
In accordance with the Board's proposal, the General Meeting of
Shareholders decided that a dividend of 0.65 euro be paid on each K
and A share for fiscal 2006. The dividend according to the decision
represented 45.5 percent of earnings per share. The dividend payout
totalled 6.7 million euro. The dividend was paid on 16 April 2007 to
all shareholders recorded in the company's register of shareholders
maintained by the Finnish Central Securities Depository Ltd on the
record date 10 April 2007 at the latest. The payment of dividends will
expire on 16 April 2012.
Board members and auditors
The Annual General Meeting re-elected the current members of the
Board: Mr. Heikki Hortling, Chairman of the Board, M.Sc. (Econ),
Iisalmi, Mr. Esa Lager, CFO, LL.M., M.Sc. (Econ), Kauniainen, Mr.
Lauri Ratia, Managing Director, M.Sc. (Eng), Helsinki, and Mr. Heikki
Sinnemaa, LL.M., Member of the Bar, Iisalmi, and appointed Mr. Harri
Sivula, Managing Director, M.Adm.Sc., Tuusula, as a new member of the
Board.
The Annual General Meeting appointed PricewaterhouseCoopers Ltd,
Authorised Public Accountants, as the company's auditor, with Mr.
Pekka Loikkanen, Authorised Public Accountant, Kuopio, as the auditor
in charge. Ms. Silja Komulainen, Authorised Public Accountant,
Sotkamo, was elected deputy auditor.
Organisation of the Board of Directors
At its organising meeting held on 3 April 2007, the Board elected Mr.
Heikki Hortling as the Chairman of the Board and Mr. Esa Lager as the
Vice Chairman of the Board.
Decision regarding the acquisition of own A shares
In accordance with the Board of Directors' proposal, the Annual
General Meeting decided to revoke all existing unused authorisations
to acquire own shares and authorise the Board of Directors to decide
on the acquisition of the company's own shares using distributable
funds. The authorisation is valid for one year starting from the
Annual General Meeting and covers a maximum of 245,000 A shares. The
Board of Directors may also decide that any shares acquired on the
company's own account be cancelled by reducing the share capital.
The authorisation allows the Board of Directors to acquire the
company's own shares for use as consideration in case of any upcoming
corporate acquisitions, for the funding of investments, for the
incentive and commitment scheme for key personnel or for cancellation.
Decision regarding the transfer of own shares
In accordance with the Board of Directors' proposal, the Annual
General Meeting decided to revoke all existing unused authorisations
for the transfer of own shares and authorise the Board of Directors to
decide on the transfer of any A shares acquired on the company's own
account within one year of the Annual General Meeting. The
authorisation comprises the transfer of all shares purchased on the
basis of acquisition authorisations granted to the Board of Directors.
The authorisation grants the Board of Directors with the power to
decide to whom and in what order the shares held by the company shall
be transferred. The Board of Directors can transfer the company's own
shares for use as consideration in case of any upcoming corporate
acquisitions, for the funding of investments or for use within an
incentive and commitment scheme for key personnel. The Board of
Directors is authorised to decide on the transfer price of the
company's own shares and on the bases for determining the transfer
price.
TREASURY SHARES
On the basis of the authorisation granted by the General Meeting of
Shareholders, Olvi plc's Board of Directors acquired a total of 16,000
Olvi plc Series A shares during 2006. The treasury shares were
acquired through public trading on the Helsinki Stock Exchange at the
current market price at the time of acquisition. The total
consideration paid for treasury shares in 2006 was 0.3 million euro.
The acquired Series A shares constitute 0.15 percent of the share
capital and 0.03 percent of the aggregate number of votes. The
acquired shares represent 0.19 percent of all Series A shares and
associated votes.
Olvi plc's Board of Directors has not exercised the authorisation
granted by the General Meeting to acquire Olvi plc Series A shares
during January-March 2007.
The Board of Directors has not exercised the authorisation granted by
the General Meeting to transfer the company's own Series A shares
during January-March 2007.
All of the treasury shares acquired by Olvi plc, a total of 16,000
shares, remain in the company's possession.
SHAREHOLDERS
At the end of the period under review, Olvi had a total of 5,415
(4,473) shareholders, 80.8 percent of whom were Finnish (share of
votes 93.6%). Nominee-registered holdings amounted to 13.8% (3.1% of
votes), and registered foreign holdings stood at 5.4% (3.3% of votes).
OUTLOOK
Olvi Group aims to strengthen its market position in all business
areas while ensuring the efficient utilisation of the substantial
investments made to increase the capacity of the Baltic subsidiaries
in particular. Another crucial objective is continuous improvement of
the entire Olvi Group's profitability. In Finland, the company is
preparing for new tax legislation concerning packages across the
entire brewing and beverage industry that will enter into force on 1
January 2008, as well as changes arising from the increased use of
single-use packages.
We estimate Olvi Group's net sales in 2007 to increase on the previous
year and the operating profit to be on a par with 2006 or slightly
higher.
The interim report from 1 January to 30 June 2007 has been prepared in
accordance with IFRS recognition and valuation principles. The interim
report has not been prepared in compliance with all of the
requirements in the standard IAS 34, Interim Financial Reporting.
The accounting policies used for the preparation of this interim
report are the same as those used for the annual financial statements
2006.
The information in this interim report is unaudited.
Further information:
Lasse Aho, Managing Director
Phone +358 17 838 5200 or +358 400 203 600
OLVI PLC
Board of Directors
APPENDICES
- Balance sheet, Appendix 1
- Income statement, Appendix 2
- Changes in shareholders' equity, Appendix 3
- Cash flow statement, Appendix 4
- Number of shares, personnel and contingent liabilities,
Appendix 5
DISTRIBUTION
OMX Nordic Exchange, Helsinki
Key media
www.olvi.fi
OLVI GROUP APPENDIX 1
BALANCE SHEET
EUR 1,000
31.3.2007 31.3.2006 31.12.2006
ASSETS
Non-current assets
Tangible assets 85,677 75,633 83,473
Goodwill 10,675 10,488 10,675
Other intangible assets 1,510 2,303 1,640
Financial assets available 254 254 254
for sale
Other non-current assets 307 63 311
available for sale
Loans receivable 44 44 44
Deferred tax receivables 90 34 65
Total non-current assets 98,558 88,819 96,462
Current assets
Inventories 28,793 25,033 25,173
Accounts receivable and 34,115 25,254 32,256
other receivables
Liquid assets 2,184 2,467 2,102
Total current assets 65,092 52,754 59,531
TOTAL ASSETS 163,650 141,573 155,993
SHAREHOLDERS' EQUITY AND
LIABILITIES
Shareholders' equity held by parent
company shareholders
Share capital 20,759 10,379 20,759
Other reserves 1,127 11,507 1,128
Treasury shares -290 -290
Accrued earnings 55,608 45,361 40,847
Net profit for the period 2,722 1,295 14,822
79,926 68,542 77,266
Minority interest 98 0 101
Total shareholders' equity 80,024 68,542 77,367
Non-current liabilities
Interest-bearing liabilities 24,896 35,691 27,108
Interest-free liabilities 712 490
Deferred tax liabilities 1,328 1,495 1,413
Current liabilities
Interest-bearing liabilities 19,473 7,403 11,562
Interest-free liabilities 37,217 28,442 38,053
Total liabilities 83,626 73,031 78,626
TOTAL SHAREHOLDERS' EQUITY 163,650 141,573
AND LIABILITIES
OLVI GROUP APPENDIX 2
INCOME STATEMENT
EUR 1,000
1-3/ 1-3/ 1-12/
2007 2006 2006
Net sales 39,750 31,893 170,319
Other operating income 253 127 590
Operating expenses -33,510 -27,274 -
141,577
Depreciation and impairment -2,851 -2,731 -10,851
Operating profit 3,642 2,015 18,481
Financial income 20 47 188
Financial expenses -399 -321 -1,432
Earnings before tax 3,263 1,741 17,237
Taxes *) -543 -446 -2,413
Net profit for the period 2,720 1,295 14,824
Distribution:
- parent company 2,722 1,295 14,822
shareholders
- minority -2 0 2
Earnings per share calculated from
profit belonging
to parent company
shareholders:
- earnings per share, euro 0.26 0.12 1.43
- earnings per share adjusted for
dilution from warrants, 0.26 0.12 1.42
euro
*) Taxes calculated from the profit for the
review period.
OLVI GROUP APPENDIX 3
CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY
EUR 1,000 A B C D E F G H I
Shareholders' 10379 11236 127 0 143 0 45377 67262
equity
1 Jan 2006
Translation -15 -15
differences
Net profit for the 1295 1295
period
Change in minority 0
interest
Shareholders' 10379 11236 127 0 143 -15 46672 0 68542
equity
31 Mar 2006
EUR 1,000 A B C D E F G H I
Shareholders' 20759 857 127 -290 143 -18 55688 101 77367
equity
1 Jan 2007
Translation -64 -1 -65
differences
Net profit for the 2722 2722
period
Share of profit belonging to 2 -2 0
the minority
Shareholders' 20759 857 127 -290 143 -18 58412 98 80024
equity
31 Mar 2007
A = Share capital
B = Share premium
account
C = Legal reserve
D = Treasury shares
reserve
E = Other reserves
F = Translation
differences
G = Retained
earnings
H = Minority
interest
I = Total
OLVI GROUP APPENDIX 4
CASH FLOW STATEMENT
EUR 1,000
1-3 1-3 1-12
2007 2006 2006
Net profit for the period 2,722 1,295 14,824
Adjustments to profit for the 3,912 3,260 14,852
period
Change in net working capital -6,765 -5,385 -3,320
Interest paid -276 -186 -1,529
Interest received 20 46 188
Taxes paid -416 -458 -1,080
Cash flow from operations (A) -803 -1,428 23,935
Capital expenditure -4,921 -5,375 -22,064
Disposals of fixed assets 4 0 145
Cash flow from investments -4,917 -5,375 -21,919
(B)
Increase of share capital 0 0 0
Withdrawals of loans 8,000 4,000 7,000
Repayments of loans -2,200 -1,167 -8,650
Acquisition of treasury -290
shares
Dividends paid 0 0 -4,411
Cash flow from financing (C) 5,800 2,833 -6,351
Increase (+)/decrease (-) in 82 -3,970 -4,335
liquid assets (A+B+C)
Liquid assets 1 January 2,102 6,437 6,437
Liquid assets 31 Mar/31 Dec 2,184 2,467 2,102
Change in liquid assets 82 -3,970 -4,335
OLVI GROUP APPENDIX 5
NUMBER OF SHARES *) 1-3/2007 1-3/2006 1-12/2006
- average 10,363,40 10,379,404 10,363,311
4
- at end of period 10,363,40 10,379,404 10,363,404
4
- average number of shares
adjusted for dilution from
warrants 10,363,40 10,519,086 10,413,050
4
PERSONNEL ON AVERAGE 1-3/2007 1-3/2006 1-12/2006
Finland 343 314 346
Estonia 401 368 393
Latvia 201 180 195
Lithuania 197 186 192
Total 1,142 1,048 1,126
CONTINGENT LIABILITIES
EUR 1,000 31.3.2007 31.3.2006 31.12.2006
Pledges and contingent liabilities
For own commitments 1,135 1,135 765
For others 1,055 1,278 1,055
Leasing liabilities:
Due within one year 990 1,276 1,041
Due within 1 to 5 years 1,090 1,777 1,019
Due in more than 5 years 5 0 5
Total leasing liabilities 2,085 3,053 2,065
Package liabilities 5,468 4,685 4,734
Other liabilities 1,980 1,988 1,980
Debts for which mortgages have
been given as collateral
Loans from financial
institutions
For own commitments 1,545 3,091 2,318
For others 763 3,361 1,527
*) The numbers of shares have been adjusted for the effect of the
bonus issue in spring 2006.
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