2011-04-28 08:00:04 CEST

2011-04-28 08:01:04 CEST


REGULATED INFORMATION

English Finnish
Olvi Oyj - Interim report (Q1 and Q3)

Olvi Group's operating year 2011 started with good growth across the operating area


OLVI PLC              INTERIM REPORT 28 APR 2011 at 9:00 am

OLVI GROUP'S INTERIM REPORT, 1 JANUARY TO 31 MARCH 2011 (3 MONTHS)

January-March in brief:

- The Group's sales volume increased by 13.1 percent to 98 (87) million litres

- The Group's net sales increased by 12.5 percent to 55.7 (49.5) million euro

- The Group's operating profit increased to 3.4 (2.1) million euro

- The Group's full-year earnings outlook is unchanged.

KEY RATIOS

                                 1-3/2011  1-3/2010  Change %  1-12/2010
Net sales, MEUR                      55.7      49.5   + 12.5       267.5
Operating profit, MEUR                3.4       2.1   + 61.8        30.5
Gross capital expenditure, MEUR      13.2       6.4   +107.1        24.5
Earnings per share, EUR              0.21      0.14  + 50.0         2.41
Equity per share, EUR               12.12     10.73  + 13.0        12.25
Equity to total assets, %            53.3      47.7                 54.7
Gearing, %                           37.8      52.3                 29.5



Lasse Aho, Managing Director of Olvi plc, said the following in connection with
the disclosure of the accounts: “Olvi Group's operating year started well. The
Group strengthened its market shares across its entire operating area. Sales
volume and net sales increased in all of our geographical areas. Our earnings
improved in Finland, Estonia, Latvia and Belarus, and earnings in Lithuania
were on a par with the previous year. We can look towards the rest of the year
with a confident mind”. 

OLVI GROUP'S SALES VOLUME, NET SALES AND EARNINGS IN JANUARY-MARCH 2011

In the first quarter of 2011, Olvi Group's sales volume was 98 (87) million
litres, an increase of 11 million litres or 13.1 percent. 

Sales increased in all of the Group's operating areas. Sales in Finland
increased by one million litres, sales in the Baltic states by a total of 8
million and sales in Belarus by 5 million litres. Intra-Group sales increased
by 2 million litres on the previous year. 

The Group's net sales from January to March amounted to 55.7 (49.5) million
euro. This represents an increase of 6.2 million euro or 12.5 percent. Net
sales increased in all of the Group's operating areas thanks to good sales
development. 

Net sales in Finland amounted to 23.1 (22.7) million euro, while the aggregate
total for the Baltic states was 26.1 (22.4) and the corresponding figure for
Belarus was 8.7 (5.9) million euro. Net sales in Finland increased by 0.4
million euro or 1.7 percent, in the Baltic states by 3.7 million euro or 16.6
percent, and in Belarus by 2.8 million euro or 47.7 percent. 

Olvi Group's operating profit for January-March stood at 3.4 (2.1) million
euro, or 6.1 (4.2) percent of net sales. The Group's operating profit improved
by 1.3 million euro or 61.8 percent. 

Olvi Group's profit after taxes in the period under review was 2.2 (1.5)
million euro. Earnings per share calculated from the profit belonging to parent
company shareholders in January-March stood at 0.21 (0.14) euro per share. 

SALES VOLUME, NET SALES AND EARNINGS BY GEOGRAPHICAL SEGMENT IN JANUARY-MARCH
2011 

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 season. 

PARENT COMPANY OLVI PLC (Olvi)

According to statistics by the Federation of the Brewing and Soft Drinks
Industry, the Finnish beverage market in January-March diminished by more than
three percent compared to the previous year. Sales declined in all product
groups except mineral waters. The sales decline in beers was -3.9 percent, in
long drinks -6.8 percent and in ciders -0.9 percent. The sales of soft drinks
declined by -1.8 percent. The sales of mineral waters improved by 1.1 percent. 

Olvi's sales in January-March amounted to 29 (28) million litres. Sales
increased by one million litres or 1.2 percent. The sales of beers in Finland
increased by 4.2 percent and the sales of long drinks by 1.6 percent while the
sales of ciders were on a par with the previous year. There was a slight
decline in the sales of mineral waters and a clear decline in the sales of soft
drinks before the launch of a new soft drink concept. 

According to statistics by the Federation of the Brewing and Soft Drinks
Industry, Olvi's market share in alcoholic beverages (beers, ciders and long
drinks) increased from 22 percent to 24 percent. In mineral waters, Olvi had a
market share of 19 (20) percent, and in soft drinks approximately 4 (5)
percent. 

Olvi's exports and tax-free sales increased by 16.0 percent to 1.1 (0.9)
million litres. 

Olvi's net sales from January to March amounted to 23.1 (22.7) million euro,
representing an increase of 0.4 million euro or 1.7 percent. 

The operating profit stood at 3.2 (2.3) million euro, which was 13.7 (10.0)
percent of net sales. The operating profit increased by 0.9 million euro or
39.9 percent compared to the previous year. The operating profit includes 1.5
(0.6 in the previous year) million euro of sales gains from the sales of
decommissioned production machinery. Commensurate operating profit excluding
non-recurring sales gains was on a par with the previous year. 

 AS A. LE COQ (A. Le Coq)

The Estonian subsidiary AS A. Le Coq's January-March sales amounted to 27 (23)
million litres. Sales increased by 4 million litres or 17.8 percent. 

The Estonian beverage market grew in all product groups during the review
period. The sales of A. Le Coq beers increased by 11 percent and long drinks by
6 percent. The sales of ciders were almost on a par with the previous year. In
non-alcoholic beverages, the greatest growth was seen in juices, 23 percent.
Soft drinks gained 14 percent and mineral waters 10 percent. 

A. Le Coq is the clear Estonian market leader in ciders and long drinks and,
according to the latest statistics by AC Nielsen, also in beers. A. Le Coq's
market share in ciders was 48 (55), in long drinks 56 (65) and in beers 38 (40)
percent (market shares from AC Nielsen statistics December 2010 - January
2011). The market share in juices has clearly increased on the previous year.
According to the latest statistics, it was 33 (25) percent, which means that A.
Le Coq is the clear market leader also in juices. The market share in soft
drinks was 29 (25) and in mineral waters 13 (12) percent. 

The company's exports and tax-free sales increased substantially on the
previous year, by as much as 63 percent. Exports and tax-free sales represented
4.0 (2.9) percent of total sales. 

A. Le Coq's net sales in the first quarter amounted to 14.5 (12.2) million
euro. Thanks to good sales development, net sales increased by 2.3 million euro
or 18.7 percent. 

Operating profit in January-March stood at 1.6 (1.0) million euro, which was
10.9 (8.3) percent of net sales. The operating profit improved by 0.6 million
euro on the previous year. The earnings improvement was made possible by
increased sales volume and cost-efficient operations. 

 A/S CESU ALUS (Cesu Alus)

The sales of Cesu Alus operating in Latvia amounted to 14 (12) million litres
in the first quarter of 2011. Sales increased by 2 million litres or 13.5
percent. 

According to the latest statistics by AC Nielsen (January 2011), the Latvian
beer market was growing while the cider and long drink markets clearly
declined. Cesu Alus's sales of beers increased by 9 percent and the sales of
long drinks and ciders by 4 percent in January-March in spite of the decline in
the long drink and cider markets. The sales of soft drinks increased clearly by
18 percent. 

Cesu Alus had a market share of 31 (35) percent of the Latvian beer market, 58
(51) percent in ciders and 47 (44) percent in long drinks (statistics by AC
Nielsen December 2010 - January 2011). Cesu Alus is the clear market leader in
ciders and a strong number two player in beers. According to the latest
statistics, Cesu Alus has also taken the leading position in the long drink
market. 

Cesu Alus's net sales from January to March amounted to 6.1 (5.5) million euro,
representing an increase of 0.6 million euro or 10.9 percent. The increase in
net sales fell short of the increase in sales volume because the average price
of net sales declined due to the product mix becoming more focused on beers. 

The operating result for the first quarter of 2011 showed a loss of -0.4 (-0.5)
million euro. The operating result was in the red but improved by 0.1 million
euro compared to the previous year. 

AB VOLFAS ENGELMAN (Volfas Engelman, formerly AB Ragutis)

The name of AB Ragutis operating in Lithuania was changed to AB Volfas Engelman
on 8 April 2011. The change of name is aimed to leverage on the company's
renowned history and emphasise the premium quality of its products. 

In the review period, the Lithuanian beer and cider markets were growing, while
the long drink market saw a decline. The company had a market share of 13 (10)
percent in beers, 43 (38) percent in ciders, 47 (43) percent in long drinks and
30 (28) percent in kvass. The company's total sales in January-March amounted
to 13 (11) million litres and increased across all crucial product groups. The
sales of beers increased by 26 percent, ciders by 11 percent and long drinks by
5 percent on the previous year. 

The company's first-quarter net sales amounted to 5.5 (4.7) million euro. Net
sales improved by 0.8 million euro or 17.8 percent. The increase in net sales
fell short of the increase in sales volume because the average price of net
sales declined due to the product mix becoming more focused on beers and due to
the elimination of obsolete-brand products before a new product launch. 

Volfas Engelman's operating profit in January—March was on a par with the
previous year at -0.2 million euro. 

OAO LIDSKOE PIVO (Lidskoe Pivo)

The January-March sales of OAO Lidskoe Pivo operating in Belarus amounted to 22
(17) million litres. Sales increased by 5 million litres or 29.8 percent on the
previous year. The sales of beers increased by 26 percent, mineral waters by 35
percent and soft drinks by 34 percent. 

Lidskoe Pivo is the market leader in the Belarusian kvass market with a market
share of 62 (42) percent. The brewery's market share has increased in all
product groups. The market share in beers was 10 (9), in long drinks 29 (22),
in juice drinks 32 (28) and in soft drinks more than 5 (4) percent. 

The company's net sales from January to March amounted to 8.7 (5.9) million
euro. Net sales improved by 2.8 million euro or 47.7 percent. The positive
change was based on good sales development and successful product launches. 

Operating profit in January-March stood at 0.7 (0.08) million euro, which was
8.0 (1.3) percent of net sales and represented an increase of 0.6 million euro.
The improvement was made possible by increased sales volumes and improved
average price of net sales. 

FINANCING AND INVESTMENTS

Olvi Group's balance sheet total at the end of March 2011 was 239.4 (239.0)
million euro. Equity per share in January-March stood at 12.12 (10.73) euro.
The equity to total assets ratio was 53.3 (47.7) percent. The amount of
interest-bearing liabilities was 57.9 (66.5) million euro, including current
liabilities of 11.6 (31.5) million euro. 

During the period under review, Olvi Group's gross capital expenditure amounted
to 13.2 (6.4) million euro. The parent company Olvi accounted for 2.2 million
euro and the subsidiaries in the Baltic states for 0.8 million euro of the
total. Lidskoe Pivo's gross capital expenditure in the first quarter was 10.2
million euro. The largest investments in Finland in 2011 consist of the
modernisation of wine separation and filtering equipment, an extension to the
tank cellar and improvements in the efficiency of the filling halls and
storehouse logistics. 

In the Baltic states, A. Le Coq's investments are focused on labelling machines
for the filling lines, as well as systems for the processing of malt and water.
Cesu Alus will modernise its bottle formats and build an extension to the yeast
tank cellar. Volfas Engelman's investments comprise an extension to the
pressure tank cellar and fermentation tanks, as well as some filling line
equipment and machinery. 

The extensive investment programme in Belarus will continue in 2011. The
construction of a new storehouse and filling lines, as well as the extension of
the tank cellar and filtering section, started already in last year.
Refrigeration and water treatment equipment will also be modernised. 

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. 

NEW PRODUCTS

Finland

The KevytOlo product group will get new labels and logos in the spring at the
same time with a new recyclable plastic deposit bottle for non-alcoholic
products. Two new flavours of KevytOlo juice-mineral waters will be introduced:
Apple&Pear and Blood Orange. The soft drinks Jaffa, Jaffa Light, Cola and Lemon
will be moved to the KevytOlo brand. The products are naturally light, without
artificial sweeteners, but thanks to fruit sugar, their calorie content is
approximately 30 percent lower. Finland's first energy water, which was
launched last year, will be complemented with another variant, TEHO Energy
Water Apple. Olvi ciders will see the introduction of two new flavours, Golden
Apple and Pineapple-Melon. The products contain only natural flavouring. The
FIZZ Dry range will be expanded with the Cranberry flavour. The best-selling
long drink in grocery stores (source Nielsen HomeScan), OLVI Lonkero, will be
expanded by the new variant Mojito Long Drink. The long drink product group
will also be strengthened by 12-packs of the most popular flavour Cranberry. In
beers, OLVI will expand the popular range of pint-size (0.568-litre) packages.
Sandels Premium beer will be launched in cases of 18 cans. 

Subsidiaries

A. Le Coq launched the new Cranberry flavour to Estonia's best-selling long
drink brand G:N. A dark version of A. Le Coq Kali kvass was introduced. The
primary product launch in beers this summer will be A. Le Coq Pils, which is a
Czech-type pilsner with strong hops content. The Estonian beer market has
previously lacked the mild beers segment. This gap will be filled by the new A.
Le Coq I launched in 0.5-litre cans. The cider segment will see the
introduction of the completely alcoho—free FIZZ Pear Alcohol Free in 0.5-litre
cans. Aura waters saw the introduction of Aura Plus Blueberry. RC Cola, which
was successfully launched one year ago, will get the new variant RC Cola Kick,
which contains caffeine and guarana. 

Cesu Alus in Latvia launched the main product of the Belarusian Lidskoe Pivo
brewery, Lidskoe Premium, in 0.5-litre cans. The company's own Cesu brand saw
the introduction of the non-filtered Cesu Nefiltretais beer in 0.5-litre glass
bottles. Cesu Special 1590 was introduced in pint-size cans. Cesu Dzons, the
best-selling long drink in Latvia, got a new Yellow Submarine version in both
bottles and cans. Similarly to Estonia, the alcohol-free FIZZ Pear was launched
in Latvia. The new alcoholic cider for the summer is FIZZ Paradise in 0.5-litre
cans. A new Porter version of Umanlaiku Kvass was introduced. 

The Lithuanian company Volfas Engelman introduced two new Volfas Engelman beers
to complement the 2009 launch of Volfas Engelman Imperial Porter. These were
Stalo 4.0% and Rinktinis 5.2%. Under the Group's cider brand FIZZ, alcohol-free
pear cider already familiar in Estonia was launched. A. Le Coq G:N Grapefruit
and Lemon Submarine long drinks were launched in 0.5-litre cans. The porter
version of kvass, previously available in Latvia, was introduced under the
Smetoniska brand. 

The Belarusian Lidskoe Pivo launched the BCE Cranberry + Apple drink in
one-litre plastic bottles. 

PERSONNEL

Olvi Group's average number of personnel in January-March was 1,963 (1,982).
The Group's average number of personnel decreased by 19 people or 1.0 percent.
The total number of personnel at the end of March was 1,998 (1,999). 

Olvi Group's average number of personnel by country:

Finland               354        (353)

Estonia               309        (306)

Latvia                209        (200)

Lithuania             198        (183)

Belarus               893        (940)

Total               1,963      (1,982)

GROUP STRUCTURE

The parent company Olvi has increased its holding of the Latvian company Cesu
Alus by 318 shares or 0.11 percent during January-March. At the end of March
2011, Olvi Group's holding in Cesu Alus was 99.48 percent, in A. Le Coq 100.0
percent, in Volfas Engelman 99.57 percent and in Lidskoe Pivo 91.58 percent. 

 OLVI A SHARE AND SHARE MARKET

Olvi's share capital at the end of March 2011 stood at 20.8 million euro. The
total number of shares was 10,379,404, of these 8,513,276 or 82.0 percent being
Series A shares and 1,866,128 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. 

The Olvi A share was quoted on Nasdaq OMX Helsinki (Helsinki Stock Exchange) at
37.00 (27.27) euro at the end of March 2011. In January-March, the highest
quote for the Series A share was 37.45 (28.70) euro and the lowest quote was
30.60 (25.10) euro. The average price was 33.56 (26.49) euro. 

In January-March, a total of 419,907 (528,905) Olvi A shares were traded,
representing 4.9 (6.2) percent of the total number of Series A shares. The
value of trading was 14.1 (14.0) million euro. 

At the end of March 2011, the market capitalisation of Series A shares was
315.0 (232.2) million euro and the market capitalisation of all shares was
384.0 (283.0) million euro. 

Olvi had a total of 8,352 shareholders at the end of March 2011. Foreign
holdings plus foreign and Finnish nominee-registered holdings represented 18.2
percent of the total number of book entries and 6.2 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. 

SHARE-BASED INCENTIVE SCHEMES

Olvi's Board of Directors has decided on a share-based incentive scheme for the
key personnel of Olvi Group on 26 January 2006. A more detailed description of
the scheme is included in the tables section of this interim report, in Table
5, Section 5. 

TREASURY SHARES

There were no changes in the number of treasury shares held by Olvi in
January-March 2011. At the end of March 2011, Olvi held 12,400 of its own
Series A shares. Treasury shares held by Olvi plc are reported in the tables
section of this interim report, in Table 5, Section 6. 

RESOLUTIONS OF OLVI PLC'S ANNUAL GENERAL MEETING ON 7 APRIL 2011

At their Annual General Meeting held on 7 April 2011, the shareholders of Olvi
plc adopted the closing of the accounts for the year 2010 and granted discharge
from liability to the members of the Board of Directors and Managing Director
as regards the fiscal year 2010. 

In accordance with the Board's proposal, the General Meeting of Shareholders
decided that a dividend of 1.00 (0.80) euro be paid on each K and A share for
fiscal 2010. The dividend according to the decision represented 41.5 (37.2)
percent of consolidated earnings per share. The dividend payout totalled 10.4
(8.3) million euro. The dividend was paid on 19 April 2011 to all shareholders
recorded in the company's register of shareholders maintained by Euroclear
Finland Ltd on the record date 12 April 2011 at the latest. 

No dividend was paid on treasury shares held by Olvi plc. The number of Olvi
plc shares on the date of the General Meeting was 10,379,404, of which Series K
totalled 1,866,128 shares and Series A 8,513,276 shares. Olvi plc holds 12,400
Series A shares as treasury shares. 

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. Heikki Sinnemaa, LL.M., Member of the
Bar, Iisalmi, and Ms. Tarja Pääkkönen, Doctor of Technology, Helsinki. Mr.
Jaakko Autere, M.Sc. (Econ.), Helsinki, was appointed new Member of the Board.
Autere serves as President of the Fiskars Home business area and the Chief
Executive Officer of Iittala Group Oy Ab. 

The Annual General Meeting appointed PricewaterhouseCoopers Oy, Authorised
Public Accountants, as the company's auditor, with Mr. Sami Posti, Authorised
Public Accountant, as auditor in charge until the closing of the next Annual
General Meeting. 

Organisation of the Board of Directors

At its organising meeting held on 7 April 2011, the Board elected Mr. Heikki
Hortling as the Chairman of the Board and Mr. Esa Lager as the Vice Chairman of
the Board. 

Decision to increase the number of shares through a free issue

In accordance with the Board of Directors' proposal, the General Meeting
decided to implement a free issue (split) in which one Series A share produces
one free Series A share, and one Series K share produces one free Series K
share. 8,513,276 Series A shares and 1,866,128 Series K shares were issued.
After the issue, the total number of Series A shares is 17,026,552, the total
number of Series K shares 3,732,256, and the total number of all shares is
20,758,808. 

The split was executed in the book-entry system of securities and did not
require any action by the shareholders. All shareholders registered in the list
of shareholders on the record date 12 April 2011 were entitled to the new
shares issued. The new shares were included in public trading and the
book-entry system on 13 April 2011, at which time they carried shareholders'
rights. The new shares did not entitle to dividends decided by the Annual
General Meeting on 7 April 2011. 

The increase in the number of shares will not affect the status of ownership of
the company, the rights associated with shares or the relations between
different series of shares. 

Decision to amend the Articles of Association

In accordance with the Board of Directors' proposal, the General Meeting
decided to amend Article 3 of the company's Articles of Association by
eliminating the reference to the nominal value of shares. 

Decision regarding the acquisition of own Series A shares

In accordance with the Board of Directors' proposal, the Annual General Meeting
decided to revoke all existing unused authorisations to acquire treasury shares
and authorise the Board of Directors to decide on the acquisition of the
company's own Series A shares using distributable funds. The authorisation is
valid for one year starting from the Annual General Meeting and covers a
maximum of 245,000 Series A shares. The Board of Directors may also propose
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. 

The shares would be purchased in accordance with the Board of Directors'
decision in public trading on the Helsinki Exchanges at the current market
price at the time of acquisition. The purchase price shall be paid to the
sellers within the payment period determined on the basis of the rules of
Nasdaq OMX Helsinki Ltd and Euroclear Finland Ltd. 

Because the maximum number of A shares to be acquired represents less than five
percent of all the shares in the company and approximately one percent of all
the votes, the acquisition would not have any significant effect on the
distribution of shareholdings and voting rights in the company. 

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 could 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. 

RISK MANAGEMENT

Olvi Group is exposed to risks that may arise from the operations of Group
companies or changes in the business environment. 

The Group's risk management is an essential part of management and everyday
operations. The objective of risk management is to ensure the realisation of
the company's strategy and the continuity of business. Olvi Group identifies,
assesses, manages, monitors and reports its crucial risks regularly. With
regard to identified risks, the effects, scope and probability of realisation
are assessed together with the means of eliminating or reducing the risk. 

Furthermore, risk management aims to identify and utilise any business
opportunities that may arise. 

Olvi operates internationally, and its business involves risks arising from
foreign exchange fluctuations due to cash flows from purchases and sales, as
well as the conversion of balance sheet items in foreign subsidiaries into
euro. Olvi Group's parent company is centrally responsible for managing
financing and foreign exchange risks in accordance with the Board of Directors'
guidance. 

 Olvi's operations are dependent on the reliability of materials management,
production facilities, logistics and IT systems. The aim is to prevent the
realisation of related risks through continuous analysis and development of
processes. Olvi Group companies are prepared for property damage and business
interruptions through insurance policies, the coverage of which is reviewed
annually. 

BUSINESS RISKS AND UNCERTAINTIES IN THE NEAR TERM

The overall economic situation seems uncertain at least in some European
countries. However, the general belief is that the worst economic crisis is
over even though the disaster in Japan created extra pressure on the economic
recovery. 

The economic outlook in the Baltic states is still conservative but in Olvi
Group's operating area, the markets have mostly turned to a growth track and
the unemployment figures are becoming better. The Estonian economy has
developed well, and economic uncertainty in Lithuania has eased. 

The weakness of consumer purchasing power is reflected on the sales of Olvi
Group products, and above all, it has an effect on the relationship between
premium products and less expensive promotional products. This has an impact of
lowering the average price of net sales and thus affecting the profitability of
operations particularly in Latvia and Lithuania. 

The most significant individual country risk in Belarus is the devaluation of
the local currency. The most important raw materials and packaging supplies are
procured mainly from local suppliers. 

NEAR-TERM OUTLOOK

Olvi Group has a good starting position for 2011. Profitability is expected to
remain on the good level of 2010. 

Further information:



Lasse Aho, Managing Director

Phone <span class="baec5a81-e4d6-4674-97f3-e9220f0136c1" style="white-space:
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OLVI PLC

Board of Directors



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, Table 5



DISTRIBUTION

 NASDAQ OMX Helsinki Ltd

Key media

www.olvi.fi



OLVI GROUP                                                               TABLE 1
INCOME STATEMENT                                                                
EUR 1,000                                                                       
                                                   1-3/2011  1-3/2010  1-12/2010
Net sales                                             55679     49497     267509
Other operating income                                  163       146        717
Operating expenses                                   -47762    -42948    -219101
Depreciation and impairment                           -4692     -4601     -18640
Operating profit                                       3388      2094      30485
Financial income                                        404       235        514
Financial expenses                                    -1080      -466      -1831
Financial expenses - net                               -676      -231      -1317
Earnings before tax                                    2712      1863      29168
Taxes *)                                               -524      -378      -3909
NET PROFIT FOR THE PERIOD                              2188      1485      25259
Other comprehensive income items:                                               
Translation differences related to foreign            -3752       245        557
 subsidiaries                                                                   
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD             -1564      1730      25816
Distribution of profit         
- parent company shareholders                          2148      1440      24954
                                       - minority        40        45        305
Distribution of comprehensive profit:                                           
- parent company shareholders                         -1288      1666      25405
                                       - minority      -276        64        411
Earnings per share calculated from the profit belonging to parent company       
 shareholders, undiluted and                                                    
adjusted for dilution, EUR                             0.21      0.14       2.41





OLVI GROUP                                                               TABLE 2
BALANCE SHEET                                                                   
EUR 1,000                                                                       
                                                31.3.2011  31.3.2010  31.12.2010
ASSETS                                                                          
Non-current assets                                                              
Tangible assets                                    125889     124600      124857
Goodwill                                            17169      17176       17169
Other intangible assets                              1178       1049        1134
Financial assets available for sale                   545       2953         545
Other non-current assets available for sale             0          5         333
Loan receivables and other non-current                138        144         137
 receivables                                     
Deferred tax receivables                             1856       1374        1682
Total non-current assets                           146775     147301      145857
Current assets                                                                  
Inventories                                         40966      37810       35124
Accounts receivable and other receivables           41919      47056       47270
Liquid assets                                        9728       6852        7891
Total current assets                                92613      91718       90285
TOTAL ASSETS                                       239388     239019      236142
SHAREHOLDERS' EQUITY AND LIABILITIES                                            
Shareholders' equity held by parent company shareholders                        
Share capital                                       20759      20759       20759
Other reserves                                       1092       1092        1092
Treasury shares                                      -222       -222        -222
Translation differences                             -7838      -4627       -4402
Retained earnings                                  111907      94186      109750
                                                   125698     111188      126977
Minority interest                                    1973       2828        2277
Total shareholders' equity                         127671     114016      129254
Non-current liabilities                                                         
Loans                                               44707      33000       35607
Other liabilities                                    1638       2045        1755
Deferred tax liabilities                             1950       1646        1847
Current liabilities                                                             
Loans                                               10579      30450        7578
Accounts payable and other liabilities              52843      57862       60101
Total liabilities                                  111717     125003      106888
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES         239388     239019      236142



OLVI GROUP                                                               TABLE 3
CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY                                    
                       Share   Other   Treasu  Translati  Accrue  Minority      
                                       ry      on         d                     
EUR 1,000              capita  reserv  shares  differenc  earnin  intere  Total 
                       l       es              e          gs      st            
                                       accoun                                   
                                       t                                        
Shareholders' equity    20759    1092    -222      -4853   92746    2764  112286
 1 Jan 2010                                                                     
Total comprehensive income for the                   226    1485      19    1730
 period                                                                         
Share of profit belonging to the                             -45      45       0
 minority                                                                       
Shareholders' equity    20759    1092    -222      -4627   94186    2828  114016
 31 Mar 2010                                                                                Share   Other   Treasu  Translati  Accrue  Minority      
                                       ry      on         d                     
                       capita  reserv  shares  differenc  earnin  intere  Total 
                       l       es              e          gs      st            
EUR 1,000                              accoun                                   
                                       t                                        
Shareholders' equity    20759    1092    -222      -4402  109750    2277  129254
 1 Jan 2011                                                                     
Profit arising from the acquisition of                         9               9
 minority shares                                                                
Total comprehensive income for the                 -3436    2188    -316   -1564
 period                                                                         
Share of profit belonging to the                             -40      40       0
 minority                                                                       
Change in minority interest                                          -28     -28
Shareholders' equity    20759    1092    -222      -7838  111907    1973  127671
 31 Mar 2011                                                                    
Other reserves include the share premium account, legal reserve and other       
 reserves.                                                                      



OLVI GROUP                                                               TABLE 4
CASH FLOW STATEMENT                                                             
EUR 1,000                                                                                                    1-3/    1-3/   1-12/
                                                            2011    2010    2010
Net profit for the period                                   2188    1485   25259
Adjustments to profit for the period                        4913    6456   22253
Change in net working capital                              -7904   -6139   -1489
Interest paid                                               -213    -273   -1848
Interest received                                             18     229     514
Taxes paid                                                 -1336      93   -2767
Cash flow from operations (A)                              -2333    1852   41922
Investments in tangible assets                             -8141   -4624  -17419
Investments in intangible assets                            -203    -183    -522
Capital gains on disposal of tangible and intangible         617       5     376
 assets                                                                         
Expenditure on other investments                               0   -2665    -257
Cash flow from investments (B)                             -7727   -7467  -17822
Increase of share capital                                      0       0   25000
Withdrawals of loans                                       13016   15000   25000
Repayments of loans                                        -1119  -10801  -41288
Increase (-) / decrease (+) in current interest-bearing business       0      -2
 receivables                                                                    
Dividends paid                                                      -134   -8321
Cash flow from financing (C)                               11897    4065  -24611
Increase (+)/decrease (-) in liquid assets (A+B+C)          1837   -1550    -511
Liquid assets 1 January                                     7891    8402    8402
Liquid assets 31 Mar/31 Dec                                 9728    6852    7891
Change in liquid assets                                     1837   -1550    -511



OLVI GROUP                                                    TABLE 5



NOTES TO THE FINANCIAL STATEMENTS

The accounting policies used for this interim report are the same as those used
for the annual financial statements 2010. The accounting policies are presented
in the Annual Report 2010 which was published on 17 March 2011. The information
disclosed in the interim report is unaudited. 

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 Group has adopted the following new or revised standards in 2011:

 - IAS 24 (Revised), Related Party Disclosures

 - IAS 32 (Amendment), Classification of Rights Issues

 - IFRIC 19, Extinguishing Financial Liabilities with Equity Instruments

 - IFRS 14 (Amendment), Prepayments of a Minimum Funding Requirement



1. SEGMENT INFORMATION                                    
SALES BY GEOGRAPHICAL SEGMENT (1,000 litres)              
                          1-3/ 2011  1-3/ 2010  1-12/ 2010
Olvi Group total              98131      86754      471913
Finland                       28682      28349      136832
Estonia                       26631      22610      124772
Latvia                        13932      12269       68705
Lithuania                     12810      10579       59075
Belarus                       21586      16627      111323
- sales between segments      -5510      -3680      -28794
NET SALES BY GEOGRAPHICAL SEGMENT (EUR 1,000)             
                          1-3/ 2011  1-3/ 2010  1-12/ 2010
Olvi Group total              55679      49497      267509
Finland                       23066      22678      110989
Estonia                       14464      12189       69935
Latvia                         6074       5476       31448
Lithuania                      5522       4689       26379
Belarus                        8661       5862       40769
- sales between segments      -2108      -1397      -12011
OPERATING PROFIT BY GEOGRAPHICAL SEGMENT (EUR 1,000)      
                          1-3/ 2011  1-3/ 2010  1-12/ 2010
Olvi Group total               3388       2094       30485
Finland                        3163       2262       11702
Estonia                        1583       1016       11905
Latvia                         -398       -483        1714
Lithuania                      -185       -175        1423
Belarus                         693         79        4444
          - eliminations      -1468       -605        -703
2. PERSONNEL ON AVERAGE        1-3/       1-3/  1-12/ 2010
                               2011       2010            
Finland                         354        353         378
Estonia                         309        306         312
Latvia                          209        200         207
Lithuania                       198        183         195
Belarus                         893        940         959
Total                          1963       1982        2051





3. RELATED PARTY TRANSACTIONS                                                   
Employee benefits to management                                                 
Salaries and other short-term employee benefits to the Board of Directors and   
 Managing Directors                                                             
EUR 1,000                                                                       
                                       1-3/2011       1-3/2010       1-12/2010  
Managing Directors                               389            261          668
Chairman of the Board                             86             55          225
Other members of the Board                        28             26          109
Total                                            503            342         1002



4. SHARES AND SHARE CAPITAL               
                                 31.3.2011
Number of A shares                 8513276
Number of K shares                 1866128
Total                             10379404
Total votes carried by A shares    8513276
Total votes carried by K shares   37322560
Total number of votes             45835836

 In accordance with the Board of Directors' proposal, the General Meeting of
Olvi plc on 7 April 2011 decided to implement a free issue (split) in which one
Series A share produces one free Series A share, and one Series K share
produces one free Series K share. 8,513,276 Series A shares and 1,866,128
Series K shares were issued. After the issue, the number of Series A shares is
17,026,552 and the number of Series K shares is 3,732,256. The total number of
shares is 20,758,808. 

All shareholders registered in the list of shareholders on the record date 12
April 2011 were entitled to the new shares issued. The new shares were included
in public trading and the book-entry system on 13 April 2011, at which time
they carried shareholders' rights. 

The registered share capital on 31 March 2011 totalled 20,759 thousand euro.

Olvi plc's Series A and Series K shares received a dividend of 1.00 euro per
share for 2010 (0.80 euro per share for 2009), totalling 10.4 (8.3) million
euro. The dividends were paid on 19 April 2011. 

The new shares issued in the free issue decided by the General Meeting of 7
April 2011 did not entitle to dividends paid for 2010. 



Nominal value of A and K shares, 31 March 2011, EUR     2.00

Votes per Series A share                      1

Votes per Series A share                      20



The Series K and Series A shares entitle to equal dividend. The Articles of
Association include a redemption clause concerning Series K shares. 

Olvi Group's General Meeting of 7 April 2011 decided to amend Article 3 of the
Articles of Association by eliminating the reference to nominal value of
shares. 

5. SHARE-BASED PAYMENTS

Olvi plc's Board of Directors decided on 26 January 2006 on a share-based
incentive scheme for Olvi Group's key personnel. 

The share-based bonus scheme was a part of the incentive and commitment scheme
for the Group's key personnel and its purpose was to combine the objectives of
shareholders and key personnel to improve the company's value. 

The scheme included two vesting periods, the first one extending from 1 January
2006 to 31 December 2007 and the second one from 1 January 2008 to 31 December
2010. The amount of bonuses payable out of the scheme was linked to Olvi
Group's net sales and the operating profit percentage in relation to net sales. 

The bonuses were paid partially in Olvi plc's Series A shares and partially in
cash. The proportion paid in cash covered the taxes and other statutory fees
arising from the share-based bonuses. The bonuses for the first vesting period
were paid in April 2008. The shares carried a ban on transferring them within
two years of reception. 

The bonuses for the second vesting period were paid in April 2011. 50 percent
of the shares received as bonus for the second vesting period may be
transferred after one year of reception, and 50 percent after two years of
reception. The right to dividends began when the shares were transferred to the
key employees' book-entry accounts. 

On the basis of this incentive scheme, a total of 11,858 Olvi plc Series A
shares became payable in 2011 for the second vesting period on the basis of
achieved targets. 

The target group of the scheme included 20 key employees.

No accounting entries associated with the incentive scheme were recognised in
January-March 2011 or January-March 2010. The incentive scheme does not have
any diluting effect. 

Olvi Group has no warrants or options.

6. TREASURY SHARES

Olvi plc held a total of 12,400 of its own Series A shares on 1 January 2011.

The total purchase price of treasury shares was 222 thousand euro. Olvi plc has
not acquired more treasury shares or transferred them to others in
January-March 2011, which means that the number of Series A shares held by the
company is unchanged on 31 March 2011. 

Series A shares held by Olvi plc as treasury shares represented 0.12 percent of
the share capital and 0.03 percent of the aggregate number of votes. The
treasury shares represented 0.15 percent of all Series A shares and associated
votes. 

On 7 April 2011, 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 245,000 Series A
shares 

The Annual General Meeting decided to revoke all existing unused authorisations
for the transfer of own shares and authorise the Board of Directors of Olvi plc
to decide on the transfer of any A shares acquired on the company's own account
within one year of the Annual General Meeting. 

7. NUMBER OF SHARES *)                               1-3/  1-3/ 2010       1-12/
                                                     2011                   2010
                              - average          10367004   10367004    10367004
- at end of period                               10367004   10367004    10367004
*) Treasury shares deducted.                                                    
8. TRADING OF SERIES A SHARES ON THE HELSINKI STOCK                             
 EXCHANGE                                                                       
                                                1-3/ 2011  1-3/ 2010  1-12/ 2010
Trading volume of Olvi A shares                    419907     528905     1628258
Total trading volume, EUR 1,000                     14148      14022       45735
Traded shares in proportion to                                                  
all Series A shares, %                                4.9        6.2        19.1
Average share price, EUR                            33.56      26.49       28.05
Price on the closing date, EUR                      37.00      27.27       30.70
Highest quote, EUR                                  37.45      28.70       31.45
Lowest quote, EUR                                   30.60      25.10       24.01



9. FOREIGN AND NOMINEE-REGISTERED HOLDINGS ON 31 MARCH 2011                     
                                  Book entries         Votes        Shareholders
                                   qty       %       qty       %     qty     %  
Finnish total                    8491859   81.82   4297655   93.76  8308    99.5
Foreign total                     431378    4.16   1403114    3.06    37     0.4
Nominee-registered (foreign)         774    0.01       774    0.00     1        
 total                                                                          
Nominee-registered (Finnish)     1455393   14.02   1455393    3.18     6     0.1
 total                                                                          
Total                           10379404  100.00  45835836  100.00  8352  100.00



10. LARGEST SHAREHOLDERS ON 31 MARCH 2011                                       
                             Series   Series   Total       %     Votes       %  
                               K        A                                       
1. Olvi Foundation          1181952   433486   1615438   15.56  24072526   52.52
2. Hortling Heikki Wilhelm   450712    87472    538184    5.19   9101712   19.86
 *)                                                                             
3. The Heirs of Hortling      93552    12624    106176    1.02   1883664    4.11
 Kalle Einari                                                                   
4. Hortling Timo Einari       82912    17304    100216    0.97   1675544    3.66
5. Hortling-Rinne Marit       51144     1050     52194    0.50   1023930    2.23
6. Skandinaviska Enskilda Banken      829384    829384    7.99    829384    1.81
 AB, nominee reg.                                                               
7. Nordea Bank Finland plc, nominee   535918    535918    5.16    535918    1.17
 register                                                                       
8. Ilmarinen Mutual Pension           457323    457323    4.41    457323    1.00
 Insurance Company                                                              
9. Oy Autocarrera Ab                  223000    223000    2.15    223000    0.49
10. Kamprad Ingvar                    212600    212600    2.05    212600    0.46
Others                         5856  5703115   5708971   55.01   5820235   12.70
Total                       1866128  8513276  10379404  100.00  45835836  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/       1-3/       1-12/
                                 2011       2010        2010
Increase                         6186       6186       23044
Decrease                         -952       -952       -4405
Total                            5234       5234       18639
12. CONTINGENT LIABILITIES  31.3.2011  31.3.2010  31.12.2010
EUR 1,000                                                   
Pledges and contingent liabilities                          
For own commitments              5566       4184        4453
For others                        809        810         810
Leasing liabilities:                                        
Due within one year               725        648         748
Due within 1 to 5 years           678        634         672
Due in more than 5 years            0          0           0
Total leasing liabilities        1403       1282        1420
Package liabilities              3000       2913        3648
Other liabilities                1980       1980        1980



13. CALCULATION OF FINANCIAL RATIOS

Equity to total assets, % = (Shareholders' equity held by parent company
shareholders + minority interest)/100 * (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, % = (Interest-bearing debt - cash in hand and at bank) /
(Shareholders' equity held by parent company shareholders + minority interest)