2011-04-28 08:00:04 CEST
2011-04-28 08:01:04 CEST
REGULATED INFORMATION
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)
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