2013-02-21 08:00:23 CET
2013-02-21 08:01:26 CET
REGULATED INFORMATION
Olvi Oyj - Financial Statement Release
Olvi Group’s sales volume, net sales and operating profit developed favourably in 2012
Iisalmi, 2013-02-21 08:00 CET (GLOBE NEWSWIRE) -- OLVI PLC
FINANCIAL STATEMENTS BULLETIN 21 FEB 2013 at 9:00 am
OLVI GROUP'S FINANCIAL STATEMENTS JANUARY TO DECEMBER 2012
Olvi Group's sales volume, net sales and operating profit developed favourably
in 2012. The overall market position strengthened in Finland, the Baltic states
and Belarus. Earnings per share increased to 1.24 euro. The company's financial
position was good.
January to December 2012 in brief:
- Olvi Group's sales increased to 526.8 (518.2) million litres
- The Group's net sales increased to 312.2 (285.2) million euro
- The Group's operating profit increased to 30.5 (26.7) million euro
- Olvi Group's earnings per share stood at 1.24 (0.65) euro, and the Board of
Directors proposes a dividend of 0.50 (0.50) euro per share
- The equity to total assets ratio increased clearly to 54.8 (50.6) percent
October to December 2012 in brief:
- Sales were almost on a par with the previous year at 115.5 (116.7) million
litres
- The Group's net sales increased to 70.6 (60.9) million euro
- Olvi Group's operating profit improved from 1.5 million euro to 4.6 million
euro
KEY RATIOS
1-12/2012 1-12/2011 Change %
Net sales, MEUR 312.2 285.2 +9.5
Operating profit, MEUR 30.5 26.7 +14.4
Gross capital expenditure, MEUR 29.8 43.2 -31.0
Earnings per share, EUR 1.24 0.65 +90.8
Equity per share, EUR 7.01 6.11 +14.7
Equity to total assets, % 54.8 50.6
Gearing, % 35.8 43.2
Lasse Aho, Managing Director of Olvi plc, said the following in connection with
the disclosure of the accounts: “Olvi Group's net sales growth in 2012 was good
in spite of the declining beverage markets in Finland and Estonia. Our overall
market position strengthened again across our entire operating area. Operating
profit improved substantially in Belarus, Lithuania and Latvia. Olvi Group's
equity to total assets ratio also improved.”
OLVI GROUP'S SALES VOLUME, NET SALES AND OPERATING PROFIT IN JANUARY-DECEMBER
2012
Olvi Group's total sales volume was an all-time high in spite of very rainy
weather in the peak season. Sales increased by 8.6 million litres to 526.8
(518.2) million litres. Sales improved substantially in Belarus. The aggregate
sales of companies located in the Baltic states increased slightly. Sales in
Finland were on a par with the previous year.
The sales volume in Finland was 148.8 (149.1), in the Baltic states 278.0
(276.3) and in Belarus 141.5 (128.0) million litres. Intra-Group sales
increased by 18.1 percent to 41.6 (35.2) million litres.
Net sales improved well and clearly outperformed the sales volume growth,
amounting to 312.2 (285.2) million euro. This represents an increase of 27.0
million euro or 9.5 percent. The greatest net sales growth was seen in Belarus.
Net sales improved clearly in the Baltic states and somewhat also in Finland.
Domestic net sales amounted to 121.0 (119.8) million euro. The Baltic
subsidiaries generated net sales of 150.5 (140.6) million euro, while net sales
in Belarus amounted to 59.0 (39.6) million euro. Net sales in Finland increased
by 1.2 million euro, and net sales in the Baltic states increased by 9.9
million euro or 7.0 percent. Net sales in Belarus improved substantially by
19.4 million euro or 49.0 percent. The Belarusian figures are still subject to
hyperinflationary accounting in accordance with IAS 29.
The operating profit for 2012 stood at 30.5 (26.7) million euro, which was 9.8
(9.4) percent of net sales. The operating profit improved by 3.8 million euro
or 14.4 percent.
The previous year's operating profit in Finland included 1.5 million euro of
sales gains from the sales of decommissioned production machinery. Operating
profit in Finland in 2012 declined by 4.1 million euro to 9.1 (13.2) million
euro. Commensurate operating profit declined by 2.7 million euro or 22.9
percent.
Aggregate operating profit in the Baltic states increased clearly by 2.3
million euro to 16.4 (14.1) million euro. Operating profit in Belarus increased
very substantially by 4.3 million euro to 5.0 (0.7) million euro. The previous
year's result was burdened by heavy devaluation of the Belarusian rouble and
hyperinflationary accounting introduced in December 2011.
The Group's profit after taxes in the period under review was 26.2 (13.0)
million euro.
Earnings per share calculated from the profit belonging to parent company
shareholders stood at 1.24 (0.65) euro per share.
OLVI GROUP'S SALES VOLUME, NET SALES AND OPERATING PROFIT IN OCTOBER-DECEMBER
2012
The fourth quarter's total sales volume was 115.5 (116.7) million litres,
almost at the previous year's level. Sales in Belarus increased clearly by 11.9
percent to 30.2 (27.0) million litres but sales in Finland and the Baltic
states declined somewhat. Sales in Finland amounted to 34.8 (36.7) million
litres and sales in the Baltic states to 56.9 (58.1) million litres.
The Group's net sales increased by 15.9 percent in October-December. Net sales
amounted to 70.6 (60.9) million euro. Net sales in Finland were almost on a par
with the previous year at 28.8 (29.1) million euro. Net sales in the Baltic
states amounted to 30.8 (29.5) million euro, an increase of 4.3 percent. Net
sales in Belarus almost tripled on the previous year. Net sales in Belarus
stood at 13.7 (4.7) million euro.
Olvi Group's operating profit developed well during the fourth quarter. The
operating profit stood at 4.6 (1.5) million euro, which was 6.5 (2.4) percent
of net sales. The operating profit improved by 3.1 million euro.
Operating profit in Finland increased by 24.7 percent to 1.9 (1.5) million
euro, while operating profit in the Baltic states increased by 30.2 percent to
2.2 (1.7) million euro. Belarus posted an operating profit of 0.4 million euro,
while the previous year's figure was in the red by 1.9 million euro. The
operating profit increased by 2.3 million euro.
SALES VOLUME, NET SALES AND OPERATING PROFIT BY GEOGRAPHICAL SEGMENTS
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, prevailing weather and
environmental conditions, and the characteristics of each country.
PARENT COMPANY OLVI PLC (Olvi)
January to December 2012
According to statistics (by the Finnish Federation of the Brewing and Soft
Drinks Industry), the Finnish beverage market declined by 51 million litres or
6 percent in January-December 2012 compared to the previous year. A clear
decline in sales was seen in all main product groups. The sales of beers
declined by 7 percent, ciders by 8 percent and long drinks by 7 percent. Sales
of mineral waters declined by 6 percent and soft drinks by 4 percent. The
markets went down because of excise tax hikes and rainy weather in the peak
season.
In spite of the clear decline in the beverage industry, the parent company Olvi
plc's sales volume was almost on a par on the previous year. Olvi's sales in
January-December amounted to 148.8 (149.1) million litres. Sales declined by
0.3 million litres.
In terms of product groups, the best development was seen in soft drinks, where
the sales volume increased by 85 percent thanks to the very popular Angry Birds
products and other private label soft drinks. The sales of mineral waters
increased by 13 percent and ciders by 5 percent. The sales of juice drinks
doubled. On the other hand, the sales of beers declined by 11 percent, and long
drinks by 8 percent.
According to the statistics by the Federation of the Brewing and Soft Drinks
Industry, Olvi's domestic market share in mild alcoholic beverages was on a par
with the previous year at approximately 24 percent. The market share in
non-alcoholic products increased clearly from approximately 6 percent to almost
9 percent due to good sales development in soft drinks and waters.
Olvi's exports and tax-free sales increased by 50.6 percent to 6.8 (4.5)
million litres, mostly attributable to Angry Birds soft drinks. Exports and
tax-free sales represented 4.6 (3.0) percent of total sales.
Olvi's net sales increased to 121.0 (119.8) million euro, an increase of 1.2
million euro.
Olvi's operating profit for 2012 stood at 9.1 (13.2) million euro, which was
7.5 (11.1) percent of net sales. The previous year's operating profit included
1.5 million euro of sales gains from the sales of decommissioned production
machinery. Olvi's operating profit declined by 4.1 million euro or 31.5 percent
on the previous year. Commensurate operating profit declined by 2.7 million
euro or 22.9 percent on the previous year.
Factors contributing to the operating profit decline included increased
depreciation due to substantial investments, as well as cost increases that
could not be fully covered due to the downtrend of the beverage industry.
October to December 2012
In the fourth quarter, Olvi's sales declined by 5.2 percent or 1.9 million
litres to 34.8 (36.7) million litres. Sales in the previous year were boosted
by purchases made into stocks due to the excise tax hikes in the beginning of
2012. Net sales stood at 28.8 (29.1) million euro, a decline of 0.3 million
euro or 1.1 percent.
Olvi's operating profit increased substantially in October-December. Operating
profit amounted to 1.9 (1.5) million euro, an increase of 0.4 million euro or
24.7 percent on the previous year. The operating profit represented 6.6 (5.3)
percent of net sales.
AS A. LE COQ (A. Le Coq)
January to December 2012
The Estonian company A. Le Coq's sales amounted to 134.0 (133.4) million
litres. Sales increased by 0.6 million litres or 0.5 percent.
The Estonian beer and soft drinks markets declined by 4 to 5 percent, and the
juice market by almost 9 percent in 2012. Only the sales of ciders increased
clearly, by almost 8 percent. The long drink and mineral water markets remained
on the previous year's level.
A. Le Coq's market position remained strong in all of the main product groups.
A. Le Coq is the market leader in beers, long drinks, ciders and juices. A. Le
Coq's market share in beers was 40 (42) percent, in long drinks 55 (56) percent
and in ciders 44 (40) percent. Fizz is Estonia's largest cider brand.
The market share in soft drinks at the end of November 2012 was 29 (27)
percent, and in mineral waters 16 (15) percent. In the sales of juices and
juice drinks, A. Le Coq had a market share of 36 (30) percent in tetrapacks and
30 (50) percent in other packages (all market shares by Nielsen,
October-November 2012).
Sales of the company's beers and ciders remained at the previous year's level,
while the sales of long drinks declined by 5 percent. Mineral waters were the
best-developing product group with an increase of 13 percent. The sales of
juices increased by 2 percent, while the sales of soft drinks (including kvass)
declined by 7 percent on the previous year.
The company's exports and tax-free sales declined by 13.4 percent on the
previous year to 5.1 (5.9) million litres.
A. Le Coq's net sales in 2012 amounted to 80.0 (76.0) million euro,
representing an increase of 4.0 million euro or 5.4 percent.
Operating profit was on a par with the previous year at 13.0 (13.0) million
euro. The operating profit represented 16.3 (17.1) percent of net sales.
October to December 2012
The company's fourth-quarter sales amounted to 28.5 (28.1) million litres, an
increase of 0.4 million litres or 1.5 percent on the previous year. Net sales
amounted to 16.9 (16.0) million euro. Net sales improved by 0.9 million euro or
5.5 percent.
A. Le Coq's operating profit stood at 2.3 (1.9) million euro, an improvement of
0.4 million euro or 21.1 percent on the previous year. The operating profit
represented 13.8 (12.0) percent of net sales.
A/S CESU ALUS (Cesu Alus)
January to December 2012
The sales of Cesu Alus operating in Latvia amounted to 72.4 (75.4) million
litres. Sales declined by 3.0 million litres or 4.0 percent.
The Latvian beer market diminished slightly in 2012, and the cider market saw a
decline of more than 13 percent. On the other hand, the sales of long drinks
saw an uptrend of more than 13 percent.
Due to an increase in the level of profitability in beers, the company's market
share in beers declined to 24 (37) percent. However, the company retained its
number two position in the beer market. In ciders, Cesu Alus is the clear
number one player with a market share of 51 (54) percent. In the long drink
market, the company has a market share of 44 (45) percent. There are two almost
equal players in the Latvian long drinks market. In the sales of energy drinks,
Cesu Alus's market share clearly increased from 30 percent to 37 percent
(Nielsen, October-November 2012).
77.5 (80.5) of the company's domestic sales is attributable to beer. The sales
of beer declined by approximately 12 percent in 2012. The greatest proportional
sales growth was seen in energy drinks, 38 percent. The sales of long drinks
increased by 22 percent and the sales of soft drinks (including kvass) was on a
par with the previous year. The sales of ciders declined by 24 percent, and the
sales of juices declined by 25 percent.
The company's net sales stood at 36.2 (35.2) million euro, an increase of 1.0
million euro or 2.8 percent.
The company's operating profit for the year increased substantially by 1.0
million euro or 124.4 percent to 1.7 (0.7) million euro, which is 4.6 (2.1)
percent of net sales.
The improvement in operating profit was made possible by a clear increase in
the average price of net sales and strict control of costs.
October to December 2012
Cesu Alus's sales volume amounted to 13.9 (15.8) million litres, which was 1.9
million litres or 12.2 percent less than in the previous year. However, net
sales only declined by 0.3 million euro or 4.5 percent to 6.7 (7.0) million
euro.
The company's operating profit in the fourth quarter was -0.16 (-0.14) million
euro.
AB VOLFAS ENGELMAN (Volfas Engelman)
January to December 2012
The sales of Volfas Engelman operating in Lithuania increased by 4.2 million
litres or 6.1 percent to 71.7 (67.5) million litres.
With the exception of long drinks, the Lithuanian beverage markets in 2012 were
declining in all main product groups. The beer market declined by 5 percent,
ciders by 2 percent and kvass by 16 percent. The sales of long drinks increased
by as much as 30 percent.
Volfas Engelman's overall position in the Lithuanian beverage market has become
stronger. The company had a market share of 14 (13) percent in beers, which is
the largest product group. The company is the market leader in ciders with a
market share of 34 (36) percent and in long drinks with a market share of 33
(30) percent. The company is also the clear market leader in the kvass market
with a market share of 27 (32) percent (Nielsen, October-November 2012).
The sales of the company's beers increased by 10 percent, and long drinks by 26
percent. The sales of ciders declined by 8 percent. The sales of soft drinks
(mostly kvass) declined by 17 percent on the previous year.
During 2012, the company's exports increased by 74.0 percent. Exports accounted
for 2.3 (1.4) percent of total sales.
The company's net sales stood at 34.2 (29.5) million euro, an increase of 4.7
million euro or 16.1 percent. Growth in net sales clearly outperformed the
growth in sales volume thanks to improved average price of net sales.
The company's operating profit increased clearly to 1.8 (0.4) million euro,
which is 5.1 (1.4) percent of net sales. The operating profit increased by 1.4
million euro. The improvement in operating profit was attributable to clear
increases in the profitability of the product portfolio and the average price
of sales, as well as good control of costs.
October to December 2012
Volfas Engelman's sales in the fourth quarter amounted to 14.5 (14.2) million
litres, which is 1.9 percent more than in the previous year.
Net sales increased by 0.7 million euro or 11.0 percent to 7.2 (6.5) million
euro.
From October to December, the company posted earnings of 0.1 million euro more
than in the previous year. The operating profit was 0 (-0.1) million euro.
OAO LIDSKOE PIVO (Lidskoe Pivo)
January to December 2012
The economic situation in Belarus has improved, and the competitive ability has
become better during the last year. After the devaluations in 2011, the
exchange rate of the Belarusian rouble has stabilised and inflation has
decelerated. The Belarusian beer market declined by 9 percent and the soft
drinks market by almost 7 percent, but on the other hand, the sales of juices
increased on the previous year.
The financial reporting of Lidskoe Pivo is subject to the IAS 29 standard
“Financial Reporting in Hyperinflationary Economies” for the time being, as
long as Belarus is listed as a hyperinflationary economy.
Lidskoe Pivo's operations have developed well in 2012. The company's sales
increased by 13.5 million litres or 10.5 percent to 141.5 (128.0) million
litres.
The company is a clear market leader in ciders, kvass and juice drinks. Its
market share in ciders is 62 (59), in kvass 67 (58) and in juice drinks 33 (31)
percent. The market share in beers is 15 (10) percent (Nielsen,
October-November 2012).
The sales of beers increased by 4, mineral waters by 36 and soft drinks
(including kvass) by 10 percent. There was a 13 percent decline in the sales of
juice drinks. Sales of cider were on a par with the previous year.
The company's exports in the reporting period increased by 63.9 percent on the
previous year. Exports made 10.1 (6.8) percent of the company's total sales.
The main destinations for exports were Russia and Lithuania.
Lidskoe Pivo's net sales increased substantially in 2012. Net sales stood at
59.0 (39.6) million euro, an increase of 19.4 million euro or 49.0 percent.
Factors contributing to net sales growth included favourable development of
sales volumes and a sustained good average price of net sales.
The company's operating profit for the period improved extremely well and
amounted to 5.0 (0.7) million euro, which was 8.4 (1.9) percent of net sales.
The operating profit improved by more than six-fold on the previous year with
an increase of 4.3 million euro. The operating profit increase was attributable
to improved efficiency made possible by the commissioning of substantial
investments, improved profitability in all product groups, as well as
successful new product launches.
October to December 2012
Lidskoe Pivo's sales volume in the fourth quarter was 30.2 (27.0) million
litres, an increase of 3.2 million litres or 11.9 percent.
The company's net sales in the fourth quarter amounted to 13.7 (4.7) million
euro, an increase of 9.0 million euro.
The company's operating profit amounted to 0.4 (-1.9) million euro. The
operating profit improved by 2.3 million euro.
The changes in fourth-quarter net sales and operating profit in comparison to
the previous year are affected by the implementation of IAS 29 in December
2011. At that time, inflation adjustments were made retroactively for the
entire year, and their effect was seen solely in the fourth quarter of 2011.
FINANCING AND INVESTMENTS
Olvi Group's balance sheet total at the end of December 2012 was 269.2 (253.6)
million euro. Equity per share at the end of 2012 stood at 7.01 (6.11) euro.
The equity to total assets ratio clearly exceeded Olvi Group's long-term target
of 50 percent. The actual figure at the end of December was 54.8 (50.6)
percent. The gearing ratio declined clearly on the previous year to 35.8 (43.2)
percent. The Group's liquidity also improved clearly in 2012. The current ratio
was 1.3 (1.0).
The amount of interest-bearing liabilities at the end of 2012 was 58.5 (59.2)
million euro, including current liabilities of 16.0 (28.3) million euro.
Olvi Group's gross capital expenditure in 2012 amounted to 29.8 (43.2) million
euro. The parent company Olvi accounted for 14.9 million euro, the Baltic
subsidiaries for 4.8 million euro and Lidskoe Pivo for 10.1 million euro of the
total.
The largest investments in Finland in 2012 included the commissioning of a new
can filling line, the completion of a tank cellar extension, as well as
modernisation of beer filtering.
In the Baltic states, A. Le Coq's largest investments comprised extensions to
storage facilities and the pressure tank cellar, as well as a labelling machine
for glass bottles. Cesu Alus's major investments were associated with conveyors
for the glass bottle line, as well as other production machinery and equipment.
Volfas Engelman's investments consisted of a general renovation of the brewery,
a glass bottle reform, wine and kvass mixing equipment and other smaller
purchases of machinery and equipment.
The first stage of Lidskoe Pivo's extensive investment programme is mainly
completed. It included, among other things, storage, filling department and
tank cellar buildings, filling line machinery and equipment, an extension to
the kvass cellar, a new beer filter and air compressor.
PRODUCT DEVELOPMENT AND NEW PRODUCTS
Research and development includes projects to design and develop new products,
packages, processes and production methods, as well as further development of
existing products and packages. The R&D costs have been recognised as expenses.
The main objective of Olvi Group's product development is to create new
products for profitable and growing beverage segments.
Finland
In November, the company launched the TEHO Sport protein and energy bars, as
well as caffeine bars and powders having the TEHO energy drink flavour. In
January 2013, two new Angry Birds soft drinks were launched in 1.5-litre
bottles.
February 2013 saw the introduction of a total novelty, the Angry Birds Berry &
Fruity Shake snack drinks. The products are manufactured by Osuuskunta Maitomaa
in Suonenjoki and packaged in the advanced Tetra Prisma Aseptic Dream Cap 330
ml package. In March 2013, the company will launch TEHO Sport milk-based
recovery drinks in two flavours for strength and endurance training, also
manufactured by Maitomaa.
April 2013 will see the novelties for the summer. In alcoholic products, these
inclue the Unknown Soldier beer, OLVI Cider Red Berries, FIZZ Apple Garden
cider and OLVI Mexico Long drink. In non-alcoholic products, the KevytOlo
mineral water/juice mix range will see a new variant of Birch Sap containing 5
percent of genuine birch sap. A new sub-brand of the KevytOlo family will be
introduced. Functional mineral waters will be combined under the name of
Balanssi (Balance). A new Amazon flavour will be added to the Angry Birds soft
drinks range.
Subsidiaries
In October, the Estonian A. Le Coq introduced the Angry Birds Paradise soft
drink in cans. November saw the introduction of A. Le Coq Christmas Porter 6.5%
alc., as well as two beers from Warsteiner of Germany: Warsteiner Premium Verum
and Warsteiner alcohol-free beer.
Cesu Alus of Latvia did not launch any new products in the period under review.
Volfas Engelman of Lithuania launched the Angry Birds Paradise can in October,
which means that Angry Birds is now available in all of the Group's countries.
Lidskoe Pivo of Belarus launched the energy drink Dynami:t Blue in October.
PERSONNEL
Olvi Group's average number of personnel in January-December was 1,977 (2,032).
The Group's average number of personnel decreased by 55 people or 2.7 percent.Personnel decreases were seen in Belarus, while in the other operating areas,
the number was either unchanged or increased slightly. The total number of
personnel at the end of December 2012 was 1,905 (1,905).
Olvi Group's average number of personnel by country:
Finland 401 (383)
Estonia 313 (311)
Latvia 217 (217)
Lithuania 212 (205)
Belarus 834 (916)
Total 1,977 (2,032)
CHANGES IN CORPORATE STRUCTURE IN 2012
In the spring of 2012, A. Le Coq acquired 49.0 percent of the stock of AS
Karme. Karme owns the Karks brewery that produces beers, ciders and wine.
Thanks to the acquisition, A. Le Coq got access to Karks's wine production
capacity for the manufacture of ciders and other fermented beverages.
In May 2012, A. Le Coq acquired 20.0 percent of the water manufacturer Oü
Verska Mineraalvee with the aim of gaining a better position in the Estonian
mineral water market. Both companies are accounted as associated companies in
Olvi's consolidated financial statements.
During the reporting period in January-December, Olvi acquired a total of 407
shares in Cesu Alus, corresponding to 0.14 percent of the company's share
capital.
At the end of December 2012, Olvi's holding in Cesu Alus was 99.67 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
The total number of Olvi plc shares at the end of December 2012 was 20,758,808,
of these 17,026,552 or 82.0 percent being publicly traded Series A shares and
3,732,256 or 18.0 percent Series K shares.
Each Series A share carries one (1) vote and each Series K share carries twenty
(20) votes. Olvi held 1,124 of its own Series A shares on 31 December 2012 as
treasury shares. Treasury shares held by the company itself are ineligible for
voting. Olvi's share capital at the end of December 2012 stood at 20.8 million
euro. Detailed information on Olvi's shares, share capital and treasury shares
can be found in the tables attached to this financial statements bulletin, in
Table 5, Sections 4 and 5.
The total trading volume of Olvi A shares on Nasdaq OMX Helsinki in 2012 was
1,793,149 (3,208,911) shares, which represented 10.5 (18.8) of all Series A
shares. The value of trading was 32.8 (62.3) million euro.
The Olvi A share was quoted on Nasdaq OMX Helsinki (Helsinki Stock Exchange) at
19.65 (14.75) euro at the end of 2012. In January-December, the highest quote
for the Series A share was 20.43 (19.86) euro and the lowest quote was 14.75
(13.49) euro.
At the end of December 2012, the market capitalisation of Series A shares was
334.5 (251.1) million euro and the market capitalisation of all shares was
407.9 (306.2) million euro.
The number of shareholders at the end of December 2012 was 9,091 (9,146).
Foreign holdings plus foreign and Finnish nominee-registered holdings
represented 17.9 (17.5) percent of the total number of book entries and 6.2
(6.1) percent of total votes.
Foreign and nominee-registered holdings are reported in Table 5, Section 8 of
the tables attached to this financial statements bulletin, and the largest
shareholders are reported in Table 5, Section 9.
FLAGGING NOTICES
During 2012, Olvi received three flagging notices in accordance with Chapter 2,
Section 10 of the Securities Markets Act: from The Family Kamprad Foundation on
10 January 2012 and from Ilmarinen Mutual Pension Insurance Company on 11 May
2012 and 13 December 2012.
BUSINESS RISKS AND THEIR MANAGEMENT
Risk management is a part of Olvi Group's everyday management and operations.
It increases corporate security and contributes to the achievement of
operational targets. The objective of risk management is to operate proactively
and create operating conditions in which business risks are managed
comprehensively and systematically in all of the Group companies and all levels
of the organisation. In addition to the company itself, risk management
benefits its personnel, customers, shareholders and other related groups.
The objective of risk management is to ensure the realisation of the company's
strategy and secure the continuity of business. Olvi Group identifies,
assesses, manages and monitors 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 Group's strategic risks refer to risks related to the characteristics of
the company's business and strategic choices. The Group's operations are
located in several countries that differ substantially in terms of their social
and economic situations and the phases and directions of development. For
example, strategic risks relate to changes in tax legislation and other
regulations, the environment and foreign exchange markets. If realised,
strategic risks can substantially hamper the company's operational
preconditions. The Group's most substantial identified strategic risks relate
to Belarus, particularly the situation in the country's economy and politics.
The Group's most substantial identified operational risks relate to the
procurement and quality of raw materials, the production process, markets and
customers, personnel, information security and systems, as well as changes in
foreign exchange rates.
Raw materials
General economic development and annual fluctuations in crop yield affect the
prices and availability of major raw materials used within Olvi Group.
Disruptions in raw material deliveries may hamper customer relations and
business operations. Purchases of major raw materials are made under
procurement contracts standardised at the Group level. The Group aims to secure
the predictability of purchase prices for critical raw materials through
long-term procurement contracts. The company has a hedging policy concerning
raw materials and their prices. All units emphasise the significance of the
quality of raw materials and other production factors in the overall production
chain.
Production process
The aim is to minimise production risks through clear documentation of
processes, increasing the degree of automation, compliance with quality
management system and the pursuit of clear operating methods in relation to
decision-making and supervision. The efficiency and applicability of processes
and methods are monitored using internal indicators. The monitoring and
development of production efficiency includes, among other things, the
reliability and utilisation rate of production machinery, development of the
working environment and its safety, as well as factors related to people's
work. The Group has a property and loss-of-profits insurance programme covering
all of the operating areas, and its coverage is reviewed annually.
Markets and customers
The Group's business operations are characterised by substantial seasonal
variation. The net sales and operating profit from the reported geographical
segments do not accumulate evenly but vary substantially according to the time
of the year and the characteristics of each season.
Negative changes in the economy may impact consumers' purchasing behaviour and
hamper the liquidity of hotel and restaurant customers in particular. All Group
companies employ efficient credit controls as a major method for minimising
credit losses.
Legislative changes and other changes in the operations of authorities, such as
changes in excise taxes and marketing restrictions, may affect the demand for
the Group's products and their relative competitive position.
Personnel
Risks related to personnel include, among others, risks in obtaining labour,
employment relationship risks, key person risks, competence risks and risks
arising from insufficient well-being and accidents at work.
Crucial focal points in HR management include securing industrial safety,
maintaining and developing a good employer image, as well as ensuring the
availability and commitment of personnel. Other focal points include
maintaining and developing well-being at work, management, training and
incentive schemes, as well as the construction and maintenance of backup
personnel systems.
Information security and IT
Olvi Group employs an information security policy pertaining to all of the
companies. It defines the principles for implementing information security and
provides guidelines for its development.
Risks related to information technology and systems are manifested as
operational disruptions and deficiencies, for example. The availability and
correctness of data is ensured through the choice of operating methods and
various technical solutions. The Group's operations in Finland, the Baltic
states and Belarus utilise a common enterprise resource planning system. The
system was introduced into use in Belarus during the financial year 2012. A
risk analysis pertaining to information security and the operation of
information systems is carried out annually.
Financing risks
The Group operates in an international market and is therefore exposed to
foreign exchange risk due to changes in exchange rates. Foreign exchange risk
consists of sales, purchases and balance sheet items in foreign currency
(transaction risk), as well as investments and loans in foreign subsidiaries
(valuation risk). Foreign exchange risk is reduced by the fact that most of the
Group's product sales and purchases of raw materials are denominated in euro.
The objective of financing risks management is to protect the Group against
unfavourable changes in the financial markets and to secure the Group's
earnings development, liquidity and equity. The parent company's financial
management bears central responsibility for the Group's financing and the
management of financing risks in accordance with principles confirmed by the
Group's Board of Directors. The objectives of centralisation include
optimisation of cash flows and financing costs, as well as efficient risk
management.
Financing risks are described in more detail in the Investors section of the
corporate Web site.
BUSINESS RISKS AND UNCERTAINTIES IN THE NEAR TERM
The financial situation in Europe has become more positive, and it is generally
estimated that the euro crisis is becoming a thing of the past. However, an
increase in the unemployment rate and the resulting decline in consumer
purchasing power may have a negative effect on the demand for the company's
products.
The most substantial factor hampering the predictability of Olvi Group's
business still relates to Belarus and its economic outlook for the next few
years.
The IAS 29 standard “Financial Reporting in Hyperinflationary Economies” will
probably be applied at least until 2014.
NEAR-TERM OUTLOOK
The full-year sales volumes and net sales in 2013 are expected to develop
favourably in the current accounting period. The operating profit for 2013 is
expected to improve on the previous year.
BOARD OF DIRECTORS' PROPOSAL FOR THE DISTRIBUTION OF PROFIT
The parent company Olvi plc had 45.1 (42.9) million euro of distributable funds
on 31 December 2012, of which profit for the period accounted for 12.6 (13.1)
million euro.
Olvi plc's Board of Directors proposes to the Annual General Meeting that
distributable funds be used as follows:
1) A dividend of 0.50 (0.50) euro shall be paid for 2012 on each Series K and
Series A share, totalling 10.4 (10.4) million euro. The dividend represents
40.3 (76.9) percent of Olvi Group's earnings per share. The dividend will be
paid to shareholders registered in Olvi plc's register of shareholders held by
Euroclear Finland Ltd on the record date of the dividend payment, 15 April
2013. It is proposed that the dividend be paid on 22 April 2013.
No dividend shall be paid on treasury shares.
2) 34.7 million euro shall be retained in the parent company's non-restricted
equity.
FINANCIAL REPORTS IN 2013
Olvi Group's financial statements, Board of Directors' report and Corporate
Governance Statement 2012 will be published on 18 March 2013. The notice to
convene Olvi plc's Annual General Meeting, which will be held on 10 April 2013
in Iisalmi, will be published on 18 March 2013. The financial statements, Board
of Directors' report and notice to convene the AGM will be available on Olvi
plc's Web site on the same day.
The following interim reports will be released in 2013:
Interim Report for January-March on 25 April 2013,
Interim Report for January-June on 15 August 2013 and
Interim Report for January-September on 24 October 2013.
Further information:
Lasse Aho, Managing Director, Olvi plc, phone +358 17 838 5200 or +358 400 203
600
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 financial statements, Table 5
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Key media
www.olvi.fi
OLVI GROUP TABLE 1
INCOME STATEMENT
EUR 1,000
10-12/ 10-12/ 1-12/ 1-12/
2012 2011 2012 2011
Net sales 70586 60907 312230 285174
Other operating income 684 184 1020 522
Operating expenses -60819 -54369 -260891 -240376
Depreciation and impairment -5836 -5265 -21822 -18637
Operating profit 4615 1457 30537 26683
Financial income 1382 8220 4871 8352
Financial expenses -1297 -6516 -3093 -16596
Financial expenses - net 85 1704 1778 -8244
Earnings before tax 4700 3161 32315 18439
Taxes *) -795 -2758 -6151 -5485
NET PROFIT FOR THE PERIOD 3905 403 26164 12954
Other comprehensive income items:
Translation differences related to
foreign subsidiaries -1745 -1567 527 -15170
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 2160 -1164 26691 -2216
Distribution of profit:
- parent company shareholders 3807 591 25668 13506
- non-controlling interests 98 -188 496 -552
Distribution of comprehensive profit:
- parent company shareholders 2098 -581 26229 -340
- non-controlling interests 62 -583 462 -1876
Earnings per share calculated from the profit belonging
to parent company shareholders, EUR
- undiluted 0.18 0.03 1.24 0.65
- diluted 0.18 0.03 1.24 0.65
*) Taxes calculated from the profit for the review period.
The notes constitute an essential part of the financial statements.
OLVI GROUP TABLE 2
BALANCE SHEET
EUR 1,000
31.12.2012 30.12.2011
ASSETS
Non-current assets
Tangible assets 146749 142443
Goodwill 17730 16761
Other intangible assets 2119 1017
Shares in associates 1077 0
Financial assets available for sale 549 548
Loan receivables and other non-current receivables 408 141
Deferred tax receivables 83 196
Total non-current assets 168715 161106
Current assets
Inventories 40583 35875
Accounts receivable and other receivables 53345 52718
Income tax receivable 693 0
Other non-current assets available for sale 163 56
Liquid assets 5698 3836
Total current assets 100482 92485
TOTAL ASSETS 269197 253591
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity held by parent company shareholders
Share capital 20759 20759
Other reserves 1092 1092
Treasury shares -8 -8
Translation differences -17687 -18248
Retained earnings 141317 123286
145473 126881
Share belonging to non-controlling interests 1939 1341
Total shareholders' equity 147412 128222
Non-current liabilities
Loans 42474 29436
Other liabilities 250 1513
Deferred tax liabilities 3200 2097
Current liabilities
Loans 15996 27039
Accounts payable and other liabilities 58669 64953
Income tax liability 1196 331
Total liabilities 121785 125369
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 269197 253591
The notes constitute an essential part of the financial statements.
OLVI GROUP TABLE 3
CHANGES IN OLVI GROUP'S CONSOLIDATED SHAREHOLDERS' EQUITY
EUR 1,000 Share Other Treasu Trans Accrue Share of Total
capital reserv ry latio d non-
es shares n earnin controlli
accoun diffe gs ng
t rence interests
s
Shareholders' equity 20759 1092 -222 -4402 109750 2277 129254
1 Jan 2011
Adjustments for hyperinflation 10672 981 11653
Adjusted 20759 1092 -222 -4402 120422 3258 140907
shareholders' equity
1 Jan 2011
Comprehensive income:
Net profit for the period 13506 -552 12954
Other comprehensive income items:
Translation differences -1384 -1324 -15170
6
Total comprehensive income for the period -1384 13506 -1876 -2216
6
Transactions with shareholders:
Payment of dividends -10659 -10659
Transfer of treasury shares 214 -214 0
Gains from transfer of treasury shares 216 216
Total transactions with shareholders 214 -10657 -10443
Changes in holdings in subsidiaries:
Acquisition of shares from non-
controlling shareholders 15 15
Change in shares held by non-
controlling interests -41 -41
Total changes in holdings in subsidiaries 15 -41 -26
Shareholders' equity 20759 1092 -8 -1824 123286 1341 128222
31 Dec 2011 8
EUR 1,000 Share Other Treasu Trans Accrue Share of Total
capital reserv ry latio d non-
es shares n earnin controlli
accoun diffe gs ng
t rence interests
s
Shareholders' equity 20759 1092 -8 -1824 123286 1341 128222
1 Jan 2012 8
Adjustments for hyperinflation 2685 247 2932
Adjusted 20759 1092 -8 -1824 125971 1588 131154
shareholders' equity 8
1 Jan 2012
Comprehensive income:
Net profit for the period 25668 496 26164
Other comprehensive income items:
Translation differences 561 -34 527
Total comprehensive income for the period 561 25668 462 26691
Transactions with shareholders:
Payment of dividends -10379 -14 -10393
Total transactions with shareholders -10379 -14 -10393
Changes in holdings in subsidiaries:
Acquisition of shares from non-
controlling shareholders 20 20
Change in shares held by non-
controlling interests 37 -37 0
Reduction of share capital -60 -60
Total changes in holdings in subsidiaries -60 -60
Shareholders' equity 20759 1092 -8 -1768 141317 1939 147412
31 Dec 2012 7
Other reserves include the share premium account, legal reserve and other
reserves.
The notes constitute an essential part of the financial statements.
OLVI GROUP TABLE 4
CASH FLOW STATEMENT
EUR 1,000
1-12/2012 1-12/2011
Net profit for the period 26164 12954
Adjustments to profit for the period 29754 32530
Change in net working capital -8967 -3910
Interest paid -2077 -2205
Interest received 315 151
Taxes paid -4900 -5064
Cash flow from operations (A) 40289 34456
Investments in tangible and intangible
assets -23757 -33653
Sales gains from tangible and intangible
assets
125 130
Expenditure on other investments -582 -2980
Cash flow from investments (B) -24214 -36503
Withdrawals of loans 32738 30266
Repayments of loans -36179 -17103
Dividends paid -10377 -10377
Increase (-)/decrease (+) in
non-current loan receivables -265 0
Cash flow from financing (C) -14083 2785
Increase (+)/decrease (-) in liquid assets (A+B+C) 1992 738
Liquid assets 1 January 3836 7891
Effect of exchange rate changes -130 -4793
Liquid assets 31 December 5698 3836
The notes constitute an essential part of the financial statements.
NOTES TO THE FINANCIAL STATEMENTS TABLE 5
The financial statements for 1 January to 31 December 2012 have been prepared
in compliance with the International Financial Reporting Standards (IFRS),
observing the IAS and IFRS standards as well as the official SIC and IFRIC
interpretations valid on 31 December 2012.
The accounting policies used for the preparation of the financial statements
2012 are the same as those used for the annual financial statements 2011, with
the exception of the following changes due to new and revised IFRS standards
and IFRIC interpretations:
- IFRS 7 (Amendment), Financial Instruments: Disclosures - Derecognition
- IAS 12 (Amendment), Income taxes - Deferred tax
The above changes in standards and their interpretations have not had any
substantial effect on the income statement, balance sheet or notes.
The information in the financial statements bulletin is presented in thousands
of euros (EUR 1000). For the sake of presentation, individual figures and
totals have been rounded to full thousands, which causes rounding differences
in additions. The ratios are calculated from exact amounts in euros.
1. SEGMENT INFORMATION
SALES BY GEOGRAPHICAL SEGMENT (1,000 litres)
10-12/ 10-12/ 1-12/ 1-12/
2012 2011 2012 2011
Olvi Group total 115525 116701 526753 518211
Finland 34799 36704 148764 149084
Estonia 28485 28053 134027 133421
Latvia 13868 15787 72358 75352
Lithuania 14504 14235 71661 67540
Belarus 30236 27015 141496 128005
- sales between segments -6367 -5093 -41553 -35191
NET SALES BY GEOGRAPHICAL SEGMENT (EUR 1,000)
10-12/2012 10-12/2011 1-12/2012 1-12/2011
Olvi Group total 70586 60907 312230 285174
Finland 28801 29117 120951 119788
Estonia 16908 16024 80043 75964
Latvia 6722 7039 36185 35184
Lithuania 7185 6470 34245 29495
Belarus 13653 4690 59030 39609
- sales between segments -2683 -2433 -18224 -14866
OPERATING PROFIT BY GEOGRAPHICAL SEGMENT (EUR 1,000)
10-12/2012 10-12/2011 1-12/2012 1-12/2011
Olvi Group total 4615 1457 30537 26683
Finland 1908 1530 9066 13239
Estonia 2325 1920 13017 12973
Latvia -157 -139 1654 737
Lithuania 6 -112 1753 411
Belarus 406 -1889 4979 737
- eliminations 127 147 68 -1414
2. PERSONNEL ON AVERAGE
1-12/2012 1-12/2011
Finland 401 383
Estonia 313 311
Latvia 217 217
Lithuania 212 205
Belarus 834 916
Total 1977 2032
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
1-12/2012 1-12/2011
Managing Directors 931 1017
Chairman of the Board 84 150
Other members of the Board 125 125
Total 1140 1292
4. SHARES AND SHARE CAPITAL
31.12.2012 %
Number of A shares 17026552 82.0
Number of K shares 3732256 18.0
Total 20758808 100.0
Total votes carried by A shares 17026552 18.6
Total votes carried by K shares 74645120 81.4
Total number of votes 91671672 100.0
Votes per Series A share 1
Votes per Series K share 20
The registered share capital on 31 December 2012 totalled 20,759 thousand euro.
Olvi plc's Series A and Series K shares received a dividend of 0.50 euro per
share for 2011 (0.50 euro per share for 2010), totalling 10.4 (10.4) million
euro. The dividends were paid on 23 April 2012. The Series K and Series A
shares entitle to equal dividend.
The Articles of Association include a redemption clause concerning Series K
shares.
5. TREASURY SHARES
Olvi plc held a total of 1,124 of its own Series A shares on 1 January 2012.
Olvi plc has not acquired more treasury shares or transferred them to others in
January-December 2012, which means that the number of Series A shares held by
the company was unchanged on 31 December 2012.
The purchase price of the Series A shares held as treasury shares totalled 8.5
thousand euro.
Series A shares held by Olvi plc as treasury shares represented 0.005 percent
of the share capital and 0.001 percent of the aggregate number of votes. The
treasury shares represented 0.007 percent of all Series A shares and associated
votes.
On 11 April 2012, the General Meeting of Shareholders of Olvi plc decided to
revoke any unused authorisations to acquire treasury shares and authorise the
Board of Directors of Olvi plc to decide on the acquisition of the company's
own shares using distributable funds. The authorisation is valid for one year
starting from the General Meeting and covers a maximum of 500,000 Series A
shares.
The Annual General Meeting also decided to revoke all existing unused
authorisations for the transfer of own shares and authorise the Board of
Directors to decide on the issue of a maximum of 1,000,000 new Series A shares
and the transfer of a maximum of 500,000 Series A shares held as treasury
shares.
In January-December 2012, the Board of Directors of Olvi plc has not exercised
the authorisations granted by the General Meeting.
6. NUMBER OF SHARES *) 1-12/2012 1-12/2011
- average 20757684 20751392
- at end of period 20757684 20757684
*) Treasury shares deducted.
7. TRADING OF SERIES A SHARES ON THE HELSINKI STOCK EXCHANGE
1-12/2012 1-12/2011
Trading volume of Olvi A shares 1793149 3208911
Total trading volume, EUR 1,000 32789 62299
Traded shares in proportion to
all Series A shares, % 10.5 18.8
Average share price, EUR 18.26 16.68
Price on the closing date, EUR 19.65 14.75
Highest quote, EUR 20.43 19.86
Lowest quote, EUR 14.75 13.49
8. FOREIGN AND NOMINEE-REGISTERED HOLDINGS ON 31 DECEMBER 2012
Book entries Votes Shareholders
qty % qty % qty %
Finnish total 17043520 82.10 86012912 93.83 9042 99.46
Foreign total 420148 2.02 2363620 2.58 41 0.45
Nominee-registered (foreign) 1546 0.01 1546 0.00 2 0.02
total
Nominee-registered (Finnish) 3293594 15.87 3293594 3.59 6 0.07
total
Total 20758808 100.00 91671672 100.00 9091 100.00
9. LARGEST SHAREHOLDERS ON 31 DECEMBER 2012
Series Series A Total % Votes %
K
1. Olvi Foundation 2363904 890613 3254517 15.68 48168693 52.54
2. Hortling Heikki 901424 155674 1057098 5.09 18184154 19.84
Wilhelm *)
3. The Heirs of Hortling 187104 25248 212352 1.02 3767328 4.11
Kalle Einari
4. Hortling Timo Einari 165824 34608 200432 0.97 3351088 3.66
5. Hortling-Rinne Laila 102288 2100 104388 0.50 2047860 2.23
Marit
6. Pohjola Bank plc, nominee 1902700 1902700 9.17 1902700 2.08
register
7. Nordea Bank Finland plc, 880016 880016 4.24 880016 0.96
nominee register
8. Ilmarinen Mutual Pension 779026 779026 3.75 779026 0.85
Insurance Company
9. Nasdaq OMXBS/Skandinaviska Enskilda
Banken Ab, nominee register 461809 461809 2.22 461809 0.50
10. Autocarrera Oy Ab 460000 460000 2.22 460000 0.50
Others 11712 11434758 11446470 55.14 11668998 12.73
Total 3732256 17026552 20758808 100.00 91671672 100.00
*) The figures include the shareholder's own holdings and shares held by parties
in his control.
10. PROPERTY, PLANT AND EQUIPMENT
EUR 1,000
1-12/2012 1-12/2011
Increase 28197 42937
Decrease -1122 -6436
Total 27075 36501
11. CONTINGENT LIABILITIES
EUR 1,000
31.12.2012 31.12.2011
Pledges and contingent liabilities
For own commitments 7415 4632
For others 0 130
Leasing liabilities:
Due within one year 770 644
Due within 1 to 5 years 543 663
Due in more than 5 years 0 0
Total leasing liabilities 1313 1307
Package liabilities 2265 4208
Other liabilities 2000 1980
12. CALCULATION OF FINANCIAL RATIOS
Equity to total assets, % = 100 * (Shareholders' equity held by parent company
shareholders + non-controlling interests) / (Balance sheet total - advances
received)
Earnings per share = Profit belonging to parent company shareholders / Average
number of shares during the period, adjusted for share issues
Equity per share = Shareholders' equity held by parent company shareholders /
Number of shares at end of period, adjusted for share issues
Gearing, % = 100 * (Interest-bearing debt - cash in hand and at bank) /
(Shareholders' equity held by parent company shareholders + non-controlling
interests)
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