2017-02-23 08:00:52 CET
2017-02-23 08:00:52 CET
REGLAMENTUOJAMA INFORMACIJA
Olvi Oyj - Financial Statement Release
OLVI GROUP’S FINANCIAL STATEMENTS JANUARY TO DECEMBER 2016
Olvi Group's business developed favourably in 2016. The Group's sales volume,
net sales and operating profit for 2016 improved on the previous year, and the
balance sheet became stronger once again. The Board proposes a dividend of 0.75
(0.70) euro per share.
Iisalmi, 2017-02-23 07:59 CET (GLOBE NEWSWIRE) -- OLVI PLC
FINANCIAL STATEMENTS BULLETIN 23 FEB 2017 at 9:00 am
OLVI GROUP’S FINANCIAL STATEMENTS JANUARY TO DECEMBER 2016
FINANCIAL PERFORMANCE IN BRIEF
Olvi Group’s business developed favourably in 2016. The Group’s sales volume,
net sales and operating profit for 2016 improved on the previous year, and the
balance sheet became stronger once again.
Full year 2016:
- Olvi Group’s sales volume increased by 5.1 percent to 609.4 (579.9) million
litres
- The Group’s net sales increased by 3.5 percent and amounted to 321.5 (310.5)
million euro
- The Group’s operating profit increased by 6.0 percent and amounted to 40.4
(38.2) million euro
- Net profit for the period increased by 47.6 percent to 32.8 (22.2) million
euro. The profit for the comparison year was burdened by 10.5 million euro of
intra-Group unrealised exchange rate losses on Belarusian operations, which
were recognised in financial items.
- Olvi Group’s earnings per share stood at 1.57 (1.08) euro per share
- The equity ratio improved again, standing at 62.0 (58.6) percent
October to December 2016:
- Olvi Group’s sales volume increased by 5.2 percent to 134.4 (127.8) million
litres
- The Group’s net sales increased by 4.3 percent and amounted to 71.8 (68.8)
million euro
- The Group’s operating profit amounted to 5.3 (6.3) million euro
- Net profit for the period amounted to 4.9 (5.0) million euro
- Olvi Group’s earnings per share stood at 0.23 (0.24) euro per share
The Board proposes a dividend of 0.75 (0.70) euro per share.
Olvi estimates that the Group’s sales volume and net sales for 2017 will
increase slightly on the previous year. Operating profit for 2017 is estimated
to be on a par with the previous year.
CONSOLIDATED KEY RATIOS
10-12/ 10-12/ Change % 1-12/ 1-12/ Change %
2016 2015 / pp 2016 2015 / pp
--------------------------------------------------------------------------------
Sales volume, Mltr 134.4 127.8 5.2 609.4 579.9 5.1
--------------------------------------------------------------------------------
Net sales, MEUR 71.8 68.8 4.3 321.5 310.5 3.5
--------------------------------------------------------------------------------
Gross margin, MEUR 10.2 10.5 -2.6 59.2 54.5 8.6
--------------------------------------------------------------------------------
% of net sales 14.2 15.3 18.4 17.6
--------------------------------------------------------------------------------
Operating profit, 5.3 6.3 -15.6 40.4 38.2 6.0
MEUR
--------------------------------------------------------------------------------
% of net sales 7.4 9.2 12.6 12.3
--------------------------------------------------------------------------------
Net profit for the 4.9 5.0 -3.6 32.8 22.2 47.6
period
--------------------------------------------------------------------------------
% of net sales 6.8 7.3 10.2 7.2
--------------------------------------------------------------------------------
Earnings per share, 0.23 0.24 -4.2 1.57 1.08 45.4
EUR
--------------------------------------------------------------------------------
Gross capital 4.8 4.8 -0.4 20.5 26.0 -21.2
expenditure, MEUR
--------------------------------------------------------------------------------
Equity per share, EUR 9.73 8.86 *) 9.8
--------------------------------------------------------------------------------
Equity to total 62.0 58.6 *) 3.4
assets, %
--------------------------------------------------------------------------------
Gearing, % 2.1 18.4 *) -16.3
--------------------------------------------------------------------------------
*) Change in accounting policies.
BUSINESS DEVELOPMENT
LASSE AHO, MANAGING DIRECTOR:
Olvi Group’s business developed favourably in 2016. The Group’s sales volume,
net sales and operating profit improved on the previous year. In the fourth
quarter, the Group’s sales volume increased by five percent. Fourth-quarter
operating profit fell short of the previous year. This was affected by the fact
that most of the increase in sales volume came from low-margin products, and
that some non-recurring costs (including the costs of performance-based bonuses
for employees) were recognised towards the end of the year. The earnings for
2016 were also burdened by increased depreciation and scrapping costs of
reusable packaging compared to previous years.
Business development in 2016 has been positive particularly in Finland. The
sales volume increased by 20 percent on the previous year, and the overall
market share became stronger. Operating profit in Finland increased by 37
percent during 2016, which can be considered as very good performance. During
2016, we have been able to further develop the efficiency of our production and
logistics processes which, together with increased sales volumes, has a
positive effect on the company’s earnings development and also allows
cost-efficient operations in the future. Sales development was also good in the
fourth quarter, with a sales volume increase of 23 percent. Earnings in the
final quarter were burdened by greater marketing efforts put into new product
launches in comparison to the previous year, as well as the costs of bonuses
paid to employees on the basis of good earnings development in 2016.
All in all, the Group’s business operations in the Baltic states developed well
in 2016 even though the overall market in the region declined. Profitability in
Estonia remained on a very strong level. Operating profit in Latvia improved by
13 percent and the company made the best result in its history. Lithuania also
improved its result on the previous year, and it was gratifying that earnings
improved also in the final quarter. Positive development in the Baltic states
was supported by increased market shares, successful new products and
cost-efficiency.
Development in the Baltic states in 2017 may be affected by an exceptionally
large additional increase in excise duties on mild alcoholic beverages planned
in Estonia as of 1 July 2017. When realised, the change will probably result in
a partial transfer of sales to cross-border trading between Estonia and Latvia.
Through a decline in harbour and on-board sales in Estonia, some sales volume
will also return from Estonia to Finland.
The business environment in Belarus has remained challenging. Consumer
purchasing power has declined, which has been reflected as a downturn in the
market and also affected the sales and earnings development of Olvi’s
Belarusian unit. Attention has been paid to cost control within the company,
and this has resulted in a 10 percent improvement in the company’s operating
profit measured in the local currency. However, operating profit measured in
euro fell short of the previous year because the exchange rate in 2016 was
weaker, particularly in the first half of the year.
The Group’s other financial indicators have developed very well in 2016. Profit
for the accounting period has increased by 47.6 percent on the previous year,
and the consolidated balance sheet became stronger in 2016. The equity ratio
improved to 62.0 percent while the gearing ratio dropped to 2.1 percent. Cash
flow from operations remained strong and totalled 61.2 million euro.
Olvi Group has made active efforts towards developing its operations, among
other things by utilising the Lean management philosophy in business control
and development. Olvi’s determined work was recognised through the second prize
in the annual national competition “Lean work of the year 2016” arranged by the
Lean Association of Finland. In addition to the recognition, our effort is
shown as positive development in profitability, which enables us to produce
increasing sales volumes smoothly while making further cuts on our
environmental footprint. Development work has been done in all of the Group’s
units and different operations. In addition to Lean, another theme for
development within the Group has been responsibility and associated reporting,
and this effort will continue in 2017.
The company’s strong financial condition, the investments and operational
developments in recent years combined with a good market position and strong
appreciation of our brands provide a solid foundation for the new year and make
it possible to persistently develop the company’s operations and shareholder
value.
SEASONAL NATURE OF THE OPERATIONS
The Group’s business operations are characterised by seasonal variation. The
net sales and operating profit from the reported geographical segments do not
accumulate evenly but vary according to the time of the year and the
characteristics of each season.
SALES DEVELOPMENT
Olvi Group’s sales volume in 2016 made an all-time high of 609.4 (579.9)
million litres. This represents an increase of 29.5 million litres or 5.1
percent on the previous year.
The increase in the Group’s sales volume originated from Finnish operations,
which showed an increase of 20.3 percent. The sales volume in the Baltic states
declined slightly, reflecting overall market decline. The sales volume in
Belarus was almost on a par with the previous year.
The Group’s fourth-quarter sales volume increased by 5.2 percent. In the fourth
quarter, sales improved in Finland and Belarus.
Sales volume, million 10-12/ 10-12/ Change 1-12/ 1-12/ Change
litres 2016 2015 % 2016 2015 %
--------------------------------------------------------------------------------
Finland (Olvi plc) 45.5 37.1 22.6 178.0 148.0 20.3
--------------------------------------------------------------------------------
Estonia (AS A. Le Coq) 24.4 27.1 -9.9 121.5 123.9 -1.9
--------------------------------------------------------------------------------
Latvia (A/S Cēsu Alus) 13.6 13.6 0.5 67.2 68.1 -1.3
--------------------------------------------------------------------------------
Lithuania (AB Volfas 16.9 18.1 -6.6 81.8 84.9 -3.6
Engelman)
--------------------------------------------------------------------------------
Belarus (OAO Lidskoe 36.1 34.6 4.3 178.3 175.1 1.8
Pivo)
--------------------------------------------------------------------------------
Eliminations -2.2 -2.8 -17.5 -20.1
--------------------------------------------------------------------------------
Total 134.4 127.8 5.2 609.4 579.9 5.1
--------------------------------------------------------------------------------
The Group’s net sales in 2016 increased by 3.5 percent and amounted to 321.5
(310.5) million euro. Net sales improved particularly in Finland (15.6
percent), reflecting the increase in sales volume.
The Group’s net sales continued to grow also in the fourth quarter.
Net sales, million 10-12/ 10-12/ Change 1-12/ 1-12/ Change
euro 2016 2015 % 2016 2015 %
--------------------------------------------------------------------------------
Finland (Olvi plc) 29.3 26.0 12.7 118.9 102.9 15.6
--------------------------------------------------------------------------------
Estonia (AS A. Le Coq) 15.2 16.3 -6.7 76.9 75.8 1.5
--------------------------------------------------------------------------------
Latvia (A/S Cēsu Alus) 6.4 6.4 -0.3 31.8 31.2 2.1
--------------------------------------------------------------------------------
Lithuania (AB Volfas 7.9 7.4 7.5 35.3 35.8 -1.4
Engelman)
--------------------------------------------------------------------------------
Belarus (OAO Lidskoe 14.1 14.0 0.8 66.8 73.6 -9.2
Pivo)
--------------------------------------------------------------------------------
Eliminations -1.2 -1.3 -8.3 -8.7
--------------------------------------------------------------------------------
Total 71.8 68.8 4.3 321.5 310.5 3.5
--------------------------------------------------------------------------------
EARNINGS DEVELOPMENT
The Group’s operating profit for January-December increased by 6.0 percent and
amounted to 40.4 (38.2) million euro, or 12.6 (12.3) percent of net sales.
Operating profit improved in Finland and the Baltic states.
The Group’s fourth-quarter operating profit amounted to 5.3 (6.3) million euro.
Operating profit, 10-12/ 10-12/ Change 1-12/ 1-12/ Change
million euro 2016 2015 % 2016 2015 %
--------------------------------------------------------------------------------
Finland (Olvi plc) 1.2 1.9 -38.0 10.7 7.8 37.0
--------------------------------------------------------------------------------
Estonia (AS A. Le Coq) 2.4 3.2 -22.9 15.9 15.9 0.1
--------------------------------------------------------------------------------
Latvia (A/S Cēsu Alus) 0.5 0.5 3.6 3.4 3.0 13.1
--------------------------------------------------------------------------------
Lithuania (AB Volfas 0.5 0.3 54.9 2.7 2.6 3.6
Engelman)
--------------------------------------------------------------------------------
Belarus (OAO Lidskoe 0.7 0.4 74.9 7.5 8.8 -15.5
Pivo)
--------------------------------------------------------------------------------
Eliminations 0.1 0.1 0.2 -0.0
--------------------------------------------------------------------------------
Total 5.3 6.3 -15.6 40.4 38.2 6.0
--------------------------------------------------------------------------------
The Group’s net profit for 2016 increased by 47.6 percent and amounted to 32.8
(22.2) million euro. The Group’s fourth-quarter net profit remained on a par
with the previous year and amounted to 4.9 (5.0) million euro.
Earnings per share calculated from the profit belonging to parent company
shareholders increased in January-December and stood at 1.57 (1.08) euro.
Fourth-quarter earnings per share amounted to 0.23 (0.24) euro.
The net profit and earnings per share for the comparison year were burdened by
unrealised exchange rate losses on an intra-Group loan directed at investments
in Belarus, which totalled 10.5 million euro and were recognised in financial
items.
BALANCE SHEET, FINANCING AND INVESTMENTS
Olvi Group’s balance sheet total at the end of December 2016 was 328.5 (316.3)
million euro. Equity per share at the end of 2016 stood at 9.73 (8.86) euro.
The equity ratio improved and stood at 62.0 (58.6) percent. The Group’s
interest-bearing net liabilities decreased by 29.8 million euro during 2016 and
amounted to 4.3 million euro at year-end (34.1). The gearing ratio declined
substantially during 2016 and stood at 2.1 (18.4) percent. Cash flow from
operations totalled 61.2 (61.7) million euro. The current ratio, which
represents the Group’s liquidity, was 1.0 (1.0).
Olvi Group’s gross capital expenditure in 2016 amounted to 20.5 (26.0) million
euro. The parent company Olvi accounted for 6.1 million euro, the Baltic
subsidiaries for 10.0 million euro and Lidskoe Pivo in Belarus for 4.4 million
euro of the total. Capital expenditure declined on the previous year. The
largest individual investment was the warehouse construction in Lithuania.
PRODUCT DEVELOPMENT AND NEW PRODUCTS
Research and development includes projects to design and develop new products,
packages, processes and production methods, as well as further development of
existing products and packages. The R&D costs have been recognised as expenses.
The main objective of Olvi Group’s product development is to create new
products for profitable and growing beverage segments.
Several new products were launched during 2016 both in Finland and by the
subsidiaries. New products have been presented in interim reports released
during the accounting period, as well as on each company’s Web site.
PERSONNEL
Olvi Group’s average number of personnel in January-December was 1859 (1940).
The Group’s average number of personnel decreased by 81 people or 4.2 percent.
The greatest decline in the Group’s average number of personnel was seen in
Belarus, where the figure dropped by 80 people.
The number of personnel in the Baltic states increased by a total of 6 people
in January-December. The figure in Finland decreased by 7 people in
January-December.
Olvi Group’s average number of personnel by country:
10-12/ 2016 10-12/ 2015 Change % 1-12/ 2016 1-12/ 2015 Change %
-------------------------------------------------------------------------------
Finland 316 299 5.7 329 336 -2.1
-------------------------------------------------------------------------------
Estonia 317 316 0.3 339 336 0.9
-------------------------------------------------------------------------------
Latvia 183 204 -10.3 207 206 0.5
-------------------------------------------------------------------------------
Lithuania 233 228 2.2 235 233 0.9
-------------------------------------------------------------------------------
Belarus 701 801 -12.5 749 829 -9.7
-------------------------------------------------------------------------------
Total 1,750 1,848 -5.3 1,859 1,940 -4.2
-------------------------------------------------------------------------------
MANAGEMENT AND AUDITORS
The company’s Board of Directors consists of Chairman Esa Lager, M.Sc. (Econ),
LL.M., Vice Chairperson Nora Hortling, M.Sc. (Econ), as well as members Jaakko
Autere, M.Sc. (Econ), Elisa Markula, M.Sc. (Econ), and Heikki Sirviö, Honorary
Industrial Counsellor, M.Sc. (Engineering).
The company’s auditor is the authorised public accounting firm
PricewaterhouseCoopers Oy, with Sami Posti, Authorised Public Accountant, as
auditor in charge.
MANAGEMENT
The Management Group of Olvi plc consists of Lasse Aho, Managing Director
(Chairman), Ilkka Auvola, Sales Director, Olli Heikkilä, Marketing Director,
Pia Hortling, Product Development and Purchasing Director, Kati Kokkonen, Chief
Financial Officer, Lauri Multanen, Production Director, as well as Marjatta
Rissanen, Customer Service and Administrative Director.
The Managing Directors of the subsidiaries are:
AS A. Le Coq, Tartu, Estonia - Tarmo Noop
A/S Cēsu Alus, Cēsis, Latvia - Eva Sietiņsone
AB Volfas Engelman, Kaunas, Lithuania - Marius Horbačauskas
OAO Lidskoe Pivo, Lida, Belarus - Audrius Mikšys
The Managing Directors of the subsidiaries report to Lasse Aho, the Managing
Director of Olvi plc. The Board of Directors of each subsidiary consists of
Lasse Aho (Chairman), Pia Hortling, Kati Kokkonen and Lauri Multanen. The
Management Group of each subsidiary consists of the corresponding Managing
Director and two to four sector directors.
OTHER EVENTS DURING THE REVIEW PERIOD
Annual General Meeting
Olvi plc’s Annual General Meeting of 14 April 2016 adopted the financial
statements and granted discharge from liability to the members of the Board of
Directors and Managing Director for the accounting period that ended on 31
December 2015. In accordance with the Board’s proposal, the General Meeting
decided that a dividend of 0.70 (0.65) euro be paid on each A and K share for
the accounting period 2015. The dividends were paid on 28 April 2016.
All decisions made at the General Meeting can be found in the bulletin released
on 14 April 2016.
Changes in corporate structure
During 2016, Olvi Group acquired 31 shares in the subsidiary A/S Cēsu Alus.
There were no other changes in Olvi’s holdings in subsidiaries in
January-December 2016.
At the end of the accounting period, Olvi’s shares of holding are:
31 Dec 2016 31 Dec 2015 Change
---------------------------------------------------------------
AS A. Le Coq, Estonia 100.00 100.00 -
---------------------------------------------------------------
A/S Cēsu Alus, Latvia 99.88 99.87 0.01
---------------------------------------------------------------
AB Volfas Engelman, Lithuania 99.58 99.58 -
---------------------------------------------------------------
OAO Lidskoe Pivo, Belarus 94.57 94.57 -
---------------------------------------------------------------
Furthermore, A. Le Coq has a 49.0 percent holding in AS Karme and 20.0 percent
holding in Verska Mineraalvee OÜ in Estonia.
SHARES
Olvi’s share capital at the end of December 2016 stood at 20.8 million euro.
The total number of shares was 20,758,808, of these 17,026,552 or 82.0 percent
being publicly traded Series A shares and 3,732,256 or 18.0 percent Series K
shares.
Each Series A share carries one (1) vote and each Series K share carries twenty
(20) votes. Series A and Series K shares have equal rights to dividends.
Detailed information on Olvi’s shares and share capital can be found in the
tables attached to this financial statements bulletin, in Table 5, Section 4.
The total trading volume of Olvi A shares on Nasdaq OMX Helsinki in 2016 was
881,172 (2,036,830) shares, which represented 5.2 (12.0) percent of all Series
A shares. The value of trading was 22.2 (48.4) million euro.
The Olvi A share was quoted on Nasdaq OMX Helsinki (Helsinki Stock Exchange) at
28.00 (22.19) euro at the end of 2016. In January-December, the highest quote
for the Series A share was 28.51 (27.20) euro and the lowest quote was 20.30
(20.51) euro. The average share price in 2016 was 25.17 (23.76) euro.
At the end of December 2016, the market capitalisation of Series A shares was
476.4 (377.8) million euro and the market capitalisation of all shares was
580.9 (460.6) million euro.
The number of shareholders at the end of December 2016 was 9,866 (10,108).
Foreign holdings plus foreign and Finnish nominee-registered holdings
represented 24.1 (22.4) percent of the total number of book entries and 5.5
(5.1) percent of total votes.
Foreign and nominee-registered holdings are reported in Table 5, Section 9 of
the tables attached to this financial statements bulletin, and the largest
shareholders are reported in Table 5, Section 10.
Treasury shares
During the year 2016, Olvi acquired 5,500 of its own Series A shares. The
purchase price was 120,139 euro. At the end of the reporting period, Olvi held
a total of 11,124 Series A shares as treasury shares. The total purchase price
of treasury shares was 228,162 euro. Treasury shares held by the company itself
are ineligible for voting. Detailed information on treasury shares is provided
in Table 5, Section 6 of the tables attached to this financial statements
bulletin.
Flagging notices
On 11 April 2016, Olvi plc received a flagging notice concerning its shares in
accordance with Chapter 9, Section 5 of the Securities Markets Act from the
Estate of Heikki Hortling.
According to the notice, shares held by Heikki Wilhelm Hortling have been
transferred to the Estate of Heikki Hortling. Shares transferred to the Estate:
99,760 Series A shares representing 0.48 percent of all shares and 0.11 percent
of all votes; and 903,488 Series K shares representing 4.35 percent of all
shares and 19.29 percent of all votes. Holding, Series A and Series K shares
combined: 4.83 percent of all shares and 19.40 percent of all votes.
During January-December 2016, Olvi has not received any other flagging notices
in accordance with Chapter 2, Section 10 of the Securities Markets Act.
BUSINESS RISKS AND THEIR MANAGEMENT
Risk management
Risk management is a part of Olvi Group’s everyday management and operations.
The objective of risk management is to ensure the realisation of the company’s
strategy and secure its financial development and the continuity of business.
The task of risk management is to operate proactively and create operating
conditions in which business risks are managed comprehensively and
systematically in all of the Group companies and all levels of the
organisation.
Business risks and uncertainties in the near term
The most substantial factor hampering the predictability of Olvi Group’s
business relates to Belarus and its economic and political outlook for the next
few years. Furthermore, negative development of the Russian economy may impose
challenges on the Belarusian operating environment.
Operations in Belarus involve foreign exchange risks arising from the cash
flows of purchases and sales in foreign currency, as well as the investment in
the Belarusian subsidiary and the conversion of its income statement and
balance sheet items into euro. The Group’s other foreign exchange risks can be
considered minor.
Olvi Group’s operations may be affected to changes in consumer behaviour and
the operations of our clientele arising from changes in official regulations.
The planned excise tax hike in Estonia as of 1 July 2017 will probably result
in a change of focus in volumes and consumption both from Estonia to the
Latvian border and also from Estonia back to Finland. The effect of the change
on the entire Olvi Group in 2017 is still difficult to estimate because there
are several contributing factors, such as the pricing policies of companies
doing business in harbours and on board after the excise duty changes, as well
as a potential amendment to the Finnish Alcohol Act, the details and timing of
which remain open for the time being.
Other short-term risks and uncertainties are related to the development of the
general economic circumstances, changes in the competitive situation, as well
as the impacts these may have on the company’s operations.
In addition to the risks described above, there have been no significant
changes in Olvi Group’s business risks. A more detailed description of the
risks is provided in the Board of Directors’ report and the notes to the
financial statements, as well as in the Investors/Corporate Governance section
of the company’s Web site.
NEAR-TERM OUTLOOK
Olvi estimates that the Group’s sales volume and net sales for 2017 will
increase slightly on the previous year. Operating profit for 2017 is estimated
to be on a par with the previous year.
BOARD OF DIRECTORS’ PROPOSAL FOR THE DISTRIBUTION OF PROFIT
The parent company Olvi plc had 47.8 (47.7) million euro of distributable funds
on 31 December 2016, of which profit for the period accounted for 14.7 (11.7)
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 0.75 (0.70) euro shall be paid for 2016 on each Series K and
Series A share, totalling 15.6 (14.5) million euro. The dividend represents
47.9 (65.1) 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, 25 April
2017. It is proposed that the dividend be paid on 10 May 2017. No dividend
shall be paid on treasury shares.
2) 32.2 million euro shall be retained in the parent company’s non-restricted
equity.
FINANCIAL REPORTS IN 2017
Olvi Group’s Annual Report will be published in week 13. The Annual Report will
include the Board of Directors’ report, the consolidated and the parent
company’s financial statements and the auditors’ report for the financial year
1 January to 31 December 2016. The Corporate Governance Statement and
Remuneration Report for the financial year 2016 will also be published at the
same time.
The notice to convene Olvi plc’s Annual General Meeting, which will be held on
21 April 2017 in Iisalmi, will be published in week 13. 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 2017:
Interim report from January to March on 28 April 2017,
Interim report from January to June on 18 August 2017, and
Interim report from January to September on 27 October 2017.
OLVI PLC
Board of Directors
Further information: Lasse Aho, Managing Director, Olvi plc, phone +358 290 00
1050 or +358 400 203 600
TABLES:
- Statement of comprehensive income, Table 1
- Balance sheet, Table 2
- Changes in shareholders’ equity, Table 3
- Cash flow statement, Table 4
- Notes to the financial statements bulletin, Table 5
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Key media
www.olvi.fi
OLVI GROUP TABLE 1
INCOME STATEMENT
EUR 1,000
10-12/2016 10-12/201 1-12/2016 1-12/2015
5
Net sales 71782 68830 321478 310494
Other operating income 197 434 1582 1743
Operating expenses -61754 -58766 -263881 -257732
Depreciation and impairment -4887 -4170 -18734 -16348
Operating profit 5338 6328 40445 38157
Financial income 163 -18 1207 281
Financial expenses 100 -385 -1816 -11641
Share of profit in associates 37 21 37 21
Earnings before tax 5638 5946 39873 26818
Taxes **) -776 -901 -7079 -4598
NET PROFIT FOR THE PERIOD 4862 5045 32794 22220
Other comprehensive income items:
Translation differences related to
foreign subsidiaries 3623 -1179 -74 -14620
TOTAL COMPREHENSIVE INCOME FOR THE 8485 3866 32720 7600
PERIOD
Distribution of profit:
- parent company shareholders 4754 5069 32488 22334
- non-controlling interests 108 -24 306 -114
Distribution of comprehensive income:
- parent company shareholders 8284 3916 32406 8358
- non-controlling interests 201 -50 314 -758
Earnings per share calculated from the profit
belonging
to parent company shareholders, EUR
- undiluted 0.23 0.24 1.57 1.08
- diluted 0.23 0.24 1.57 1.08
**) 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 Dec 2016 31 Dec 2015
ASSETS
Non-current assets
Tangible assets 196239 198258 *)
Goodwill 15978 16017
Other intangible assets 5295 4183
Shares in associates 1183 1146
Financial assets available for sale 543 543
Loans receivable and other non-current receivables 280 310
Deferred tax receivables 265 147
Total non-current assets 219783 220604
Current assets
Inventories 32669 31013 *)
Accounts receivable and other receivables 55627 51232
Income tax receivable 129 236
Other non-current assets held for sale 0 421
Liquid assets 20297 12786
Total current assets 108722 95688
TOTAL ASSETS 328505 316292
SHAREHOLDERS’ EQUITY AND LIABILITIES
Shareholders’ equity held by parent company
shareholders
Share capital 20759 20759
Other reserves 1092 1092
Treasury shares -228 -108
Translation differences -37022 -36940
Retained earnings 217234 198979
201835 183782
Share belonging to non-controlling interests 1714 1444
Total shareholders’ equity 203549 185226 *)
Non-current liabilities
Financial liabilities 12932 24179
Other liabilities 17 4
Deferred tax liabilities 7749 6777
Current liabilities
Financial liabilities 11708 22683
Accounts payable and other liabilities 92328 77387 *)
Income tax liability 222 36
Total liabilities 124956 131066
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 328505 316292
*) Change in accounting policies.
The notes constitute an essential part of the financial statements.
OLVI GROUP
TABLE 3
CHANGES IN SHAREHOLDERS’ EQUITY
Share Other Treasury Transl Retain Share of Total
capital reserv shares ation ed non-controll
es account differ earnin ing
ences gs interests
EUR 1,000
Shareholders’ 20759 1092 -8 -22964 189972 2249 191100
equity 1 Jan *)
2015
Comprehensive income:
Net profit for the period 22334 -114 22220
Other comprehensive income items:
Translation differences -13976 -644 -14620
Total comprehensive income for the period -13976 22334 -758 7600
Transactions with shareholders:
Payment of dividends -13492 -46 -13538
Dividends not withdrawn 109 109
Acquisition of treasury -100 -100
shares
Share-based incentives 56 56
Total transactions with -100 -13327 -46 -13473
shareholders
Changes in holdings in subsidiaries:
Acquisition of shares from
non-controlling interests 0 0
Change in shares held by
non-controlling interests 0 -1 -1
Total changes in holdings in subsidiaries 0 -1 -1
Shareholders’ 20759 1092 -108 -36940 198979 1444 185226
equity 31 Dec
2015
*) Change in accounting policies.
Share Other Treasury Transl Retain Share of Total
capital reserv shares ation ed non-controll
es account differ earnin ing
ences gs interests
EUR 1,000
Shareholders’ 20759 1092 -108 -36940 198979 1444 185226
equity 1 Jan
2016
Comprehensive income:
Net profit for the period 32488 306 32794
Other comprehensive income items:
Translation differences -82 8 -74
Total comprehensive income for the period -82 32488 314 32720
Transactions with shareholders:
Payment of dividends -14523 -42 -14565
Acquisition of treasury -120 -120
shares
Share-based incentives 290 290
Total transactions with -120 -14233 -42 -14395
shareholders
Changes in holdings in subsidiaries:
Acquisition of shares from
non-controlling interests 1 1
Change in shares held by
non-controlling interests -1 -2 -3
Total changes in holdings in subsidiaries 0 -2 -2
Shareholders’ 20759 1092 -228 -37022 217234 1714 203549
equity 31 Dec
2016
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
1-12/2016 1-12/2015
Net profit for the period 32794 22220
Adjustments to profit for the period 25512 28684
Change in net working capital 8828 14169
Interest paid -777 -1113
Interest received 428 228
Dividends received 2 0
Taxes paid -5553 -2520
Cash flow from operations (A) 61234 61668
Investments in tangible and intangible
assets -18520 -25100
Sales gains from tangible and intangible
assets 744 249
Expenditure on other investments -37 -16
Cash flow from investments (B) -17813 -24867
Withdrawals of loans 447 20360
Repayments of loans -21835 -35250
Acquisition of treasury shares -120 -64
Dividends paid -14529 -13514
Increase (-) / decrease (+) in current interest-
bearing business receivables 8 -8
Increase (-) / decrease (+) in long-term
loan receivables 23 26
Cash flow from financing (C) -36006 -28450
Increase (+)/decrease (-) in liquid assets (A+B+C) 7415 8351
Liquid assets 1 January 12786 4382
Effect of exchange rate changes 96 53
Liquid assets 31 December 20297 12786
The notes constitute an essential part of the financial statements.
OLVI GROUP
TABLE 5
NOTES TO THE FINANCIAL STATEMENTS
The financial statements for 1 January to 31 December 2016 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 2016.
Preparation of financial statements in accordance with the IFRS standards
requires the company's management to make estimates and assumptions that have
an effect on the amount of assets and liabilities on the balance sheet at the
closing date as well as the amounts of income and expenses for the accounting
period. In addition, the management must exercise its judgment regarding the
application of accounting policies. Since the estimates and assumptions are
based on the views on the date of the financial statements, they include risks
and uncertainties. The actual results may differ from the estimates and
assumptions.
The accounting policies used for the financial statements 2016 are the same as
those used for the annual financial statements 2015, except for the changes
stated below.
The Group has adopted the following new or revised standards and
interpretations in 2016:
-- Annual improvements to the IFRS 2012–2014
-- Disclosure Initiative – amendments to IAS 1 Presentation of Financial
Statements
The above changes in standards do not have any substantial effect on the income
statement or balance sheet. Some changes in standards may affect the scope of
information disclosed in the notes.
Other changes in accounting policies as of 1 January 2016 *)
As of 1 January 2016, Olvi Group adopts the general industry practice of
presenting recyclable beverage packages in tangible assets when they meet the
criteria of IAS 16. This means that starting from 1 January 2016, property,
plant and equipment includes not only the recyclable packages in inventory but
also Olvi plc’s share of the package stock in accordance to shares determined
by the Ekopulloyhdistys association, as well as packages held by the clients of
subsidiaries, which the Group is obliged to repurchase. The repurchase
obligation related to packaging used by clients is presented as a current
liability on the balance sheet. The balance sheet for the comparison year has
been adjusted to correspond to the new accounting policies. As a result of the
change, property, plant and equipment for the comparison year has increased by
13.0 million euro, inventories have decreased by 11.2 million euro, accruals
and deferred income have increased by 3.2 million euro and shareholders’ equity
has decreased by 1.4 million euro. The indicators and notes for the comparison
period have also been adjusted to correspond to the changes stated above. The
change in accounting policies does not have any substantial effect on
consolidated operating profit or net profit for the period.
The information in the financial statements bulletin 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 ratios are calculated from exact amounts in euros. The
information disclosed in the financial statements bulletin is unaudited.
1. SEGMENT INFORMATION
SALES VOLUME BY GEOGRAPHICAL SEGMENT (1,000 litres)
10-12/2016 10-12/2015 1-12/2016 1-12/2015
Olvi Group total 134424 127774 609375 579901
Finland 45521 37141 178044 148029
Estonia 24444 27144 121467 123871
Latvia 13626 13557 67246 68122
Lithuania 16911 18103 81800 84877
Belarus 36104 34619 178298 175129
- sales between segments -2182 -2790 -17480 -20127
NET SALES BY GEOGRAPHICAL SEGMENT (EUR 1,000)
10-12/2016 10-12/2015 1-12/2016 1-12/2015
Olvi Group total 71782 68830 321478 310494
Finland 29315 26018 118876 102869
Estonia 15200 16282 76926 75790
Latvia 6395 6413 31839 31188
Lithuania 7932 7378 35342 35843
Belarus 14137 14031 66776 73550
- sales between segments -1197 -1292 -8281 -8746
OPERATING PROFIT BY GEOGRAPHICAL SEGMENT (EUR 1,000)
10-12/2016 10-12/2015 1-12/2016 1-12/2015
Olvi Group total 5338 6328 40445 38157
Finland 1164 1877 10743 7839
Estonia 2443 3168 15926 15913
Latvia 498 481 3377 2987
Lithuania 482 312 2702 2610
Belarus 686 392 7471 8838
- eliminations 65 98 226 -30
2. PERSONNEL ON AVERAGE 10-12/2016 10-12/2015 1-12/2016 1-12/2015
Finland 316 299 329 336
Estonia 317 316 339 336
Latvia 183 204 207 206
Lithuania 233 228 235 233
Belarus 701 801 749 829
Total 1,750 1,848 1,859 1,940
3. RELATED PARTY TRANSACTIONS
Employee benefits to management
Salaries and other short-term employee benefits to the Board of Directors and
Managing Director
EUR 1,000
1-12/2016 1-12/2015
Managing Director 393 350
Chairman of the Board 68 83
Other members of the Board 137 150
Total 598 583
4. SHARES AND SHARE CAPITAL
31 Dec 2016 %
Number of A shares 17026552 82.0
Number of K shares 3732256 18.0
Total 20758808 100.0
Total votes carried by A shares 17026552 18.6
Total votes carried by K shares 74645120 81.4
Total number of votes 91671672 100.0
Votes per Series A share 1
Votes per Series K share 20
The registered share capital on 31 December 2016 totalled 20,759 thousand euro.
Olvi plc’s shares received a dividend of 0.70 euro per share for 2015 (0.65
euro per share for 2014), totalling 14.5 (13.5) million euro. The dividends
were paid on 28 April 2016. The Series K and Series A shares entitle to equal
dividend. The Articles of Association include a redemption clause concerning
Series K shares.
5. SHARE-BASED PAYMENTS
Olvi Group has share-based incentive plans for key employees. The aim of the
share-based incentive plans is to combine the objectives of the shareholders
and the key employees in order to increase the value of the company, to make
the key employees committed to the company, and to offer them a competitive
reward plan based on earning the company’s shares.
At the end of fiscal 2016, an incentive plan based on the Group’s cumulative
operating profit in the years 2014 to 2016 expired. Its target group included
approximately 50 people. In accordance with the terms and conditions of the
plan, rewards would have been paid in Olvi plc Series A shares and in cash. The
targets of the plan were not met, which means that the plan will lapse. No
costs arising from the plan have been recognised in the consolidated financial
statements.
The Group has an active share-based incentive plan with one three-year
performance period, beginning on 1 July 2014 and ending on 30 June 2017. In
accordance with the terms and conditions of the plan, rewards will be paid in
Olvi plc Series A shares and partially in cash.
The cash proportion is intended to cover taxes and tax-related costs arising
from the rewards to the key employees. The prerequisite for receiving a reward
for this performance period is that a key employee purchases the company’s
Series A shares up to the maximum number determined by the Board of Directors.
Furthermore, entitlement to a reward is tied to the continuance of employment
or service upon reward payment. From January to December 2016, accounting
entries associated with the performance period from 1 July 2014 to 30 June 2017
were recognised for a total of 91.3 thousand euro.
On 24 February 2016, Olvi plc’s Board of Directors decided on a new share-based
incentive plan for the Group’s key personnel. The performance period for the
share-based incentive plan is two years. The prerequisite for receiving reward
is that a key employee purchases the company’s Series A shares up to the
maximum number determined by the Board of Directors. Furthermore, entitlement
to a reward is tied to the continuance of employment or service upon reward
payment. Rewards will be paid partly in the company’s Series A shares and
partly in cash in 2018. The cash proportion is intended to cover taxes and
tax-related costs arising from the rewards to the key employees. The Board of
Directors may decide that the share proportion be paid fully or partially in
cash. The plan is directed to approximately 50 people. The rewards to be paid
on the basis of the plan are in total an approximate maximum of 36,280 series
Series A shares in Olvi plc and a cash payment needed for taxes and tax-related
costs arising from the shares. The costs of the plan will be recognised over
the performance period from 1 July 2016 to 30 June 2018. From January to
December 2016, costs associated with the plan based on the 24 February 2016
decision were recognised for a total of 363.8 thousand euro.
Olvi Group does not have any other share-based plans or option plans.
6. TREASURY SHARES
During the year 2016, Olvi acquired 5,500 of its own Series A shares. The
purchase price was 120,139 euro. At the end of the reporting period, Olvi held
a total of 11,124 Series A shares as treasury shares. The total purchase price
of treasury shares was 228,162 euro. Treasury shares held by the company itself
are ineligible for voting.
Series A shares held by Olvi plc as treasury shares represented 0.054 percent
of the share capital and 0.012 percent of the aggregate number of votes. The
treasury shares represented 0.065 percent of all Series A shares and associated
votes.
On 14 April 2016, the General Meeting of Shareholders of Olvi plc decided to
revoke any unused authorisations to acquire treasury shares and authorise the
Board of Directors of Olvi plc to decide on the acquisition of the company’s
own shares using distributable funds.
The Annual General Meeting also decided to revoke all existing unused
authorisations for the transfer of own shares and authorise the Board of
Directors to decide on the issue of a maximum of 1,000,000 new Series A shares
and the transfer of a maximum of 500,000 Series A shares held as treasury
shares.
7. NUMBER OF SHARES *) 1-12/2016 1-12/2015
- average 20747742 20757645
- at end of period 20747684 20753184
*) Treasury shares deducted.
8. TRADING OF SERIES A SHARES ON THE HELSINKI STOCK EXCHANGE
1-12/2016 1-12/2015
Trading volume of Olvi A shares 881172 2036830
Total trading volume, EUR 1,000 22162 48413
Traded shares in proportion to
all Series A shares, % 5.2 12.0
Average share price, EUR 25.17 23.76
Price on the closing date, EUR 28.00 22.19
Highest quote, EUR 28.51 27.20
Lowest quote, EUR 20.30 20.51
9. FOREIGN AND NOMINEE-REGISTERED HOLDINGS ON 31 DECEMBER 2016
Book entries Votes Shareholders
qty % qty % qty %
Finnish total 15762632 75.93 86675496 94.55 9806 99.39
Foreign total 370354 1.78 370354 0.40 51 0.52
Nominee-registered (foreign) 99425 0.48 99425 0.11 3 0.03
total
Nominee-registered (Finnish) 4526397 21.81 4526397 4.94 6 0.06
total
Total 20758808 100.00 91671672 100.00 9866 100.00
10. LARGEST SHAREHOLDERS ON 31 DECEMBER 2016
Series Series A Total % Votes %
K
1. Olvi Foundation 2363904 890613 3254517 15.68 48168693 52.54
2. The Estate of Hortling 903488 103280 1006768 4.85 18173040 19.82
Heikki *)
3. The Estate of Hortling 187104 25248 212352 1.02 3767328 4.11
Kalle Einari
4. Hortling Timo Einari 165824 36308 202132 0.97 3352788 3.66
5. OP Corporate Bank plc, nominee 2153672 2153672 10.37 2153672 2.35
register
6. Hortling-Rinne Laila 102288 3380 105668 0.51 2049140 2.24
Marit
7. Nordea Bank AB (publ), Finnish 1890440 1890440 9.11 1890440 2.06
Branch, nominee register
8. Ilmarinen Mutual Pension 849218 849218 4.09 849218 0.93
Insurance Company
9. Varma Mutual Pension Insurance 828075 828075 3.99 828075 0.90
Company
10. AC Invest Oy 460000 460000 2.22 460000 0.50
Others 9648 9786318 9795966 47.19 9979278 10.89
Total 3732256 17026552 20758808 100.00 91671672 100.00
*) The figures include the shareholder’s own holdings and shares held by parties
in his control.
11. PROPERTY, PLANT AND EQUIPMENT
EUR 1,000
1-12/2016 1-12/2015
Opening balance 198258 205167 *)
Additions 19750 25495
Deductions and transfers -3769 -390
Depreciation -17452 -15495
Exchange rate differences -548 -16519
Closing balance 196239 198258
*) Change in accounting policies.
12. CONTINGENT LIABILITIES
EUR 1,000
31 Dec 2016 31 Dec 2015
Pledges and contingent liabilities
For own commitments 1886 2352
Leasing and rental liabilities:
Due within one year 1540 1402
Due within 1 to 5 years 1396 1179
Due in more than 5 years 2 4
Leasing and rental liabilities total 2938 2585
Package liabilities 0 0 *)
Other liabilities 2000 2000
*) Change in accounting policies.
13. CALCULATION OF FINANCIAL RATIOS
In the summary of financial indicators (page 1), the Group presents figures
directly derived from the consolidated income statement: net sales, operating
profit and profit for the period, the corresponding percentages in proportion
to net sales, as well as the earnings per share ratio. (Earnings per share =
Profit belonging to parent company shareholders / Average number of shares
during the period, adjusted for share issues).
In addition to the consolidated financial statements prepared in accordance
with IFRS, Olvi Group presents Alternative Performance Measures that describe
the financial development of its business and provide a commensurate overall
view of the company’s profitability, financial position and liquidity.
The Group has applied the ESMA (European Securities and Markets Authority) new
guidelines on Alternative Performance Measures that entered into force on 3
July 2016 and defined APMs as described below.
As an APM supporting net sales, the Group presents sales volumes in millions of
litres. Sales volume is an important indicator of the extent of operations
generally used in the industry.
The definition of gross margin is operating profit plus depreciation and
impairment.
Gross capital expenditure consists of total expenditure on fixed assets,
including the effect of any corporate acquisitions.
Equity per share = Shareholders’ equity held by parent company shareholders /
Number of shares at end of period, adjusted for share issues
Equity to total assets, % = 100 * (Shareholders’ equity held by parent company
shareholders + non-controlling interests) / (Balance sheet total)
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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