2024-04-18 08:00:00 CEST
2024-04-18 08:00:36 CEST
REGULATED INFORMATION
Olvi Oyj - Interim report (Q1 and Q3)
Olvi Group's interim report for January-March 2024 - Profitability improved markedly; net sales and sales volume at the previous year's level
OLVI PLC Interim report 18 April 2024 at 9 am
Olvi Group's interim report for January-March 2024 - Profitability improved
markedly; net sales and sales volume at the previous year's level.
January-March 2024
· Sales volume increased by 0.9% to 205.1 (203.2) million litres.
· Net sales increased by 0.7% and were EUR 130.4 (129.5) million.
· Profitability improved significantly based on the performance of the Finland
and Baltic Sea segments: the adjusted operating result increased by 12.6% to EUR
11.2 (10.0) million.
· The equity ratio was 55.1% (50.7%).
Near-term outlook for 2024 (unchanged)
Olvi Group's adjusted operating result for the 2024 financial year is expected
to be EUR 71-80 million.
The Group's key figures
1-3/2024 1-3/2023 Change, % 1-12/2023
/ pp
Sales volume, Mltr 205.1 203.2 0.9 975.8
Net sales, MEUR 130.4 129.5 0.7 630.6
Gross profit, MEUR 50.2 46.9 7.0 235.6
% of net sales 38.5 36.3 37.4
Adjusted operating result, MEUR 11.2 10.0 12.6 67.1
% of net sales 8.6 7.7 10.6
Items affecting the 0.0 -12.2 -12.2
comparability of the operating
result, MEUR
Operating result, MEUR 11.2 -2.2 605.7 54.9
% of net sales 8.6 -1.7 8.7
Adjusted profit for the period, 9.0 4.5 98.4 50.7
MEUR
% of net sales 6.9 3.5 8.0
Profit for the period, MEUR 9.0 -7.7 216.8 38.5
% of net sales 6.9 -5.9 6.1
Earnings per share, EUR 0.43 -0.35 221.0 1.85
Investments, MEUR 5.5 6.9 -20.2 24.9
Equity per share, EUR 13.20 11.75 12.3 13.95
Equity ratio, % 55.1 50.7 4.4 59.0
Gearing, % -3.9 -8.5 -4.6 -8.5
Olvi presents the adjusted operating result (EBIT) and the adjusted profit for
the period as alternative performance measures to improve comparability between
reporting periods. In January-March 2023, the items affecting comparability not
included in the adjusted operatingresult and the profit for the period totalled
EUR 12.2 million and were related to the fine imposed on the Belarusian
subsidiary.
CEO Patrik Lundell comments on business operations in the first quarter:
Our performance in the first quarter was good and in line with expectations. Our
extensive portfolio and strong brands again ensured good consumer demand, and we
maintained our market shares despite household financial pressures. Our sales
volume and net sales increased despite general market conditions. We managed to
improve our profitability markedly: our adjusted operating result increased by
12.6% through pricing and portfolio optimisation. The improvement in the
adjusted operating result was also affected by the weak profitability in Finland
in the comparison period.
Impacts of the planned EU Packaging and Packaging Waste Regulation on the
industry
If implemented, the EU Packaging and Packaging Waste Regulation means that 10%
of beverage packaging must be reused by 2030, for example. In Northern Europe,
the reuse of materials has been ensured through highly effective deposit-return
systems, in which returned beverage packaging are crushed, and the resulting
material is reused. For example, the recycling rate of all beverage packaging
(plastic bottle, glass bottle, can) in Finland is 90% or more.
In our view, if the regulation were to be implemented using the model now
proposed, it would be more environmentally burdensome than supportive for
Northern Europe. Washing refillable beverage packaging increases energy and
water consumption and the amount of wastewater, and the weight of empty
packaging and their transport in countries with long distances between locations
significantly increases emissions. In our view, the manufacture of the equipment
and the energy and materials required for the manufacture of packaging also
burden the environment unnecessarily - especially in Northern Europe, where the
recycling rate of beverage packaging is already the highest in the world.
Strategy implementation is progressing
In December 2023, we launched our updated strategy for profitable growth and
sustainable shareholder value growth, along with our new long-term targets. Our
vision is to be the preferred multi-local beverage company.
The implementation of our strategy has now started. Olvi seeks to provide
consumers with 10 million moments of enjoyment every day. This is made possible
by our extensive product selection, which meets a diverse range of consumer
demand in both the alcoholic and non-alcoholic product categories. One of the
cornerstones of our strategy is to improve the profitability of our core
business operations. This means increasing the value of our strong core business
operations by focusing on identifying and responding to local customer and
consumer needs through new products and price and selection optimisation. In the
first quarter, the implementation of this part of our strategy was most strongly
reflected in the Finnish segment as profitability continued to improve.
The summer and our busiest season of the year are approaching, and we are even
better prepared than before. We have a buffer of products in stock to ensure
reliable deliveries to our customers.
The results of a personnel satisfaction survey conducted throughout Olvi Group
in January show that our personnel also feel that the company has developed in
the right direction, and their level of commitment to the company is higher than
it is in peer companies.
Financial development
January-March 2024
Our sales volume increased by 0.9% to 205.1 (203.2) million litres, despite the
weak development of consumers' purchasing power. This year, Easter sales took
place in March, bringing volume to an otherwise slow quarter. Our market shares
have remained strong despite intensified price competition. Our net sales
increased by 0.7% to EUR 130.4 (129.5) million as a result of the Finland
segment's good performance. Our adjusted operating result increased by 12.6%
year-on-year and was EUR 11.2 (10.0) million. Our performance improved as cost
inflation subsided, and price increases were implemented.
Segment-specific business development: January-March 2024
Profitability continued to improve in Finland during the first quarter
The net sales of our business operations in Finland grew by 5.3%, but the sales
volume decreased by 1.4%, during the first quarter. The development of the sales
volume was affected by product portfolio changes in the retail sector. In terms
of product categories, the sales of water and other non-alcoholic products
increased, while the sales of beer decreased.
In our Finnish operations, the operating result was EUR 3.5 (1.7) million, with
an increase of 108.9% year-on-year. The operating result increased significantly
as a result of product positioning and price increases, among other factors. The
strikes caused interruptions in production, but major additional costs were
avoided. Significant price increases had not yet been made in the comparison
period, as their implementation was not started until the second quarter of
2023. The most significant price increases have now been implemented, but in
terms of portfolio development and individual products, measures to improve
profitability and achieve the targets set out in the strategy will continue.
The operating result increased in the Baltic Sea region
Our sales volume in the Baltic Sea region decreased by 0.5%, and our net sales
by 0.4% during the first quarter. Consumer demand and exports decreased in
Estonia. In other respects, the segment's retail and hotel, restaurant and
catering channel (HoReCa) sales improved year-on-year. The operating result
increased by 13.4% to EUR 2.8 (2.5) million. Profitability improved as costs no
longer increased, measures were taken to improve the efficiency of production
operations, and targeted price increases were implemented. Profitability
improved in all countries of operation.
The weaker exchange rate caused the operating result to decrease in Belarus
Net sales in the Belarusian segment decreased by 5.4%, while sales volume grew
by 4.5%. Sales volume increased because of more extensive campaigns to improve
off-season sales compared with the corresponding period in the previous year.
Euro-denominated net sales were significantly affected by the weaker exchange
rate, as net sales in the local currency grew by 11.4%. The operating result
decreased by 14.2% compared with the previous period's adjusted operating result
and was EUR 5.2 (6.1) million. In the local currency, the operating result grew
by 1.1%.
Investments
Olvi Group's expansion and replacement investments were EUR 5.5 (6.9) million in
January-March. Investments decreased especially because investments in Finland
in 2024 will mainly take place in the second half of the year. Of the
investments, EUR 1.4 million were related to Finland, and EUR 3.6 million to
subsidiaries in the Baltic Sea region. Only replacement investments necessary
for the continuity of production have been made in Belarus through the
subsidiary's income financing, totalling EUR 0.5 million.
Sustainability
Environmental sustainability
The company has completed its calculation of emissions from its own operations
and purchased energy (Scopes 1 and 2) for 2023. Compared with the previous year,
these emissions have decreased by 2.4%. In addition, the emission intensity
(emissions in relation to litres produced) has decreased considerably (4.0%) as
a result of the development of operations. The calculation of emissions from the
value chain (Scope 3) for 2023 will be completed during the second quarter of
2024.
In the company's own operations, the Vestfyen brewery in Denmark switched to
renewable electricity at the beginning of 2024. The other companies in the
Baltic Sea region and Finland business area already use renewable electricity.
To achieve the science-based climate targets, a project to identify measures to
reduce climate emissions in the value chain was launched at the beginning of
2024. The work focuses on the main sources of emissions: raw materials,
packaging and logistics. The monitoring and impact assessment of water use in
the company's own operations have been enhanced. Later this year, we will
further develop the monitoring and impact assessment of water use in the value
chain, especially in terms of the manufacture of raw materials and packaging.
Social sustainability
In early 2024, a People Power personnel survey was conducted across the Group.
The response rate was very good (89%), and the overall People Power rating was
AA+. Compared with the previous survey in 2022, the index increased by 3.1, and
the overall index is markedly higher than the benchmark value for the Baltic Sea
region. The respondents felt that the company had developed favourably, and that
well-organised work ensured efficiency. Open and clear communication and
feedback on good performance, as well as opportunities for employees to
participate in development measures, support long-term success.
The self-assessment of suppliers has been updated by deepening the area of
social sustainability in line with future EU legislative requirements.
Good governance
Olvi Group is preparing for the requirements of the Corporate Sustainability
Reporting Directive (CSRD). Olvi Group's double materiality analysis has been
completed, and material topics have been identified and preliminary data points
determined based on the analysis.Sustainability data collection and readiness
for future sustainability reporting will be developed based on the results. In
addition, the company is monitoring and preparing for other changes to EU
sustainability legislation, such as regulations related to environmental claims
and packaging, as well as other increasing reporting requirements.
Seasonal nature of operations
The nature of the Group's business operations involves seasonal fluctuation. The
net sales and operating result of the geographical reporting segments are not
accumulated steadily. Instead, they fluctuate in accordance with the special
characteristics of the seasons of the year and product seasons.
Sales development
Olvi Group's sales volume grew by 0.9% in January-March, totalling 205.1 (203.2)
million litres.
Sales volume, Mltr 1-3/2024 1-3/2023 Change, %
Finland 57.9 58.8 -1.4
Baltic Sea region 79.1 79.5 -0.5
Belarus 68.8 65.9 4.5
Eliminations -0.7 -1.0
Total 205.1 203.2 0.9
The Group's net sales in January-March increased by 0.7% and were EUR 130.4
(129.5) million.
Net sales, MEUR 1-3/2024 1-3/2023 Change, %
Finland 50.7 48.1 5.3
Baltic Sea region 53.0 53.2 -0.4
Belarus 27.2 28.7 -5.4
Eliminations -0.5 -0.5
Total 130.4 129.5 0.7
Olvi Group has changed the presentation of the segments to correspond to the
monitoring carried out by the management. In future, intra-segment business
transactions will be eliminated from the segments' sales volumes and net sales
in their presentation. The comparison information has been changed accordingly.
Financial performance
The Group's operating result in January-March was EUR 11.2 (-2.2) million, or
8.6% (-1.7%) of net sales. The adjusted operating result increased by 12.6% and
was EUR 11.2 (10.0) million. The improvement in the adjusted operating result
was mainly caused by improved profitability in Finland, compared with the
corresponding period in the previous year.
Adjusted operating result, MEUR 1-3/2024 1-3/2023 Change, %
Finland 3.5 1.7 108.9
Baltic Sea region 2.8 2.5 13.4
Belarus 5.2 6.1 -14.2
Eliminations -0.3 -0.3
Total 11.2 10.0 12.6
Operating result, MEUR 1-3/2024 1-3/2023 Change, %
Finland 3.5 1.7 108.9
Baltic Sea region 2.8 2.5 13.4
Belarus 5.2 -6.1 186.5
Eliminations -0.3 -0.3
Total 11.2 -2.2 605.7
The Group's profit after taxes in January-March was EUR 9.0 (-7.7) million.
Earnings per share calculated from the profit attributable to the owners of the
parent company were
EUR 0.43 (-0.35) in January-March.
Financial position and the balance sheet
Olvi Group's balance sheet total at the end of March 2024 was EUR 496.7 (482.8)
million. Equity per share at the end of March 2024 was EUR 13.20 (11.75). The
equity ratio was 55.1% (50.7%), and gearing was -3.9% (-8.5%). The Group's
liquidity indicator, the current ratio, remained at the same level as in the
comparison period, at 1.2 (1.1). Interest-bearing liabilities amounted to EUR
6.9 (4.1) million at the end of March. Of the interest-bearing liabilities,
current liabilities accounted for EUR 2.2 (2.2) million.
Olvi Group's balance sheet and financial position are strong. The company has no
net debt. The company's ability to invest has remained good.
The Group's cash and cash equivalents totalled EUR 17.6 (24.8) million at the
end of the review period, with a decrease of EUR 7.2 million year-on-year. Olvi
has credit facilities for liquidity management. Cash flow from operating
activities was EUR -8.1 (-27.6) million. During the first quarter, the company
prepares for the season, meaning that cash assets are tied up in stock and
purchases for production. Cash flow from investing activities was EUR -4.9 (
-6.9) million, and cash flow from financing activities was EUR -1.0 (-0.8)
million.
Personnel
In the first quarter, Olvi Group had an average of 2,352 (2,302) employees, with
an increase of 2.2%.
Olvi Group's average number of personnel by segment:
1-3/2024 1-3/2023 Change, %
Finland 416 412 1.0
Baltic Sea region 1,059 1,042 1.6
Belarus 877 848 3.4
Total 2,352 2,302 2.2
Board of Directors and management
Esa Hyttinen, LL.M., has been appointed as Olvi plc's Group General Counsel and
a member of Olvi Group's Management Team as of 29 February 2024. The Group
General Counsel has overall responsibility for the Group's legal affairs and
serves as secretary to the Board of Directors of the parent company. The
position is new in the company, and Esa Hyttinen reports to CEO Patrik Lundell.
Olvi plc's Annual General Meeting was held on 26 March 2024. Its decisions and
impacts on the composition of the Board are discussed below.
Other events during the review period
Annual General Meeting
Olvi plc's Annual General Meeting (AGM) on 26 March 2024 adopted the financial
statements and discharged the members of the Board and the CEO from liability
for the financial year that ended on 31 December 2023.
In accordance with the Board's proposal, the AGM decided to pay a dividend of
EUR 1.20 (1.20) for Series A and Series K shares for the 2023 financial year.
This dividend is 64.9% (311.4%) of Olvi Group's earnings per share. The dividend
will be paid in two instalments. The first instalment (EUR 0.60 per share) will
be paid on 18 April 2024 to shareholders registered in the list of shareholders
maintained by Euroclear Finland on the record date (28 March 2024). The second
instalment (EUR 0.60 per share) will be paid on 3 September 2024 to shareholders
registered in the list of shareholders maintained by Euroclear Finland on the
record date (27 August 2024). The AGM decided that the Board of Directors will
consist of six (6) members. Lasse Heinonen, Nora Hortling, Juho Nummela, Päivi
Paltola and Christian Ståhlberg were re-elected as members of the Board. Tarmo
Noop was elected as a new member of the Board. KPMG Oy Ab, Authorised Public
Accountants, was elected as the company's auditor, with Heidi Hyry, Authorised
Public Accountant, as the principal auditor. KPMG Oy Ab was also elected as the
verifier of the company's sustainability reporting, with Heidi Hyry, APA,
Sustainability Reporting Auditor, in charge of the verification. Ernst & Young
Oy, Authorised Public Accountants, served as the company's auditor until the
Annual General Meeting, with Elina Laitinen, APA, as the principal auditor. The
AGM's decisions were published in a stock exchange release on 26 March 2024.
Organisation of the Board of Directors
At its constitutive meeting on 26 March 2024, Olvi plc's Board of Directors
elected Nora Hortling as Chair and Lasse Heinonen as Vice Chair of the Board.
Lasse Heinonen, Tarmo Noop and Juho Nummela were elected as the members of the
Audit Committee. Nora Hortling, Päivi Paltola and Christian Ståhlberg were
elected as the members of the People and Sustainability Committee.
Changes in the Group structure
No changes took place in Olvi's subsidiary holdings during the first quarter of
2024.
Business risks and their management
Geopolitical situation
The geopolitical situation has affected Olvi's operating environment. The war in
Ukraine has significantly increased business risks. The coronavirus pandemic
caused problems in the availability of raw materials and packaging materials,
and the war in Ukraine has further complicated the procurement of materials. The
increase in the costs of packaging materials, which started during the pandemic
and continued in 2023, levelled out as a whole in early 2024 compared with the
previous year. However, the costs of some production batches continued to
increase at the beginning of 2024. In addition, the prices of raw materials,
especially barley malt, sugar and carbon dioxide, continue to be at a
historically high level. Uncertainty in prices and availability has continued in
the market because of the war and weather events caused by climate change. The
considerable fluctuations in energy prices continue. Logistics costs remain at a
high level because of rising fuel prices. Olvi is responding to the increase in
costs by improving operational productivity and assessing the adequacy of sales
prices to maintain profitability.
Consumer behaviour
Despite the recent easing of the overall cost level, high consumer prices
continue to weaken consumers' purchasing power and affect consumer behaviour.
This change can already be seen as a shift in consumption towards cheaper
product options. In addition, overall consumption can decrease, and the
premiumisation trend may stop. There are differences between markets. Olvi Group
is responding to the change by developing its product portfolio in line with
consumer demand and by maintaining and strengthening market shares.
Operating environment in Belarus
The business operations and financial forecasting in Belarus continue to involve
considerable uncertainty. For example, the uncertainty concerns the development
of exchange rates, the unpredictability of the operating environment, local
legislation and taxation, trade sanctions, and the functioning of financial
transactions with Western countries. Olvi's Belarusian subsidiary operates by
means of its own cash flow financing. Cash and cash equivalents stood at EUR 8.8
million at the end of the review period. Despite the amendments made to the
legislation preventing the sale of foreign-owned companies in Belarus in 2024,
the prohibition of selling shares in Olvi's subsidiary remains in force, and
Olvi does not have permission to sell shares.
Other current risks
As political strikes continue in Finland, Olvi may suffer significant financial
losses. These financial risks are related to the functionality of production and
the supply chain in particular, as well as to customers' ability to operate.
Significant direct costs have been avoided so far.
Cybersecurity threats have increased because of the escalation of the global
geopolitical situation, among other reasons. Olvi Group has prepared for the
increasing information security threats in many ways. Personnel are provided
with training, information about threats is provided regularly, and
cybersecurity guidelines are reviewed during induction training. Olvi's
information systems are protected through regular updates, backups, firewalls,
anti-malware software, content filters and threat detection programs.
If the EU Packaging and Packaging Waste Regulation were to be implemented using
the model now proposed, it would create needs for Olvi to invest in the filling
and handling of products and would increase climate emissions from product
manufacturing and logistics.
Our operations involve several risks related to sustainability. The
identification and assessment of and preparation for these risks have become a
significant part of risk management. We have identified these as part of
strategic, business, financial and compliance risks. Sustainability risks are
identified in connection with several different risk assessments, such as human
rights and climate change assessments.
Preparedness
Olvi Group has prepared several scenarios related to the development of the
business environment and is prepared to respond to changing situations. The
company is prepared for production disruptions and has drawn up continuity plans
related to the availability of labour, raw materials and energy, for example.
The company has made investments to secure energy supply and has also made
efforts to ensure the availability of raw materials and packaging materials.
Particular attention has been paid to the adequacy of risk management plans in
accordance with risk assessments and the introduction of new risk assessment
methods in terms of information and sustainability risks, for example. The
separation of the Belarusian operations from the Group has been carried out with
determination, and the company has prepared for the uncertainties mentioned
above based on various scenarios.
A more detailed description of the normal risks related to business operations
is provided in Olvi Group's Board of Directors' report and the notes to the
financial statements and on the company website (Investors > Olvi as an
investment > Risks and risk management).
Events after the review period
There are no significant events to report after the review period.
OLVI PLC
Board of Directors
Webcast
Olvi plc and its CEO will hold a press conference, which can be followed at
https://olvi.videosync.fi/q1-2024 from 11 am onwards on the date of publication
of this interim report.
The press conference will be held in English.
A recording of the webcast can be viewed later on the company's website at
https://www.olvigroup.fi/en/releases-and-publications/financial
-releases/ (https://www.olvigroup.fi/tiedotteet-ja-julkaisut/taloudelliset
-tiedotteet/)
More information:
Patrik Lundell, CEO, Olvi plc, tel. +358 290 00 1050
Tiina-Liisa Liukkonen, CFO & CIO, Olvi plc, tel. +358 290 00 1050
TABLES:
- Consolidated statement of comprehensive income, Table 1
- Balance sheet, Table 2
- Statement of changes in equity, Table 3
- Cash flow statement, Table 4
- Notes to the interim report, Table 5
DISTRIBUTION:
Nasdaq Helsinki Ltd
Main media
www.olvi.fi
OLVI GROUP TABLE 1
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
EUR 1,000
1-3/2024 1-3/2023 1-12/2023
Gross sales 276,953 278,853 1,326,568
Excise taxes and other adjustments -146,569 -149,389 -695,963
Net sales 130,384 129,463 630,605
Cost of sales -80,167 -82,515 -394,977
Gross profit 50,217 46,948 235,628
Logistics, sales and marketing expenses -28,372 -26,941 -126,605
Administrative expenses -11,200 -10,182 -41,472
Other operating income and expenses 571 -12,043 -12,633
Operating result 11,216 -2,218 54,918
Financial income 391 42 990
Financial expenses -285 -337 -1,682
Share of the profit of associated companies 0 0 45
and joint ventures
Profit before tax 11,322 -2,513 54,271
Income taxes -2,367 -5,154 -15,798
PROFIT FOR THE PERIOD 8,955 -7,667 38,473
Other items of comprehensive income that may
be later reclassified as profit or loss:
Translation differences related to foreign 228 -3,827 -5,003
subsidiaries
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 9,183 -11,494 33,470
Distribution of the profit for the period:
- Owners of the parent company 8,834 -7,299 38,251
- Non-controlling interest 121 -368 222
Distribution of comprehensive income for the
period:
- Owners of the parent company 9,054 -10,979 33,430
- Non-controlling interest 129 -515 40
Earnings per share calculated from profit
attributable to owners of the parent company,
EUR
- Undiluted 0.43 -0.35 1.85
- Diluted 0.43 -0.35 1.85
OLVI GROUP TABLE 2
BALANCE SHEET
EUR 1,000 31 Mar 2024 31 Mar 2023 31 Dec 2023
ASSETS
Non-current assets
Intangible assets 10,233 11,184 10,518
Goodwill 22,204 22,204 22,204
Tangible assets 213,279 205,418 213,182
Holdings in associated 1,032 1,028 1,032
companies and joint
ventures
Other investments 785 1,042 1,042
Loans receivable and 5,966 1,870 5,544
other long-term
receivables
Deferred tax assets 3,846 2,461 4,370
Total non-current assets 257,345 245,208 257,892
Current assets
Inventories 83,156 80,704 74,190
Accounts receivable and 137,879 130,196 125,815
other receivables
Income tax receivables 734 1,863 645
Cash and cash equivalents 17,596 24,815 31,458
Total current assets 239,365 237,577 232,108
TOTAL ASSETS 496,710 482,785 490,000
EQUITY AND LIABILITIES
Equity attributable to
owners of the parent
company
Share capital 20,759 20,759 20,759
Other reserves 1,092 1,092 1,092
Fair value reserve 295 295 295
Treasury shares -881 -1,255 -881
Translation differences -56,548 -55,627 -56,768
Retained earnings 308,343 277,687 324,120
273,060 242,951 288,617
Non-controlling interest 845 1,816 721
Total equity 273,905 244,767 289,338
Non-current liabilities
Financial liabilities 4,714 1,968 4,098
Other liabilities 761 3,714 782
Deferred tax liabilities 13,712 13,203 14,100
Current liabilities
Financial liabilities 2,168 2,155 2,908
Accounts payable and 200,746 216,814 178,751
other payables
Income tax liability 704 163 23
Total liabilities 222,805 238,018 200,662
TOTAL EQUITY AND 496,710 482,785 490,000
LIABILITIES
OLVI GROUP
TABLE 3
STATEMENT OF
CHANGES IN
EQUITY
EUR 1,000 Share Other Fair Treasury Translation Earnings
Attributable Total
capital reserves value shares differences to
reserve reserve non
-cont
rolling
inter
est
Equity 1 Jan 20,759 1,092 295 -881 -56,768 324,120 721
289,338
2024
Comprehensive
income:
Profit 8,834 121
8,955
for the
period
Other
items of
comprehensive
income:
220 8
228
Translation
differences
Total 220 8,834 129
9,183
comprehensive
income for
the period
Business
transactions
with
shareholders:
Dividend -24,826 -5
-24,831
payment
Share 215
215
-based
incentives,
value of work
performance
Business -24,611 -5
-24,616
transactions
with
shareholders,
total
Equity 31 Mar 20,759 1,092 295 -881 -56,548 308,343 845
273,905
2024
EUR 1,000 Share Other Fair Treasury Translation Earnings
Attributable Total
capital reserves value shares differences to
reserve reserve non
-cont
rolling
inter
est
Equity 1 Jan 20,759 1,092 295 -1,079 -52,030 310,194
2,514 281,745
2023
Comprehensive
income:
Profit -7,299 -368
-7,667
for the
period
Other
items of
comprehensive
income:
-3,680 -147
-3,827
Translation
differences
Total -3,680 -7,299 -515
-11,494
comprehensive
income for
the period
Business
transactions
with
shareholders:
Dividend -24,818 -160
-24,978
payment
Share-based 274
274
incentives,
value of work
performance
-604
-604
Acquisition
of treasury
shares
Issue of 428 -723
-295
treasury
shares to
personnel
83 59 -23
119
Adjustment
for previous
periods
Business -176 83 -25,208 -183
-25,484
transactions
with
shareholders,
total
Equity 31 Mar 20,759 1,092 295 -1,255 -55,627 277,687
1,816 244,767
2023
OLVI GROUP TABLE 4
CASH FLOW STATEMENT
EUR 1,000
1-3/2024 1-3/2023 1-12/2023
Profit for the period 8,955 -7,667 38,473
Adjustments:
Depreciation and impairment 6,442 7,245 24,779
Other adjustments 2,422 5,417 11,778
Change in net working capital:
Change in accounts -12,593 -21,857 -20,279
receivable and other receivables
Change in inventories -8,793 -10,677 -6,377
Change in accounts payable -3,081 3,216 -4,789
and other payables
Interest paid -104 -65 -408
Interest received 303 32 531
Dividends received 1 0 10
Taxes paid -1,636 -3,266 -15,764
Cash flow from operating -8,084 -27,622 27,954
activities (A)
Investments in tangible and -5,098 -7,033 -25,550
intangible assets
Proceeds from the sale of 244 179 591
tangible and intangible assets
Acquisition of shares from non 0 0 -2,737
-controlling interest
Dividends received 0 0 41
Cash flow from investing -4,854 -6,854 -27,655
activities (B)
Loan withdrawals 821 1,398 4,577
Repayment of loans -1,748 -1,574 -6,165
Acquisition of treasury shares 0 -604 -604
Dividends paid -52 0 -25,339
Cash flow from financing -979 -780 -27,531
activities (C)
Increase (+) / decrease (-) in -13,917 -35,256 -27,232
cash and cash equivalents
(A+B+C)
Cash and cash equivalents 1 Jan 31,458 61,207 61,207
Impact of exchange rate changes 55 -1,136 -2,517
Cash and cash equivalents 31 Mar 17,596 24,815 31,458
/ 31 Dec
OLVI GROUPTABLE 5
NOTES TO THE INTERIM REPORT
The interim report has been prepared in accordance with IAS 34 Interim Financial
Reporting, applying the same accounting principles that were applied to the 2023
financial statements (31 December 2023). Olvi Group has changed the presentation
of the segments to correspond to the monitoring carried out by the management.
In future, intra-segment business transactions will be eliminated from the
segments' sales volumes and net sales in their presentation. The comparison
information has been changed accordingly.
The information in the interim report is presented in thousands (1,000) of
euros. For presentation, individual figures and totals have been rounded up to
full thousands, which causes rounding differences in the totals. Exchange rates
obtained from the Central Bank of Belarus have been used as the exchange rate
for the Belarusian rouble. The key ratios have been calculated by using accurate
euro-denominated figures. The information published in the interim report has
not been audited.
1 SEGMENT
INFORMATION
SEGMENTS' NET
SALES AND
PROFIT FOR
THE PERIOD
1-3/2024
EUR 1,000 Finland Baltic Sea region Belarus Eliminations Group
INCOME
External 50,576 52,648 27,160 130,384
sales
Beverage 50,052 52,648 27,160 129,860
sales
524 0 0 524
Equipment
services
Internal 104 395 0 -499 0
sales
Total net 50,680 53,043 27,160 -499 130,384
sales
Total profit 3,661 1,986 3,260 48 8,955
for the
period
SEGMENTS' NET
SALES AND
PROFIT FOR
THE PERIOD
1-3/2023
EUR 1,000 Finland Baltic Sea region Belarus Eliminations Group
INCOME
External 48,115 52,627 28,721 129,463
sales
Beverage 47,647 52,627 28,721 128,995
sales
468 0 0 468
Equipment
services
Internal 12 617 0 -629 0
sales
Total net 48,127 53,244 28,721 -629 129,463
sales
Total profit 5,989 1,750 -10,666 -4,740 -7,667
for the
period
2 RELATED PARTY TRANSACTIONS
Management's employee benefits
Board members' and the CEO's salaries and other short-term employee benefits
EUR 1,000 1-3/2024 1-3/2023 1-12/2023
CEO 329 87 358
Chair of the Board 27 16 93
Other Board members 54 35 165
Total 410 138 616
3 SHARES AND SHARE CAPITAL
31 Mar 2024 %
Series A shares, number of shares 16,989,976 82.0
Series K shares, number of shares 3,732,256 18.0
Total 20,722,232 100.0
Total number of votes, Series A shares 16,989,976 18.5
Total number of votes, Series K shares 74,645,120 81.5
Total number of votes 91,635,096 100.0
Votes per Series A share 1
Votes per Series K share 20
The registered share capital totalled EUR 20,759 thousand on 31 March 2024.
A dividend of EUR 1.20 per share for 2023 (EUR 1.20 per share for 2022),
totalling EUR 24.8 (24.8) million, will be paid on shares in Olvi plc. The
dividend will be paid in two instalments. The first instalment, EUR 0.60 per
share, will be paid on 18 April 2024. The second instalment, EUR 0.60 per share,
will be paid on 3 September 2024. Series K shares and Series A shares provide
their holders with equal rights to dividends. The Articles of Association
include a redemption clause concerning Series K shares.
4 SHARE-BASED REWARDS
On 19 December 2023, Olvi plc's Board of Directors decided to establish two new
long-term incentive plans for the Group's key people. The incentive plans and
their objectives were announced in a stock exchange release on 19 December 2023.
The first performance period of the 2024-2028 Performance Share Plan (financial
years 2024-2026) has started. The target group of the performance period
includes 36 key people, including the members of the Group Management Team and
the CEO of the company. The plan enables the members of the target group to earn
Series A shares in Olvi plc based on performance. The earning criteria for the
first performance period (2024-2026) are the cumulative operating results of the
Baltic Sea segment and the Finland segment, the sales of non-alcoholic products
and carbon neutrality in the company's own production operations. The rewards to
be paid from the plan may amount to a maximum of 43,021 Olvi plc's Series A
shares and a cash portion to cover taxes and tax-like payments arising from the
share-based reward.
The costs related to incentive plans totalled EUR 215.2 thousand in the review
period. Olvi Group has no other share or option arrangements in place.
5 TREASURY SHARES
At the beginning of January 2024, Olvi plc held a total of 28,692 Series A
shares in the company. No changes took place in the number of treasury shares
during the review period. The total acquisition price of treasury shares was EUR
880.8 thousand. The treasury shares do not provide the company with voting
rights. The Series A shares held by Olvi plc represent 0.14% of all shares in
the company and 0.03% of all votes provided by the shares in the company. The
treasury shares account for 0.17% of all Series A shares in the company and
0.17% of the votes provided by all Series A shares in the company.
6 NUMBER OF SHARES OUTSTANDING 1-3/2024 1-3/2023 1-12/2023
- Average 20,693,540 20,689,066 20,690,905
- At the end of the period 20,693,540 20,682,045 20,693,540
7 TRADING IN SERIES A SHARES ON THE
NASDAQ HELSINKI
1-3/2024 1-3/2023 1-12/2023
Trading in Series A shares in Olvi, 578,680 462,846 1,608,889
number of shares
Total value of trading, EUR 1,000 17,775 14,297 48,077
Proportion of the trading out of 3.4 2.7 9.5
the total number of Series A
shares, %
Average share price, EUR 30.72 30.89 29.88
Closing price, EUR 30.80 29.90 28.05
Highest price, EUR 33.80 34.95 34.95
Lowest price, EUR 28.35 28.30 26.80
8 FOREIGN AND
NOMINEE
-REGISTERED
HOLDINGS 31 Mar
2024
Book-entry shares Number of votes Shareholders
number % number % number %
Finnish, total 16,959,168 81.84 87,872,032 95.89 22,929 99.65
Foreign, total 39,232 0.19 39,232 0.04 69 0.30
Nominee 464,506 2.24 464,506 0.51 6 0.03
-registered
(foreign), total
Nominee 3,259,326 15.73 3,259,326 3.56 5 0.02
-registered
(Finnish), total
Total 20,722,232 100.00 91,635,096 100.00 23,009 100.00
9 LARGEST SHAREHOLDERS 31 Mar 2024
Series K Series A Total
% Number of %
votes
1 Olvi Foundation 2,363,904 990,613 3,354,517
16.19 48,268,693 52.67
2 The estate of Heikki 903,488 103,280 1,006,768
4.86 18,173,040 19.83
Hortling*
3 Timo Einari Hortling 212,888 49,152 262,040
1.26 4,306,912 4.70
4 Marit Hortling-Rinne 149,064 14,234 163,298
0.79 2,995,514 3.27
5 Nordea Bank Abp, nominee-registered 1,868,386 1868,386
9.02 1868,386 2.04
6 Skandinaviska Enskilda Banken Ab (publ), 1,327,395 1,327,395
6.41 1,327,395 1.45
Helsinki branch, nominee-registered
7 Varma Mutual Pension Insurance Company 828,075 828,075
4.00 828,075 0.90
8 Ilmarinen Mutual Pension Insurance Company 683,000 683,000
3.30 683,000 0.75
9 Pia Johanna Hortling 23,388 28,244 51,632
0.25 496,004 0.54
10 Jens Einari Hortling 23,388 18,444 41,832
0.20 486,204 0.53
Other 56,136 11,079,153 11,135,289
53.72 12,201,873 13.32
Total 3,732,256 16,989,976 20,722,232
100.00 91,635,096 100.00
* The shareholding includes shares held by
the shareholder and the entities they
control.
Olvi did not receive any flagging notifications under chapter 9, section 5 of
the Securities Markets Act in January-March 2024.
10 PROPERTY, PLANT AND EQUIPMENT
EUR 1,000
1-3/2024 1-3/2023 1-12/2023
Opening balance 213,182 208,165 208,165
Additions 6,224 6,255 26,643
Deductions and transfers -327 -391 1,311
Depreciation and impairment -5,788 -6,611 -22,709
Exchange rate differences -12 -2,000 -228
Total 213,279 205,418 213,182
11 COMMITMENTS
EUR 1,000
31 Mar 2024 31 Mar 2023 31 Dec 2023
Pledged assets and commitments
For own commitments 2,464 2,945 3,268
Lease and rental liabilities:
Maturing in less than a year 1,344 1,304 1,300
Maturing within 1-5 years 2,023 1,236 1,254
Total lease and rental liabilities 3,367 2,540 2,554
Other liabilities 567 67 567
12 VALUATION OF THE BELARUSIAN BUSINESS SEGMENT
For the 2022 financial statements (31 December 2022), the management assessed
the book value of the Belarusian business segment in a changed operating
environment. An impairment of EUR 35.0 million was recognised based on the
assessment. Based on the management's assessment and testing, the balance sheet
valuation of the Belarusian business segment on 31 March 2024 is materially at
the right level, and there is no need to change the impairment recognised. The
Belarusian business segment's balance sheet value was EUR 33.4 million on 31
March 2024. The valuation has been carried out in accordance with the previous
year's model.
13 CALCULATION PRINCIPLES FOR KEY FIGURES
In its summary of key ratios (page 1), the Group presents key ratios directly
derived from the consolidated income statement (net sales, operating result,
profit for the period and their proportions of net sales, as well as earnings
per share). (Earnings per share = Profit for the period attributable to owners
of the parent company / Average number of shares during the period, adjusted for
share issues).
In addition to its IFRS-based consolidated financial statements, Olvi plc
presents Alternative Performance Measures that describe the financial
performance of its business operations and provide a comparable overview of the
company's profitability, solvency and liquidity.
The Group has applied the European Securities and Markets Authority's (ESMA)
guidelines (effective since 3 July 2016) on Alternative Performance Measures and
has determined such measures as follows:
The Group presents sales volume data in millions of litres as an Alternative
Performance Measure that supports net sales. Sales volume is an important and
widely used indicator in the industry that describes the scope of operations. To
improve comparability between reporting periods, the Group also presents the
adjusted operating result and the adjusted profit for the period as Alternative
Performance Measures. The adjusted operating result is calculated by deducting
significant items affecting comparability from net sales. The corresponding
items have been deducted from the profit for the period when calculating the
adjusted profit for the period.
Investments consist of increases in fixed assets, excluding increases under IFRS
16.
Earnings per share = Equity attributable to owners of the parent company /
Number of shares at the end of the period, adjusted for share issues.
Equity ratio, % = 100 * (Equity attributable to owners of the parent company +
non-controlling interest) / (Balance sheet total).
Gearing, % = 100 * (Interest-bearing liabilities - Cash in hand and at bank) /
(Equity attributable to owners of the parent company + Non-controlling
interest).
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