2016-10-27 08:02:48 CEST
2016-10-27 08:02:48 CEST
REGULATED INFORMATION
Olvi Oyj - Interim report (Q1 and Q3)
OLVI GROUP’S INTERIM REPORT, 1 JANUARY TO 30 SEPTEMBER 2016 (9 MONTHS)
Olvi's good performance continued in the third quarter. The Group's net sales,
operating profit and earnings improved, and the balance sheet became stronger
in comparison to the previous year.
Iisalmi, 2016-10-27 08:01 CEST (GLOBE NEWSWIRE) -- OLVI PLC
INTERIM REPORT 27 OCTOBER 2016 at 9:00 am
OLVI GROUP’S INTERIM REPORT, 1 JANUARY TO 30 SEPTEMBER 2016 (9 MONTHS)
INTERIM REPORT IN BRIEF
Olvi’s good performance continued in the third quarter. The Group’s net sales,
operating profit and earnings improved, and the balance sheet became stronger
in comparison to the previous year.
January to September 2016 in brief:
- Olvi Group’s sales volume was 475.0 (452.1) million litres
- The Group’s net sales amounted to 249.7 (241.7) million euro
- The Group’s operating profit amounted to 35.1 (31.8) million euro
- Olvi Group’s earnings per share stood at 1.34 (0.83) euro per share
- The equity to total assets ratio was 60.4 (56.1) percent.
July to September 2016 in brief:
- Olvi Group’s sales volume was 168.6 (168.0) million litres
- The Group’s net sales amounted to 89.7 (88.9) million euro
- The Group’s operating profit amounted to 15.2 (14.1) million euro
- Olvi Group’s earnings per share stood at 0.64 (0.37) euro per share
Olvi retains the earnings outlook for 2016 and estimates that the Group’s sales
volume and net sales for 2016 will increase slightly compared to the previous
year. Operating profit for 2016 is estimated to be on a par with the previous
year or increase slightly.
CONSOLIDATED KEY RATIOS
7-9/ 7-9/ Change % 1-9/ 1-9/ Change % 1-12/
2016 2015 / pp 2016 2015 / pp 2015
--------------------------------------------------------------------------------
Sales volume, Mltr 168.6 168.0 0.3 475.0 452.1 5.0 579.9
--------------------------------------------------------------------------------
Net sales, MEUR 89.7 88.9 0.9 249.7 241.7 3.3 310.5
--------------------------------------------------------------------------------
Gross margin, MEUR 20.0 18.3 9.1 49.0 44.0 11.2 54.5
--------------------------------------------------------------------------------
% of net sales 22.3 20.6 19.6 18.2 17.6
--------------------------------------------------------------------------------
Operating profit, 15.2 14.1 7.5 35.1 31.8 10.3 38.2
MEUR
--------------------------------------------------------------------------------
% of net sales 16.9 15.9 14.1 13.2 12.3
--------------------------------------------------------------------------------
Net profit for the 13.4 7.6 76.3 27.9 17.2 62.6 22.2
period
--------------------------------------------------------------------------------
% of net sales 15.0 8.6 11.2 7.1 7.2
--------------------------------------------------------------------------------
Earnings per 0.64 0.37 73.0 1.34 0.83 61.4 1.08
share, EUR
--------------------------------------------------------------------------------
Gross capital 4.7 5.1 -7.0 15.7 21.1 -25.9 26.0
expenditure, MEUR
--------------------------------------------------------------------------------
Equity per share, 9.32 8.73 6.8 8.92
EUR
--------------------------------------------------------------------------------
Equity to total 60.4 56.1 4.3 59.4
assets, %
--------------------------------------------------------------------------------
Gearing, % 9.9 31.7 -21.8 18.3
--------------------------------------------------------------------------------
BUSINESS DEVELOPMENT
LASSE AHO, MANAGING DIRECTOR:
Olvi Group’s business development in the third quarter was good. Consolidated
operating profit for the review period increased by 7.5 percent on the previous
year and 10 percent in cumulative figures. Performance can be considered good,
particularly when taking into account the unstable weather in the high-season
months, which caused a market downturn in the third quarter. During this year’s
season, the consumption peak was in early summer.
Our business has developed favourably in Finland in particular; the sales
volume has increased in 2016, and our market share has become stronger.
Commercial actions and cost-effectiveness have made it possible for the
operating profit to show positive development.
All in all, development in the Baltic states has met our expectations.
Accumulated operating profit outperforms that of the January-September period
last year, and market shares have remained strong in our main product groups.
The sales volume in the Baltic states in July-September declined slightly on
the previous year, particularly due to poor weather conditions in midsummer.
This affected performance in the local markets as well as the Travel Trade
market. Performance in Estonia has remained on a very strong level, and
operating profit in Latvia has increased by 15 percent cumulative. Operating
profit in Lithuania has remained almost on the previous year’s level. The
extension to the warehouse in Lithuania was completed on schedule and is
expected to provide cost savings already during the rest of this year.
Third-quarter earnings in Belarus declined slightly on the previous year. The
devaluation of the local currency in 2015 still had a negative impact on
earnings for the period under review. Operations were also hampered by
challenges in the Belarusian economy and weakened consumer solvency. However,
we have been able to compensate the effect of the weakened home market by
increasing exports from Belarus to Russia.
The Group’s other financial indicators have developed very well. This year,
profit for the period has improved by 63 percent on the previous year, cash
flow is clearly better and the balance sheet has become stronger. This makes it
possible to develop the company’s operations persistently.
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.
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
Sales volume development
Olvi Group’s sales volume increased in January-September by 5.0 percent to
475.0 (452.1) million litres. The sales volume from July to September was 168.6
(168.0) million litres.
The sales volume increased heavily in Finland both in January-September and in
the third quarter. Sales volume in the other units remained approximately on
par with the previous year.
Sales volume development by unit:
Sales volume, 7-9/ 7-9/ Change 1-9/ 1-9/ Change
million litres 2016 2015 % 2016 2015 %
--------------------------------------------------------------------------------
Finland (Olvi plc) 47.5 41.0 15.7 132.5 110.9 19.5
--------------------------------------------------------------------------------
Estonia (AS A. Le Coq) 31.9 33.7 -5.3 97.0 96.7 0.3
--------------------------------------------------------------------------------
Latvia (A/S Cēsu Alus) 19.2 19.3 -0.4 53.6 54.6 -1.7
--------------------------------------------------------------------------------
Lithuania (AB Volfas 23.9 25.5 -6.1 64.9 66.8 -2.8
Engelman)
--------------------------------------------------------------------------------
Belarus (OAO Lidskoe 51.3 54.0 -5.0 142.2 140.5 1.2
Pivo)
--------------------------------------------------------------------------------
Eliminations -5.2 -5.4 -15.3 -17.3
--------------------------------------------------------------------------------
Total 168.6 168.0 0.3 475.0 452.1 5.0
--------------------------------------------------------------------------------
Net sales development
The Group’s net sales in January-September amounted to 249.7 (241.7) million
euro and in July-September to 89.7 (88.9) million euro. Net sales increased
particularly in Finland, reflecting the strong increase in sales volume. Net
sales for January-September also increased in Estonia and Latvia.
Net sales development by unit:
Net sales, million euro 7-9/ 7-9/ Change 1-9/ 1-9/ Change
2016 2015 % 2016 2015 %
--------------------------------------------------------------------------------
Finland (Olvi plc) 32.4 28.4 14.1 89.6 76.9 16.5
--------------------------------------------------------------------------------
Estonia (AS A. Le Coq) 20.4 20.7 -1.5 61.7 59.5 3.7
--------------------------------------------------------------------------------
Latvia (A/S Cēsu Alus) 9.3 9.1 2.2 25.4 24.8 2.7
--------------------------------------------------------------------------------
Lithuania (AB Volfas 10.3 11.1 -7.7 27.4 28.5 -3.7
Engelman)
--------------------------------------------------------------------------------
Belarus (OAO Lidskoe 19.7 22.1 -10.6 52.6 59.5 -11.6
Pivo)
--------------------------------------------------------------------------------
Eliminations -2.4 -2.5 -7.1 -7.5
--------------------------------------------------------------------------------
Total 89.7 88.9 0.9 249.7 241.7 3.3
--------------------------------------------------------------------------------
EARNINGS DEVELOPMENT
The Group’s operating profit in January-September stood at 35.1 (31.8) million
euro, or 14.1 (13.2) percent of net sales. Operating profit in
January-September increased particularly in Finland, Estonia and Latvia.
Operating profit in July-September increased by 7.5 percent and stood at 15.2
(14.1) million euro, which was 16.9 (15.9) percent of net sales.
Operating profit development by unit:
Operating profit, 7-9/ 7-9/ Change 1-9/ 1-9/ Change
million euro 2016 2015 % 2016 2015 %
--------------------------------------------------------------------------------
Finland (Olvi plc) 4.5 3.1 43.8 9.6 6.0 60.7
--------------------------------------------------------------------------------
Estonia (AS A. Le Coq) 5.0 5.1 -3.4 13.5 12.8 5.8
--------------------------------------------------------------------------------
Latvia (A/S Cēsu Alus) 1.2 1.3 -2.5 2.9 2.5 14.9
--------------------------------------------------------------------------------
Lithuania (AB Volfas 1.4 1.5 -8.8 2.2 2.3 -3.4
Engelman)
--------------------------------------------------------------------------------
Belarus (OAO Lidskoe 3.1 3.3 -6.4 6.8 8.4 -19.7
Pivo)
--------------------------------------------------------------------------------
Eliminations 0.1 -0.2 0.2 -0.1
--------------------------------------------------------------------------------
Total 15.2 14.1 7.5 35.1 31.8 10.3
--------------------------------------------------------------------------------
The Group’s profit after taxes in January-September increased by 62.6 percent
on the previous year, amounting to 27.9 (17.2) million euro. Profit after taxes
from July to September stood at 13.4 (7.6) million euro.
Earnings per share calculated from the profit belonging to parent company
shareholders in January-September stood at 1.34 (0.83) euro, and the
July-September figure was 0.64 (0.37) euro.
In addition to improved operating profit, the increase in profit for the period
and earnings per share was fuelled by lower net financial expenses compared to
the previous year. Profit for the comparison year included unrealised exchange
rate differences related to the Belarusian subsidiary, which were recognised in
financial items.
BALANCE SHEET, FINANCING AND INVESTMENTS
Olvi Group’s balance sheet total at the end of September 2016 was 322.6 (326.0)
million euro. Equity per share at the end of September 2016 stood at 9.32
(8.73) euro. The equity ratio became even stronger at 60.4 (56.1) percent and
the gearing ratio was 9.9 (31.7) percent.
The amount of interest-bearing liabilities declined heavily and stood at 29.8
(65.1) million euro at the end of September, including current liabilities of
13.7 (35.5) million euro.
Olvi Group’s gross capital expenditure in January-September amounted to 15.7
(21.1) million euro. The parent company Olvi accounted for 4.4 million euro,
the Baltic subsidiaries for 8.6 million euro and Lidskoe Pivo in Belarus for
2.7 million euro of the total. The largest individual investment in 2016 has
been the extension to the warehouse in Lithuania.
PRODUCT DEVELOPMENT
Research and development includes projects to design and develop new products,
packages, processes and production methods, as well as further development of
existing products and packages. The R&D costs have been recognised as expenses.
The main objective of Olvi Group’s product development is to create new
products for profitable and growing beverage segments.
NEW PRODUCTS
Finland
The most important product launch in the autumn was the new vitamin water
Health Lab with three products: Power, Balance and Vitality. The Kane’s Soda
Pop soft drink range was expanded with the new flavour ginger-lemon grass. At
the same time, half-litre plastic bottles in a designated Kane’s shape were
launched for the product range. The range of Olvi specialty beers was expanded
with Olvi Black IPA (4.7%).
Subsidiaries
A. Le Coq in Estonia launched the new specialty beer Kihnu Jõnn, which is a
pale smoke lager. The cider range saw the introduction of Linda Pihl, which has
a semi-sweet rowan berry flavour.
Cēsu Alus in Latvia launched a new brand in the long drinks category, Cēsu BAR
Cocktails with three flavour variants. It has an alcohol content of 15% and is
packaged in 0.275-litre glass bottles with screw-off caps.
Volfas Engelman in Lithuania launched five different beers, three of them under
the Volfas Engelman brand, one under the Horn Disel brand and one under the
1410 brand. The beers are Volfas Engelman Delikatus, Volfas Engelman
Tradiciskas, Volfas Engelman Tamsusis Azuolas, Horn Disel Tradicinis and 1410
Tamsusis Elis.
The Belarusian subsidiary Lidskoe Pivo did not launch any new products in the
third quarter.
Detailed information on new products can be found on each company’s Web site.
PERSONNEL
Olvi Group’s average number of personnel in January-September was 1,895
(1,970). The average number in July-September was 1,905 (1,978).
The Group’s average number of personnel decreased in January-September by 73
people in Belarus and 15 people in Finland. The decrease reflects the effect of
operational efficiency measures.
Olvi Group’s average number of personnel by country:
7-9/ 2016 7-9/ 2015 Change % 1-9/ 2016 1-9/ 2015 Change %
-------------------------------------------------------------------------
Finland 353 338 4.4 333 348 -4.3
-------------------------------------------------------------------------
Estonia 350 348 0.6 346 343 0.9
-------------------------------------------------------------------------
Latvia 218 203 7.4 216 206 4.9
-------------------------------------------------------------------------
Lithuania 237 238 -0.4 235 235 0.0
-------------------------------------------------------------------------
Belarus 747 851 -12.2 765 838 -8.7
-------------------------------------------------------------------------
Total 1905 1978 -3.7 1895 1970 -3.8
-------------------------------------------------------------------------
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 parent company is represented in the subsidiaries’
Boards of Directors by 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.
GROUP STRUCTURE
During 2016, Olvi Group has acquired 31 shares in the subsidiary A/S Cēsu Alus.
Olvi’s holdings in the subsidiaries are:
30 September 2016 31 Change
December 2015
-----------------------------------------------------------------------
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 September 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 interim report, in Table 5, Section 4.
The total trading volume of Olvi A shares on Nasdaq OMX Helsinki Ltd (Helsinki
Stock Exchange) in January-September 2016 was 671,434 (1,810,277) shares, which
represented 3.9 (10.6) percent of all Series A shares. The value of trading was
16.4 (43.4) million euro.
The Olvi A share was quoted on Nasdaq OMX Helsinki Ltd at 26.45 (22.09) euro at
the end of September 2016. In January-September, the highest quote for the
Series A share was 27.80 (27.20) euro and the lowest quote was 20.30 (20.51)
euro. The average price in January-September was 24.42 (23.97) euro.
At the end of September 2016, the market capitalisation of Series A shares was
450.1 (376.1) million euro and the market capitalisation of all shares was
548.8 (458.6) million euro.
The number of shareholders at the end of September 2016 was 9,983 (10,034).
Foreign holdings plus foreign and Finnish nominee-registered holdings
represented 22.4 (22.4) percent of the total number of book entries and 5.1
(5.1) percent of total votes.
Foreign and nominee-registered holdings are reported in Table 5, Section 9 of
the tables attached to this interim report, and the largest shareholders are
reported in Table 5, Section 10.
Treasury shares
Olvi acquired 5,500 of its own Series A shares in January-June 2016. The
purchase price was 120,139 euro. There were no changes in the number of
treasury shares held by Olvi in July-September 2016. At the end of the
reporting period, Olvi held 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 interim report.
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-September 2016, Olvi has not received any 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.
Other short-term risks and uncertainties are related to continuing negative
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.
ANNUAL GENERAL MEETING
All decisions made at the General Meeting can be found in the bulletin released
on 14 April 2016.
NEAR-TERM OUTLOOK
Olvi estimates that the Group’s sales volume and net sales for 2016 will
increase slightly on the previous year. Operating profit for 2016 is estimated
to be on a par with the previous year or increase slightly.
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 interim report bulletin, Table 5
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Key media
www.olvi.fi
OLVI GROUP TABLE 1
INCOME STATEMENT
EUR 1,000
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2016 2015 2016 2015 2015
Net sales 89681 88922 249696 241664 310494
Other operating income 367 229 1385 1309 1743
Operating expenses -70086 -70855 -202127 -198966 -257732
Depreciation and impairment -4791 -4183 -13847 -12178 -16348
Operating profit 15171 14113 35107 31829 38157
Financial income 140 -375 1044 299 281
Financial expenses -152 -5927 -1916 -11256 -11641
Share of profit in associates 0 0 0 0 21
Earnings before tax 15159 7811 34235 20872 26818
Taxes *) -1730 -196 -6303 -3697 -4598
NET PROFIT FOR THE PERIOD 13429 7615 27932 17175 22220
Other comprehensive income items:
Translation differences related to
foreign subsidiaries 1694 -5881 -3697 -13441 -14620
TOTAL COMPREHENSIVE INCOME FOR THE 15123 1734 24235 3734 7600
PERIOD
Distribution of profit:
- parent company shareholders 13256 7735 27734 17265 22334
- non-controlling interests 173 -120 198 -90 -114
Distribution of comprehensive income:
- parent company shareholders 14906 2122 24122 4442 8358
- non-controlling interests 217 -388 113 -708 -758
Earnings per share calculated from the profit
belonging
to parent company shareholders, EUR
- undiluted 0.64 0.37 1.34 0.83 1.08
- diluted 0.64 0.37 1.34 0.83 1.08
*) Taxes calculated from the profit for the review period.
OLVI GROUP TABLE 2
BALANCE SHEET
EUR 1,000
30 September 30 31 December
2016 September 2015
2015
ASSETS
Non-current assets
Tangible assets 194758 185426 185240
Goodwill 15693 16122 16017
Other intangible assets 5240 4234 4183
Shares in associates 1146 1125 1146
Financial assets available for sale 543 544 543
Loans receivable and other 311 333 310
non-current receivables
Deferred tax receivables 261 168 147
Total non-current assets 217952 207952 207586
Current assets
Inventories 35037 43359 42236
Accounts receivable and other 59066 66418 51232
receivables
Income tax receivable 0 787 236
Other non-current assets held for 2 421 421
sale
Liquid assets 10528 7095 12786
Total current assets 104633 118080 106911
TOTAL ASSETS 322585 326032 314497
SHAREHOLDERS’ EQUITY AND LIABILITIES
Shareholders’ equity held by parent company shareholders
Share capital 20759 20759 20759
Other reserves 1092 1092 1092
Treasury shares -228 -8 -108
Translation differences -40552 -35787 -36940
Retained earnings 212348 195221 200415
193419 181277 185218
Share belonging to non-controlling 1513 1496 1447
interests
Total shareholders’ equity 194932 182773 186665
Non-current liabilities
Financial liabilities 16114 29640 24179
Other liabilities 11 0 4
Deferred tax liabilities 7852 6045 6777
Current liabilities
Financial liabilities 13702 35474 22683
Accounts payable and other 87963 71176 74153
liabilities
Income tax liability 2011 924 36
Total liabilities 127653 143259 127832
TOTAL SHAREHOLDERS’ EQUITY AND 322585 326032 314497
LIABILITIES
OLVI GROUP TABLE 3
CHANGES IN
SHAREHOLDERS’ EQUITY
EUR 1,000 Share Other Treasur Transla Retain Share of Total
capita reserve y tion ed non-controllin
l s shares differe earnin g interests
reserve nces gs
Shareholders’ 20759 1092 -8 -22964 191408 2252 192539
equity 1 Jan
2015
Comprehensive
income:
Net profit 17265 -90 17175
for the
period
Other comprehensive
income
items:
Translation -12823 -168 -13441
differences
Total comprehensive -12823 17265 -708 3734
income for the
period
Transactions with
shareholders:
Payment of -13492 -47 -13539
dividends
Share-based 40 40
incentives
Total transactions with -13452 -47 -13499
shareholders
Changes in holdings in
subsidiaries:
Acquisition of shares from
non-controlli 0 0
ng
interests
Change in share belonging to
non- controlling
interests 0 -1 -1
Total changes in holdings in 0 -1 -1
subsidiaries
Shareholders’ 20759 1092 -8 -35787 195221 1496 182773
equity 30
Sep 2015
EUR 1,000 Share Other Treasur Transla Retain Share of Total
capita reserve y tion ed non-controllin
l s shares differe earnin g interests
reserve nces gs
Shareholders’ 20759 1092 -108 -36940 200415 1447 186665
equity 1 Jan
2016
Comprehensive
income:
Net profit 27734 198 27932
for the
period
Other comprehensive
income
items:
Translation -3612 -85 -3697
differences
Total comprehensive -3612 27734 113 24235
income for the
period
Transactions with
shareholders:
Payment of -14523 -42 -14565
dividends
Acquisition of treasury shares -120 -120
Share-based incentives 159 159
Change in accounting policies -1437 -3 -1440
Total transactions with -120 -15801 -45 -15966
shareholders
Changes in holdings in
subsidiaries:
Acquisition of shares from
non-controlli 1 1
ng
interests
Change in share belonging to
non-
controlling
interests -1 -2 -3
Total changes in holdings in subsidiaries 0 -2 -2
Shareholders’ 20759 1092 -228 -40552 212348 1513 194932
equity 30
Sep 2016
Other reserves include the share premium account, legal reserve and
other reserves.
OLVI GROUP TABLE 4
CASH FLOW STATEMENT
EUR 1,000
1-9/201 1-9/20 1-12/2015
6 15
Net profit for the period 27932 17175 22220
Adjustments to profit for the 19104 23227 28684
period
Change in net working capital -942 -3909 14169
Interest paid -574 -738 -1113
Interest received 296 141 228
Taxes paid -2221 -1841 -2520
Cash flow from operations (A) 43595 34055 61668
Investments in tangible and intangible
assets -15683 -21366 -25100
Sales gains from tangible and intangible
assets 427 194 249
Expenditure on other investments 0 5 -16
Cash flow from investments (B) -15256 -21167 -24867
Withdrawals of loans 745 20571 20360
Repayments of loans -16928 -17313 -35250
Acquisition of treasury shares -120 0 -64
Dividends paid -14528 -13509 -13514
Increase (-) / decrease (+) in current interest-
bearing business receivables 31 7 -8
Increase (-) / decrease (+) in long-term
loan receivables -8 3 26
Cash flow from financing (C) -30808 -10241 -28450
Increase (+)/decrease (-) in -2469 2647 8351
liquid assets (A+B+C)
Liquid assets 1 January 12786 4382 4382
Effect of exchange rate changes 211 66 53
Liquid assets 30 Sep/31 Dec 10528 7095 12786
OLVI GROUP
TABLE 5
NOTES TO THE INTERIM REPORT
Except for the changes detailed below, the accounting policies used for this
interim report are the same as those used for the annual financial statements
2015. The accounting policies are presented in the Annual Report 2015, which
was published on 24 March 2016.
The Group has adopted the following new or revised standards and
interpretations in 2016:
- Annual improvements to 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 will be presented as a current
liability on the balance sheet.
The information in the interim report is presented in thousands of euros (EUR
1,000). For the sake of presentation, individual figures and totals have been
rounded to full thousands, which causes rounding differences in additions. The
information disclosed in the interim report is unaudited.
1. SEGMENT INFORMATION
SALES VOLUME BY GEOGRAPHICAL SEGMENT (1,000 litres)
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2016 2015 2016 2015 2015
Olvi Group total 168552 168031 474951 452127 579901
Finland 47486 41047 132523 110888 148029
Estonia 31860 33657 97023 96727 123871
Latvia 19191 19266 53620 54565 68122
Lithuania 23894 25452 64889 66774 84877
Belarus 51332 54026 142194 140510 175129
- sales between segments -5211 -5417 -15298 -17337 -20127
NET SALES BY GEOGRAPHICAL SEGMENT (EUR 1,000)
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2016 2015 2016 2015 2015
Olvi Group total 89681 88922 249696 241664 310494
Finland 32386 28377 89561 76851 102869
Estonia 20423 20729 61726 59508 75790
Latvia 9263 9061 25444 24775 31188
Lithuania 10278 11137 27410 28465 35843
Belarus 19726 22074 52639 59519 73550
- sales between segments -2395 -2456 -7084 -7454 -8746
OPERATING PROFIT BY GEOGRAPHICAL SEGMENT (EUR 1,000)
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2016 2015 2016 2015 2015
Olvi Group total 15171 14113 35107 31829 38157
Finland 4476 3113 9579 5962 7839
Estonia 4958 5134 13483 12745 15913
Latvia 1248 1280 2879 2506 2987
Lithuania 1378 1511 2220 2298 2610
Belarus 3052 3260 6785 8446 8838
- eliminations 59 -185 161 -128 -30
2. PERSONNEL ON AVERAGE
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2016 2015 2016 2015 2015
Finland 353 338 333 348 336
Estonia 350 348 346 343 336
Latvia 218 203 216 206 206
Lithuania 237 238 235 235 233
Belarus 747 851 765 838 829
Total 1905 1978 1895 1970 1940
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
1-9/ 1-9/ 1-12/
2016 2015 2015
Managing Director 310 268 350
Chairman of the Board 49 67 83
Other members of the Board 102 109 150
Total 461 444 583
4. SHARES AND SHARE CAPITAL
30 September 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 30 September 2016 totalled 20,759 thousand euro.
Olvi plc’s Series A and Series K 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 two active share-based incentive plans for key personnel. 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.
The bonuses for the performance periods (2014-2016/2017) will be paid in 2017
partially in Olvi plc Series A shares and 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 40,000 series A shares in Olvi plc
and a cash payment needed for taxes and tax-related costs arising from the
shares. The share-based incentive plan includes one three-year performance
period, calendar years 2014–2016. The potential reward from the performance
period 2014–2016 will be based on Olvi Group’s cumulative operating profit,
also known as earnings before interest and taxes (EBIT).
Furthermore, the plan includes one three-year performance period, beginning on
1 July 2014 and ending on 30 June 2017. The prerequisite for receiving 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 September 2016, accounting
entries associated with the performance period from 1 July 2014 to 30 June 2017
were recognised for a total of 65.8 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 plan is
directed to approximately 50 people. The rewards to be paid on the basis of the
plan are in total a maximum of 36,280 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 as expenses over the performance period
from 1 July 2016 to 30 June 2018. From January to September 2016, costs
associated with the plan established on 24 February 2016 were recognised for a
total of 179.5 thousand euro.
Olvi Group does not have any other share-based plans or option plans.
6. TREASURY SHARES
Olvi acquired 5,500 of its own Series A shares in January-June 2016. The
purchase price was 120,139 euro. There were no changes in the number of
treasury shares held by Olvi in July-September 2016. At the end of the
reporting period, Olvi held 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 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.
7. NUMBER OF SHARES *) 1-9/2016 1-9/2015 1-12/2015
- average 20747761 20757684 20757645
- at end of period 20747684 20757684 20753184
*) Treasury shares deducted.
8. TRADING OF SERIES A SHARES ON THE HELSINKI STOCK
EXCHANGE
1-9/2016 1-9/2015 1-12/2015
Trading volume of Olvi A shares 671434 1810277 2036830
Total trading volume, EUR 1,000 16384 43408 48413
Traded shares in proportion to
all Series A shares, % 3.9 10.6 12.0
Average share price, EUR 24.42 23.97 23.76
Price on the closing date, EUR 26.45 22.09 22.19
Highest quote, EUR 27.80 27.20 27.20
Lowest quote, EUR 20.30 20.51 20.51
9. FOREIGN AND NOMINEE-REGISTERED HOLDINGS ON 30 SEPTEMBER 2016
Book entries Votes Shareholders
qty % qty % qty %
Finnish total 16110944 77.62 87023808 94.93 9828 99.34
Foreign total 401343 1.93 401343 0.44 56 0.57
Nominee-registered (foreign) 93928 0.45 93928 0.10 4 0.04
total
Nominee-registered (Finnish) 4152593 20.00 4152593 4.53 5 0.05
total
Total 20758808 100.00 91671672 100.00 9893 100.00
10. LARGEST SHAREHOLDERS ON 30
SEPTEMBER 2016
Series K Series A Total % Votes %
1. Olvi 2363904 890613 3254517 15.68 48168693 52.54
Foundation
2. The Estate 903488 103280 1006768 4.85 18173040 19.82
of Hortling
Heikki *)
3. The Estate 187104 25248 212352 1.02 3767328 4.11
of Hortling
Kalle Einari
4. Hortling 165824 36308 202132 0.97 3352788 3.66
Timo Einari
5. OP Corporate Bank plc, 2153872 2153872 10.38 2153872 2.35
nominee reg.
6. 102288 3380 105668 0.51 2049140 2.24
Hortling-Rinne
Laila Marit
7. Nordea Bank Finland 1943122 1943122 9.36 1943122 2.12
plc, nominee register
8. Ilmarinen Mutual 849218 849218 4.09 849218 0.93
Pension Insurance Company
9. Varma Mutual Pension 828075 828075 3.99 828075 0.90
Insurance Company
10. AC Invest Oy 460000 460000 2.22 460000 0.50
Others 9648 9733436 9743084 46.93 9926396 10.83
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
1-9/2016 1-9/2015 1-12/2015
Opening balance 185240 192149 192149
Additions *) 28289 20757 25495
Deductions and transfers -2775 -130 -390
Depreciation -12802 -11548 -15495
Exchange rate differences -3194 -15802 -16519
Total 194758 185426 185240
*) The additions in 2016 include a reclassification of recyclable packaging
arising from changes to accounting policies, totalling 13.0 million euro.
12. CONTINGENT LIABILITIES
EUR 1,000
30 September 30 September 31 December
2016 2015 2015
Pledges and contingent liabilities
For own commitments 2352 2422 2352
Leasing and rental liabilities:
Due within one year 1328 1153 1402
Due within 1 to 5 years 1770 1260 1179
Due in more than 5 years 3 5 4
Leasing and rental liabilities 3101 2418 2585
total
Package liabilities 0 2771 3234
Other liabilities 2000 2000 2000
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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