2016-02-25 08:01:06 CET
2016-02-25 08:01:06 CET
REGLERAD INFORMATION
Olvi Oyj - Financial Statement Release
OLVI GROUP’S FINANCIAL STATEMENTS JANUARY TO DECEMBER 2015
Olvi Group's fourth-quarter net sales and operating profit improved on the
previous year. Full-year operating profit declined slightly but profitability
remained on a strong level and cash flow from operations clearly increased. The
balance sheet became even stronger.
Iisalmi, 2016-02-25 08:00 CET (GLOBE NEWSWIRE) -- OLVI PLC
FINANCIAL STATEMENTS BULLETIN 25 FEB 2016 at 9:00 am
OLVI GROUP’S FINANCIAL STATEMENTS JANUARY TO DECEMBER 2015
FINANCIAL PERFORMANCE IN BRIEF
Olvi Group’s fourth-quarter net sales and operating profit improved on the
previous year. Full-year operating profit declined slightly but profitability
remained on a strong level and cash flow from operations clearly increased. The
balance sheet became even stronger.
October to December 2015
- Olvi Group’s sales volume was 127.8 (127.2) million litres
- The Group’s net sales increased by 3.8 percent and amounted to 68.8 (66.3)
million euro
- The Group’s operating profit increased by 40.6 percent and amounted to 6.3
(4.5) million euro
- Net profit for the period increased by 38.3 percent to 5.0 (3.6) million euro.
- Olvi Group’s earnings per share stood at 0.24 (0.18) euro per share
Full year 2015:
- Olvi Group’s sales volume was 579.9 (576.5) million litres
- The Group’s net sales decreased slightly and totalled 310.5 (320.8) million
euro
- The Group’s reported operating profit declined slightly, amounting to 38.2
(41.0) million euro
- Net profit amounted to 22.2 million euro (33.1). The decline in profit was
affected 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 1.08 (1.57) euro per share
- The equity ratio improved again, standing at 59.4 (57.9) percent
- Cash flow from operations clearly increased on the previous year, amounting to
61.7 (46.3) million euro
The Board proposes a dividend of 0.70 (0.65) euro per share.
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.
CONSOLIDATED KEY RATIOS
10-12/ 10-12/ Change % 1-12/ 1-12/ Change %
2015 2014 / pp 2015 2014 / pp
--------------------------------------------------------------------------------
Sales volume, Mltr 127.8 127.2 0.5 579.9 576.5 0.6
--------------------------------------------------------------------------------
Net sales, MEUR 68.8 66.3 3.8 310.5 320.8 -3.2
--------------------------------------------------------------------------------
EBITDA, MEUR 10.5 8.2 28.2 54.5 55.9 -2.5
--------------------------------------------------------------------------------
% of net sales 15.3 12.3 17.6 17.4
--------------------------------------------------------------------------------
Operating profit, 6.3 4.5 40.6 38.2 41.0 -6.9
MEUR
--------------------------------------------------------------------------------
% of net sales 9.2 6.8 12.3 12.8
--------------------------------------------------------------------------------
Net profit for the 5.0 3.6 38.3 22.2 33.1 -32.8
period
--------------------------------------------------------------------------------
% of net sales 7.3 5.5 7.2 10.3
--------------------------------------------------------------------------------
Earnings per share, 0.24 0.18 33.3 1.08 1.57 -31.2
EUR
--------------------------------------------------------------------------------
Gross capital 4.8 9.7 -50.4 26.0 41.6 -37.6
expenditure, MEUR
--------------------------------------------------------------------------------
Equity per share, EUR 8.92 9.17 -2.7
--------------------------------------------------------------------------------
Equity to total 59.4 57.9 1.5
assets, %
--------------------------------------------------------------------------------
Gearing, % 18.3 29.8 -11.5
--------------------------------------------------------------------------------
BUSINESS DEVELOPMENT
LASSE AHO, MANAGING DIRECTOR:
In the fourth quarter, Olvi Group’s business developed favourably. The Group’s
sales volume, net sales and, above all, operating profit improved on the
previous year.
The full-year result fell slightly short of the previous year. The operating
environment in 2015 was challenging, and the total markets in Olvi Group’s
operating area clearly diminished, particularly in the high-season months.
Taking this into account, the slight increase in the Group’s sales volume and
also the earnings development can be considered good performance. The market
decline, and also Olvi Group’s performance, were affected by cool and rainy
weather in Finland and the Baltic states during the most important high-season
months, as well as negative economic and currency development in Belarus. In
spite of the overall market decline, operating profits in Finland and the
Baltic states improved both in the fourth quarter and for the full year.
Profitability in Finland improved through cost savings, efficiency measures and
sales actions particularly in the latter half of the year. Operating profit
improved by 16.2 percent for the full year and 95.9 percent in the fourth
quarter. A slight improvement was also seen in market share.
All in all, development in the Baltic states was good in 2015. Profitability in
Estonia remained on a very strong level even though sales volume and earnings
fell short of the previous year due to a diminishing market. Fourth-quarter
operating profit in Estonia improved by 42.5 percent. Our Estonian company A.
Le Coq retained its clear market leadership within the country’s beverage
industry. The company was awarded the most competitive food industry company in
Estonia for the tenth time. Business in Latvia developed favourably in 2015.
Operating profit in Latvia increased by 45.1 percent during 2015, reaching an
all-time high along the company’s history. In Lithuania, the market share
strengthened and sales volume increased during 2015. Operating profit in
Lithuania improved by 10.8 percent on the previous year. Our Lithuanian company
Volfas Engelman was ranked as the best Lithuanian company in the European
Business Awards competition. The primary criteria for the choice were
innovation, financial performance and business ethics.
The market situation in Belarus is more difficult compared to other parts of
the Group due to challenges coming from the operating environment. Strong
devaluation of the local currency in 2015 on the one hand, and a rapid rise of
costs on the other, had a negative impact on the company’s earnings development
measured in euro. The business as such continued to develop favourably and the
company’s sales volume increased during the year, clearly outperforming the
country’s market development. One of the most important successes in 2015 is
the newly initiated co-operation with PepsiCo, which was reflected as a steady
increase in market share in 2015 and which is believed to boost the soft drinks
market share of Olvi’s Belarusian unit also in upcoming years.
The development of Olvi Group’s business is supported by the great appreciation
enjoyed by our brands. The parent company’s Sandels and Olvi were elected the
most appreciated brands of beer in Finland. Lidskoe beer was ranked as the
number one brand in the Belarusian market according to two different market
surveys. Our Lithuanian subsidiary’s beer brand Volfas Engelman was successful
in an annual customer survey, ranking second in a comparison of most liked beer
brands. Volfas Engelman was also the most popular consumer brand in a
competition arranged by the Lithuanian newspaper Verslo žinios.
During 2015, the Group invested 26.0 million euro in capital expenditure. A
logistics investment in Finland was completed during the spring, allowing more
efficient operations. Investments carried out in 2015 increased the production
capacity in Finland. Thanks to substantial investment efforts in recent years,
our production facilities are in good shape, allowing efficient operation and
growth well into the future.
The Group’s balance sheet became even stronger during 2015. The equity ratio
improved to 59.4 percent while the gearing ratio dropped to 18.3 percent. Cash
flow from operations increased clearly and totalled 61.7 (46.3) million euro.
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 2015 made an all-time high of 579.9 (576.5)
million litres. This represents an increase of 3.4 million litres or 0.6
percent.
The strongest growth was seen in Belarus (increase 5.2 million litres) and in
Lithuania (increase 3.8 million litres). Sales volumes declined in Finland,
Estonia and Latvia particularly due to cool and rainy weather in the
high-season months.
The Group’s sales volume increased slightly also in the fourth quarter.
Sales volume, million 10-12/ 10-12/ Change 1-12/ 1-12/ Change
litres 2015 2014 % 2015 2014 %
--------------------------------------------------------------------------------
Finland (Olvi plc) 37.1 37.1 0.1 148.0 151.8 -2.5
--------------------------------------------------------------------------------
Estonia (AS A. Le Coq) 27.1 27.0 0.6 123.9 131.6 -5.8
--------------------------------------------------------------------------------
Latvia (A/S Cēsu Alus) 13.6 12.9 5.1 68.1 76.1 -10.5
--------------------------------------------------------------------------------
Lithuania (AB Volfas 18.1 18.2 -0.4 84.9 81.1 4.7
Engelman)
--------------------------------------------------------------------------------
Belarus (OAO Lidskoe 34.6 34.7 -0.2 175.1 169.9 3.1
Pivo)
--------------------------------------------------------------------------------
Eliminations -2.8 -2.7 -20.1 -34.0
--------------------------------------------------------------------------------
Total 127.8 127.2 0.5 579.9 576.5 0.6
--------------------------------------------------------------------------------
The Group’s net sales in 2015 declined by 3.2 percent and amounted to 310.5
(320.8) million euro. The net sales decline reflects a diminishing market,
intense price competition and devaluation of the Belarusian exchange rate.
The Group’s net sales increased by 3.8 percent in the fourth quarter. Above
all, net sales increased in Belarus and Latvia.
Net sales, million 10-12/ 10-12/ Change 1-12/ 1-12/ Change
euro 2015 2014 % 2015 2014 %
--------------------------------------------------------------------------------
Finland (Olvi plc) 26.0 25.1 3.5 102.9 105.3 -2.3
--------------------------------------------------------------------------------
Estonia (AS A. Le Coq) 16.3 16.3 0.0 75.8 80.7 -6.0
--------------------------------------------------------------------------------
Latvia (A/S Cēsu Alus) 6.4 5.5 17.3 31.2 34.1 -8.6
--------------------------------------------------------------------------------
Lithuania (AB Volfas 7.4 7.6 -3.2 35.8 36.1 -0.8
Engelman)
--------------------------------------------------------------------------------
Belarus (OAO Lidskoe 14.0 12.9 8.3 73.6 78.6 -6.4
Pivo)
--------------------------------------------------------------------------------
Eliminations -1.3 -1.1 -8.7 -14.0
--------------------------------------------------------------------------------
Total 68.8 66.3 3.8 310.5 320.8 -3.2
--------------------------------------------------------------------------------
EARNINGS DEVELOPMENT
The Group’s operating profit for January-December declined by 6.9 percent and
amounted to 38.2 (41.0) million euro, or 12.3 (12.8) percent of net sales. In
spite of the decline in consolidated operating profit, earnings improved in
Finland, Latvia and Lithuania.
There was a slight drop in earnings in Estonia but profitability remained on a
very strong level. Operating profit in Belarus declined by 32.6 percent or 4.3
million euro due to a diminishing market and devaluation of the exchange rate.
The Group’s fourth-quarter operating profit increased by 40.6 percent and
amounted to 6.3 (4.5) million euro. Operating profit improved in Finland,
Estonia and Latvia.
Operating profit, 10-12/ 10-12/ Change 1-12/ 1-12/ Change
million euro 2015 2014 % 2015 2014 %
--------------------------------------------------------------------------------
Finland (Olvi plc) 1.9 1.0 96.0 7.8 6.7*) 5.4
--------------------------------------------------------------------------------
Estonia (AS A. Le Coq) 3.2 2.2 42.5 15.9 16.5 -3.6
--------------------------------------------------------------------------------
Latvia (A/S Cēsu Alus) 0.5 -0.1 3.0 2.1 45.1
--------------------------------------------------------------------------------
Lithuania (AB Volfas 0.3 0.5 -33.0 2.6 2.4 10.8
Engelman)
--------------------------------------------------------------------------------
Belarus (OAO Lidskoe 0.4 0.9 -53.7 8.8 13.1 -32.6
Pivo)
--------------------------------------------------------------------------------
Eliminations 0.1 0.1 -0.0 0.2*)
--------------------------------------------------------------------------------
Total 6.3 4.5 40.6 38.2 41.0 -6.9
--------------------------------------------------------------------------------
*) Reported operating profit in Finland 1-12/2014 stood at 7.4 million euro.
The reported operating profit included non-recurring income of 0.7 million euro
attributable to an intra-Group sales gain. The country-specific data for 2014
has been adjusted for comparability with the 1-12/2015 figures.
The Group’s fourth-quarter net profit improved by 38.3 percent and amounted to
5.0 (3.6) million euro. The Group’s full-year profit in 2015 totalled 22.2
(33.1) million euro.
Earnings per share calculated from the profit belonging to parent company
shareholders in January-December stood at 1.08 (1.57) euro, and the
fourth-quarter figure was 0.24 (0.18) euro.
Net profit for the period and earnings per share were burdened by unrealised
exchange rate losses on an intra-Group loan targeted at investments in Belarus.
The losses 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 2015 was 314.5 (332.8)
million euro. Equity per share at the end of 2015 stood at 8.92 (9.17) euro.
The equity ratio improved and stood at 59.4 (57.9) percent. The Group’s
interest-bearing net liabilities decreased by 23.2 million euro during 2015 and
amounted to 34.1 million euro at year-end (57.3). The gearing ratio declined
substantially during 2015 and stood at 18.3 (29.8) percent. Cash flow from
operations increased clearly and totalled 61.7 (46.3) million euro. The current
ratio, which represents the Group’s liquidity, was 1.1 (1.1).
Olvi Group’s gross capital expenditure in 2015 amounted to 26.0 (41.6) million
euro. The parent company Olvi accounted for 3.9 million euro, the Baltic
subsidiaries for 7.6 million euro and Lidskoe Pivo in Belarus for 14.5 million
euro of the total. Capital expenditure declined clearly on the previous year.
The largest investments were targeted at increasing production capacity in
Belarus.
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 2015 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 1,940 (1,958).
The Group’s average number of personnel decreased by 18 people or 0.9 percent.
The greatest decline in the Group’s average number of personnel was seen in
Finland, where the figure dropped by 33 people. The decline in Finland reflects
the reduction in the number of sales promoters as well as the effects of the
efficiency measures and reorganisation carried out after the statutory
co-operation negotiations completed in January 2015.
The aggregate number of personnel in the Baltic states increased by 16 people
from January to December. In Belarus, the number of personnel in
January-December remained at the previous year’s level.
Olvi Group’s average number of personnel by country:
10-12/ 2015 10-12/ 2014 Change % 1-12/ 2015 1-12/ 2014 Change %
-------------------------------------------------------------------------------
Finland 299 339 -11.8 336 369 -8.9
-------------------------------------------------------------------------------
Estonia 316 318 -0.6 336 331 1.5
-------------------------------------------------------------------------------
Latvia 204 196 4.1 206 214 -3.7
-------------------------------------------------------------------------------
Lithuania 228 217 5.1 233 214 8.9
-------------------------------------------------------------------------------
Belarus 801 807 -0.7 829 830 -0.1
-------------------------------------------------------------------------------
Total 1848 1877 -1.5 1940 1958 -0.9
-------------------------------------------------------------------------------
MANAGEMENT AND AUDITORS
The Chairman of the Board of Olvi plc is Heikki Hortling, M.Sc. (Econ),
Industrial Counsellor, and the Vice Chairman is Esa Lager, M.Sc. (Econ), LL.M.
Other members of the Board of Directors include Jaakko Autere, M.Sc. (Econ),
Nora Hortling, M.Sc. (Econ) (since 16 April 2015), Elisa Markula, M.Sc. (Econ)
(since 16 April 2015) and Heikki Sirviö, M.Sc. (Engineering), Industrial
Counsellor (since 16 April 2015). In addition, until the Annual General Meeting
of Olvi plc held on 16 April 2015, the members of the Board included Heikki
Sinnemaa, LL.M, and Tarja Pääkkönen, Dr. Tech.
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 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 16 April 2015 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 2014. In accordance with the Board’s proposal, the General Meeting
decided that a dividend of 0.65 (0.65) euro be paid on each A and K share for
the accounting period 2014. The dividends were paid on 30 April 2015.
All decisions made at the General Meeting can be found in the bulletin released
on 16 April 2015.
Changes in corporate structure
In August 2015, Olvi Group acquired 26 shares in the subsidiary A/S Cēsu Alus.
There were no other changes in Olvi’s holdings in subsidiaries in
January-December 2015.
At the end of the accounting period, Olvi’s shares of holding are:
31 Dec 2015 31 Dec 2014 Change
---------------------------------------------------------------
AS A. Le Coq, Estonia 100.00 100.00 -
---------------------------------------------------------------
A/S Cēsu Alus, Latvia 99.87 99.86 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 2015 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 2015 was
2,036,830 (2,174,302) shares, which represented 12.0 (12.8) percent of all
Series A shares. The value of trading was 48.4 (54.3) million euro.
The Olvi A share was quoted on Nasdaq OMX Helsinki (Helsinki Stock Exchange) at
22.19 (21.07) euro at the end of 2015. In January-December, the highest quote
for the Series A share was 27.20 (29.90) euro and the lowest quote was 20.51
(20.70) euro. The average share price in 2015 was 23.76 (25.03) euro.
At the end of December 2015, the market capitalisation of Series A shares was
377.8 (358.7) million euro and the market capitalisation of all shares was
460.6 (437.4) million euro.
The number of shareholders at the end of December 2015 was 10,108 (10,021).
Foreign holdings plus foreign and Finnish nominee-registered holdings
represented 22.4 (20.5) percent of the total number of book entries and 5.1
(4.6) 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
At its meeting on 23 December 2015, the Board of Directors of Olvi plc decided
to exercise the authorisation to purchase treasury shares given by the Annual
General Meeting on 16 April 2015 and acquire a maximum of 10,000 Series A
shares. The acquisition of shares started on 28 December 2015. Between 28
December and 31 December 2015, a total of 4,500 Series A shares were acquired
for a price of 99,492 euro. Olvi plc held a total of 5,624 of its own Series A
shares on 31 December 2015, and the total acquisition price was 108.0 thousand
euro.
Detailed information on treasury shares is provided in Table 5, Section 6 of
the tables attached to this financial statements bulletin.
Flagging notices
During 2015, Olvi has not received any flagging notices in accordance with
Chapter 2, Section 10 of the Securities Markets Act.
EVENTS AFTER THE REVIEW PERIOD
Acquisition of treasury shares
The acquisition of Olvi plc’s own shares continued according to plan in January
2016. Between 1 January and 7 January 2016, a total of 5,500 Series A shares
were acquired. After the completion of the repurchase scheme, Olvi plc holds a
total of 11,124 of its own Series A shares. The total purchase price of
treasury shares was 228,162 euro.
New incentive plan for key personnel
Olvi plc’s Board of Directors has decided on a new share-based incentive plan
for the Group’s key personnel. The aim of the new plan is to combine the
objectives of the shareholders and the key employees in order to increase the
value of the company, to commit the key employees to the company, and to offer
them a competitive reward plan based on earning the company’s shares.
The performance period of the incentive scheme is 2016–2017. The prerequisite
for receiving reward is that a key employee purchases the company’s Series A
shares up to the 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 an approximate maximum of 60,000 Series A shares
in Olvi plc and a cash payment needed for taxes and tax-related costs arising
from the shares.
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.
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.
BOARD OF DIRECTORS’ PROPOSAL FOR THE DISTRIBUTION OF PROFIT
The parent company Olvi plc had 47.7 (49.5) million euro of distributable funds
on 31 December 2015, of which profit for the period accounted for 11.7 (12.5)
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 0.70 (0.65) euro shall be paid for 2015 on each Series K and
Series A share, totalling 14.5 (13.5) million euro. The dividend represents
64.8 (41.4) 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, 18 April
2016. It is proposed that the dividend be paid on 28 April 2016.
No dividend shall be paid on treasury shares.
2) 33.2 million euro shall be retained in the parent company’s non-restricted
equity.
FINANCIAL REPORTS IN 2016
Olvi Group’s financial statements, Board of Directors’ report and Corporate
Governance Statement 2015 will be published on 24 March 2016. The parent
company Olvi plc’s remuneration report will also be published at the same time.
The notice to convene Olvi plc’s Annual General Meeting, which will be held on
14 April 2016 in Iisalmi, will be published on 24 March 2016. 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 2016:
Interim report from January to March on 28 April 2016,
Interim report from January to June on 25 August 2016, and
Interim report from January to September on 27 October 2016.
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
OLVI GROUP TABLE 1
INCOME STATEMENT
EUR 1,000
10-12/2015 10-12/201 1-12/2015 1-12/2014
4
Net sales 68830 66340*) 310494 320785*)
Other operating income 434 589 1743 1626
Operating expenses -58766 -58738*) -257732 -266504*)
Depreciation and impairment -4170 -3691 -16348 -14907
Operating profit 6328 4500 38157 41000
Financial income -18 1508 281 3990
Financial expenses -385 -2326 -11641 -3985
Share of profit in associates 21 48 21 48
Earnings before tax 5946 3730 26818 41053
Taxes **) -901 -81 -4598 -7974
NET PROFIT FOR THE PERIOD 5045 3649 22220 33079
Other comprehensive income items:
Translation differences related to
foreign subsidiaries -1179 -2336 -14620 -2874
TOTAL COMPREHENSIVE INCOME FOR THE 3866 1313 7600 30205
PERIOD
Distribution of profit:
- parent company shareholders 5069 3662 22334 32522
- non-controlling interests -24 -13 -114 557
Distribution of comprehensive income:
- parent company shareholders 3916 1492 8358 29879
- non-controlling interests -50 -179 -758 326
Earnings per share calculated from the profit
belonging
to parent company shareholders, EUR
- undiluted 0.24 0.18 1.08 1.57
- diluted 0.24 0.18 1.08 1.57
*) The previous year’s net sales have been adjusted for comparability with the
year 2015.
**) 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 2015 31 Dec 2014
ASSETS
Non-current assets
Tangible assets 185240 192149
Goodwill 16017 18217
Other intangible assets 4183 4562
Shares in associates 1146 1125
Financial assets available for sale 543 549
Loans receivable and other non-current receivables 310 333
Deferred tax receivables 147 163
Total non-current assets 207586 217098
Current assets
Inventories 42236 43522
Accounts receivable and other receivables 51232 66309
Income tax receivable 236 1023
Other non-current assets held for sale 421 421
Liquid assets 12786 4382
Total current assets 106911 115657
TOTAL ASSETS 314497 332755
SHAREHOLDERS’ EQUITY AND LIABILITIES
Shareholders’ equity held by parent company
shareholders
Share capital 20759 20759
Other reserves 1092 1092
Treasury shares -108 -8
Translation differences -36940 -22964
Retained earnings 200415 191408
185218 190287
Share belonging to non-controlling interests 1447 2252
Total shareholders’ equity 186665 192539
Non-current liabilities
Financial liabilities 24179 30040
Other liabilities 4 2
Deferred tax liabilities 6777 5598
Current liabilities
Financial liabilities 22683 31652
Accounts payable and other liabilities 74153 72899
Income tax liability 36 25
Total liabilities 127832 140216
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 314497 332755
The notes constitute an essential part of the financial statements.
OLVI GROUP
TABLE 3
CHANGES IN SHAREHOLDERS’ EQUITY
Share Other Treasur Transl Retain Share of Total
capital reserv y ation ed non-control
es shares differ earnin ling
account ences gs interests
EUR 1,000
Shareholders’ 20759 1092 -8 -20321 167420 2597 171539
equity 1 Jan
2014
Adjustments for hyperinflation 4263 245 4508
Adjusted 20759 1092 -8 -20321 171683 2842 176047
shareholders’
equity 1 Jan
2014
Comprehensive income:
Net profit for the period 32522 557 33079
Other comprehensive income items:
Translation differences -2643 -231 -2874
Total comprehensive income for the period -2643 32522 326 30205
Transactions with shareholders:
Payment of dividends -13492 -80 -13572
Share-based incentives 27 27
Total transactions with shareholders -13465 -80 -13545
Changes in holdings in subsidiaries:
Acquisition of shares from
non-controlling interests -168 -168
Change in shares held by
non-controlling interests 836 -836 0
Total changes in holdings in subsidiaries 668 -836 -168
Shareholders’ 20759 1092 -8 -22964 191408 2252 192539
equity 31 Dec
2014
Share Other Treasur Transl Retain Share of Total
capital reserv y ation ed non-control
es shares differ earnin ling
account ences gs interests
EUR 1,000
Shareholders’ 20759 1092 -8 -22964 191408 2252 192539
equity 1 Jan
2015
Adjustments for hyperinflation 0 0 0
Adjusted 20759 1092 -8 -22964 191408 2252 192539
shareholders’
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 200415 1447 186665
equity 31 Dec
2015
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
1-12/2015 1-12/2014
Net profit for the period 22220 33079
Adjustments to profit for the period 28684 25699
Change in net working capital 14169 -2358
Interest paid -1113 -3393
Interest received 228 385
Taxes paid -2520 -7063
Cash flow from operations (A) 61668 46349
Investments in tangible and intangible
assets -25100 -43855
Sales gains from tangible and intangible
assets 249 200
Expenditure on other investments -16 -298
Cash flow from investments (B) -24867 -43953
Withdrawals of loans 20360 32657
Repayments of loans -35250 -24542
Acquisition of treasury shares -64 0
Dividends paid -13514 -13531
Increase (-) / decrease (+) in current interest-
bearing business receivables -8 -23
Increase (-) / decrease (+) in long-term
loan receivables 26 16
Cash flow from financing (C) -28450 -5423
Increase (+)/decrease (-) in liquid assets (A+B+C) 8351 -3027
Liquid assets 1 January 4382 7507
Effect of exchange rate changes 53 -98
Liquid assets 31 December 12786 4382
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 2015 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 2015.
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 2015 are the same as
those used for the annual financial statements 2014, however taking into
account the new or revised standards and interpretations that entered into
force as of 1 January 2015:
- Annual improvements 2012
- Annual improvements 2013
- Amendment to IAS 19, “Employee benefits” regarding employee or third party
contributions to defined benefit plans
- IFRIC 21 Levies
The above changes in standards and their interpretations 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.
As of the beginning of the accounting period 2015, Olvi Group has redefined the
accounting for marketing subsidies granted to customers so that they are
deducted from net sales as an sales adjustment item similar to discounts
granted. After the change, the presentation corresponds better to the true
meaning of marketing subsidies. Previously a part of the marketing subsidies
was presented as marketing expenses under other operating expenses.
As of 1 January 2015, Olvi Group has discontinued the application of the IAS 29
Financial Reporting in Hyperinflationary Economies standard in its Belarusian
unit because the Belarusian functional currency is no longer considered
hyperinflationary as referred to in the standard.
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)
10-12/2015 10-12/2014 1-12/2015 1-12/2014
Olvi Group total 127774 127172 579901 576478
Finland 37141 37112 148029 151828
Estonia 27144 26983 123871 131550
Latvia 13557 12897 68122 76096
Lithuania 18103 18170 84877 81054
Belarus 34619 34691 175129 169919
- sales between segments -2790 -2681 -20127 -33969
NET SALES BY GEOGRAPHICAL SEGMENT (EUR 1,000)
10-12/2015 10-12/2014 1-12/2015 1-12/2014
Olvi Group total 68830 66340*) 310494 320785*)
Finland 26018 25148 102869 105329
Estonia 16282 16288 75790 80666
Latvia 6413 5467 31188 34112
Lithuania 7378 7620 35843 36130
Belarus 14031 12950 73550 78554
- sales between segments -1292 -1133 -8746 -14006
*) The previous year’s figures have been adjusted for comparability with the
year 2015.
OPERATING PROFIT BY GEOGRAPHICAL SEGMENT (EUR 1,000)
10-12/2015 10-12/2014 1-12/2015 1-12/2014
Olvi Group total 6328 4500 38157 41000
Finland 1877 968 7839 7436*)
Estonia 3168 2223 15913 16504
Latvia 481 -95 2987 2058
Lithuania 312 465 2610 2356
Belarus 392 848 8838 13117
- eliminations 98 91 -30 -471
*) The operating profit for Finland includes non-recurring income of 0.7
million euro attributable to an intra-Group sales gain.
2. PERSONNEL ON AVERAGE 10-12/2015 10-12/2014 1-12/2015 1-12/2014
Finland 299 339 336 369
Estonia 316 318 336 331
Latvia 204 196 206 214
Lithuania 228 217 233 214
Belarus 801 807 829 830
Total 1848 1877 1940 1958
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
1-12/2015 1-12/2014
Managing Director 350 361
Chairman of the Board 83 84
Other members of the Board 150 125
Total 583 570
4. SHARES AND SHARE CAPITAL
31 Dec 2015 %
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 2015 totalled 20,759 thousand euro.
Olvi plc’s Series A and Series K shares received a dividend of 0.65 euro per
share for 2014 (0.65 euro per share for 2013), totalling 13.5 (13.5) million
euro. The dividends were paid on 30 April 2015. 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 an active share-based incentive plan for key personnel. The aim
of the share-based incentive plan 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.
From January to December 2015, accounting entries associated with the
performance period from 1 July 2014 to 30 June 2017 were recognised for a total
of 88.7 thousand euro.
Olvi Group does not have any other share-based plans or option plans.
6. TREASURY SHARES
Olvi plc held a total of 5,624 of its own Series A shares on 31 December 2015,
and the total acquisition price was 108.0 thousand euro (on 31 December 2014
1,124 shares, acquisition price 8.5 thousand euro).
On 16 April 2015, 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.
At its meeting on 23 December 2015, the Board of Directors of Olvi plc decided
to exercise the authorisation to purchase treasury shares given by the Annual
General Meeting on 16 April 2015 and acquire a maximum of 10,000 Series A
shares. The acquisition of shares started on 28 December 2015. Between 28
December and 31 December 2015, a total of 4,500 Series A shares were acquired
for a price of 99,492 euro.
Series A shares held by Olvi plc as treasury shares represented 0.027 percent
of the share capital and 0.006 percent of the aggregate number of votes. The
treasury shares represented 0.033 percent of all Series A shares and associated
votes.
7. NUMBER OF SHARES *) 1-12/2015 1-12/2014
- average 20757645 20757684
- at end of period 20753184 20757684
*) Treasury shares deducted.
8. TRADING OF SERIES A SHARES ON THE HELSINKI STOCK EXCHANGE
1-12/2015 1-12/2014
Trading volume of Olvi A shares 2036830 2174302
Total trading volume, EUR 1,000 48413 54313
Traded shares in proportion to
all Series A shares, % 12.0 12.8
Average share price, EUR 23.76 25.03
Price on the closing date, EUR 22.19 21.07
Highest quote, EUR 27.20 29.90
Lowest quote, EUR 20.51 20.70
9. FOREIGN AND NOMINEE-REGISTERED HOLDINGS ON 31 DECEMBER 2015
Book entries Votes Shareholders
qty % qty % qty %
Finnish total 16101137 77.56 87014001 94.92 10043 99.36
Foreign total 398678 1.92 398678 0.43 56 0.55
Nominee-registered (foreign) 95997 0.46 95997 0.11 4 0.04
total
Nominee-registered (Finnish) 4162996 20.06 4162996 4.54 5 0.05
total
Total 20758808 100.00 91671672 100.00 10108 100.00
10. LARGEST SHAREHOLDERS ON 31 DECEMBER 2015
Series Series A Total % Votes %
K
1. Olvi Foundation 2363904 890613 3254517 15.68 48168693 52.54
2. Hortling Heikki 903488 103280 1006768 4.85 18173040 19.82
Wilhelm *)
3. The Heirs of Hortling 187104 25248 212352 1.02 3767328 4.11
Kalle
Einari
4. Hortling Timo Einari 165824 35308 201132 0.97 3351788 3.66
5. Pohjola Bank plc, nominee 2152900 2152900 10.37 2152900 2.35
register
6. Hortling-Rinne Laila 102288 3380 105668 0.51 2049140 2.24
Marit
7. Nordea Bank Finland plc, 1786906 1786906 8.61 1786906 1.95
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 9891624 9901272 47.69 10084584 11.00
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
1-12/2015 1-12/2014
Opening balance 192149 165783
Additions 25495 38998
Deductions and transfers -390 -818
Depreciation -15495 -14139
Exchange rate differences and adjustments for -16519 2325
hyperinflation
Closing balance 185240 192149
12. CONTINGENT LIABILITIES
EUR 1,000
31 Dec 2015 31 Dec 2014
Pledges and contingent liabilities
For own commitments 2352 2397
Leasing and rental liabilities:
Due within one year 1402 1143
Due within 1 to 5 years 1179 758
Due in more than 5 years 4 5
Leasing and rental liabilities total 2585 1906
Package liabilities 3234 2496
Other liabilities 2000 2000
13. CALCULATION OF FINANCIAL RATIOS
Equity to total assets, % = 100 * (Shareholders’ equity held by parent company
shareholders + non-controlling interests) / (Balance sheet total – advances
received)
Earnings per share = Profit belonging to parent company shareholders / Average
number of shares during the period, adjusted for share issues
Equity per share = Shareholders’ equity held by parent company shareholders /
Number of shares at end of period, adjusted for share issues
Gearing, % = 100 * (Interest-bearing debt – cash in hand and at bank) /
(Shareholders’ equity held by parent company shareholders + non-controlling
interests)
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