2008-08-14 08:47:25 CEST
2008-08-14 08:48:26 CEST
REGULATED INFORMATION
Olvi Oyj - Half Year financial report
Olvi Group's net sales continued to develop favourably, and the market position strengthened
OLVI PLC INTERIM REPORT 14 AUG 2008 at 9:45 am
OLVI GROUP'S INTERIM REPORT, 1 JANUARY TO 30 JUNE 2008 (6 MONTHS)
Olvi Group's net sales continued to develop favourably, and the market position
strengthened. Consolidated net sales amounted to 110.6 million euro, an increase
of 11.0 million euro or 11.1 percent. The rainy summer, substantial investments
in additional capacity and an increase in production costs burdened the
earnings. The operating profit stood at 10.3 (11.4) million euro, which was 9.3%
(11.5%) of net sales. Gross capital expenditure amounted to 20.7 (11.5) million
euro, and the equity to total assets ratio stood at 41.1 percent (43.4%).
Earnings per share amounted to 0.79 (0.89) euro.
Key ratios:
Change
1-6/2008 1-6/2007 % 1-12/2007
Net sales, MEUR 110.6 99.5 + 11.1 205.2
Operating profit, MEUR 10.3 11.4 - 10.2 23.1
Gross capital expenditure,
MEUR 20.7 11.5 + 79.1 25.4
Earnings per share, EUR 0.79 0.89 - 10.1 1.83
Equity per share, EUR 8.64 7.70 + 12.2 8.61
Equity to total assets, % 41.1 43.4 47.7
Gearing, % 75.2 61.4 45.6
“This year, Olvi Group has invested in four new production lines. This makes it
possible to match the demand with efficient and profitable production in all
Olvi Group companies. Olvi Group's filling capacity has increased by 45 percent
at the beginning of August 2008. We expect further favourable development in our
net sales and market position across the Group's entire operating area,” says
Lasse Aho, Managing Director of Olvi plc.
SALES VOLUME, NET SALES AND EARNINGS
OLVI GROUP
January to June 2008
Olvi Group's sales from January to June totalled 172 (168) million litres, an
increase of 4 million litres or 2.3 percent. Intra-Group sales increased by 3
million litres. The sales improvement in Finland was 5 million litres or 7.8
percent. Sales in Latvia increased by 3 million litres or 13.4 percent. Sales in
Estonia remained almost on a par with the previous year. Sales in Lithuania
declined by 6.8 percent.
The Group's net sales from January to June amounted to 110.6 (99.5) million
euro, representing an increase of 11.0 million euro or 11.1 percent. Net sales
in Finland improved by 6.2 million euro or 13.7 percent. The net sales
improvement in the Baltic states clearly outperformed the growth in sales
volume. Net sales in the Baltic states increased by 6.4 million euro or 10.7
percent.
Olvi Group's operating profit for January-June stood at 10.3 (11.4) million
euro, or 9.3 (11.5) percent of net sales. The operating profit declined by 1.2
million euro on the previous year but was still on a healthy level. Operating
profit in Finland fell 1.7 million euro short of the previous year, while
operating profit in the Baltic states improved by 0.3 million euro.
In the period under review, earnings after taxes stood at 8.2 (9.3) million
euro.
April to June 2008
Olvi Group's sales in the second quarter of 2008 amounted to 99 (101) million
litres. Sales in Finland remained almost on a par with the previous year. Sales
in the Baltic states declined slightly, by 2.0 percent. Cool and rainy weather
from April to June impacted sales development both in Finland and in the Baltic
states.
Olvi Group's net sales increased in the second quarter both in Finland and in
the Baltic states in spite of the declined sales volumes. Consolidated net sales
from April to June stood at 64.8 (59.8) million euro. Net sales in Finland
increased by 2.2 million euro or 8.4 percent, and net sales in the Baltic states
increased by 3.0 million euro or 8.0 percent.
Olvi Group's operating profit from April to June stood at 7.1 (7.8) million
euro.
Operating profit in Finland declined by 1.1 million euro, while operating profit
in the Baltic states improved by 0.3 million euro.
PARENT COMPANY OLVI PLC
January to June 2008
The parent company Olvi plc's sales from January to June amounted to 70 (65)
million litres, representing an increase of 5 million litres or 7.8 percent.
Factors affecting the growth included Olvi plc's good market position, good
sales development in new product groups, as well as successful launches of new
products. In terms of litres sold, the greatest increase was seen in beers,
while proportional growth was greatest in long drinks. The sales of mineral
waters and ciders remained on the previous year's level, while a slight decline
was seen in soft drinks. Since the beginning of the current year, Olvi plc's
sales development has been hindered by a lack of canning capacity. The share of
canned products has increased to more than 28 percent of Olvi plc's aggregate
sales in Finland. The proportion of canned products is still increasing in beers
and particularly in ciders.
From the beginning of 2008, Olvi plc's market position in Finland is monitored
using statistics from the Federation of the Brewing and Soft Drinks Industry as
AC Nielsen market share monitoring is no longer available in Finland. According
to the report, Olvi plc's overall market position in the main product groups in
the January-June review period improved clearly on the previous year. According
to the Federation's statistics, Olvi's overall market share in the alcoholic
product groups: beers, ciders and long drinks, including HoReCa sales, was 20.5
(17.2) percent. Olvi plc's market share in mineral waters was 19.9 (18.7)
percent, including HoReCa sales.
Olvi plc's net sales from January to June stood at 51.7 (45.5) million euro,
representing an increase of 6.2 million euro or 13.7 percent on the previous
year.
Olvi plc's operating profit in January-June stood at 2.5 (4.2) million euro or
4.9 (9.3) percent of net sales. The operating profit declined by 1.7 million
euro.
The most significant factors behind the decline in profitability include
substantially higher-than-expected demand for canned products and the resulting
lack of canning line capacity, the introduction of several simultaneous
investments, as well as a slower-than-expected pace of adopting the new
recyclable plastic bottle system and the resulting costs of maintaining two
systems across the entire industry. The situation is also affected by
higher-than-expected cost increases in raw materials, packaging supplies, energy
and logistics, which could not be fully transferred to price increases during
the first half of the year.
Scrapping of the obsolete package inventory resulted in 0.8 (0.9) million euro
of write-downs on inventories that burdened the January-June earnings.
April to June 2008
Olvi plc's sales from April to June amounted to 38 (38) million litres, which
was on a par with the previous year. Rainy and cool weather hampered sales
development in the second quarter. The parent company's net sales from April to
June stood at 28.4 (26.2) million euro. Operating profit from April to June
amounted to 1.5 (2.7) million euro.
AS A. LE COQ
January to June 2008
The total sales of the Estonian subsidiary AS A. Le Coq in January-June amounted
to 68 (69) million litres, which was on a par with the previous year. The sales
volume increased in beers but declined clearly in mineral waters and well-being
beverages, with a slight decline in juices and energy drinks. The sales of soft
drinks, long drinks and ciders were on a par with the previous year.
AS A. Le Coq's market share in beers has increased to approximately 38 percent
and in ciders to approximately 46 percent. AS A. Le Coq is the clear market
leader in long drinks with a 56 percent share. With the exception of mineral
waters, AS A. Le Coq's market share has remained on a good and stable level also
in other product groups.
AS A. Le Coq, which is the largest beverage manufacturer in Estonia, expanded
its market-leading juice brand Aura with the new Aura Fruit concept in June. The
product is a non-carbonated water that contains juice and thus provides an
alternative for consumers of soft drinks. The concept was introduced with two
flavours available both in drink-on-the-spot 0.5-litre and drink-at-home
1.5-litre bottles.
AS A. Le Coq introduced beer-based alcoholic beverages into its range. This
product type is popular in Central Europe. A. Le Coq Rosé Beer Shake is a
berry-flavoured beer sold in a 0.33-litre clear glass bottle. It is suitable for
everyone who does not normally like the taste of beer.
The Estonian market-leading cider FIZZ was reinforced with the new flavour FIZZ
Ice, which is a medium-dry grape-flavoured cider.
AS A. Le Coq launched Estonia's first dry beer, A. Le Coq Dry Ice. The product
is sold in a 0.33-litre clear glass bottle with a screw cap.
Net sales from January to June stood at 38.7 (35.7) million euro.
AS A. Le Coq's operating profit from January to June was 6.7 (5.1) million euro.
The operating profit improved by 1.6 million euro or 32.1 percent. The operating
profit improvement was made possible by production efficiency, an increased
share of Premium products and cost control.
April to June 2008
AS A. Le Coq's sales from April to June amounted to 40 (41) million litres,
while net sales stood at 23.4 (21.7) million euro. Operating profit from April
to June stood at 4.6 (3.3) million euro.
A/S CESU ALUS
January to June 2008
From January to June, the sales of A/S Cesu Alus, the subsidiary operating in
Latvia, totalled 30 (27) million litres. The growth in sales volume came from
beers that represent approximately 70 percent of total sales. In the primary
product group, beers, A/S Cesu Alus's market position is approximately 26
percent, and the brewery is clearly the number two player in the market. A/S
Cesu Alus's market share in ciders and long drinks is approximately 40 percent.
The increase in sales volume has also resulted in increased net sales. The
company's net sales from January to June amounted to 16.0 (12.8) million euro.
A/S Cesu Alus launched the Estonian Aura Fruit product under the Aqua Fruit
brand. In May, the brewery introduced Cesu Premium Ice in a 0.33-litre clear
screw-cap glass bottle and Cesu Special in a similar 0.5-litre bottle to the
Latvian market. The Rosé Beer Shake flavoured beer and FIZZ Ice were also
launched in Latvia. FIZZ Blueberry, Dynamite Red Energy and the Mojito Taste
long drink, which were previously launched in Estonia, were now brought to the
Latvian market as well. FIZZ is Olvi Group's cider brand that is sold in all of
the Group's countries. Dynamite is Olvi Group's energy drink brand in the Baltic
states. Other new products introduced in Latvia are also available in Estonia
under Estonian brands. A purely local new product in Latvia was the Mitava beer
launched in April; it is targeted particularly at men and sold in a 0.5-litre
bottle.
Operating profit in January—June was almost on a par with the previous year at
0.9 (1.0) million euro. Operating profit came to 5.8 (7.6) percent of net sales.
The commissioning of the new canned product filling line was postponed to July,
which means that the investment could not yet be utilised and created no
additional sales in the review period.
April to June 2008
The sales of A/S Cesu Alus developed favourably in the first quarter, and the
trend continued in the second quarter. Sales in April-June improved by 1 million
litres to 18 (17) million litres.
A/S Cesu Alus's net sales growth clearly outperformed the growth in sales
volume. Second-quarter net sales amounted to 10.0 (8.5) million euro.
Second-quarter operating profit was almost on a par with the previous year at
0.8 (0.9) million euro.
During the summer, A/S Cesu Alus, which is Olvi plc's subsidiary in Latvia, was
informed by Latvian competition authorities that brewing industry companies will
be investigated due to possible violations of competition law.
A/S Cesu Alus is one of the brewing industry companies in Latvia targeted by the
investigation. The company will contribute its assistance to local authorities
for the investigation.
AB RAGUTIS
January to June 2008
The total sales of the Lithuanian subsidiary AB Ragutis in January-June amounted
to 20 (22) million litres, a difference of -2 million litres on the previous
year. AB Ragutis's market position in beers has remained stable at approximately
10 percent. The company's market share in ciders has increased to approximately
29 percent. Sales volumes in other product groups remained approximately on a
par with the previous year.
The company's net sales from January to June amounted to 11.3 (11.1) million
euro.
AB Ragutis launched the pan-Baltic new products Horn Dry Ice in a 0.33-litre
clear screw-cap glass bottle in May and Rose Beer Shake in June. Purely local
new products in Lithuania included the new beer Volfas Engelman Klasikinis in
0.5-litre bottles in May, and the Russian-type low-alcoholic beer Kwass
Smetoniska in 0.5-litre glass bottles as well as 1-litre and 1.5-litre plastic
bottles.
Operating profit from January to June stood at -0.1 (1.2) million euro. Factors
hampering the company's profitability include a decline in sales volume and
increases in the prices of raw materials and packaging supplies, as well as
increased personnel and logistics costs. Problems with commissioning the new
plastic bottle filling line delayed the start of production and utilisation of
the investment.
April to June 2008
AB Ragutis's sales in the second quarter amounted to 12 (13) million litres.
AB Ragutis's net sales in April-June stood at 6.7 (7.0) million euro, while
operating profit came to 0.05 (1.0) million euro.
FINANCING AND INVESTMENTS
Olvi Group's balance sheet total at the end of June was 218.2 (184.1) million
euro. Equity per share in January-June stood at 8.64 (7.70) euro. The equity
ratio declined slightly to 41.1 (43.4) percent. The amount of interest-bearing
liabilities was 70.8 (52.7) million euro, including current liabilities of 45.3
(19.9) million euro.
During the period under review, Olvi Group's gross capital expenditure amounted
to 20.7 (11.5) million euro. The parent company Olvi plc accounted for 6.5
million euro and the subsidiaries in the Baltic states for 14.2 million euro of
the total. The largest investments in 2008 in the parent company Olvi plc
include a filling line for recyclable plastic bottles, an automatic storage
facility and a new canning line.
The largest investments in Latvia include a canning line and a storehouse
extension, and in Lithuania a PET plastic bottle filling line and a fermentation
cellar extension.
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.
Olvi Group has launched several new products during the period under review.
NEW PRODUCTS IN FINLAND
Olvi plc will launch several new products in Finland on 1 September. Olvi Vichy
Apple + alfaHICA is the first mineral water in Finland that contains a dietary
supplement. It contains pure Finnish alfaHICA or leucine acid that blocks the
operation of decomposing enzymes in the body and facilitates the burning of fat.
The product speeds up recovery. Several leading Finnish athletes use alfaHICA.
Olvi Apple is a dark soft drink with a cinnamon apple flavour, sweetened
exclusively with fruit sugar. Its caloric content is as much as 30 percent lower
than that of similar products in the market, and it does not contain any
artificial sweeteners.
Our new children's soft drinks are clearly targeted at girls and boys
separately. A pink Bratz soft drink will be introduced for girls and a green
Turtles soft drink for boys. Both products are sweetened with fruit sugar.
Licensed-brand products will also be introduced to energy drinks. The Batman The
Dark Knight energy drink will be available in 0.33-litre cans.
Finland's best-selling apple cider, FIZZ Original Dry, will be supplemented by a
drier version. FIZZ Extra Dry will be packaged in 0.5-litre cans.
Packaging development plays a very important role in brewery products. Olvi plc
will introduce pint-size cans (0.568 litres) for OLVI III beer, OLVI Grapefruit
Long Drink and Sandels beer.
PERSONNEL
Olvi Group's average number of personnel in January-June was 1,291 (1,209), 441
(376) of them in Finland, 409 (419) in Estonia, 233 (212) in Latvia and 208
(202) in Lithuania. The average number of personnel increased by 82 people or
6.8 percent on the previous year. The total number of personnel at the end of
June was 1,391 (1,375).
GROUP STRUCTURE
From April to June, Olvi Group increased its holding in A/S Cesu Alus by 324
shares or 0.26 percent. At the end of June 2008, Olvi plc's holding in A/S Cesu
Alus stood at 98.15 percent, in AB Ragutis 99.57 percent and in AS A. Le Coq 100
percent.
BUSINESS RISKS AND UNCERTAINTIES IN THE NEAR TERM
The prices of raw materials and packaging supplies, as well as the costs of
energy and logistics, will continue to increase substantially towards the end of
the year across Olvi Group's entire operating area. This will present a great
challenge to control cost increases and improve productivity.
The inflation rate in all of the Baltic states has clearly gone up and economic
uncertainty has increased.
NEAR-TERM OUTLOOK
The overall market position of Olvi Group companies has improved both in Finland
and in the Baltic states. Thanks to substantial investments, Olvi Group's
capacity has increased by 45 percent in the current year, which enables
cost-efficient production of versatile product ranges and packaging
alternatives. A crucial target is to fully utilise the completed additional
capacity and to improve the entire Olvi Group's market position, profitability
and competitive ability. Olvi plc will seek growth outside its existing
operating areas.
We expect Olvi Group's net sales to increase, the market position to strengthen
and the operating profit to remain on the previous year's level.
Further information:
Lasse Aho, Managing Director
Phone +358 17 838 5200 or +358 400 203 600
OLVI PLC
Board of Directors
APPENDICES
- Balance sheet, Appendix 1
- Income statement, Appendix 2
- Changes in consolidated shareholders' equity, Appendix 3
- Cash flow statement, Appendix 4
- Notes to the interim report, Appendix 5
DISTRIBUTION
OMX Nordic Exchange, Helsinki
Key media
www.olvi.fi
OLVI GROUP APPENDIX 1
BALANCE SHEET
EUR 1,000
--------------------------------------------------------------------------------
| ASSETS | 30.6.200 | 30.6.2007 | 31.12.2007 |
| | 8 | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Tangible assets | 111011 | 89173 | 97706 |
--------------------------------------------------------------------------------
| Goodwill | 10676 | 10675 | 10679 |
--------------------------------------------------------------------------------
| Other intangible assets | 1039 | 1397 | 1002 |
--------------------------------------------------------------------------------
| Financial assets available for sale | 286 | 284 | 285 |
--------------------------------------------------------------------------------
| Other non-current assets | 31 | 318 | 63 |
| available for sale | | | |
--------------------------------------------------------------------------------
| Loan receivables and other | 119 | 44 | 118 |
| non-current receivables | | | |
--------------------------------------------------------------------------------
| Deferred tax receivables | 374 | 128 | 362 |
--------------------------------------------------------------------------------
| Total non-current assets | 123536 | 102019 | 110215 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 37069 | 28640 | 30159 |
--------------------------------------------------------------------------------
| Accounts receivable and other | 54276 | 49751 | 42181 |
| receivables | | | |
--------------------------------------------------------------------------------
| Deferred tax receivables | 0 | 0 | 110 |
--------------------------------------------------------------------------------
| Liquid assets | 3284 | 3680 | 4332 |
--------------------------------------------------------------------------------
| Total current assets | 94629 | 82071 | 76782 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 218165 | 184090 | 186997 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| Shareholders' equity held by parent company | | |
| shareholders | | |
--------------------------------------------------------------------------------
| Share capital | 20759 | 20759 | 20759 |
--------------------------------------------------------------------------------
| Other reserves | 1092 | 1092 | 1092 |
--------------------------------------------------------------------------------
| Treasury shares | -63 | -290 | -722 |
--------------------------------------------------------------------------------
| Retained earnings | 59672 | 48966 | 48979 |
--------------------------------------------------------------------------------
| Net profit for the period | 8171 | 9268 | 18944 |
--------------------------------------------------------------------------------
| | 89631 | 79795 | 89052 |
--------------------------------------------------------------------------------
| Minority interest | 128 | 117 | 136 |
--------------------------------------------------------------------------------
| Total shareholders' equity | 89759 | 79912 | 89188 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 25479 | 32781 | 28592 |
--------------------------------------------------------------------------------
| Interest-free liabilities | 0 | 1081 | 0 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 1106 | 1257 | 1113 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 45332 | 19930 | 16383 |
--------------------------------------------------------------------------------
| Accounts payable and other liabilities | 56489 | 49129 | 51721 |
--------------------------------------------------------------------------------
| Total liabilities | 128406 | 104178 | 97809 |
--------------------------------------------------------------------------------
| TOTAL SHAREHOLDERS' EQUITY AND | 218165 | 184090 | 186997 |
| LIABILITIES | | | |
--------------------------------------------------------------------------------
OLVI GROUP APPENDIX 2
INCOME STATEMENT
EUR 1,000
--------------------------------------------------------------------------------
| | 4-6/ | 4-6/ | 1-6/ | 1-6/ | 1-12 |
| | 2008 | 2007 | 2008 | 2007 | /2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 64783 | 59793 | 110583 | 99543 | 205188 |
--------------------------------------------------------------------------------
| Other operating | 144 | 164 | 431 | 417 | 894 |
| income | | | | | |
--------------------------------------------------------------------------------
| Operating expenses | -54473 | -49223 | -94073 | -82733 | -171222 |
--------------------------------------------------------------------------------
| Depreciation and | -3357 | -2957 | -6682 | -5808 | -11759 |
| impairment | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 7097 | 7777 | 10259 | 11419 | 23101 |
--------------------------------------------------------------------------------
| Financial income | 44 | 55 | 79 | 75 | 186 |
--------------------------------------------------------------------------------
| Financial expenses | -695 | -503 | -1277 | -902 | -1953 |
--------------------------------------------------------------------------------
| Earnings before tax | 6446 | 7329 | 9061 | 10592 | 21334 |
--------------------------------------------------------------------------------
| Taxes *) | -584 | -766 | -887 | -1309 | -2354 |
--------------------------------------------------------------------------------
| Net profit for the | 5862 | 6563 | 8174 | 9283 | 18980 |
| period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Distribution: | | | | | |
--------------------------------------------------------------------------------
| - parent company | 5854 | 6546 | 8171 | 9268 | 18944 |
| shareholders | | | | | |
--------------------------------------------------------------------------------
| - minority | 8 | 17 | 3 | 15 | 36 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Ratios calculated from the profit | | | |
| belonging | | | |
--------------------------------------------------------------------------------
| to parent company | | | | | |
| shareholders: | | | | | |
--------------------------------------------------------------------------------
| - earnings per | | | 0.79 | 0.89 | 1.83 |
| share, euro | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) Taxes calculated from the profit for the review | | |
| period. | | |
--------------------------------------------------------------------------------
OLVI GROUP APPENDIX 3
CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY
--------------------------------------------------------------------------------
| EUR 1,000 | A | B | C | D | E | F | G | H | I |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' | 207 | 857 | 127 | -290 | 143 | -18 | 5568 | 101 | 77367 |
| equity 1 Jan | 59 | | | | | | 8 | | |
| 2007 | | | | | | | | | |
--------------------------------------------------------------------------------
| Transfer of reserve | | | -35 | | 35 | | 0 |
| to retained earnings | | | | | | | |
--------------------------------------------------------------------------------
| Translation | | | | | | -3 | | 1 | -2 |
| differences | | | | | | | | | |
--------------------------------------------------------------------------------
| Payment of | | | | | | | -673 | | -6736 |
| dividends | | | | | | | 6 | | |
--------------------------------------------------------------------------------
| Net profit for | | | | | | | 9283 | | 9283 |
| the period | | | | | | | | | |
--------------------------------------------------------------------------------
| Share of profit belonging | | | | -15 | 15 | 0 |
| to the minority | | | | | | |
--------------------------------------------------------------------------------
| Shareholders' | 207 | 857 | 127 | -290 | 108 | -21 | 5825 | 117 | 79912 |
| equity 30 June | 59 | | | | | | 5 | | |
| 2007 | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR 1,000 | A | B | C | D | E | F | G | H | I |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' | 207 | 857 | 127 | -722 | 108 | -9 | 6793 | 136 | 89188 |
| equity 1 Jan | 59 | | | | | | 2 | | |
| 2008 | | | | | | | | | |
--------------------------------------------------------------------------------
| Translation | | | | | | 29 | | | 29 |
| differences | | | | | | | | | |
--------------------------------------------------------------------------------
| Transfer of treasury | | | 659 | | | | | 659 |
| shares | | | | | | | | |
--------------------------------------------------------------------------------
| Payment of | | | | | | | -829 | | -8291 |
| dividends | | | | | | | 1 | | |
--------------------------------------------------------------------------------
| Net profit for | | | | | | | 8174 | | 8174 |
| the period | | | | | | | | | |
--------------------------------------------------------------------------------
| Change in minority | | | | | | 11 | -11 | 0 |
| interest | | | | | | | | |
--------------------------------------------------------------------------------
| Share of profit belonging | | | | -3 | 3 | 0 |
| to the minority | | | | | | |
--------------------------------------------------------------------------------
| Shareholders' | 207 | 857 | 127 | -63 | 108 | 20 | 6782 | 128 | 89759 |
| equity 30 June | 59 | | | | | | 3 | | |
| 2008 | | | | | | | | | |
--------------------------------------------------------------------------------
A = Share capital
B = Share premium account
C = Legal reserve
D = Treasury shares reserve
E = Other reserves
F = Translation differences
G = Retained earnings
H = Minority interest
I = Total
OLVI GROUP APPENDIX 4
CASH FLOW STATEMENT
EUR 1,000
--------------------------------------------------------------------------------
| | 1-6/2008 | 1-6/2007 | 1-12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net profit for the period | 8174 | 9268 | 18980 |
--------------------------------------------------------------------------------
| Adjustments to profit for the period | 8783 | 8503 | 15542 |
--------------------------------------------------------------------------------
| Change in net working capital | -12827 | -10748 | -1597 |
--------------------------------------------------------------------------------
| Interest paid | -1271 | -871 | -1806 |
--------------------------------------------------------------------------------
| Interest received | 55 | 75 | 72 |
--------------------------------------------------------------------------------
| Taxes paid | -1771 | -821 | -3307 |
--------------------------------------------------------------------------------
| Cash flow from operations (A) | 1143 | 5406 | 27884 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital expenditure | -19990 | -11301 | -25140 |
--------------------------------------------------------------------------------
| Disposals of fixed assets | 155 | 35 | 308 |
--------------------------------------------------------------------------------
| Cash flow from investments (B) | -19835 | -11266 | -24832 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Withdrawals of loans | 29718 | 19000 | 16000 |
--------------------------------------------------------------------------------
| Repayments of loans | -3799 | -4837 | -9665 |
--------------------------------------------------------------------------------
| Dividends paid | -8275 | -6725 | -6725 |
--------------------------------------------------------------------------------
| Transfer of treasury shares | 743 | 0 | 0 |
--------------------------------------------------------------------------------
| Cash flow from financing (C) | 17644 | 7438 | -822 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Increase (+)/decrease (-) in liquid | -1048 | 1578 | 2230 |
| assets (A+B+C) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid assets 1 January | 4332 | 2102 | 2102 |
--------------------------------------------------------------------------------
| Liquid assets 30 June/31 Dec | 3284 | 3680 | 4332 |
--------------------------------------------------------------------------------
| Change in liquid assets | -1048 | 1578 | 2230 |
--------------------------------------------------------------------------------
OLVI GROUP APPENDIX 5
NOTES TO THE INTERIM REPORT
Olvi plc's interim report for January-June has been prepared in accordance with
IAS 34, Interim Financial Reporting. The accounting policies used for the
interim report are the same as those used for the annual financial statements
2007.
The accounting policies are presented in the Annual Report 2007 that was
published on 2 April 2008. The information disclosed in the interim report is
unaudited.
The interim report information 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 Group has adopted the interpretation IFRIC 11, Group and Treasury Share
Transactions. The introduction of the new interpretation does not have any
substantial effect on interim reports or upcoming financial statements.
1. SEGMENT INFORMATION
SALES BY GEOGRAPHICAL SEGMENT (1,000 litres)
--------------------------------------------------------------------------------
| | 4-6/ | 4-6/ | 1-6/ | 1-6/ | 1-12/ |
| | 2008 | 2007 | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Olvi Group total | 99340 | 101234 | 172298 | 168450 | 341765 |
--------------------------------------------------------------------------------
| Finland | 37572 | 38178 | 69980 | 64892 | 137586 |
--------------------------------------------------------------------------------
| Estonia | 40084 | 41260 | 68260 | 68978 | 138163 |
--------------------------------------------------------------------------------
| Latvia | 18415 | 17253 | 30125 | 26555 | 54124 |
--------------------------------------------------------------------------------
| Lithuania | 11922 | 13353 | 20238 | 21709 | 42778 |
--------------------------------------------------------------------------------
| - sales between | -8653 | -8810 | -16305 | -13684 | -30886 |
| segments | | | | | |
--------------------------------------------------------------------------------
NET SALES BY GEOGRAPHICAL SEGMENT (EUR 1,000)
--------------------------------------------------------------------------------
| | 4-6/ | 4-6/ | 1-6/ | 1-6/ | 1-12/ |
| | 2008 | 2007 | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Olvi Group total | 64783 | 59793 | 110583 | 99543 | 205188 |
--------------------------------------------------------------------------------
| Finland | 28388 | 26190 | 51707 | 45470 | 96546 |
--------------------------------------------------------------------------------
| Estonia *) | 23427 | 21690 | 38728 | 35689 | 72494 |
--------------------------------------------------------------------------------
| Latvia | 9990 | 8494 | 15976 | 12822 | 26686 |
--------------------------------------------------------------------------------
| Lithuania | 6737 | 6997 | 11278 | 11115 | 22069 |
--------------------------------------------------------------------------------
| - sales between | -3759 | -3578 | -7106 | -5553 | -12607 |
| segments | | | | | |
--------------------------------------------------------------------------------
*) The comparison data for 2007 has been adjusted.
OPERATING PROFIT BY GEOGRAPHICAL SEGMENT (EUR 1,000)
--------------------------------------------------------------------------------
| | 4-6/ | 4-6/ | 1-6/ | 1-6/ | 1-12/ |
| | 2008 | 2007 | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Olvi Group total | 7097 | 7777 | 10259 | 11419 | 23101 |
--------------------------------------------------------------------------------
| Finland | 1547 | 2672 | 2521 | 4212 | 8514 |
--------------------------------------------------------------------------------
| Estonia | 4613 | 3290 | 6677 | 5055 | 10838 |
--------------------------------------------------------------------------------
| Latvia | 808 | 860 | 921 | 975 | 2294 |
--------------------------------------------------------------------------------
| Lithuania | 48 | 1044 | -67 | 1206 | 1553 |
--------------------------------------------------------------------------------
| - eliminations | 81 | -89 | 207 | -29 | -98 |
--------------------------------------------------------------------------------
2. PERSONNEL ON AVERAGE 1-6/2008 1-6/2007 1-12/2007
--------------------------------------------------------------------------------
| Finland | 441 | 376 | 389 |
--------------------------------------------------------------------------------
| Estonia | 409 | 419 | 409 |
--------------------------------------------------------------------------------
| Latvia | 233 | 212 | 211 |
--------------------------------------------------------------------------------
| Lithuania | 208 | 202 | 202 |
--------------------------------------------------------------------------------
| Total | 1291 | 1209 | 1211 |
--------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------
| | 1-6/2008 | 1-6/2007 | 1-12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Managing Directors | 568 | 351 | 577 |
--------------------------------------------------------------------------------
| Chairman of the Board | 105 | 102 | 203 |
--------------------------------------------------------------------------------
| Other members of the Board | 57 | 52 | 106 |
--------------------------------------------------------------------------------
| Total | 730 | 505 | 886 |
--------------------------------------------------------------------------------
4. SHARES AND SHARE CAPITAL
--------------------------------------------------------------------------------
| | 30.6.2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Number of A shares | 8513276 |
--------------------------------------------------------------------------------
| Number of K shares | 1866128 |
--------------------------------------------------------------------------------
| Total | 10379404 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total votes carried by A shares | 8513276 |
--------------------------------------------------------------------------------
| Total votes carried by K shares | 37322560 |
--------------------------------------------------------------------------------
| Total number of votes | 45835836 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Registered share capital, EUR 1,000 | 20759 |
--------------------------------------------------------------------------------
The Series A and Series K shares received a dividend of 0.80 euro per share for
2007 (0.65 euro per share for 2006), totalling 8.3 (6.7) million euro. The
dividends were paid on 22 April 2008.
Nominal value of A and K shares, EUR 2.00
Votes per Series A share 1
Votes per Series K share 20
The shares entitle to equal dividend.
The Articles of Association include a redemption clause concerning Series K
shares.
5. TREASURY SHARES
On the basis of authorisations granted by General Meetings of Shareholders, Olvi
plc's Board of Directors has in 2006 and 2007 acquired a total of 32,000 of the
company's own Series A shares for an aggregate purchase price of 722 thousand
euro.
On the basis of an authorisation granted by the General Meeting of Shareholders
on 10 April 2008, the company's Board of Directors decided to hand over treasury
shares for use as rewards in Olvi Group's share-based incentive system for key
personnel for the achievement of targets for 2006 and 2007. A total of 29,600
treasury shares were handed over to the Group's key personnel in April 2008.
At the end of June 2008, Olvi plc held a total of 2,400 of its own Series A
shares acquired for a price of 54 thousand euro. Treasury shares held by Olvi
plc represent 0.02 percent of the share capital and 0.01 percent of the
aggregate number of votes. The treasury shares represent 0.03 percent of all
Series A shares and associated votes.
--------------------------------------------------------------------------------
| 6. NUMBER OF SHARES *) | 1-6/2008 | 1-6/2007 | 1-12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| - average | 10,359,791 | 10,363,404 | 10,358,296 |
--------------------------------------------------------------------------------
| - at end of period | 10,377,004 | 10,363,404 | 10,347,404 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) Treasury shares deducted | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 7. TRADING OF SERIES A SHARES ON THE HELSINKI | | |
| STOCK EXCHANGE | | |
--------------------------------------------------------------------------------
| | 1-6/2008 | 1-6/2007 | 1-12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Trading volume of Olvi A shares | 971,893 | 1,349,933 | 2,286,279 |
--------------------------------------------------------------------------------
| Total trading volume, EUR 1,000 | 23,988 | 31,352 | 55,328 |
--------------------------------------------------------------------------------
| Traded shares in proportion to | | | |
--------------------------------------------------------------------------------
| all Series A shares, % | 11.4 | 15.9 | 26.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average share price, EUR | 24.45 | 23.10 | 24.14 |
--------------------------------------------------------------------------------
| Price on the closing date, EUR | 23.50 | 29.10 | 24.00 |
--------------------------------------------------------------------------------
| Highest quote, EUR | 27.00 | 30.80 | 30.80 |
--------------------------------------------------------------------------------
| Lowest quote, EUR | 20.00 | 19.50 | 19.50 |
--------------------------------------------------------------------------------
8. FOREIGN AND NOMINEE-REGISTERED HOLDINGS ON 30 JUNE 2008
Number of Number of Number of
--------------------------------------------------------------------------------
| | book | % | votes | % | share | % |
| | entries | | | | holde | |
| | | | | | rs | |
--------------------------------------------------------------------------------
| Finnish total | 8258382 | 79.57 | 42743078 | 93.25 | 5973 | 99.3 |
--------------------------------------------------------------------------------
| Foreign total | 287934 | 2.77 | 1259670 | 2.75 | 34 | 0.6 |
--------------------------------------------------------------------------------
| Nominee registered | 1045 | 0.01 | 1045 | 0.00 | 2 | 0.0 |
| (foreign) total | | | | | | |
--------------------------------------------------------------------------------
| Nominee registered | 1832043 | 17.65 | 1832043 | 4.00 | 6 | 0.1 |
| (Finnish) total | | | | | | |
--------------------------------------------------------------------------------
| Total | 10379404 | 100.00| 45835836 | 100.00 | 6015 | 100.00 |
| | | | | | | |
--------------------------------------------------------------------------------
9. LARGEST SHAREHOLDERS ON 30 JUNE 2008
--------------------------------------------------------------------------------
| | Serie | Serie | Total | % | Votes | % |
| | s K | s A | | | | |
--------------------------------------------------------------------------------
| 1. Olvi Foundation | 1181952| 354408 | 1536360 | 14.80|23993448| 52.35 |
| | | | | | |
|
--------------------------------------------------------------------------------
| 2. Hortling Heikki | 450712 | 85380 | 536092 | 5.16 | 9099620 | 19.85|
| Wilhelm *) | | | | | | |
--------------------------------------------------------------------------------
| 3. The Heirs of | 93552 | 12624 | 106176 | 1.02 | 1883664 | 4.11 |
| Hortling Kalle Einari | | | | | | |
--------------------------------------------------------------------------------
| 4. Hortling Timo Einari | 82912 | 17304 | 100216 | 0.97 | 1675544 | 3.66 |
| | | | | | | |
--------------------------------------------------------------------------------
| 5. Hortling-Rinne Marit | 51144 | 1050 | 52194 | 0.50 | 1023930 | 2.23 |
--------------------------------------------------------------------------------
| 6. Skandinaviska Enskilda | 982923| 982923 | 9,47 | 982923 | 2.14 |
| Banken, | | | | | |
| nominee register | | | | | |
--------------------------------------------------------------------------------
| 7. Nordea Bank Finland | | 735464| 735464 | 7.09 | 735464 | 1.60 |
| plc, | | | | | | |
| nominee register | | | | | | |
--------------------------------------------------------------------------------
| 8. Ilmarinen Mutual Pension | 515748| 515748 | 4,97 | 515748 | 1.13 |
| Insurance Company | | | | | |
--------------------------------------------------------------------------------
| 9. Autocarrera Oy Ab | | 221891| 221891 | 2.14 | 221891 | 0.48 |
| | | | | | | |
--------------------------------------------------------------------------------
| 10. | | | | | |
| Pensionsförsäkringsaktiebolaget | | | | | |
| Veritas | | | | | |
--------------------------------------------------------------------------------
| Pension Insurance | | 208000| 208000 | 2.00 | 208000 | 0.45 |
| Company | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Others | 5856 | 5378484| 5384340 | 51.88 | 5495604 | 12.00
|
| | | | | | |
|
--------------------------------------------------------------------------------
| Total |1866128| 8513276| 10379404| 100.00 | 45835836|
100.00|
| | | | | | | |
--------------------------------------------------------------------------------
*) The figures include the shareholder's own holdings and shares held by parties
in his control.
--------------------------------------------------------------------------------
| 10. PROPERTY, PLANT AND EQUIPMENT | | |
--------------------------------------------------------------------------------
| EUR 1,000 | | | |
--------------------------------------------------------------------------------
| | 1-6/ | 1-6/ |
| | 2008 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Increase | 20288 | 11246 | |
--------------------------------------------------------------------------------
| Decrease | -323 | -141 | |
--------------------------------------------------------------------------------
| Total | 19965 | 11105 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 11. CONTINGENT LIABILITIES | 30.6.2008 | 30.6.2007*) | 31.12.2007 |
--------------------------------------------------------------------------------
| EUR 1,000 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Pledges and contingent liabilities | | |
--------------------------------------------------------------------------------
| For own commitments | 1134 | 1135 | 1134 |
--------------------------------------------------------------------------------
| For others | 0 | 731 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Leasing liabilities: | | | |
--------------------------------------------------------------------------------
| Due within one year | 758 | 809 | 882 |
--------------------------------------------------------------------------------
| Due within 1 to 5 years | 1051 | 1122 | 1101 |
--------------------------------------------------------------------------------
| Due in more than 5 years | 0 | 5 | 5 |
--------------------------------------------------------------------------------
| Total leasing liabilities | 1809 | 1936 | 1988 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Package liabilities | 6109 | 5703 | 4604 |
--------------------------------------------------------------------------------
| Other liabilities | 2480 | 1980 | 1980 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Debts for which mortgages have been given | | |
| as collateral | | |
--------------------------------------------------------------------------------
| Loans from financial | | | |
| institutions | | | |
--------------------------------------------------------------------------------
| For own commitments | 0 | 1545 | 0 |
--------------------------------------------------------------------------------
| For others | 0 | 229 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) The comparison data for 2007 has been | | |
| adjusted. | | |
--------------------------------------------------------------------------------
12. CALCULATION OF FINANCIAL RATIOS
Equity to total assets, % = 100 * Shareholders' equity held by parent company
shareholders + minority interest / 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 + minority interest
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