2015-10-29 08:00:01 CET
2015-10-29 08:01:06 CET
REGLERAD INFORMATION
Olvi Oyj - Interim report (Q1 and Q3)
OLVI GROUP’S INTERIM REPORT, 1 JANUARY TO 30 SEPTEMBER 2015 (9 MONTHS)
Olvi Group's third quarter included moments of success as well as challenges
imposed by the operating environment. Olvi Group's third-quarter earnings fell
short of the previous year mostly due to substantial depreciation in the
Belarusian exchange rate as well as a dip in consumer demand due to cool and
rainy weather in the midsummer season.
Iisalmi, 2015-10-29 08:00 CET (GLOBE NEWSWIRE) -- OLVI PLC
INTERIM REPORT 29 OCTOBER 2015 at 9:00 am
OLVI GROUP'S INTERIM REPORT, 1 JANUARY TO 30 SEPTEMBER 2015 (9 MONTHS)
INTERIM REPORT IN BRIEF
Olvi Group's third-quarter earnings fell short of the previous year mostly due
to substantial depreciation in the Belarusian exchange rate as well as a dip in
consumer demand due to cool and rainy weather in the midsummer season.
January to September 2015 in brief:
- Olvi Group's sales volume was 452.1 (449.3) million litres
- The Group's net sales amounted to 241.7 (254.4) million euro
- The Group's operating profit amounted to 31.8 (36.5) million euro
- Olvi Group's earnings per share stood at 0.83 (1.39) euro per share
- The equity to total assets ratio was 56.1 (57.6) percent.
July to September 2015 in brief:
- Olvi Group's sales volume was 168.0 (170.4) million litres
- The Group's net sales amounted to 88.9 (97.8) million euro
- The Group's operating profit amounted to 14.1 (17.2) million euro
- Olvi Group's earnings per share stood at 0.37 (0.73) euro per share. The
decline in earnings per share was affected by unrealised exchange rate
differences related to the Belarusian subsidiary, which were recognised in
financial items.
Olvi specifies its near-term outlook and estimates that the Group's sales
volume for 2015 will increase slightly on the previous year. Net sales and
operating profit are estimated to fall slightly short of 2014. The Group had
previously disclosed the following outlook: Olvi estimates that the Group's
sales volume for 2015 will increase slightly on the previous year. Net sales
and operating profit are estimated to be on a par with 2014 or slightly lower.
CONSOLIDATED KEY RATIOS
7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/
2015 2014 % 2015 2014 % 2014
/ pp / pp
--------------------------------------------------------------------------------
Sales volume, Mltr 168.0 170.4 -1.4 452.1 449.3 0.6 576.5
--------------------------------------------------------------------------------
Net sales, MEUR 88.9 97.8 -9.1 241.7 254.4 -5.0 320.8
--------------------------------------------------------------------------------
EBITDA, MEUR 18.3 21.3 -14.1 44.0 47.7 -7.8 55.9
--------------------------------------------------------------------------------
Operating profit, 14.1 17.2 -17.7 31.8 36.5 -12.8 41.0
MEUR
--------------------------------------------------------------------------------
% of net sales 15.9 17.5 13.2 14.3 12.8
--------------------------------------------------------------------------------
Net profit for the 7.6 15.5 -51.0 17.2 29.4 -41.6 33.1
period
--------------------------------------------------------------------------------
% of net sales 8.6 15.9 7.1 11.6 10.3
--------------------------------------------------------------------------------
Earnings per share, 0.37 0.73 -49.3 0.83 1.39 -40.3 1.57
EUR
--------------------------------------------------------------------------------
Gross capital 5.1 8.5 -39.8 21.1 31.9 -33.8 41.6
expenditure, MEUR
--------------------------------------------------------------------------------
Equity per share, 8.73 9.07 -3.7 9.17
EUR
--------------------------------------------------------------------------------
Equity to total 56.1 57.6 -1.5 57.9
assets, %
--------------------------------------------------------------------------------
Gearing, % 31.7 28.0 3.7 29.8
--------------------------------------------------------------------------------
BUSINESS DEVELOPMENT
LASSE AHO, MANAGING DIRECTOR:
Olvi Group's third quarter included moments of success as well as challenges
imposed by the operating environment. Earnings improved in Finland, Latvia and
Lithuania even though the weather in the season's most important month, July,
was clearly cooler and rainier than in the previous year. The greatest
challenge to earnings development is the continuing negative trend in the
Belarusian currency. Heavy devaluation of the Belarusian currency had a
negative impact of approximately 2.3 million euro on the Group's
January-September profit compared to the previous year.
Market development in Finland is still facing challenges. However, slight
improvement in profitability has been realised through cost savings, efficiency
measures and sales actions.
The profitability and market share in Estonia remained on a very strong level.
However, the sales volume and, accordingly, earnings fell short of the previous
year due to the market dip caused by cool and rainy weather.
The business in Latvia developed favourably during the late spring and summer.
Earnings in Latvia outperformed the previous year both in the third quarter and
in cumulative figures, even though the sales volume has declined due to a drop
in manufacturing for other Group companies and the general market situation.
In Lithuania, the market share strengthened, sales volume increased and
earnings improved on the previous year. In addition to business development,
positive news were received from an annual customer survey: Volfas Engelman
ranked second in a comparison of most liked beer brands.
In spite of the challenges brought by currency fluctuation, business in Belarus
is developing favourably. The sales volume increased by 4 percent, and the
market share continued to grow. Lidskoe beer was ranked as the number one brand
in the Belarusian market according to two different market surveys. Lidskoe
beer was the primary choice for customers according to the annual “People's
Trade Mark Contest”, as well as the number one brand in the Belarusian market
according to the national “Brand Choice” competition. The brand competition
arranged by MASMI Research was aimed at marketing professionals.
The Group will continue to make investments at a more moderate pace. A
logistics investment in Finland was completed during the spring, making
operations even more efficient. Investments carried out this year increased the
production capacity in Belarus, which will allow further growth in sales
volume. The total amount of investments in 2015 will be less than in the
previous year, which will have a positive effect on the company's cash flow.
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 increased in January-September by 0.6 percent to
452.1 (449.3) million litres. The sales volume from July to September was 168.0
(170.4) million litres.
The sales volume increased in January-September in Belarus and Lithuania.
However, the volume fell short of the previous year in Estonia and Finland
above all due to cooler spring and summer weather. The volume development in
Latvia reflects the decline in sales to other Group entities.
Sales volume development by unit:
Sales volume, million 7-9/ 7-9/ Change 1-9/ 1-9/ Change
litres 2015 2014 % 2015 2014 %
--------------------------------------------------------------------------------
Finland (Olvi plc) 41.0 42.3 -2.9 110.9 114.7 -3.3
--------------------------------------------------------------------------------
Estonia (AS A. Le Coq) 33.7 37.9 -11.2 96.7 104.6 -7.5
--------------------------------------------------------------------------------
Latvia (A/S Cēsu Alus) 19.3 20.0 -3.8 54.6 63.2 -13.7
--------------------------------------------------------------------------------
Lithuania (AB Volfas 25.5 23.9 6.5 66.8 62.9 6.2
Engelman)
--------------------------------------------------------------------------------
Belarus (OAO Lidskoe 54.0 54.1 -0.1 140.5 135.2 3.9
Pivo)
--------------------------------------------------------------------------------
Eliminations -5.4 -7.8 -17.3 -31.3
--------------------------------------------------------------------------------
Total 168.0 170.4 -1.4 452.1 449.3 0.6
--------------------------------------------------------------------------------
The Group's net sales in January-September amounted to 241.7 (254.4) million
euro and in July-September to 88.9 (97.8) million euro. The negative net sales
development is affected by declined sales volumes in Finland and Estonia as
well as the weakened exchange rate in Belarus.
The comparison figures for net sales have been changed to correspond to the
accounting policy adopted as of the beginning of the year, with marketing
subsidies to customers now being deducted from net sales as a sales adjustment
item similar to discounts.
Net sales development by unit:
Net sales, million euro 7-9/ 7-9/ Change 1-9/ 1-9/ Change
2015 2014 % 2015 2014 %
--------------------------------------------------------------------------------
Finland (Olvi plc) 28.4 28.9 -1.9 76.9 80.2 -4.2
--------------------------------------------------------------------------------
Estonia (AS A. Le Coq) 20.7 23.3 -11.1 59.5 64.4 -7.6
--------------------------------------------------------------------------------
Latvia (A/S Cēsu Alus) 9.1 9.1 -0.4 24.8 28.6 -13.5
--------------------------------------------------------------------------------
Lithuania (AB Volfas 11.1 10.8 3.4 28.5 28.5 -0.2
Engelman)
--------------------------------------------------------------------------------
Belarus (OAO Lidskoe 22.1 29.0 -23.8 59.5 65.6 -9.3
Pivo)
--------------------------------------------------------------------------------
Eliminations -2.5 -3.2 -7.5 -12.9
--------------------------------------------------------------------------------
Total 88.9 97.8 -9.1 241.7 254.4 -5.0
--------------------------------------------------------------------------------
EARNINGS DEVELOPMENT
The Group's operating profit in January-September stood at 31.8 (36.5) million
euro, or 13.2 (14.3) percent of net sales. Operating profit in July-September
stood at 14.1 (17.2) million euro, which was 15.9 (17.5) percent of net sales.
One million euro of the Group's earnings drop in the third quarter is caused by
depreciation in the Belarusian exchange rate.
Operating profit development by unit:
Operating profit 7-9/ 7-9/ Change 1-9/ 1-9/ Change
(comparable) million euro 2015 2014 % 2015 2014 %
--------------------------------------------------------------------------------
Finland (Olvi plc) 3.1 2.3 35.3 6.0 5.8 *) 3.0
--------------------------------------------------------------------------------
Estonia (AS A. Le Coq) 5.1 6.0 -14.8 12.8 14.3 -10.8
--------------------------------------------------------------------------------
Latvia (A/S Cēsu Alus) 1.3 0.8 54.0 2.5 2.2 16.4
--------------------------------------------------------------------------------
Lithuania (AB Volfas 1.5 1.3 19.2 2.3 1.9 21.5
Engelman)
--------------------------------------------------------------------------------
Belarus (OAO Lidskoe Pivo) 3.3 6.6 -50.5 8.4 12.3 -31.2
--------------------------------------------------------------------------------
Eliminations -0.2 0.2 -0.1 0.1 *)
--------------------------------------------------------------------------------
Total 14.1 17.2 -17.7 31.8 36.5 -12.8
--------------------------------------------------------------------------------
*) Reported operating profit in Finland 1-9/2014 stood at 6.5 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 1-9/2015 figures.
The Group's January-September profit after taxes fell short of the previous
year and amounted to 17.2 (29.4) million euro. In addition to business
development, the decline in profit for the period was affected by unrealised
exchange rate differences related to the Belarusian subsidiary, which were
recognised in financial items.
Earnings per share calculated from the profit belonging to parent company
shareholders in January-September stood at 0.83 (1.39) euro, and the
July-September figure was 0.37 (0.73) euro.
BALANCE SHEET, FINANCING AND INVESTMENTS
Olvi Group's balance sheet total at the end of September 2015 was 326.0 (331.0)
million euro. Equity per share at the end of September 2015 stood at 8.73
(9.07) euro. The equity ratio remained strong at 56.1 (57.6) percent and the
gearing ratio was 31.7 (28.0) percent. The current ratio, which represents the
Group's liquidity, was 1.1 (1.2).
The amount of interest-bearing liabilities at the end of September was 65.1
(61.2) million euro, including current liabilities of 35.5 (26.4) million euro.
Olvi Group's gross capital expenditure in January-September amounted to 21.1
(31.9) million euro. The parent company Olvi accounted for 2.8 million euro,
the Baltic subsidiaries for 4.4 million euro and Lidskoe Pivo in Belarus for
13.9 million euro of the total.
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.
NEW PRODUCTS
Finland
In June, a new brand of long drink already familiar from tourism to Estonia was
introduced into Finnish retail stores: the A. Le Coq Long Drink with grapefruit
flavour in 12-packs. The launch continued in September with the introduction of
new package variants. In September, a totally new international soft drink
brand Buck's was introduced in glass bottles and cans with two flavours.
Furthermore in September, the bottle size for 1.5-litre KevytOlo mineral waters
increased by 10 percent to 1.65 litres. The bottle size for KevytOlo juice
mineral waters increased from 0.95-litre to 1.5-litre bottles. The KevytOlo
brand was extended with two new functional variants: fibre and antioxidant. Two
variants of the Vitamineral Water range familiar from Estonia were introduced
in Finland.
Subsidiaries
A. Le Coq of Estonia introduced the A. Le Coq Kohviporter (6%) coffee porter
beer. Ciders saw the introduction of the new brand Linda Ubin, with no added
sugar at all. The Vitamineral Water range was extended with the new Vitality
variant. Aura Active juice drinks were supplemented by the new flavour
blueberry-blackcurrant-raspberry.
Cēsu Alus of Latvia introduced the coffee-flavoured dark beer Cēsu Premium
Coffee Porter. October saw the introduction of caramellike Brūža Winter Porter.
The new flavour of cranberry was introduced to the Cēsu 14 cocktail range. The
Vitamin Performance range was supplemented by the sports beverage Vitamin
Performance Isotonic Sport. The range was also extended to milk-based protein
drinks, Protein Performance in two flavours, both containing 28 g of protein.
In October, Volfas Engelman of Lithuania introduced the Volfas Engelman
Kolekcinis Galaxy Special Limited Edition beer in aluminium bottles.
In Belarus, Lidskoe Pivo started the manufacture of Pepsi products in July by
introducing Pepsi Cola in 0.5-litre, 1.0-litre and 1.5-litre bottles. 7Up and
Mirinda were also introduced in the same package sizes. The dry hopped
Australian Bitter was introduced as the third variant in the special beers
range. The honey-flavoured Kvass Lidskiy Zimniy will be introduced for the
winter season in 1.0-litre and 1.5-litre bottles.
Detailed information on new products can be found on each company's Web site.
PERSONNEL
Olvi Group's average number of personnel in January-September was 1,970 (1,986).
The greatest decline in the Group's average number of personnel was seen in
Finland, where the figure dropped by 31 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 15 people
from January to September. The number of personnel in Belarus remained on a par
with the previous year in January-September but increased in the third quarter.
Olvi Group's average number of personnel by country:
7-9/ 2015 7-9/ 2014 Change % 1-9/ 2015 1-9/ 2014 Change %
-------------------------------------------------------------------------
Finland 338 380 -11.1 348 379 -8.2
-------------------------------------------------------------------------
Estonia 348 341 2.1 343 336 2.1
-------------------------------------------------------------------------
Latvia 203 214 -5.1 206 219 -5.9
-------------------------------------------------------------------------
Lithuania 238 216 10.2 235 214 9.8
-------------------------------------------------------------------------
Belarus 851 835 1.9 838 838 0.0
-------------------------------------------------------------------------
Total 1,978 1,986 -0.4 1,970 1,986 -0.8
-------------------------------------------------------------------------
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.
GROUP 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-September 2015.
Olvi's holdings in the subsidiaries are:
30 Sep 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 September 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 interim report, in Table 5, Section 4.
The total trading volume of Olvi A shares on Nasdaq OMX Helsinki in
January-September 2015 was 1,810,277 (1,579,911) shares, which represented 10.6
(9.3) percent of all Series A shares. The value of trading was 43.4 (41.0)
million euro.
The Olvi A share was quoted on Nasdaq OMX Helsinki (Helsinki Stock Exchange) at
22.09 (23.95) euro at the end of September 2015. In January-September, the
highest quote for the Series A share was 27.20 (29.90) euro and the lowest
quote was 20.51 (23.30) euro. The average price in January-September was 23.97
(25.98) euro.
At the end of September 2015, the market capitalisation of Series A shares was
376.1 (407.8) million euro and the market capitalisation of all shares was
458.6 (497.2) million euro.
The number of shareholders at the end of September 2015 was 10,034 (9,983).
Foreign holdings plus foreign and Finnish nominee-registered holdings
represented 22.4 (20.0) percent of the total number of book entries and 5.1
(4.5) percent of total votes.
Foreign and nominee-registered holdings are reported in Table 5, Section 9 of
the tables attached to this interim report, and the largest shareholders are
reported in Table 5, Section 10.
Treasury shares
There were no changes in the number of treasury shares held by Olvi in
January-September 2015. At the end of the reporting period, Olvi held 1,124
Series A shares as treasury shares. Treasury shares held by the company itself
are ineligible for voting. Detailed information on treasury shares is provided
in Table 5, Section 6 of the tables attached to this interim report.
Flagging notices
During January-September 2015, Olvi has not received any flagging notices in
accordance with Chapter 2, Section 10 of the Securities Markets Act.
BUSINESS RISKS AND THEIR MANAGEMENT
Risk management
Risk management is a part of Olvi Group's everyday management and operations.
The objective of risk management is to ensure the realisation of the company's
strategy and secure its financial development and the continuity of business.
The task of risk management is to operate proactively and create operating
conditions in which business risks are managed comprehensively and
systematically in all of the Group companies and all levels of the
organisation.
Business risks and uncertainties in the near term
The most substantial factor hampering the predictability of Olvi Group's
business relates to Belarus and its economic and political outlook for the next
few years. Furthermore, negative development of the Russian economy may impose
challenges on the Belarusian operating environment.
Operations in Belarus involve foreign exchange risks arising from the cash
flows of purchases and sales in foreign currency, as well as the investment in
the Belarusian subsidiary and the conversion of its income statement and
balance sheet items into euro. The Group's other foreign exchange risks can be
considered minor.
Other short-term risks and uncertainties are related to continuing negative
development of the general economic circumstances, changes in the competitive
situation, as well as the impacts these may have on the company's operations.
In addition to the risks described above, there have been no significant
changes in Olvi Group's business risks. A more detailed description of the
risks is provided in the Board of Directors' report and the notes to the
financial statements, as well as in the Investors/Corporate Governance section
of the company's Web site.
ANNUAL GENERAL MEETING
Decisions made at the General Meeting of 16 April 2015 can be found in the
bulletin released on 16 April 2015.
NEAR-TERM OUTLOOK
Olvi estimates that the Group's sales volume for 2015 will increase slightly on
the previous year. Net sales and operating profit are estimated to fall
slightly short of 2014. The Group had previously disclosed the following
outlook: Olvi estimates that the Group's sales volume for 2015 will increase
slightly on the previous year. Net sales and operating profit are estimated to
be on a par with 2014 or slightly lower.
OLVI PLC
Board of Directors
Further information:
Lasse Aho, Managing Director, Olvi plc
Phone +358 290 00 1050 or +358 400 203 600
TABLES:
- Statement of comprehensive income, Table 1
- Balance sheet, Table 2
- Changes in shareholders' equity, Table 3
- Cash flow statement, Table 4
- Notes to the interim report bulletin, Table 5
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Key media
www.olvi.fi
OLVI GROUP TABLE 1
INCOME STATEMENT
EUR 1,000
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2015 2014 2015 2014 2014
Net sales 88922 97832*) 241664 254445*) 320785*)
Other operating income 229 294 1309 1037 1626
Operating expenses -70855 -76832*) -198966 -207766*) -266504*)
Depreciation and impairment -4183 -4138 -12178 -11216 -14907
Operating profit 14113 17156 31829 36500 41000
Financial income -375 377 299 2482 3990
Financial expenses -5927 374 -11256 -1659 -3985
Share of profit in associates 0 0 0 0 48
Earnings before tax 7811 17907 20872 37323 41053
Taxes **) -196 -2359 -3697 -7893 -7974
NET PROFIT FOR THE PERIOD 7615 15548 17175 29430 33079
Other comprehensive income items:
Translation differences related to
foreign subsidiaries -5881 1416 -13441 -538 -2874
TOTAL COMPREHENSIVE INCOME FOR 1734 16964 3734 28892 30205
THE PERIOD
Distribution of profit:
- parent company shareholders 7735 15221 17265 28860 32522
- non-controlling interests -120 327 -90 570 557
Distribution of comprehensive income:
- parent company shareholders 2122 16607 4442 28387 29879
- non-controlling interests -388 357 -708 505 326
Earnings per share calculated from the profit
belonging
to parent company shareholders,
EUR
- undiluted 0.37 0.73 0.83 1.39 1.57
- diluted 0.37 0.73 0.83 1.39 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.
OLVI GROUP TABLE 2
BALANCE SHEET
EUR 1,000
30 Sep 30 Sep 31 Dec
2015 2014 2014
ASSETS
Non-current assets
Tangible assets 185426 189618 192149
Goodwill 16122 18565 18217
Other intangible assets 4234 2663 4562
Shares in associates 1125 1077 1125
Financial assets available for sale 544 549 549
Loans receivable and other non-current 333 349 333
receivables
Deferred tax receivables 168 171 163
Total non-current assets 207952 212992 217098
Current assets
Inventories 43359 46498 43522
Accounts receivable and other receivables 66418 63475 66309
Income tax receivable 787 341 1023
Other non-current assets held for sale 421 4 421
Liquid assets 7095 7682 4382
Total current assets 118080 118000 115657
TOTAL ASSETS 326032 330992 332755
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity held by parent company shareholders
Share capital 20759 20759 20759
Other reserves 1092 1092 1092
Treasury shares -8 -8 -8
Translation differences -35787 -20793 -22964
Retained earnings 195221 187282 191408
181277 188332 190287
Share belonging to non-controlling interests 1496 2365 2252
Total shareholders' equity 182773 190697 192539
Non-current liabilities
Financial liabilities 29640 34810 30040
Other liabilities 0 1 2
Deferred tax liabilities 6045 5288 5598
Current liabilities
Financial liabilities 35474 26354 31652
Accounts payable and other liabilities 71176 72747 72899
Income tax liability 924 1095 25
Total liabilities 143259 140295 140216
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 326032 330992 332755
OLVI GROUP TABLE 3
CHANGES IN
SHAREHOLDERS' EQUITY
EUR 1,000 Share Other Treasur Transla Retai Share of Total
capita reserv y tion ned non-controllin
l es shares differe earni g interests
reserve nces ngs
Shareholders' 20759 1092 -8 -20321 16742 2597 171539
equity 1 Jan 0
2014
Adjustments for 3780 217 3997
hyperinflation
Adjusted 20759 1092 -8 -20321 17120 2814 175536
shareholders' 0
equity 1 Jan
2014
Comprehensive
income:
Net profit for 28860 570 29430
the
period
Other comprehensive
income
items:
Translation -473 -65 -538
differences
Total comprehensive -473 28860 505 28892
income for the period
Transactions with
shareholders:
Payment of -1349 -72 -13564
dividends 2
Total transactions with -1349 -72 -13564
shareholders 2
Changes in holdings in
subsidiaries:
Acquisition of shares from
non-controlling -168 -168
interests
Change in share belonging to
non-
controlling
interests 882 -882 0
Total changes in holdings in 714 -882 -168
subsidiaries
Shareholders' 20759 1092 -8 -20793 18728 2365 190697
equity 30 Sep 2
2014
EUR 1,000 Share Other Treasur Transla Retai Share of Total
capita reserv y tion ned non-controllin
l es shares differe earni g interests
reserve nces ngs
Shareholders' 20759 1092 -8 -22964 19140 2252 192539
equity 1 Jan 8
2015
Adjustments for 0 0 0
hyperinflation
Adjusted 20759 1092 -8 -22964 19140 2252 192539
shareholders' 8
equity 1 Jan
2015
Comprehensive
income:
Net profit for 17265 -90 17175
the
period
Other comprehensive
income
items:
Translation -12823 -618 -13441
differences
Total comprehensive -12823 17265 -708 3734
income for the period
Transactions with
shareholders:
Payment of -1349 -47 -13539
dividends 2
Share-based incentives 40 40
Total transactions with -1345 -47 -13499
shareholders 2
Changes in holdings in
subsidiaries:
Acquisition of shares from
non-controlling 0 0
interests
Change in share belonging to
non-
controlling
interests 0 -1 -1
Total changes in holdings in subsidiaries 0 -1 -1
Shareholders' 20759 1092 -8 -35787 19522 1496 182773
equity 30 Sep 1
2015
Other reserves include the share premium account, legal reserve and
other reserves.
OLVI GROUP TABLE 4
CASH FLOW STATEMENT
EUR 1,000
1-9/201 1-9/201 1-12/2014
5 4
Net profit for the period 17175 29430 33079
Adjustments to profit for the 23227 22272 25699
period
Change in net working capital -3909 -5744 -2358
Interest paid -738 -1519 -3393
Interest received 141 235 385
Taxes paid -1841 -4826 -7063
Cash flow from operations (A) 34055 39848 46349
Investments in tangible and intangible
assets -21366 -34066 -43855
Sales gains from tangible and intangible
assets 194 60 200
Expenditure on other investments 5 -250 -298
Cash flow from investments (B) -21167 -34256 -43953
Withdrawals of loans 20571 25835 32657
Repayments of loans -17313 -17502 -24542
Dividends paid -13509 -13537 -13531
Increase (-) / decrease (+) in current interest-
bearing business receivables 7 -8 -23
Increase (-) / decrease (+) in long-term
loan receivables 3 0 16
Cash flow from financing (C) -10241 -5212 -5423
Increase (+)/decrease (-) in liquid 2647 380 -3027
assets (A+B+C)
Liquid assets 1 January 4382 7507 7507
Effect of exchange rate changes 66 -205 -98
Liquid assets 30 Sep/31 Dec 7095 7682 4382
OLVI GROUP
TABLE 5
NOTES TO THE INTERIM REPORT
Except for the changes detailed below, the accounting policies used for this
interim report are the same as those used for the annual financial statements
2014. The accounting policies are presented in the Annual Report 2014, which
was published on 24 March 2015.
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.
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 Group has adopted the following new or revised standards and
interpretations in 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.
The information in the interim report is presented in thousands of euros (EUR
1,000). For the sake of presentation, individual figures and totals have been
rounded to full thousands, which causes rounding differences in additions. The
information disclosed in the interim report is unaudited.
1. SEGMENT INFORMATION
SALES BY GEOGRAPHICAL SEGMENT (1,000 litres)
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2015 2014 2015 2014 2014
Olvi Group total 168031 170386 452127 449306 576478
Finland 41047 42287 110888 114716 151828
Estonia 33657 37898 96727 104567 131550
Latvia 19266 20025 54565 63199 76096
Lithuania 25452 23896 66774 62884 81054
Belarus 54026 54103 140510 135228 169919
- sales between segments -5417 -7823 -17337 -31288 -33969
NET SALES BY GEOGRAPHICAL SEGMENT (EUR 1,000)
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2015 2014 2015 2014 2014
Olvi Group total 88922 97832*) 241664 254445*) 320785*)
Finland 28377 28915 76851 80181 105329
Estonia 20729 23320 59508 64378 80666
Latvia 9061 9095 24775 28645 34112
Lithuania 11137 10771 28465 28510 36130
Belarus 22074 28976 59519 65604 78554
- sales between segments -2456 -3245 -7454 -12873 -14006
*) The previous year's figures have been adjusted for comparability
with the year 2015.
OPERATING PROFIT BY GEOGRAPHICAL SEGMENT (EUR 1,000)
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2015 2014 2015 2014 2014
Olvi Group total 14113 17156 31829 36500 41000
Finland 3113 2300 5962 6468*) 7436*)
Estonia 5134 6023 12745 14281 16504
Latvia 1280 831 2506 2153 2058
Lithuania 1511 1268 2298 1891 2356
Belarus 3260 6580 8446 12269 13117
- eliminations -185 154 -128 -562 -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
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2015 2014 2015 2014 2014
Finland 338 380 348 379 369
Estonia 348 341 343 336 331
Latvia 203 214 206 219 214
Lithuania 238 216 235 214 214
Belarus 851 835 838 838 830
Total 1,978 1,986 1,970 1,986 1,958
3. RELATED PARTY TRANSACTIONS
Employee benefits to management
Salaries and other short-term employee benefits to the Board of Directors and
Managing Director
EUR 1,000
1-9/ 1-9/ 1-12/
2015 2014 2014
Managing Director 268 280 361
Chairman of the Board 67 62 84
Other members of the Board 109 95 125
Total 444 437 570
4. SHARES AND SHARE CAPITAL
30 Sep 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 30 September 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 September 2015, accounting entries associated with the
performance period from 1 July 2014 to 30 June 2017 were recognised for a total
of 72.0 thousand euro.
Olvi Group has no warrants or options.
6. TREASURY SHARES
Olvi plc held a total of 1,124 of its own Series A shares on 1 January 2015.
Olvi plc has not acquired more treasury shares or transferred them to others in
January-September 2015, which means that the number of Series A shares held by
the company was unchanged on 30 September 2015. The purchase price of the
Series A shares held as treasury shares totalled 8.5 thousand euro.
Series A shares held by Olvi plc as treasury shares represented 0.005 percent
of the share capital and 0.001 percent of the aggregate number of votes. The
treasury shares represented 0.007 percent of all Series A shares and associated
votes.
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 unrestricted equity. The authorisation is valid for one year
starting from the General Meeting and covers a maximum of 500,000 Series A
shares. The shares shall be acquired for the purpose of financing or executing
any upcoming corporate acquisitions or other arrangements, implementing the
company's incentive schemes or for other purposes decided upon by the Board of
Directors.
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.
In January-September 2015, the Board of Directors of Olvi plc has not exercised
the authorisations granted by the General Meeting.
7. NUMBER OF SHARES *) 1-9/2015 1-9/2014 1-12/2014
- average 20757684 20757684 20757684
- at end of period 20757684 20757684 20757684
*) Treasury shares deducted.
8. TRADING OF SERIES A SHARES ON THE HELSINKI STOCK EXCHANGE
1-9/2015 1-9/2014 1-12/2014
Trading volume of Olvi A shares 1810277 1579911 2174302
Total trading volume, EUR 1,000 43408 41009 54313
Traded shares in proportion to
all Series A shares, % 10.6 9.3 12.8
Average share price, EUR 23.97 25.98 25.03
Price on the closing date, EUR 22.09 23.95 21.07
Highest quote, EUR 27.20 29.90 29.90
Lowest quote, EUR 20.51 23.30 20.70
9. FOREIGN AND NOMINEE-REGISTERED HOLDINGS ON 30 SEPTEMBER 2015
Book entries Votes Shareholders
qty % qty % qty %
Finnish total 16110944 77.62 87023808 94.93 9969 99.35
Foreign total 401343 1.93 401343 0.44 56 0.56
Nominee-registered (foreign) 93928 0.45 93928 0.10 4 0.04
total
Nominee-registered (Finnish) 4152593 20.00 4152593 4.53 5 0.05
total
Total 20758808 100.00 91671672 100.00 10034 100.00
10. LARGEST SHAREHOLDERS ON 30
SEPTEMBER 2015
Series K Series A Total % Votes %
1. Olvi 2363904 890613 3254517 15.68 48168693 52.54
Foundation
2. Hortling 903488 103280 1006768 4.85 18173040 19.82
Heikki Wilhelm
*)
3. The Heirs of 187104 25248 212352 1.02 3767328 4.11
Hortling Kalle
Einari
4. Hortling 165824 35308 201132 0.97 3351788 3.66
Timo Einari
5. Pohjola Bank 2152900 2152900 10.37 2152900 2.35
plc, nominee
register
6. 102288 3380 105668 0.51 2049140 2.24
Hortling-Rinne
Laila Marit
7. Nordea Bank Finland 1803060 1803060 8.69 1803060 1.97
plc, nominee register
8. Ilmarinen Mutual 849218 849218 4.09 849218 0.93
Pension Insurance Company
9. Varma Mutual Pension 828075 828075 3.99 828075 0.90
Insurance Company
10. AC Invest Oy 460000 460000 2.22 460000 0.50
Others 9648 9875470 9885118 47.61 10068430 10.98
Total 3732256 17026552 20758808 100.00 91671672 100.00
*) The figures include the shareholder's own holdings and shares held by parties
in his control.
11. PROPERTY, PLANT AND EQUIPMENT
EUR 1,000
1-9/2015 1-9/2014 1-12/2014
Opening balance 192149 165783 165783
Additions 20757 30192 38998
Deductions and transfers -130 -302 -818
Depreciation -11548 -10629 -14139
Exchange rate differences and adjustment for -15802 4574 2325
hyperinflation
Total 185426 189618 192149
12. CONTINGENT LIABILITIES
EUR 1,000
30 Sep 30 Sep 31 Dec
2015 2014 2014
Pledges and contingent liabilities
For own commitments 2422 2397 2397
Leasing and rental liabilities:
Due within one year 1153 1171 1143
Due within 1 to 5 years 1260 1290 758
Due in more than 5 years 5 5 5
Leasing and rental liabilities total 2418 2466 1906
Package liabilities 2771 2133 2496
Other liabilities 2000 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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