2016-08-25 08:00:53 CEST
2016-08-25 08:00:53 CEST
REGULATED INFORMATION
Olvi Oyj - Half Year financial report
OLVI GROUP’S HALF-YEAR REPORT, 1 JANUARY TO 30 JUNE 2016 (6 MONTHS)
Olvi Group's business succeeded well in the period under review. The Group's
sales volume increased, earnings improved and the balance sheet became stronger
in comparison to the previous year.
Iisalmi, 2016-08-25 07:59 CEST (GLOBE NEWSWIRE) -- OLVI PLC
HALF-YEAR REPORT 25 AUG 2016 at 9:00 am
OLVI GROUP’S HALF-YEAR REPORT, 1 JANUARY TO 30 JUNE 2016 (6 MONTHS)
HALF-YEAR REPORT IN BRIEF
Olvi Group’s business succeeded well in the period under review. The Group’s
sales volume increased, earnings improved and the balance sheet became stronger
in comparison to the previous year.
January to June 2016 in brief:
- Olvi Group’s sales volume was 306.4 (284.1) million litres
- The Group’s net sales amounted to 160.0 (152.7) million euro
- The Group’s operating profit amounted to 19.9 (17.7) million euro
- Olvi Group’s earnings per share stood at 0.70 (0.46) euro per share
- The equity to total assets ratio was 52.7 (50.6) percent.
April to June 2016 in brief:
- Olvi Group’s sales volume was 189.5 (168.8) million litres
- The Group’s net sales amounted to 97.9 (91.2) million euro
- The Group’s operating profit amounted to 15.5 (13.9) million euro
- Olvi Group’s earnings per share stood at 0.56 (0.39) euro per share
Olvi retains the earnings outlook for 2016 and estimates that the Group’s sales
volume and net sales for 2016 will increase slightly compared to the previous
year. Operating profit for 2016 is estimated to be on a par with the previous
year or increase slightly.
CONSOLIDATED KEY RATIOS
4-6/ 4-6/ Change % 1-6/ 1-6/ Change % 1-12/
2016 2015 / pp 2016 2015 / pp 2015
--------------------------------------------------------------------------------
Sales volume, Mltr 189.5 168.8 12.3 306.4 284.1 7.9 579.9
--------------------------------------------------------------------------------
Net sales, MEUR 97.9 91.2 7.3 160.0 152.7 4.8 310.5
--------------------------------------------------------------------------------
Gross margin, MEUR 20.2 18.1 11.9 29.0 25.7 12.8 54.5
--------------------------------------------------------------------------------
% of net sales 20.6 19.8 18.1 16.8 17.6
--------------------------------------------------------------------------------
Operating profit, 15.5 13.9 11.6 19.9 17.7 12.5 38.2
MEUR
--------------------------------------------------------------------------------
% of net sales 15.9 15.2 12.5 11.6 12.3
--------------------------------------------------------------------------------
Net profit for the 11.8 8.2 43.6 14.5 9.6 51.7 22.2
period
--------------------------------------------------------------------------------
% of net sales 12.1 9.0 9.1 6.3 7.2
--------------------------------------------------------------------------------
Earnings per 0.56 0.39 43.6 0.70 0.46 52.2 1.08
share, EUR
--------------------------------------------------------------------------------
Gross capital 5.4 9.5 -43.5 10.9 16.1 -32.0 26.0
expenditure, MEUR
--------------------------------------------------------------------------------
Equity per share, 8.62 8.63 -0.1 8.92
EUR
--------------------------------------------------------------------------------
Equity to total 52.7 50.6 2.1 59.4
assets, %
--------------------------------------------------------------------------------
Gearing, % 16.2 42.1 -25.9 18.3
--------------------------------------------------------------------------------
Olvi has applied the ESMA (European Securities and Markets Authority)
guidelines on Alternative Performance Measures that entered into force on 3
July 2016 (more information on performance indicators can be found in Section
13 of the tables attached to this half-year report). The adoption of the new
guidelines has not had any substantial effect on the performance indicators
disclosed by Olvi Group.
BUSINESS DEVELOPMENT
LASSE AHO, MANAGING DIRECTOR:
In the second quarter, Olvi’s business continued to develop favourably. The
Group’s most essential financial indicators clearly improved on the previous
year. Positive development has been supported by increasing market shares,
early-summer weather across the market area and improved operating efficiency.
Positive development has been seen particularly in Finland. Strong growth of
sales volumes in the first half of the year has enabled cost-efficient
operations in production and logistics. Our market share was clearly higher
than in the previous year, and earnings improved substantially.
Business in the Baltic states continued on a good performance track. Aggregate
operating profit in the Baltic states improved on the previous year, and the
companies’ market shares have remained very strong. Positive earnings
development has been backed by successful launches of new products.
The positive turn in the Belarusian unit during the second quarter has been
particularly gratifying. Even though the weak exchange rate still burdens the
company’s earnings measured in euro, sales volumes have increased in the most
important high-season months, and we have been able to adapt operating costs to
the declined sales prices. In the period under review, operating profit in
Belarus still fell short of the previous year but the business trend seems
promising.
In addition to positive development in the Group’s net sales and operating
profit, other financial indicators also developed very favourably. In the first
half of the year, profit for the period increased, cash flow from operations
grew stronger, the consolidated equity ratio improved and debt was reduced
compared to the same period a year earlier.
Investments in the first half of the year progressed according to plan. The
most important investment, an extension to the warehouse in Lithuania, was
completed on schedule. The investment will streamline operations and bring cost
savings. Investments made in production and logistics during recent years, as
well as process development, are among factors that enable efficient
operations. Their effect can also be seen in the Group’s positive earnings
development.
SEASONAL NATURE OF THE OPERATIONS
The Group’s business operations are characterised by seasonal variation. The
net sales and operating profit from the reported geographical segments do not
accumulate evenly but vary according to the time of the year and the
characteristics of each season.
SALES DEVELOPMENT
Sales volume development
Olvi Group’s sales volume in January-June increased by 7.9 percent to 306.4
(284.1) million litres. Olvi Group’s sales volume in April-June increased by
12.3 percent to 189.5 (168.8) million litres.
Sales volumes increased in the second quarter, and in January-June, above all
in Finland and Belarus.
Sales volume development by unit:
Sales volume, million 4-6/ 4-6/ Change 1-6/ 1-6/ Change
litres 2016 2015 % 2016 2015 %
--------------------------------------------------------------------------------
Finland (Olvi plc) 49.9 39.9 24.9 85.0 69.8 21.8
--------------------------------------------------------------------------------
Estonia (AS A. Le Coq) 39.3 37.8 3.8 65.2 63.1 3.3
--------------------------------------------------------------------------------
Latvia (A/S Cēsu Alus) 21.4 21.4 0.0 34.4 35.3 -2.5
--------------------------------------------------------------------------------
Lithuania (AB Volfas 24.5 23.8 3.1 41.0 41.3 -0.8
Engelman)
--------------------------------------------------------------------------------
Belarus (OAO Lidskoe 61.0 54.0 13.0 90.9 86.5 5.1
Pivo)
--------------------------------------------------------------------------------
Eliminations -6.5 -8.1 -10.1 -11.9
--------------------------------------------------------------------------------
Total 189.5 168.8 12.3 306.4 284.1 7.9
--------------------------------------------------------------------------------
Net sales development
The Group’s net sales in January-June increased by 4.8 percent and amounted to
160.0 (152.7) million euro. Net sales in April-June increased by 7.3 percent to
97.9 (91.2) million euro. Net sales increased in the second quarter, and in
January-June, above all in Finland and Estonia. Despite increased sales
volumes, net sales development in Belarus was negative. This was particularly
impacted by a weaker exchange rate compared to the corresponding period last
year.
Net sales development by unit:
Net sales, million euro 4-6/ 4-6/ Change 1-6/ 1-6/ Change
2016 2015 % 2016 2015 %
--------------------------------------------------------------------------------
Finland (Olvi plc) 33.4 27.3 22.4 57.2 48.5 17.9
--------------------------------------------------------------------------------
Estonia (AS A. Le Coq) 25.2 23.5 7.2 41.3 38.8 6.5
--------------------------------------------------------------------------------
Latvia (A/S Cēsu Alus) 10.0 9.7 2.4 16.2 15.7 3.0
--------------------------------------------------------------------------------
Lithuania (AB Volfas 10.3 10.0 3.5 17.1 17.3 -1.1
Engelman)
--------------------------------------------------------------------------------
Belarus (OAO Lidskoe 21.9 24.0 -8.8 32.9 37.4 -12.1
Pivo)
--------------------------------------------------------------------------------
Eliminations -3.0 -3.3 -4.7 -5.0
--------------------------------------------------------------------------------
Total 97.9 91.2 7.3 160.0 152.7 4.8
--------------------------------------------------------------------------------
EARNINGS DEVELOPMENT
The Group’s operating profit in January-June stood at 19.9 (17.7) million euro,
or 12.5 (11.6) percent of net sales. Operating profit in April-June stood at
15.5 (13.9) million euro, which was 15.9 (15.2) percent of net sales. Operating
profit improved in the second quarter and the entire half-year period
particularly in Finland. Improvement was also seen in Estonia and Latvia.
Belarus fell short of the previous year’s operating profit particularly due to
negative exchange rate development.
Operating profit development by unit:
Operating profit, 4-6/ 4-6/ Change 1-6/ 1-6/ Change
million euro 2016 2015 % 2016 2015 %
--------------------------------------------------------------------------------
Finland (Olvi plc) 3.9 2.2 81.6 5.1 2.8 79.1
--------------------------------------------------------------------------------
Estonia (AS A. Le Coq) 6.1 5.4 12.0 8.5 7.6 12.0
--------------------------------------------------------------------------------
Latvia (A/S Cēsu Alus) 1.2 1.2 4.1 1.6 1.2 33.0
--------------------------------------------------------------------------------
Lithuania (AB Volfas 0.7 0.7 7.8 0.8 0.8 7.0
Engelman)
--------------------------------------------------------------------------------
Belarus (OAO Lidskoe 3.5 4.5 -21.3 3.7 5.2 -28.0
Pivo)
--------------------------------------------------------------------------------
Eliminations 0.0 0.0 0.1 0.1
--------------------------------------------------------------------------------
Total 15.5 13.9 11.6 19.9 17.7 12.5
--------------------------------------------------------------------------------
The Group’s profit after taxes in January-June increased by 51.7 percent on the
previous year, amounting to 14.5 (9.6) million euro. Profit in April-June
increased by 43.6 percent to 11.8 (8.2) million euro. In addition to improved
operating profit, the increase in profit for the period was fuelled by lower
net financial expenses compared to the previous year.
Earnings per share calculated from the profit belonging to parent company
shareholders improved clearly. In January-June it stood at 0.70 (0.46) euro,
and the April-June figure was 0.56 (0.39) euro.
BALANCE SHEET, FINANCING AND INVESTMENTS
Olvi Group’s balance sheet total at the end of June 2016 was 341.7 (357.5)
million euro. Equity per share at the end of June 2016 stood at 8.62 (8.63)
euro. The equity ratio was 52.7 (50.6) percent and the gearing ratio was 16.2
(42.1) percent.
The Group’s cash flow from operations increased to 30.4 (11.5) million euro.
The amount of interest-bearing liabilities dropped substantially and amounted
to 42.7 (80.8) million euro at the end of June. Current liabilities made up
25.7 (48.7) million euro of all interest-bearing liabilities.
Olvi Group’s gross capital expenditure in January-June amounted to 10.9 (16.1)
million euro. The parent company Olvi accounted for 3.2 million euro, the
Baltic subsidiaries for 5.8 million euro and Lidskoe Pivo in Belarus for 1.9
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
The most significant product launches in Finland in the first half of the year
were the Olvi APA beer and a new soft drink flavour Pasadena Pinch under the
Kane’s Soda Pop brand. New products are described in more detail on the
company’s Web site and in the first interim report of the year.
Subsidiaries
During the review period, A. Le Coq in Estonia launched the Sherwood
Pomegranate cider.
Cēsu Alus in Latvia launched a new range of women’s well-being beverages with
two functions: Anti-Aging and Hair, Skin & Nails. In ciders, the new Dārza
brand was introduced. It is a garden cider with three flavour variants: apple,
quince and gooseberry.
Volfas Engelman in Lithuania launched two specialty beers to the Volfas
Engelman World Tastes range: IPA and Blond. The Volfas Engelman brand also saw
the introduction of a non-alcoholic beer Bealkoholinis. In ciders, the new
Sidras 1932 brand was introduced. A new flavour of Pomegranate was introduced
to the Sherwood brand. The range of cocktails was extended with the LaCreme
product family having two flavours: Coffee and Strawberry. The traditional Le
Coq Cocktail range saw the introduction of a new flavour Sex on the Beach. A
parallel brand of kvass was introduced under the name Meister, while the
traditional Smetoniskaja kvass was complemented with a dark version. Kane’s
Soda Pop soft drinks were launched in Lithuania in two flavours.
Lidskoe Pivo in Belarus launched three new beers in the review period. Lidskoe
140, which is produced in a limited quantity using a historic recipe,
celebrates the company’s anniversary. On the other hand, Lidskae Legend is a
tribute to the company’s founder Nosel Pupko. The Lidskae Master’s Collection
Framboise extends the range of specialty beers with a raspberry-flavoured
Belgian-style beer. The Dynami:t range of energy drinks saw the introduction of
Dynami:t Shizandra, which contains Schisandra chinensis extract, in other words
Chinese magnolia vine, as well as natural caffeine and vitamins.
Detailed information on new products can be found on each company’s Web site.
PERSONNEL
Olvi Group’s average number of personnel in January-June was 1,891 (1,969).
The Group’s average number of personnel decreased by 57 people in Belarus and
31 people in Finland. The decrease reflects operational efficiency measures and
reorganisation. Personnel numbers in the other units remained approximately on
par with the previous year.
Olvi Group’s average number of personnel by country:
4-6/ 2016 4-6/ 2015 Change % 1-6/ 2016 1-6/ 2015 Change %
-------------------------------------------------------------------------
Finland 357 371 -3.8 323 354 -8.8
-------------------------------------------------------------------------
Estonia 367 364 0.8 344 341 0.9
-------------------------------------------------------------------------
Latvia 226 218 3.7 214 208 2.9
-------------------------------------------------------------------------
Lithuania 241 241 0.0 235 234 0.4
-------------------------------------------------------------------------
Belarus 773 870 -11.1 775 832 -6.9
-------------------------------------------------------------------------
Total 1964 2064 -4.8 1891 1969 -4.0
-------------------------------------------------------------------------
MANAGEMENT AND AUDITORS
The company’s Board of Directors consists of Chairman Esa Lager, M.Sc. (Econ),
LL.M., Vice Chairperson Nora Hortling, M.Sc. (Econ), as well as members Jaakko
Autere, M.Sc. (Econ), Elisa Markula, M.Sc. (Econ), and Heikki Sirviö, Honorary
Industrial Counsellor, M.Sc. (Engineering).
The company’s auditor is the authorised public accounting firm
PricewaterhouseCoopers Oy, with Sami Posti, Authorised Public Accountant, as
auditor in charge.
MANAGEMENT
The Management Group of Olvi plc consists of Lasse Aho, Managing Director
(Chairman), Ilkka Auvola, Sales Director, Olli Heikkilä, Marketing Director,
Pia Hortling, Product Development and Purchasing Director, Kati Kokkonen, Chief
Financial Officer, Lauri Multanen, Production Director, as well as Marjatta
Rissanen, Customer Service and Administrative Director.
The Managing Directors of the subsidiaries are:
AS A. Le Coq, Tartu, Estonia - Tarmo Noop
A/S Cēsu Alus, Cēsis, Latvia - Eva Sietiņsone
AB Volfas Engelman, Kaunas, Lithuania - Marius Horbačauskas
OAO Lidskoe Pivo, Lida, Belarus - Audrius Mikšys
The Managing Directors of the subsidiaries report to Lasse Aho, the Managing
Director of Olvi plc. The Management Group of each subsidiary consists of the
corresponding Managing Director and two to four sector directors.
GROUP STRUCTURE
In April-June, Olvi Group acquired 31 shares in the subsidiary A/S Cēsu Alus.
There were no other changes in Olvi’s holdings in subsidiaries in January-June
2016.
Olvi’s holdings in the subsidiaries are:
30 Jun 2016 31 Dec 2015 Change
---------------------------------------------------------------
AS A. Le Coq, Estonia 100.00 100.00 -
---------------------------------------------------------------
A/S Cēsu Alus, Latvia 99.88 99.87 0.01
---------------------------------------------------------------
AB Volfas Engelman, Lithuania 99.58 99.58 -
---------------------------------------------------------------
OAO Lidskoe Pivo, Belarus 94.57 94.57 -
---------------------------------------------------------------
Furthermore, A. Le Coq has a 49.0 percent holding in AS Karme and 20.0 percent
holding in Verska Mineraalvee OÜ in Estonia.
SHARES
Olvi’s share capital at the end of June 2016 stood at 20.8 million euro. The
total number of shares was 20,758,808, of these 17,026,552 or 82.0 percent
being publicly traded Series A shares and 3,732,256 or 18.0 percent Series K
shares.
Each Series A share carries one (1) vote and each Series K share carries twenty
(20) votes. Series A and Series K shares have equal rights to dividends.
Detailed information on Olvi’s shares and share capital can be found in the
tables attached to this half-year report, in Table 5, Section 4.
The total trading volume of Olvi A shares on Nasdaq OMX Helsinki in
January-June 2016 was 511,767 (1,478,324) shares, which represented 3.0 (8.7)
percent of all Series A shares. The value of trading was 12.1 (35.4) million
euro.
The Olvi A share was quoted on Nasdaq OMX Helsinki (Helsinki Stock Exchange) at
25.25 (26.30) euro at the end of June 2016. In January-June, the highest quote
for the Series A share was 27.10 (27.20) euro and the lowest quote was 20.30
(20.51) euro. The average price in January-June was 23.73 (23.94) euro.
At the end of June 2016, the market capitalisation of Series A shares was 429.6
(447.8) million euro and the market capitalisation of all shares was 523.9
(546.0) million euro.
The number of shareholders at the end of June 2016 was 9,914 (10,029). Foreign
holdings plus foreign and Finnish nominee-registered holdings represented 23.4
(22.5) percent of the total number of book entries and 5.3 (5.1) percent of
total votes.
Foreign and nominee-registered holdings are reported in Table 5, Section 9 of
the tables attached to this half-year report, and the largest shareholders are
reported in Table 5, Section 10.
Treasury shares
Olvi acquired 5,500 of its own Series A shares in January-June. The purchase
price was 120,139 euro. At the end of the reporting period, Olvi held 11,124
Series A shares as treasury shares. The total purchase price of treasury shares
was 228,162 euro. Treasury shares held by the company itself are ineligible for
voting.
Detailed information on treasury shares is provided in Table 5, Section 6 of
the tables attached to this half-year report.
Flagging notices
On 11 April 2016, Olvi plc received a flagging notice concerning its shares in
accordance with Chapter 9, Section 5 of the Securities Markets Act from the
Estate of Heikki Hortling.
According to the notice, shares held by Heikki Wilhelm Hortling have been
transferred to the Estate of Heikki Hortling. Shares transferred to the Estate:
99,760 Series A shares representing 0.48 percent of all shares and 0.11 percent
of all votes; and 903,488 Series K shares representing 4.35 percent of all
shares and 19.29 percent of all votes. Holding, Series A and Series K shares
combined: 4.83 percent of all shares and 19.40 percent of all votes.
During January-June 2016, Olvi has not received any flagging notices in
accordance with Chapter 2, Section 10 of the Securities Markets Act.
BUSINESS RISKS AND THEIR MANAGEMENT
Risk management
Risk management is a part of Olvi Group’s everyday management and operations.
The objective of risk management is to ensure the realisation of the company’s
strategy and secure its financial development and the continuity of business.
The task of risk management is to operate proactively and create operating
conditions in which business risks are managed comprehensively and
systematically in all of the Group companies and all levels of the
organisation.
Business risks and uncertainties in the near term
The most substantial factor hampering the predictability of Olvi Group’s
business relates to Belarus and its economic and political outlook for the next
few years. Furthermore, negative development of the Russian economy may impose
challenges on the Belarusian operating environment.
Operations in Belarus involve foreign exchange risks arising from the cash
flows of purchases and sales in foreign currency, as well as the investment in
the Belarusian subsidiary and the conversion of its income statement and
balance sheet items into euro. The Group’s other foreign exchange risks can be
considered minor.
Other short-term risks and uncertainties are related to continuing negative
development of the general economic circumstances, changes in the competitive
situation, as well as the impacts these may have on the company’s operations.
In addition to the risks described above, there have been no significant
changes in Olvi Group’s business risks. A more detailed description of the
risks is provided in the Board of Directors’ report and the notes to the
financial statements, as well as in the Investors/Corporate Governance section
of the company’s Web site.
OTHER EVENTS DURING THE REVIEW PERIOD
Annual General Meeting
Olvi plc’s Annual General Meeting of 14 April 2016 adopted the financial
statements and granted discharge from liability to the members of the Board of
Directors and Managing Director for the accounting period that ended on 31
December 2015.
In accordance with the Board’s proposal, the General Meeting decided that a
dividend of 0.70 (0.65) euro be paid on each A and K share for the accounting
period 2015. The dividend according to the resolution accounts for 64.8 (41.4)
percent of Olvi Group’s consolidated earnings per share. The dividends were
paid on 28 April 2016.
The General Meeting decided that the Board of Directors shall have five (5)
members. Jaakko Autere, Nora Hortling, Esa Lager, Elisa Markula and Heikki
Sirviö were re-elected as Members of the Board.
All decisions made at the General Meeting can be found in the bulletin released
on 14 April 2016.
New incentive plan for key personnel
Olvi Group is about to launch the new share-based incentive plan for key
employees in accordance with the Board of Director’s decision of February 2016.
The aim of the new plan is to combine the objectives of the shareholders and
the key employees in order to increase the value of the company, to commit the
key employees to the company, and to offer them a competitive reward plan based
on earning the company’s shares.
The performance period for the share-based incentive plan is two years (July
2016 to June 2018). The prerequisite for receiving reward is that a key
employee purchases the company’s Series A shares up to the maximum number
determined by the Board of Directors. Furthermore, entitlement to a reward is
tied to the continuance of employment or service upon reward payment. Rewards
will be paid after the performance period partly in the company’s Series A
shares and partly in cash. The cash proportion is intended to cover taxes and
tax-related costs arising from the rewards to the key employees.
The plan is directed to approximately 50 people. The rewards to be paid on the
basis of the plan are in total a maximum of 36,280 series A shares in Olvi plc
and a cash payment needed for taxes and tax-related costs arising from the
shares.
NEAR-TERM OUTLOOK
Olvi estimates that the Group’s sales volume and net sales for 2016 will
increase slightly on the previous year. Operating profit for 2016 is estimated
to be on a par with the previous year or increase slightly.
OLVI PLC
Board of Directors
Further information:
Lasse Aho, Managing Director, Olvi plc
Phone +358 290 00 1050 or +358 400 203 600
TABLES:
- Statement of comprehensive income, Table 1
- Balance sheet, Table 2
- Changes in shareholders’ equity, Table 3
- Cash flow statement, Table 4
- Notes to the half-year report, Table 5
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Key media
www.olvi.fi
OLVI GROUP TABLE 1
INCOME STATEMENT
EUR 1,000
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2016 2015 2016 2015 2015
Net sales 97852 91228 160015 152742 310494
Other operating income 560 513 1018 1080 1743
Operating expenses -78221 -73691 -132041 -128111 -257732
Depreciation and impairment -4666 -4139 -9056 -7995 -16348
Operating profit 15525 13911 19936 17716 38157
Financial income 333 62 904 674 281
Financial expenses -379 -2517 -1764 -5329 -11641
Share of profit in associates 0 0 0 0 21
Earnings before tax 15479 11456 19076 13061 26818
Taxes *) -3685 -3241 -4573 -3501 -4598
NET PROFIT FOR THE PERIOD 11794 8215 14503 9560 22220
Other comprehensive income items:
Translation differences related to
foreign subsidiaries 1452 -2589 -5391 -7560 -14620
TOTAL COMPREHENSIVE INCOME FOR THE 13246 5626 9112 2000 7600
PERIOD
Distribution of profit:
- parent company shareholders 11576 8104 14478 9530 22334
- non-controlling interests 218 111 25 30 -114
Distribution of comprehensive income:
- parent company shareholders 12992 5635 9216 2320 8358
- non-controlling interests 254 -9 -104 -320 -758
Earnings per share calculated from the profit
belonging
to parent company shareholders, EUR
- undiluted 0.56 0.39 0.70 0.46 1.08
- diluted 0.56 0.39 0.70 0.46 1.08
*) Taxes calculated from the profit for the review period.
OLVI GROUP TABLE 2
BALANCE SHEET
EUR 1,000
30 Jun 30 Jun 31 Dec
2016 2015 2015
ASSETS
Non-current assets
Tangible assets 194607 191317 185240
Goodwill 15557 17064 16017
Other intangible assets 4870 4502 4183
Shares in associates 1146 1125 1146
Financial assets available for sale 549 549 543
Loans receivable and other non-current 303 333 310
receivables
Deferred tax receivables 213 165 147
Total non-current assets 217245 215055 207586
Current assets
Inventories 36633 49354 42236
Accounts receivable and other receivables 73820 87150 51232
Income tax receivable 0 845 236
Other non-current assets held for sale 419 421 421
Liquid assets 13560 4639 12786
Total current assets 124432 142409 106911
TOTAL ASSETS 341677 357464 314497
SHAREHOLDERS’ EQUITY AND LIABILITIES
Shareholders’ equity held by parent company shareholders
Share capital 20759 20759 20759
Other reserves 1092 1092 1092
Treasury shares -228 -8 -108
Translation differences -42202 -30174 -36940
Retained earnings 199350 187473 200415
178771 179142 185218
Share belonging to non-controlling interests 1297 1877 1447
Total shareholders’ equity 180068 181019 186665
Non-current liabilities
Financial liabilities 17046 32194 24179
Other liabilities 6 3 4
Deferred tax liabilities 7634 6090 6777
Current liabilities
Financial liabilities 25661 48652 22683
Accounts payable and other liabilities 110692 89050 74153
Income tax liability 570 456 36
Total liabilities 161609 176445 127832
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 341677 357464 314497
OLVI GROUP TABLE 3
CHANGES IN
SHAREHOLDERS’ EQUITY
EUR 1,000 Share Other Treasu Transl Retained Share of Total
capita reserve ry ation earnings non-controllin
l s shares differ g interests
reserv ences
e
Shareholders’ 20759 1092 -8 -22964 191408 2252 192539
equity 1 Jan
2015
Comprehensive
income:
Net profit 9530 30 9560
for the
period
Other comprehensive
income items:
Translation -7210 -350 -7560
differences
Total comprehensive -7210 9530 -320 2000
income for the
period
Transactions with
shareholders:
Payment of -13492 -55 -13547
dividends
Share-based 27 27
incentives
Total transactions with -13465 -55 -13520
shareholders
Shareholders’ 20759 1092 -8 -30174 187473 1877 181019
equity 31
Jun 2016
EUR 1,000 Share Other Treasu Transl Retained Share of Total
capita reserve ry ation earnings non-controllin
l s shares differ g interests
reserv ences
e
Shareholders’ 20759 1092 -108 -36940 200415 1447 186665
equity 1 Jan
2016
Comprehensive
income:
Net profit 14478 25 14503
for the
period
Other comprehensive
income items:
Translation -5262 -129 -5391
differences
Total comprehensive -5262 14478 -104 9112
income for the
period
Transactions with
shareholders:
Payment of -14523 -42 -14565
dividends
Acquisition of treasury shares -120 -120
Share-based incentives 27 27
Change in accounting policies -1047 -2 -1049
Total transactions with -120 -15543 -44 -15707
shareholders
Changes in holdings in
subsidiaries:
Acquisition of shares from
non-controlling interests
1 1
Change in share belonging to
non-controlling
interests
-1 -2 -3
Total changes in 0 -2 -2
holdings in
subsidiaries
Shareholders’ 20759 1092 -228 -42202 199350 1297 180068
equity 30
Jun 2016
Other reserves include the share premium account, legal reserve and
other reserves.
OLVI GROUP TABLE 4
CASH FLOW STATEMENT
EUR 1,000
1-6/201 1-6/2015 1-12/2015
6
Net profit for the period 14503 9560 22220
Adjustments to profit for the 11429 13135 28684
period
Change in net working capital 4764 -10969 14169
Interest paid -466 -560 -1113
Interest received 172 82 228
Taxes paid -12 297 -2520
Cash flow from operations (A) 30390 11545 61668
Investments in tangible and intangible
assets -11692 -16201 -25100
Sales gains from tangible and intangible
assets 236 -92 249
Expenditure on other investments -5 0 -16
Cash flow from investments (B) -11461 -16293 -24867
Withdrawals of loans 4327 24947 20360
Repayments of loans -7749 -6384 -35250
Acquisition of treasury shares -120 0 -64
Dividends paid -14527 -13516 -13514
Increase (-) / decrease (+) in current interest-
bearing business receivables 14 0 -8
Increase (-) / decrease (+) in long-term
loan receivables 0 3 26
Cash flow from financing (C) -18055 5050 -28450
Increase (+)/decrease (-) in 874 302 8351
liquid assets (A+B+C)
Liquid assets 1 January 12786 4382 4382
Effect of exchange rate changes -100 -45 53
Liquid assets 30 June/31 December 13560 4639 12786
OLVI GROUP
TABLE 5
NOTES TO THE HALF-YEAR REPORT
Except for the changes detailed below, the accounting policies used for this
half-year report are the same as those used for the annual financial statements
2015. The accounting policies are presented in the Annual Report 2015, which
was published on 24 March 2016.
The Group has adopted the following new or revised standards and
interpretations in 2016:
- Annual improvements to IFRS 2012–2014
- Disclosure Initiative – amendments to IAS 1 Presentation of Financial
Statements
The above changes in standards do not have any substantial effect on the income
statement or balance sheet. Some changes in standards may affect the scope of
information disclosed in the notes.
Other changes in accounting policies as of 1 January 2016
As of 1 January 2016, Olvi Group adopts the general industry practice of
presenting recyclable beverage packages in tangible assets when they meet the
criteria of IAS 16. This means that starting from 1 January 2016, property,
plant and equipment includes not only the recyclable packages in inventory but
also Olvi plc’s share of the package stock in accordance to shares determined
by the Ekopulloyhdistys association, as well as packages held by the clients of
subsidiaries, which the Group is obliged to repurchase. The repurchase
obligation related to packaging used by clients will be presented as a current
liability on the balance sheet.
The information in the half-year 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 half-year report is unaudited.
1. SEGMENT INFORMATION
SALES VOLUME BY GEOGRAPHICAL SEGMENT (1,000 litres)
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2016 2015 2016 2015 2015
Olvi Group total 189516 168823 306399 284096 579901
Finland 49855 39915 85037 69841 148029
Estonia 39298 37841 65163 63070 123871
Latvia 21378 21375 34429 35299 68122
Lithuania 24516 23781 40995 41322 84877
Belarus 61013 54010 90862 86484 175129
- sales between segments -6544 -8099 -10087 -11920 -20127
NET SALES BY GEOGRAPHICAL SEGMENT (EUR 1,000)
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2016 2015 2016 2015 2015
Olvi Group total 97852 91228 160015 152742 310494
Finland 33403 27284 57175 48474 102869
Estonia 25226 23534 41303 38779 75790
Latvia 9960 9722 16181 15714 31188
Lithuania 10328 9974 17132 17328 35843
Belarus 21921 24046 32913 37445 73550
- sales between segments -2986 -3332 -4689 -4998 -8746
OPERATING PROFIT BY GEOGRAPHICAL SEGMENT (EUR 1,000)
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2016 2015 2016 2015 2015
Olvi Group total 15525 13911 19936 17716 38157
Finland 3914 2155 5103 2849 7839
Estonia 6095 5444 8525 7611 15913
Latvia 1229 1180 1631 1226 2987
Lithuania 746 692 842 787 2610
Belarus 3508 4458 3733 5186 8838
- eliminations 33 -18 102 57 -3
2. PERSONNEL ON AVERAGE
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2016 2015 2016 2015 2015
Finland 357 371 323 354 336
Estonia 367 364 344 341 336
Latvia 226 218 214 208 206
Lithuania 241 241 235 234 233
Belarus 773 870 775 832 829
Total 1964 2064 1891 1969 1940
3. RELATED PARTY TRANSACTIONS
Employee benefits to management
Salaries and other short-term employee benefits to the Board of Directors and
Managing Director
EUR 1,000
1-6/ 1-6/ 1-12/
2016 2015 2015
Managing Director 202 173 350
Chairman of the Board 34 45 83
Other members of the Board 73 71 150
Total 309 289 583
4. SHARES AND SHARE CAPITAL
30 June 2016 %
Number of A shares 17026552 82.0
Number of K shares 3732256 18.0
Total 20758808 100.0
Total votes carried by A shares 17026552 18.6
Total votes carried by K shares 74645120 81.4
Total number of votes 91671672 100.0
Votes per Series A share 1
Votes per Series K share 20
The registered share capital on 30 June 2016 totalled 20,759 thousand euro.
Olvi plc’s Series A and Series K shares received a dividend of 0.70 euro per
share for 2015 (0.65 euro per share for 2014), totalling 14.5 (13.5) million
euro. The dividends were paid on 28 April 2016. The Series K and Series A
shares entitle to equal dividend. The Articles of Association include a
redemption clause concerning Series K shares.
5. SHARE-BASED PAYMENTS
Olvi Group has two active share-based incentive plans for key personnel. The
aim of the share-based incentive plans is to combine the objectives of the
shareholders and the key employees in order to increase the value of the
company, to make the key employees committed to the company, and to offer them
a competitive reward plan based on earning the company’s shares.
The bonuses for the performance periods (2014-2016/2017) will be paid in 2017
partially in Olvi plc Series A shares and partially in cash. The plan is
directed to approximately 50 people. The rewards to be paid on the basis of the
plan are in total an approximate maximum of 40,000 series A shares in Olvi plc
and a cash payment needed for taxes and tax-related costs arising from the
shares. The share-based incentive plan includes one three-year performance
period, calendar years 2014–2016. The potential reward from the performance
period 2014–2016 will be based on Olvi Group’s cumulative operating profit,
also known as earnings before interest and taxes (EBIT). Furthermore, the plan
includes one three-year performance period, beginning on 1 July 2014 and ending
on 30 June 2017. The prerequisite for receiving reward for this performance
period is that a key employee purchases the company’s Series A shares up to the
maximum number determined by the Board of Directors. Furthermore, entitlement
to a reward is tied to the continuance of employment or service upon reward
payment. From January to June 2016, accounting entries associated with the
performance period from 1 July 2014 to 30 June 2017 were recognised for a total
of 44.1 thousand euro.
On 24 February 2016, Olvi plc’s Board of Directors decided on a new share-based
incentive plan for the Group’s key personnel. The performance period for the
share-based incentive plan is two years. The prerequisite for receiving reward
is that a key employee purchases the company’s Series A shares up to the
maximum number determined by the Board of Directors. Furthermore, entitlement
to a reward is tied to the continuance of employment or service upon reward
payment. Rewards will be paid partly in the company’s Series A shares and
partly in cash in 2018. The cash proportion is intended to cover taxes and
tax-related costs arising from the rewards to the key employees. The plan is
directed to approximately 50 people. The rewards to be paid on the basis of the
plan are in total a maximum of 36,280 series A shares in Olvi plc and a cash
payment needed for taxes and tax-related costs arising from the shares. The
costs of the plan will be recognised as expenses over the performance period
from 1 July 2016 to 30 June 2018.
Olvi Group does not have any other share-based plans or option plans.
6. TREASURY SHARES
Olvi plc held a total of 5,624 of its own Series A shares on 1 January 2016.
Olvi acquired 5,500 of its own Series A shares in January-June. The purchase
price was 120,139 euro. At the end of the reporting period, Olvi held 11,124
Series A shares as treasury shares. The total purchase price of treasury shares
was 228,162 euro. Treasury shares held by the company itself are ineligible for
voting.
Series A shares held by Olvi plc as treasury shares represented 0.054 percent
of the share capital and 0.012 percent of the aggregate number of votes. The
treasury shares represented 0.065 percent of all Series A shares and associated
votes.
On 14 April 2016, the General Meeting of Shareholders of Olvi plc decided to
revoke any unused authorisations to acquire treasury shares and authorise the
Board of Directors of Olvi plc to decide on the acquisition of the company’s
own shares using distributable funds. The authorisation is valid for one year
starting from the General Meeting and covers a maximum of 500,000 Series A
shares.
The Annual General Meeting also decided to revoke all existing unused
authorisations for the transfer of own shares and authorise the Board of
Directors to decide on the issue of a maximum of 1,000,000 new Series A shares
and the transfer of a maximum of 500,000 Series A shares held as treasury
shares.
7. NUMBER OF SHARES *) 1-6/2016 1-6/2015 1-12/2015
- average 20747800 20757684 20757645
- at end of period 20747684 20757684 20753184
*) Treasury shares deducted.
8. TRADING OF SERIES A SHARES ON THE HELSINKI STOCK
EXCHANGE
1-6/2016 1-6/2015 1-12/2015
Trading volume of Olvi A shares 511767 1478324 2036830
Total trading volume, EUR 1,000 12146 35420 48413
Traded shares in proportion to
all Series A shares, % 3.0 8.7 12.0
Average share price, EUR 23.73 23.94 23.76
Price on the closing date, EUR 25.25 26.30 22.19
Highest quote, EUR 27.10 27.20 27.20
Lowest quote, EUR 20.30 20.51 20.51
9. FOREIGN AND NOMINEE-REGISTERED HOLDINGS ON 30 JUNE 2016
Book entries Votes Shareholders
qty % qty % qty %
Finnish total 15898310 76.59 86811174 94.69 9852 99.38
Foreign total 392464 1.89 392464 0.43 53 0.53
Nominee-registered (foreign) 79879 0.38 79879 0.09 3 0.03
total
Nominee-registered (Finnish) 4388155 21.14 4388155 4.79 6 0.06
total
Total 20758808 100.00 91671672 100.00 9914 100.00
10. LARGEST SHAREHOLDERS ON 30 JUNE
2016
Series K Series A Total % Votes %
1. Olvi 2363904 890613 3254517 15.68 48168693 52.54
Foundation
2. The Estate 903488 103280 1006768 4.85 18173040 19.82
of Hortling
Heikki *)
3. The Estate 187104 25248 212352 1.02 3767328 4.11
of Hortling
Kalle Einari
4. Hortling 165824 36308 202132 0.97 3352788 3.66
Timo Einari
5. OP Corporate Bank plc, 2153872 2153872 10.38 2153872 2.35
nominee reg.
6. 102288 3380 105668 0.51 2049140 2.24
Hortling-Rinne
Laila Marit
7. Nordea Bank Finland 1888427 1888427 9.10 1888427 2.06
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 9788131 9797779 47.19 9981091 10.89
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
1-6/2016 1-6/2015 1-12/2015
Opening balance 185240 192149 192149
Additions 23217 15648 25495
Deductions and transfers -879 -39 -390
Depreciation -8450 -7570 -15495
Exchange rate differences -4521 -8871 -16519
Total 194607 191317 185240
12. CONTINGENT LIABILITIES
EUR 1,000
30 Jun 2016 30 Jun 2015 31 Dec 2015
Pledges and contingent liabilities
For own commitments 2352 2397 2352
Leasing and rental liabilities:
Due within one year 1307 1219 1402
Due within 1 to 5 years 1465 1123 1179
Due in more than 5 years 3 5 4
Leasing and rental liabilities total 2775 2347 2585
Package liabilities 0 3282 3234
Other liabilities 2000 2000 2000
13. CALCULATION OF FINANCIAL RATIOS
In the summary of financial indicators (page 1), the Group presents figures
directly derived from the consolidated income statement: net sales, operating
profit and profit for the period, the corresponding percentages in proportion
to net sales, as well as the earnings per share ratio. (Earnings per share =
Profit belonging to parent company shareholders / Average number of shares
during the period, adjusted for share issues.)
In addition to the consolidated financial statements prepared in accordance
with IFRS, Olvi Group presents Alternative Performance Measures that describe
the financial development of its business and provide a commensurate overall
view of the company’s profitability, financial position and liquidity.
The Group has applied the ESMA (European Securities and Markets Authority) new
guidelines on Alternative Performance Measures that entered into force on 3
July 2016 and defined APMs as described below.
As an APM supporting net sales, the Group presents sales volumes in millions of
litres. Sales volume is an important indicator of the extent of operations
generally used in the industry.
The definition of gross margin is operating profit plus depreciation and
impairment.
Gross capital expenditure consists of total expenditure on fixed assets,
including the effect of any corporate acquisitions.
Equity per share = Shareholders’ equity held by parent company shareholders /
Number of shares at end of period, adjusted for share issues
Equity to total assets, % = 100 * (Shareholders’ equity held by parent company
shareholders + non-controlling interests) / (Balance sheet total)
Gearing, % = 100 * (Interest-bearing debt – cash in hand and at bank) /
(Shareholders’ equity held by parent company shareholders + non-controlling
interests)
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