2015-04-29 08:00:05 CEST
2015-04-29 08:01:09 CEST
REGULATED INFORMATION
Olvi Oyj - Interim report (Q1 and Q3)
OLVI GROUP’S INTERIM REPORT, 1 JANUARY TO 31 MARCH 2015 (3 MONTHS)
Olvi Group's overall performance in the first quarter was good. Sales volume,
net sales and operating profit all improved on the previous year.
OLVI PLC INTERIM REPORT 29 APRIL 2015 at 9:00 am
OLVI GROUP'S INTERIM REPORT, 1 JANUARY TO 31 MARCH 2015 (3 MONTHS)
INTERIM REPORT IN BRIEF
Olvi Group's overall performance in the first quarter was good. Sales volume,
net sales and operating profit all improved on the previous year.
January to March 2015 in brief:
- Olvi Group's sales volume increased by 7.5 percent to 115.3 (107.3) million
litres
- The Group's net sales increased by 3.0 percent and amounted to 61.5 (59.7)
million euro
- The Group's operating profit increased by 9.9 percent and amounted to 3.8
(3.5) million euro
- Olvi Group's earnings per share stood at 0.07 (0.13) euro per share *
- The equity ratio remained good at 56.7 (57.4) percent
* Earnings per share were burdened by unrealised exchange rate differences
related to the Belarusian subsidiary, which were recognised in financial items.
Olvi retains the earnings outlook for 2015 presented in connection with the
disclosure of the financial statements for 2014, and estimates that the Group's
sales volume for 2015 will increase slightly and net sales will remain on a par
with the previous year. Operating profit is estimated to be on a par with 2014
or slightly lower.
CONSOLIDATED KEY RATIOS
1-3/ 2015 1-3/ 2014 Change % / pp 1-12/ 2014
--------------------------------------------------------------------------------
Sales volume, Mltr 115.3 107.3 7.5 576.5
--------------------------------------------------------------------------------
Net sales, MEUR 61.5 59.7 3.0 320.8
--------------------------------------------------------------------------------
EBITDA, MEUR 7.7 7.0 9.9 55.9
--------------------------------------------------------------------------------
Operating profit, MEUR 3.8 3.5 9.7 41.0
--------------------------------------------------------------------------------
% of net sales 6.2 5.8 12.8
--------------------------------------------------------------------------------
Net profit for the period 1.3 2.7 -50.7 33.1
--------------------------------------------------------------------------------
% of net sales 2.2 4.6 10.3
--------------------------------------------------------------------------------
Earnings per share, EUR 0.07 0.13 -46.2 1.57
--------------------------------------------------------------------------------
Gross capital expenditure, MEUR 6.5 12.7 -48.5 41.6
--------------------------------------------------------------------------------
Equity per share, EUR 9.01 8.29 8.7 9.17
--------------------------------------------------------------------------------
Equity to total assets, % 56.7 57.4 -0.7 57.9
--------------------------------------------------------------------------------
Gearing, % 34.6 35.1 -0.5 29.8
--------------------------------------------------------------------------------
BUSINESS DEVELOPMENT
LASSE AHO, MANAGING DIRECTOR:
Olvi Group's performance in the first quarter can be considered good. In spite
of the challenging market situation, we were able to improve the Group's sales
volume, net sales and operating profit. In addition to favourable sales
development, we achieved cost savings that boosted the performance.
The business environment in Finland remained challenging but we succeeded in
improving the comparable operating profit. Sales development was good, with
contributing factors including successful launches of new products and the fact
that the Easter season was in March. Earnings improvement in Finland has also
been sought through cost savings.
In the Baltic states, profitability in Estonia remained on a strong level and
Lithuania's performance improved on the previous year. The situation in Latvia
has been more challenging compared to the other units in the Baltic states due
to diminished intra-Group manufacturing and the overall market situation.
The business in Belarus was successful in spite of the uncertainty over the
country's economic situation and the exchange rate fluctuations. The Belarusian
currency is no longer considered hyperinflationary, and as a consequence,
hyperinflationary accounting under the IAS 29 standard is no longer applied in
Belarus.
After the rapid pace of investments in the last few years, capital expenditure
declined in the first quarter compared to the previous year. The logistics
investment in Finland will be fully completed during the spring and will
provide for more efficient operations during the 2015 high season. In Belarus,
investments are in progress and will be completed this year, bringing a
substantial increase in production capacity.
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 by 7.5 percent to 115.3 (107.3) million
litres.
The strongest growth was seen in Belarus (increase 2.5 million litres), in
Finland (increase 2.1 million litres) and in Lithuania (increase 1.5 million
litres). Sales volume increased slightly also in the Estonian unit. In
contrast, Latvia fell short of the previous year mostly due to a decline in
intra-Group sales.
Sales volume, million litres 1-3/ 2015 1-3/ 2014 Change %
--------------------------------------------------------------
Finland (Olvi plc) 29.9 27.8 7.6
--------------------------------------------------------------
Estonia (AS A. Le Coq) 25.2 25.1 0.4
--------------------------------------------------------------
Latvia (A/S Cesu Alus) 13.9 18.2 -23.7
--------------------------------------------------------------
Lithuania (AB Volfas Engelman) 17.5 16.0 9.4
--------------------------------------------------------------
Belarus (OAO Lidskoe Pivo) 32.5 30.0 8.4
--------------------------------------------------------------
Eliminations -3.8 -9.9 61.5
--------------------------------------------------------------
Total 115.3 107.3 7.5
--------------------------------------------------------------
The Group's net sales from January to March amounted to 61.5 (59.7) million
euro. Net sales increased in both Finland and Belarus by 0.7 million euro and
in Lithuania by 0.2 million euro. Net sales in Estonia remained almost on a par
with the previous year. Net sales in Latvia declined due to diminished sales to
other Group entities and a decrease in the average price of net sales.
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, million euro 1-3/ 2015 1-3/ 2014 Change %
--------------------------------------------------------------
Finland (Olvi plc) 21.2 20.5 3.4
--------------------------------------------------------------
Estonia (AS A. Le Coq) 15.2 15.4 -1.3
--------------------------------------------------------------
Latvia (A/S Cesu Alus) 6.0 8.2 -27.3
--------------------------------------------------------------
Lithuania (AB Volfas Engelman) 7.4 7.2 1.5
--------------------------------------------------------------
Belarus (OAO Lidskoe Pivo) 13.4 12.7 5.6
--------------------------------------------------------------
Eliminations -1.7 -4.4 62.0
--------------------------------------------------------------
Total 61.5 59.7 3.0
--------------------------------------------------------------
EARNINGS DEVELOPMENT
The Group's operating profit for January-March increased and amounted to 3.8
(3.5) million euro, or 6.2 (5.8) percent of net sales. Earnings in Belarus and
in Finland increased by 0.1 million euro, and in Lithuania by 0.2 million euro.
The earnings level in Estonia remained strong. Earnings in Latvia declined on
the previous year.
Operating profit (comparable) million euro 1-3/ 2015 1-3/ 2014 Change %
--------------------------------------------------------------------------
Finland (Olvi plc) 0.7 0.6 *) 20.4
--------------------------------------------------------------------------
Estonia (AS A. Le Coq) 2.2 2.2 0.2
--------------------------------------------------------------------------
Latvia (A/S Cesu Alus) 0.0 0.3 -85.5
--------------------------------------------------------------------------
Lithuania (AB Volfas Engelman) 0.1 -0.1 186.1
--------------------------------------------------------------------------
Belarus (OAO Lidskoe Pivo) 0.7 0.6 26.4
--------------------------------------------------------------------------
Eliminations 0.1 -0.1 *)
--------------------------------------------------------------------------
Total 3.8 3.5 9.7
--------------------------------------------------------------------------
*) Reported operating profit in Finland 1-3/2014 stood at 1.3 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 1-3/2015 figures.
The Group's January-March profit after taxes fell short of the previous year
and amounted to 1.3 (2.7) million euro. 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-March stood at 0.07 (0.13) euro per share.
BALANCE SHEET, FINANCING AND INVESTMENTS
Olvi Group's balance sheet total at the end of March 2015 was 332.9 (304.2)
million euro. Equity per share at the end of March 2015 stood at 9.01 (8.29)
euro. The equity ratio was 56.7 (57.4) percent and the gearing ratio was 34.6
(35.1) percent. The current ratio, which represents the Group's liquidity, was
1.2 (1.1).
The amount of interest-bearing liabilities at the end of March was 69.5 (64.6)
million euro, including current liabilities of 32.9 (37.5) million euro.
Olvi Group's gross capital expenditure in January-March amounted to 6.5 (12.7)
million euro. The parent company Olvi accounted for 0.8 million euro, the
Baltic subsidiaries for 1.1 million euro and Lidskoe Pivo in Belarus for 4.6
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
New launches in Finland during the spring have included the OLVI IPA special
beer and the Crook's Head Dram long drinks, among others. Other new products
for the spring were presented in the financial statements bulletin.
During the period under review, A. Le Coq of Estonia launched the Alexander
Weizen wheat beer in pint-size glass bottles.
In February, Cēsu Alus of Latvia launched the completely new beer brand Brūža,
which is a craft beer having the variants Brūža Nefiltrētais unfiltered (5.4%)
and Brūža Samtainais (5.4%), as well as the bitter-style Brūža Rūgtais (5.8%).
All variants were launched in half-litre bottles as well as pint-size cans.
In March, Volfas Engelman of Lithuania launched the dark wheat beer Volfas
Engelman Dunkel Weissbier (5.0%) in pint-size glass bottles. Two new Meister
beers were also launched: Meister Premium lager (5.0%) and Meister Tradicinis
unfiltered beer (6.0%).
In February, Lidskoe Pivo of Belarus launched a stout version of its Koronet
beer brand. Koronet Stout is sold in pint-size glass 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-March was 1,873 (1,908).
The Group's average number of personnel decreased by 35 people or 1.8 percent.
The greatest decrease was seen in Finland, affected by a cut in the number of
sales promoters due to a change in the procedures of a retail group implemented
in 2014.
Olvi Group's average number of personnel by country: 1-3/ 2015 1-3/ 2014 Change %
-----------------------------------------
Finland 336 363 -7.4
-----------------------------------------
Estonia 317 312 1.6
-----------------------------------------
Latvia 199 210 -5.2
-----------------------------------------
Lithuania 226 211 7.1
-----------------------------------------
Belarus 795 812 -2.1
-----------------------------------------
Total 1,873 1,908 -1.8
-----------------------------------------
The statutory co-operation negotiations concerning Olvi plc's entire personnel
in Finland were completed at the end of January 2015. The aim of the
negotiations was to find savings and opportunities for efficiency improvement
through reorganisation of operations in order to respond to changes in the
Finnish operating environment and improve the company's competitive ability in
the long term.
As a consequence of the negotiations, efficiency measures were taken across
the organisation in Finland, and procedures were changed. This caused
redundancies of 32 people. This was made true through pension arrangements
concerning 10 people, temporary layoffs of three people and dismissal of 19
people.
MANAGEMENT AND AUDITORS
During the period under review, the Chairman of the Board of Olvi plc was
Heikki Hortling, M.Sc. (Econ), and the Vice Chairman was Esa Lager, M.Sc.
(Econ), LL.M. Other members of the Board of Directors included Heikki Sinnemaa,
LL.M., Jaakko Autere, M.Sc. (Econ) and Tarja Pääkkönen, Dr.Tech.
During the period under review, the company's auditor was the authorised public
accounting firm PricewaterhouseCoopers Oy, with Sami Posti, Authorised Public
Accountant, as auditor in charge.
MANAGEMENT
The Management Group of Olvi plc during the period under review consisted 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 Management Group of each subsidiary consists of the corresponding Managing
Director and two to four sector directors reporting to the Managing Director.
The Managing Directors of the subsidiaries are:
AS A. Le Coq, Tartu, Estonia - Tarmo Noop
A/S Cēsu Alus, Cēsis, Latvia - Eva Sietiņsone Zatlere
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.
GROUP STRUCTURE
There were no changes in Olvi's holdings in subsidiaries in January-March 2015.
Olvi's holdings in the subsidiaries are
31 Mar 2015 31 Mar 2014 Change pp
-------------------------------------------------------------------
AS A. Le Coq, Estonia 100.00 100.00 -
-------------------------------------------------------------------
A/S Cēsu Alus, Latvia 99.86 99.76 0.10
-------------------------------------------------------------------
AB Volfas Engelman, Lithuania 99.58 99.58 -
-------------------------------------------------------------------
OAO Lidskoe Pivo, Belarus 94.57 91.58 2.99
-------------------------------------------------------------------
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 March 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-March 2015 was 832,730 (699,171) shares, which represented 4.9 (4.1)
percent of all Series A shares. The value of trading was 18.9 (19.2) million
euro.
The Olvi A share was quoted on Nasdaq OMX Helsinki (Helsinki Stock Exchange) at
23.90 (24.90) euro at the end of March 2015. In January-March, the highest
quote for the Series A share was 24.36 (29.90) euro and the lowest quote was
20.51 (23.94) euro. The average price in January-March was 22.71 (27.41) euro.
At the end of March 2015, the market capitalisation of Series A shares was
406.9 (424.0) million euro and the market capitalisation of all shares was
496.1 (516.9) million euro.
The number of shareholders at the end of March 2015 was 10,423 (9,664). Foreign
holdings plus foreign and Finnish nominee-registered holdings represented 21.2
(21.0) percent of the total number of book entries and 4.8 (4.8) 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-March 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-March 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.
In addition to these challenges, 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 and the impact it may have on
the company's operations.
There have not been any other 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.
EVENTS AFTER THE REVIEW PERIOD
Annual General Meeting
Olvi plc's Annual General Meeting of 16 April 2015 adopted the financial
statements and granted discharge from liability to the members of the Board of
Directors and Managing Director for the accounting period that ended on 31
December 2014.
In accordance with the Board's proposal, the General Meeting decided that a
dividend of 0.65 (0.65) euro be paid on each A and K share for the accounting
period 2014. The dividend according to the resolution accounts for 41.4 (40.4)
percent of Olvi Group's consolidated earnings per share. The dividend will be
paid to shareholders registered in Olvi plc's register of shareholders held by
Euroclear Finland Ltd on the record date of the dividend payment, 20 April
2015. The dividends will be paid on 30 April 2015.
The General Meeting decided that the Board of Directors shall have six (6)
members. Jaakko Autere, Heikki Hortling and Esa Lager were re-elected Members
of the Board. The General Meeting also elected Nora Hortling, Elisa Markula and
Heikki Sirviö as new members.
All decisions made at the General Meeting can be found in the bulletin released
on 16 April 2015.
Organisation of the Board of Directors
At its organising meeting held on 16 April 2015, the Board elected Heikki
Hortling as the Chairman of the Board and Esa Lager as the Vice Chairman of the
Board.
NEAR-TERM OUTLOOK
Olvi estimates that the Group's sales volume for 2015 will increase slightly
and that net sales will be on a par with the previous year. Operating profit is
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
1-3/2015 1-3/2014 1-12/2014
Net sales 61514 59720*) 320785*)
Other operating income 567 103 1626
Operating expenses -54420 -52854*) -266504*)
Depreciation and impairment -3856 -3502 -14907
Operating profit 3805 3467 41000
Financial income 612 1142 3990
Financial expenses -2812 -1105 -3985
Share of profit in associates 0 0 48
Earnings before tax 1605 3504 41053
Taxes **) -260 -775 -7974
NET PROFIT FOR THE PERIOD 1345 2729 33079
Other comprehensive income items:
Translation differences related to
foreign subsidiaries -4971 -1003 -2874
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -3626 1726 30205
Distribution of profit:
- parent company shareholders 1426 2701 32522
- non-controlling interests -81 28 557
Distribution of comprehensive income:
- parent company shareholders -3315 1790 29879
- non-controlling interests -311 -64 326
Earnings per share calculated from the profit belonging
to parent company shareholders, EUR
- undiluted 0.07 0.13 1.57
- diluted 0.07 0.13 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 31 Mar 31 Mar 31 Dec
2015 2014 2014
ASSETS
Non-current assets
Tangible assets 189000 174821 192149
Goodwill 17465 17889 18217
Other intangible assets 4471 2686 4562
Shares in associates 1125 1077 1125
Financial assets available for sale 549 549 549
Loans receivable and other non-current 334 349 333
receivables
Deferred tax receivables 158 228 163
Total non-current assets 213102 197599 217098
Current assets
Inventories 46472 47680 43522
Accounts receivable and other receivables 67909 55123 66309
Income tax receivable 831 382 1023
Other non-current assets held for sale 421 4 421
Liquid assets 4192 3376 4382
Total current assets 119825 106565 115657
TOTAL ASSETS 332927 304164 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 -27705 -21232 -22964
Retained earnings 192847 171452 191408
186985 172063 190287
Share belonging to non-controlling interests 1882 2579 2252
Total shareholders' equity 188867 174642 192539
Non-current liabilities
Financial liabilities 36607 27145 30040
Other liabilities 2 0 2
Deferred tax liabilities 5705 4349 5598
Current liabilities
Financial liabilities 32938 37495 31652
Accounts payable and other liabilities 68664 60426 72899
Income tax liability 144 107 25
Total liabilities 144060 129522 140216
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 332927 304164 332755
OLVI GROUP
TABLE 3
CHANGES IN SHAREHOLDERS' EQUITY
Share Other Treasu Transl Retain Share of Total
capita reserv ry ation ed non-controll
l es shares differ earnin ing
accoun ences gs interests
t
EUR 1,000
Shareholders' 20759 1092 -8 -20321 167420 2597 171539
equity 1 Jan 2014
Adjustments for 1331 122 1453
hyperinflation
Adjusted 20759 1092 -8 -20321 168751 2719 172992
shareholders'
equity 1 Jan 2014
Comprehensive
income:
Net profit for the period 2701 28 2729
Other comprehensive income
items:
Translation -911 -92 -1003
differences
Total comprehensive income -911 2701 -64 1726
for the period
Transactions with
shareholders:
Payment of -76 -76
dividends
Total transactions -76 -76
with shareholders
Shareholders' 20759 1092 -8 -21232 171452 2579 174642
equity 31 Mar
2014
Share Other Treasu Transl Retain Share of Total
capita reserv ry ation ed non-controll
l es shares differ earnin ing
accoun ences gs interests
t
EUR 1,000
Shareholders' 20759 1092 -8 -22964 191408 2252 192539
equity 1 Jan 2015
Adjustments for 0 0 0
hyperinflation
Adjusted 20759 1092 -8 -22964 191408 2252 192539
shareholders'
equity 1 Jan 2015
Comprehensive
income:
Net profit for the period 1426 -81 1345
Other comprehensive income
items:
Translation -4741 -230 -4971
differences
Total comprehensive income -4741 1426 -311 -3626
for the period
Transactions with
shareholders:
Payment of -59 -59
dividends
Share-based 13 13
incentives
Total transactions with 13 -59 -46
shareholders
Shareholders' 20759 1092 -8 -27705 192847 1882 188867
equity 31 Mar
2015
Other reserves include the share premium account, legal reserve and
other reserves.
OLVI GROUP TABLE 4
CASH FLOW STATEMENT
EUR 1,000
1-3/2015 1-3/2014 1-12/2014
Net profit for the period 1345 2729 33079
Adjustments to profit for the period 7807 5475 25699
Change in net working capital -7257 -11088 -2358
Interest paid -2391 -940 -3393
Interest received 40 77 385
Taxes paid 256 -395 -7063
Cash flow from operations (A) -200 -4142 46349
Investments in tangible and intangible
assets -6459 -11599 -43855
Sales gains from tangible and intangible
assets 43 -138 200
Expenditure on other investments 0 0 -298
Cash flow from investments (B) -6416 -11737 -43953
Withdrawals of loans 10686 13780 32657
Repayments of loans -3397 -1971 -24542
Dividends paid 0 0 -13531
Increase (-) / decrease (+) in current interest-
bearing business receivables -2 1 -23
Increase (-) / decrease (+) in long-term
loan receivables 0 0 16
Cash flow from financing (C) 7287 11810 -5423
Increase (+)/decrease (-) in liquid assets 671 -4069 -3027
(A+B+C)
Liquid assets 1 January 4382 7507 7507
Effect of exchange rate changes -861 -62 -98
Liquid assets 31 Mar/31 Dec 4192 3376 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)
1-3/2015 1-3/2014 1-12/2014
Olvi Group total 115273 107250 576478
Finland 29926 27817 151828
Estonia 25229 25124 131550
Latvia 13924 18243 76096
Lithuania 17541 16032 81054
Belarus 32474 29961 169919
- sales between segments -3821 -9927 -33969
NET SALES BY GEOGRAPHICAL SEGMENT (EUR 1,000)
1-3/2015 1-3/2014 1-12/2014
Olvi Group total 61514 59720*) 320785*)
Finland 21190 20493 105329
Estonia 15245 15441 80666
Latvia 5992 8245 34112
Lithuania 7354 7244 36130
Belarus 13399 12685 78554
- sales between segments -1666 -4388 -14006
*) The previous year's figures have been adjusted for comparability with the
year 2015.
OPERATING PROFIT BY GEOGRAPHICAL SEGMENT (EUR 1,000)
1-3/2015 1-3/2014 1-12/2014
Olvi Group total 3805 3467 41000
Finland 694 1256*) 7436*)
Estonia 2167 2163 16504
Latvia 46 316 2058
Lithuania 95 -110 2356
Belarus 728 576 13117
- eliminations 75 -734 -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 1-3/2015 1-3/2014 1-12/2014
Finland 336 363 369
Estonia 317 312 331
Latvia 199 210 214
Lithuania 226 211 214
Belarus 795 812 830
Total 1873 1908 1958
3. RELATED PARTY TRANSACTIONS
Employee benefits to management
Salaries and other short-term employee benefits to the Board of Directors and
Managing Director
EUR 1,000
1-3/2015 1-3/2014 1-12/2014
Managing Director 85 89 361
Chairman of the Board 22 21 84
Other members of the Board 33 31 125
Total 140 141 570
4. SHARES AND SHARE CAPITAL
31 Mar 2015 %
Number of A shares 17026552 82.0
Number of K shares 3732256 18.0
Total 20758808 100.0
Total votes carried by A shares 17026552 18.6
Total votes carried by K shares 74645120 81.4
Total number of votes 91671672 100.0
Votes per Series A share 1
Votes per Series K share 20
The registered share capital on 31 March 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 2013 (0.50 euro per share for 2012), totalling 13.5 (10.4) million
euro. The dividends were paid on 30 April 2014. 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
On 29 April 2014, Olvi plc's Board of Directors decided on a new share-based
incentive plan for the Group's key personnel. The aim of the new plan is to
combine the objectives of the shareholders and the key employees in order to
increase the value of the company, to commit the key employees to the company,
and to offer them a competitive reward plan based on earning the company's
shares.
The new 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 new plan
includes one three-year performance period, beginning on 1 July 2014 and ending
on 30 June 2017. The prerequisite for receiving reward on the basis of this
performance period is that a key employee purchases the company's series A
shares up to the number determined by the Board of Directors. Furthermore,
entitlement to a reward is tied to the continuance of employment or service
upon reward payment.
Rewards from both performance periods will be paid partly in the company's
series A shares and partly in cash in 2017. The cash proportion is intended to
cover taxes and tax-related costs arising from the rewards to the key
employees. As a rule, no reward will be paid if the key employee's employment
or service ends before the reward payment. Members of the Management Group must
hold one half of the shares received on the basis of the performance period
2014—2016 for the entire validity of their employment or service.
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 March 2015, accounting entries associated with the performance
period from 1 July 2014 to 30 June 2017 were recognised for a total of 21.0
thousand euro.
Olvi Group does not have any other share-based plans or option plans.
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-March 2015, which means that the number of Series A shares held by the
company was unchanged on 31 March 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 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.
In January-March 2015, the Board of Directors of Olvi plc has not exercised the
authorisations granted by the General Meeting.
7. NUMBER OF SHARES *) 1-3/2015 1-3/2014 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
1-3/2015 1-3/2014 1-12/2014
Trading volume of Olvi A shares 832730 699171 2174302
Total trading volume, EUR 1,000 18922 19164 54313
Traded shares in proportion to
all Series A shares, % 4.9 4.1 12.8
Average share price, EUR 22.71 27.41 25.03
Price on the closing date, EUR 23.90 24.90 21.07
Highest quote, EUR 24.36 29.90 29.90
Lowest quote, EUR 20.51 23.94 20.70
9. FOREIGN AND NOMINEE-REGISTERED HOLDINGS ON 31/03/2015
Book entries Votes Shareholders
qty % qty % qty %
Finnish total 16365830 78.84 87278694 95.21 10359 99.38
Foreign total 395586 1.91 395586 0.43 55 0.53
Nominee-registered (foreign) 92084 0.44 92084 0.10 4 0.04
total
Nominee-registered (Finnish) 3905308 18.81 3905308 4.26 5 0.05
total
Total 20758808 100.00 91671672 100.00 10423 100.00
10. LARGEST SHAREHOLDERS ON 31/03/2015
Series Series A Total % Votes %
K
1. Olvi Foundation 2363904 890613 3254517 15.68 48168693 52.54
2. Hortling Heikki 903488 103280 1006768 4.85 18173040 19.82
Wilhelm *)
3. The Heirs of 187104 25248 212352 1.02 3767328 4.11
Hortling Kalle Einari
4. Hortling Timo Einari 165824 35308 201132 0.97 3351788 3.66
5. Pohjola Bank plc, 2152900 2152900 10.37 2152900 2.35
nominee register
6. Hortling-Rinne Laila 102288 2980 105268 0.51 2048740 2.23
Marit
7. Nordea Bank Finland plc, 1414293 1414293 6.81 1414293 1.54
nominee register
8. Ilmarinen Mutual Pension 849218 849218 4.09 849218 0.93
Insurance Company
9. Varma Mutual Pension Insurance 828075 828075 3.99 828075 0.90
Company
10. AC Invest Oy 460000 460000 2.22 460000 0.50
Others 9648 10264637 10274285 49.49 10457597 11.42
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
1-3/2015 1-3/2014 1-12/201
4
Opening balance 192149 165783 165783
Additions 6393 11849 38998
Deductions and transfers -32 -2097 -818
Depreciation -3645 -3311 -14139
Exchange rate differences and adjustment for -5865 2597 2325
hyperinflation
Total 189000 174821 192149
12. CONTINGENT LIABILITIES
EUR 1,000
31 Mar 2015 31 Mar 2014 31 Dec 2014
Pledges and contingent liabilities
For own commitments 2397 2715 2397
Leasing and rental liabilities:
Due within one year 1140 1284 1143
Due within 1 to 5 years 767 703 758
Due in more than 5 years 5 5 5
Leasing and rental liabilities total 1912 1992 1906
Package liabilities 2598 1390 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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