2014-04-30 07:59:55 CEST
2014-04-30 08:00:58 CEST
REGULATED INFORMATION
Olvi Oyj - Interim report (Q1 and Q3)
OLVI GROUP’S INTERIM REPORT, 1 JANUARY TO 31 MARCH 2014 (3 MONTHS)
Iisalmi, 2014-04-30 07:59 CEST (GLOBE NEWSWIRE) -- OLVI PLC
INTERIM REPORT 30 APR 2014 at 9:00 am
OLVI GROUP'S INTERIM REPORT, 1 JANUARY TO 31 MARCH 2014 (3 MONTHS)
The entire Group's sales volume was almost on a par with the previous year. The
consolidated operating profit fell short of the previous year, mainly due to
poor performance in Finland. Olvi's position remained strong in all market
areas. Olvi Group's business in the Baltic states and Belarus developed well in
the first quarter. The weakened performance in Finland was affected by large
purchases into stocks in December before the year-end excise tax hikes, the
fact that the Easter season was in April, and diminished Russian exports.
January-March in brief:
- The entire Group's sales volume diminished slightly by 3.1 percent to 107.3
(110.7) million litres due to a decline in sales by the parent company
- Sales development in the Baltic states was good: sales improved by 8.5
percent to 59.4 (54.8) million litres, net sales improved by 7.1 percent to
31.7 (29.6) million euro and operating profit improved by 18.2 percent to 2.4
(2.0) million euro
- Sales in Belarus improved by 10.3 percent to 30.0 (27.2) million litres, net
sales to 12.7 (12.6) million euro and operating profit to 0.6 (0.1) million
euro
- The Group's net sales declined by 10.3 percent to 61.0 (68.0) million euro
- the Group's operating profit declined to 3.5 (5.0) million euro due to
weakened performance in the parent company
- the equity to total assets ratio improved to 57.4 (53.6) percent
KEY RATIOS
1-3/2014 1-3/2013 Change % 1-12/2013
Net sales, MEUR 61.0 68.0 -10.3 327.3
Operating profit, MEUR 3.5 5.0 -30.8 43.2
Gross capital expenditure, MEUR 12.7 6.0 +111.2 35.7
Earnings per share, EUR 0.13 0.21 -38.1 1.61
Equity per share, EUR 8.29 7.30 +13.6 8.14
Equity to total assets, % 57.4 53.6 58.0
Gearing, % 35.1 36.9 26.4
Lasse Aho, Managing Director of Olvi plc, said the following in connection with
the disclosure of the annual accounts: “Earnings in the first quarter of the
year were as budgeted. Business developed favourably in the Baltic states and
Belarus. The decline in performance in Finland was affected by issues such as
excise tax hikes at the turn of the year and the preceding purchases into
stocks in December, a decline in Russian exports, strong growth in tourist
imports, and the fact that the Easter season was in late April this year. The
earnings outlook for 2014 presented in connection with the disclosure of the
financial statements 2013 remain unchanged: the sales volumes and net sales are
expected to grow slightly in 2014 and the operating profit is expected to be on
a par with 2013.”
OLVI GROUP'S SALES VOLUME, NET SALES AND EARNINGS IN JANUARY-MARCH 2014
In the first quarter of 2014, Olvi Group's sales volume was 107.3 (110.7)
million litres, a change of -3.4 million litres or 3.1 percent on the previous
year.
Sales in Finland declined by 8.7 million litres. The decline in Finnish sales
was mostly due to diminished sales volumes in exports but domestic sales also
declined by almost 10 percent due to purchases into stocks before the tax hikes
at the turn of the year and the fact that the Easter season was in April.
Sales in the Baltic states increased clearly by 4.6 million litres or 8.5
percent to 59.4 (54.8) million litres. Sales in Estonia remained almost on a
par with the previous year, while sales in Latvia and Lithuania increased
clearly.
Sales in Belarus during the reporting period increased by 2.8 million litres or
10.3 percent to 30.0 (27.2) million litres. Intra-Group sales increased by 2.2
million litres on the previous year.
The Group's net sales from January to March amounted to 61.0 (68.0) million
euro. Net sales diminished by 7.0 million euro or 10.3 percent due to the
decline in Finnish sales volumes and net sales. Net sales in the Baltic states
increased by 7.1 percent to 31.7 (29.6) million euro. Net sales in Belarus were
on a par with the previous year at 12.7 (12.6) million euro.
Finnish net sales amounted to 20.9 (29.5) million euro. Net sales declined by
8.6 million euro, mainly due to the decline in net sales from exports, but also
domestic net sales were declining. The situation in Finland is described in
more detail together with the geographical segments. The overall market
position improved slightly.
Olvi Group's operating profit for January-March stood at 3.5 (5.0) million
euro, or 5.7 (7.4) percent of net sales. The Group's operating profit declined
by 1.5 million euro or 30.8 percent due to the decline in Finnish operating
profit.
Operating profit in Finland declined by 1.6 million euro. Operating profit in
the Baltic states increased by 0.4 million euro, and operating profit in
Belarus increased by 0.5 million euro. Eliminations against operating profit
increased by 0.8 million euro.
Olvi Group's profit after taxes in the period under review was 2.7 (4.4)
million euro. Earnings per share calculated from the profit belonging to parent
company shareholders in January-March declined to 0.13 (0.21) euro per share.
SALES VOLUME, NET SALES AND EARNINGS BY GEOGRAPHICAL SEGMENT IN JANUARY-MARCH
2014
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, the conditions
and and the variation between seasons. Most of the Group's earnings is
accumulated during the second and third quarters. PARENT COMPANY OLVI PLC (Olvi)
According to statistics by the Federation of the Brewing and Soft Drinks
Industry, the Finnish beverage market in January-March diminished by 10 percent
compared to the previous year. Sales declined in all product groups. The
greatest reasons for the sales decline were purchases into customer stocks in
December 2013 due to the excise tax hikes effective at the beginning of 2014, a
constant increase in tourist imports, and the fact that the Easter season this
year was in late April. Consumer purchasing power has also weakened due to the
poor economic situation and tax hikes.
The decline in alcoholic beverages was almost 9 percent, while sales of
non-alcoholic beverages declined by 12 percent. The sales volume of beers
declined by 8 percent, in ciders by more than 14 and in long drinks by 8
percent. Total sales of soft drinks declined by 13 percent in January-March and
the sales of mineral waters by more than 9 percent. (Federation of the Brewing
and Soft Drinks Industry, March 2014).
Olvi's total sales in January-March declined to 27.8 (36.5) million litres.
Sales declined by 8.7 million litres. The greatest reason for the substantial
decline in sales was that exports of Angry Birds soft drinks into Russia
diminished greatly in comparison to the initial launch in the comparison
period. The decline in exports was also affected by a substantial dive of the
Russian rouble against both the euro and the dollar. Any decline in the
exchange rate of the rouble will increase the retail prices of imported
foodstuffs.
In spite of all, the decline in Olvi's Finnish sales, with the exception of
soft drinks, was not as strong as that of the whole industry. Thanks to this,
Olvi's overall market position improved in January-March from 17 percent to 18
percent in comparison with the previous year.
Among Olvi's main product groups in Finland, the sales of beers and ciders
declined slightly, less than the industry in whole. The sales of soft drinks
declined clearly due to a sales dip in Angry Birds beverages. The sales of
mineral waters declined slightly, but less than the industry's overall sales.
According to statistics by the Federation of the Brewing and Soft Drinks
Industry, Olvi's market share in alcoholic beverages (beers, ciders and long
drinks) in January-March 2014 was 24 (23) percent. The market share in
non-alcoholic beverages was 8 (9) percent. The market share improved in mineral
waters but declined in soft drinks.
Olvi's exports and tax-free sales declined substantially during the review
period, amounting to 1.4 (7.1) million litres. The decline in exports was due
to a halt in soft drink exports to Russia, the reasons of which were described
in more detail above. Exports and tax-free sales represented 5.1 (19.6) percent
of total sales.
Olvi's net sales from January to March declined to 20.9 (29.5) million euro.
Net sales declined by 8.6 million euro or 29.1 percent. Above all, the decline
in net sales was due to a halt in Russian exports. Domestic net sales also
declined due to a lower average price of net sales. The average price of net
sales was affected by increased price competition and a change in consumption
habits towards a lower price bracket due to a decline in consumer purchasing
power.
Olvi's operating profit also declined in the review period. Operating profit
stood at 1.3 (2.8) million euro, which was 6.0 (9.6) percent of net sales. The
operating profit declined by 1.5 million euro. The decline in operating profit
was attributable to the same reasons as the decline in net sales: a dip in
profitable export sales, a lower average price of products and a shift in
consumption to lower-margin products.
Olvi's operating profit in January-March included 0.7 million euro of sales
gains arising from the sales of production machinery to the Lithuanian
subsidiary.
AS A. LE COQ (A. Le Coq)
In the Estonian beverage market, the consumption of waters increased. The
consumption of beers saw an upturn after a long-lasting downward trend. The
sales of soft drinks and juices continued to decrease. (Nielsen, February to
March 2014).
The Estonian subsidiary AS A. Le Coq's January-March sales amounted to 25.1
(25.9) million litres. Sales declined by 0.8 million litres or 2.9 percent.
The sales of A. Le Coq waters increased in the domestic market while the sales
of beers, long drinks and soft drinks was on a par with the previous year. The
sales of ciders and juices declined clearly on the previous year.
A. Le Coq has still retained its good position in the Estonian beverage market.
The company is the clear market leader in long drinks and juices. In beers and
ciders, the company is in a tight struggle for the number one position, and in
soft drinks it is the clear number two player. In waters, the company has a
strong hold of the number three position. (Nielsen, February to March 2014).
Exports made 3.9 (3.4) percent of the company's total sales.
A. Le Coq's net sales in the first quarter were on a par with the previous year
at 15.8 (15.9) million euro in spite of the decline in sales volume.
Operating profit in January-March also remained at the previous year's healthy
level of 2.2 (2.1) million euro, which was 13.7 (13.3) percent of net sales.
A/S CESU ALUS (Cesu Alus)
In the Lithuanian beverage market, total sales of beers and long drinks
increased. The decline in cider sales stopped. (Nielsen, February to March
2014).
From January to March, the sales of Cesu Alus operating in Latvia totalled 18.2
(15.5) million litres. Sales increased by 2.7 million litres or 17.7 percent.
The sales increase was attributable to internal sales to other Olvi Group
companies.
In Cesu Alus's domestic sales for the period, sales of beers were on a par with
the previous year in spite of the market decline. The sales of long drinks and
soft drinks (including kvass) increased clearly while the sales of ciders
declined slightly.
In addition to being a very clear market leader in ciders, Cesu Alus is also a
market leader in long drinks. In the beer market, the company has for a long
time been in a struggle of equals for the number one position with its largest
competitor. (Nielsen, March 2014).
Thanks to good sales development, Cesu Alus's net sales in January-March
improved by 1.1 million euro or 15.3 percent to 8.3 (7.2) million euro.
Operating profit for the first quarter of 2014 tripled in comparison with the
previous year, amounting to 0.3 (0.1) million euro or 3.8 (1.6) percent of net
sales.
AB VOLFAS ENGELMAN (Volfas Engelman)
In the total Lithuanian beverage market, the consumption of beers increased
while the sales of long drinks remained on a par with the previous year. The
decline in cider consumption was substantial. The soft drinks market (including
kvass) declined slightly. (Nielsen, February to March 2014).
The sales of Volfas Engelman developed well in the first quarter. Sales
amounted to 16.0 (13.4) million litres, representing an increase of 2.6 million
litres or 19.9 percent.
The sales of the company's beers and long drinks in the domestic market
increased substantially. The sales of ciders declined slightly in line with the
overall market. The sales of soft drinks (including kvass) declined slightly on
the previous year.
Volfas Engelman has further improved its position in the Lithuanian beverage
market. The company is the clear market leader in long drinks, ciders and
kvass, and it has clearly improved its market share in comparison with the
previous year. In the beer market, the company shares the number two position
with another player. (Nielsen, February to March 2014).
The company's first-quarter net sales amounted to 7.7 (6.6) million euro.
Thanks to good sales development, net sales increased by 1.1 million euro or
17.0 percent. In spite of the overall increase in net sales, the average price
diminished, due to which the operating result improved by no more than 0.1
million euro on the previous year.
Volfas Engelman's operating result in January—March was in the red by -0.1
(-0.2) million euro.
OAO LIDSKOE PIVO (Lidskoe Pivo)
The overall beverage market in Belarus is growing. From December-January 2013,
the consumption of beers increased by some 5 percent compared to
December-January 2014. In the same period of time, the sales of juice drinks
has increased by more than 27 percent and the sales of soft drinks (including
kvass) by more than 16 percent. (Nielsen, December-January 2014).
The January-March 2014 sales of Lidskoe Pivo operating in Belarus amounted to
30.0 (27.2) million litres. Sales increased by 2.8 million litres or 10.3
percent on the previous year.
Lidskoe Pivo's domestic sales of waters and juice drinks improved
substantially. Clear growth was seen also in soft drinks (including kvass). The
sales of beers were on a par with the previous year but the sales of ciders
declined.
In beers, Lidskoe Pivo's market share improved to almost 18 (17) percent, and
the company is the number three player in the market. The company's market
share in juice drinks increased by two percentage points to 25 (23) percent,
and the company has a strong hold of the number two position. The company's
market share in soft drinks declined slightly. (Nielsen, February to March
2014).
Lidskoe Pivo's exports increased substantially in the review period, by 48
percent. Exports accounted for 14.2 (10.6) percent of total sales. The main
destination for exports was Russia.
The company's January to March net sales increased slightly on the previous
year, amounting to 12.7 (12.6) million euro.
Operating profit from January to March improved by 0.5 million euro to 0.6
(0.1) million euro, which is 4.5 (1.0) percent of net sales.
FINANCING AND INVESTMENTS
Olvi Group's balance sheet total at the end of March 2014 was 304.2 (286.5)
million euro. Equity per share in January-March stood at 8.29 (7.30) euro, an
increase of 0.99 euro per share. The equity to total assets ratio increased to
57.4 (53.6) percent. The amount of interest-bearing liabilities was 64.6 (60.5)
million euro, including current liabilities of 37.5 (23.5) million euro.
During the period under review, Olvi Group's gross capital expenditure amounted
to 12.7 (6.0) million euro. The parent company Olvi accounted for 7.2 million
euro and the subsidiaries in the Baltic states for 3.6 million euro of the
total. Lidskoe Pivo's gross capital expenditure in the first quarter was 1.9
million euro.
The largest investments in Finland in 2014 are an extension and performance
improvement in automated picking, the completion of the new high-rise
storehouse and installations of related equipment, an extension to the dispatch
area, development of packaging options at the production lines, as well as
acquisitions of additional product conveyors.
In the Baltic states, A. Le Coq's largest investments consist of new PET bottle
formats, a reception, storage and handling system for glucose syrup, an
extension to the cold storage rooms of the juice factory, and replacement of
conveyor systems for logistics. Cesu Alus's largest investments consist of the
replacement of the bottle-blowing machine, the acquisitions of pre-mixing
equipment for the juicing facility and a machine for laying PET bottles on
pallets, as well as investments related to logistics performance improvements.
The largest investments in Volfas Engelman consist of the acquisitions of a
bottle-blowing machine and a new canning line.
Lidskoe Pivo's investments in 2014 include extensions to storage and production
facilities, the construction of a new boiling room, replacement of pipelines in
fermentation and yeast tanks, the acquisition of new pressure tanks, mixing
equipment for fermentation tanks, as well as the acquisition of buffer
conveyors and new formats.
PRODUCT DEVELOPMENT
Research and development includes projects to design and develop new products,
packages, processes and production methods, as well as further development of
existing products and packages. The R&D costs have been recognised as expenses.
The main objective of Olvi Group's product development is to create new
products for profitable and growing beverage segments.
NEW PRODUCTS
Due to the large number of new introductions, a change is made with regard to
disclosure practice. At this time and in the future, interim reports and the
financial statements bulletin will only focus on the most important novelties.
Detailed information on new products is found on the Web pages of each company.
Finland
New products for the spring have already been disclosed in the financial
statements bulletin.
Subsidiaries
A. Le Coq in Estonia launched the Hard Lager beer and the Hard Cola alcoholic
mixed drink, which is a traditional cola with whisky. A new Brazil concept was
introduced in long drinks. The Dynami:t energy drink brand was expanded with a
Mate version in Estonia, Latvia and Lithuania. A. Le Coq will introduce a total
of 10 new products in the spring.
Cesu Alus of Latvia complemented its last-year special beer family Grãfs von
Ziverss with the new introduction of Irish Stout. Other novelties for the
spring have been disclosed already in the financial statements bulletin.
In Lithuania, Volfas Engelman also launched Hard Cola. In ciders, the Sherwood
brand was expanded with the Blue Plum flavour and the FIZZ brand with the
Summer Love flavour. The A. Le Coq Coctail range saw the introduction of
Margarita Watermelon. Volfas Engelman will launch a total of 11 new products in
the spring.
Lidskoe Pivo in Belarus started to manufacture and sell the German premium beer
Warsteiner. The Warsteiner brand has been introduced earlier in other Olvi
Group countries. Lidskoe Pivo will launch a total of five novelties during the
spring.
PERSONNEL
Olvi Group's average number of personnel in January-March 2014 was 1,908
(1,935). The Group's average number of personnel decreased by 27 people or 1.4
percent. The total number of personnel at the end of March was 1,948 (1,976).
Olvi Group's average number of personnel by country:
Finland 363 (383)
Estonia 312 (304)
Latvia 210 (214)
Lithuania 211 (211)
Belarus 812 (823)
Total 1,908 (1,935)
GROUP STRUCTURE
There were no changes in the Group structure in January-March 2014.
At the end of March 2014, Olvi Group's holding in A. Le Coq was 100.0 percent,
in Cesu Alus 99.76 percent, in Volfas Engelman 99.58 percent and in Lidskoe
Pivo 91.58 percent. Furthermore, A. Le Coq has a 49.0 percent holding in AS
Karme and 20.0 percent holding in Verska Mineraalvee OÜ in Estonia.
In the beginning of April 2014, Olvi acquired 2,256 shares from the minority in
Lidskoe Pivo, after which Olvi's holding in the company increased to 94.6
percent.
OLVI A SHARE AND SHARE MARKET
Olvi's share capital at the end of March 2014 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 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.
The Olvi A share was quoted on Nasdaq OMX Helsinki (Helsinki Stock Exchange) at
24.90 (21.30) euro at the end of March 2014. In January-March, the highest
quote for the Series A share was 29.90 (22.50) euro and the lowest quote was
23.94 (19.70) euro. The average price was 27.41 (21.31) euro.
In January-March, a total of 699,171 (662,388) Olvi A shares were traded,
representing 4.1 (3.9) percent of the total number of Series A shares. The
value of trading was 19.2 (14.1) million euro.
At the end of March 2014, the market capitalisation of Series A shares was
424.0 (362.7) million euro and the market capitalisation of all shares was
516.9 (442.2) million euro.
Olvi had a total of 9,664 (9,350) shareholders at the end of March 2014.
Foreign holdings plus foreign and Finnish nominee-registered holdings
represented 21.0 (18.6) percent of the total number of book entries and 6.9
(6.3) percent of total votes.
Foreign and nominee-registered holdings are reported in Table 5, Section 8 of
the tables attached to this interim report, and the largest shareholders are
reported in Table 5, Section 9.
TREASURY SHARES
There were no changes in the number of treasury shares held by Olvi in
January-March 2014. At the end of March 2014, Olvi held 1,124 of its own Series
A shares. Treasury shares held by Olvi plc are reported in the tables section
of this interim report, in Table 5, Section 5.
RESOLUTIONS OF OLVI PLC'S ANNUAL GENERAL MEETING
The Annual General Meeting was held on 16 April 2014. A separate stock exchange
release was issued on the same day regarding the decisions made and
authorisations given by the meeting.
ORGANISATION OF THE BOARD OF DIRECTORS
At its organising meeting held on 29 April 2014, the Board elected Mr. Heikki
Hortling as the Chairman of the Board and Mr. Esa Lager as the Vice Chairman of
the Board.
THE BOARD OF DIRECTORS OF OLVI PLC RESOLVED ON A KEY EMPLOYEE INCENTIVE PLAN
The Board of Directors of Olvi plc has approved a new share-based incentive
plan for the Group key employees. 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 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.
The members of the Management Group must hold 50 percent of the shares received
on the basis of the performance period 2014—2016. This share ownership should
be held during the validity of 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.
BUSINESS RISKS AND THEIR MANAGEMENT
Risk management is a part of Olvi Group's everyday management and operations.
It increases corporate security and contributes to the achievement of
operational targets. The objective 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. In addition to the company itself, risk management
benefits its personnel, customers, shareholders and other related groups.
The objective of risk management is to ensure the realisation of the company's
strategy and secure the continuity of business. Olvi Group identifies,
assesses, manages and monitors its crucial risks regularly. With regard to
identified risks, the effects, scope and probability of realisation are
assessed together with the means of eliminating or reducing the risk.
Furthermore, risk management aims to identify and utilise any business
opportunities that may arise.
Strategic and operational risks
Olvi Group's strategic risks refer to risks related to the characteristics of
the company's business and strategic choices. The Group's operations are
located in several countries that differ substantially in terms of their social
and economic situations and the phases and directions of development. For
example, strategic risks relate to changes in tax legislation and other
regulations, the operating environment and foreign exchange markets. If
realised, strategic risks can substantially hamper the company's operational
preconditions. The Group's most substantial identified strategic risks relate
to Belarus, particularly the situation in the country's economy and politics.
The Group's most substantial identified operational risks relate to the
procurement and quality of raw materials, the production process, markets and
customers, personnel, information security and systems, as well as changes in
foreign exchange rates.
Financing risks
Olvi Group operates internationally, and its business involves risks arising
from exchange rate fluctuations. Foreign exchange risks arise from the cash
flows of purchases and sales in foreign currency, as well as investments in
foreign subsidiaries and the conversion of their balance sheet items into euro.
Foreign exchange risk is reduced by the fact that most of the Group's product
sales and raw material purchases are denominated in euro.
The objective of financing risk management is to minimise the adverse effects
of changes in the financial markets on the Group's financial performance,
shareholders' equity and liquidity. The general principles of the Group's risk
management are approved by the Board of Directors of the parent company, and
the parent company's management together with the management of subsidiaries is
responsible for their practical implementation. Responsibility for Olvi Group's
financing tasks is centralised in the parent company Olvi. The objectives of
centralisation include optimisation of cash flows and financing costs, as well
as efficient risk management.
There have not been any significant changes in Olvi Group's business risks
since the closing of the accounts 2013. A more detailed description of the
risks is provided in the Board of Directors' report and the notes to the
financial statements. Financing risks are also described in more detail in the
Investors section of the corporate Web site.
BUSINESS RISKS AND UNCERTAINTIES IN THE NEAR TERM
The economic situation in Europe has turned slightly more positive even though
instability is still seen in individual countries. However, the unemployment
rate is still high. Weakened consumer purchasing power leads to a choice of
less expensive products. Demand in Finland is also held back by Europe's
highest excise tax rates.
The continuation of the Ukrainian crisis and increased tension affect the
development of the Russian rouble and therefore exports to Russia. Olvi is
putting effort to increasing exports into Russia particularly from Belarus,
which is in a customs union with Russia.
Another substantial factor hampering the predictability of Olvi Group's
business still relates to Belarus and its economic outlook for the next few
years. The IAS 29 standard “Financial Reporting in Hyperinflationary Economies”
will be applied at least until the end of 2014.
NEAR-TERM OUTLOOK
The full-year sales volumes and net sales in 2014 are expected to grow slightly
in the current accounting period. The operating profit for 2014 is expected to
be on a par with the year 2013.
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, Table 5
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Key media
www.olvi.fi
OLVI GROUP TABLE 1
INCOME STATEMENT
EUR 1,000
1-3/2014 1-3/2013 1-12/2013
Net sales 61003 67995 327256
Other operating income 103 183 983
Operating expenses -54137 -59770 -271391
Depreciation and impairment -3502 -3396 -13627
Operating profit 3467 5012 43221
Financial income 1142 2086 3105
Financial expenses -1105 -2005 -4501
Share of earnings of associates 0 0 -11
Earnings before tax 3504 5093 41814
Taxes *) -775 -697 -7628
NET PROFIT FOR THE PERIOD 2729 4396 34186
Other comprehensive income items:
Translation differences related to
foreign subsidiaries -1003 1881 -2858
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 1726 6277 31328
Distribution of profit:
- parent company shareholders 2701 4337 33520
- non-controlling interests 28 59 666
Distribution of comprehensive profit:
- parent company shareholders 1790 6092 30886
- non-controlling interests -64 185 442
Earnings per share calculated from the profit belonging
to parent company shareholders, EUR
- undiluted 0.13 0.21 1.61
- diluted 0.13 0.21 1.61
*) Taxes calculated from the profit for the review period.
OLVI GROUP TABLE 2
BALANCE SHEET
EUR 1,000
31.3.2014 31.3.2013 31.12.2013
ASSETS
Non-current assets
Tangible assets 174821 149279 165783
Goodwill 17889 18262 17805
Other intangible assets 2686 2246 2701
Interests in associates 1077 1077 1077
Financial assets available for sale 549 549 549
Loan receivables and other non-current 349 408 349
receivables
Deferred tax receivables 228 214 87
Total non-current assets 197599 172035 188351
Current assets
Inventories 47680 44062 41178
Accounts receivable and other receivables 55123 66200 57705
Income tax receivable 382 202 848
Other non-current assets available for sale 4 163 124
Liquid assets 3376 3876 7507
Total current assets 106565 114503 107362
TOTAL ASSETS 304164 286538 295713
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 -21232 -15932 -20321
Retained earnings 171452 145674 167420
172063 151585 168942
Share belonging to non-controlling interests 2579 2127 2597
Total shareholders' equity 174642 153712 171539
Non-current liabilities
Financial liabilities 27145 37021 28483
Other liabilities 0 250 0
Deferred tax liabilities 4349 3223 3761
Current liabilities
Financial liabilities 37495 23524 24348
Accounts payable and other liabilities 60426 68568 66704
Income tax liability 107 240 878
Total liabilities 129522 132826 124174
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 304164 286538 295713
OLVI GROUP
TABLE 3
CHANGES IN OLVI GROUP'S CONSOLIDATED
SHAREHOLDERS' EQUITY
Share Other Treasu Transl Retain Share of Total
capita reserv ry ation ed non-controllin
l es shares differ earnin g interests
accoun ences gs
t
EUR 1,000
Shareholders' 20759 1092 -8 -17687 141317 1939 147412
equity 1 Jan
2013
Adjustments for 21 2 23
hyperinflation
Adjusted 20759 1092 -8 -17687 141338 1941 147435
shareholders'
equity 1 Jan
2013
Comprehensive
income:
Net profit for the 4337 59 4396
period
Other comprehensive
income items:
Translation 1755 126 1881
differences
Total comprehensive 1755 4337 185 6277
income for the period
Shareholders' 20759 1092 -8 -15932 145675 2126 153712
equity 31 Mar
2013
Share Other Treasu Transl Retain Share of Total
capita reserv ry ation ed non-controllin
l es shares differ earnin g interests
accoun ences gs
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 2701 28 2729
period
Other comprehensive
income items:
Translation -911 -92 -1003
differences
Total comprehensive -911 2701 -64 1726
income for the period
Transactions with
shareholders
Payment of -76 -76
dividends
Total transactions with -76 -76
shareholders
Shareholders' 20759 1092 -8 -21232 171452 2579 174642
equity 31 Mar
2014
Other reserves include the share premium account, legal reserve and
other reserves.
OLVI GROUP TABLE 4
CASH FLOW STATEMENT
EUR 1,000
1-3/2014 1-3/2013 1-12/2013
Net profit for the period 2729 4396 34186
Adjustments to profit for the period 5475 6871 24214
Change in net working capital -11088 -7251 2451
Interest paid -940 -295 -4246
Interest received 77 67 530
Taxes paid -395 -948 -7126
Cash flow from operations (A) -4142 2840 50009
Investments in tangible and intangible
assets -11599 -6771 -31975
Sales gains from tangible and intangible
assets -138 67 220
Expenditure on other investments 0 0 0
Cash flow from investments (B) -11737 -6704 -31755
Withdrawals of loans 13780 4129 5541
Repayments of loans -1971 -2055 -11180
Dividends paid 0 0 -10541
Increase (-) / decrease (+) in current interest-
bearing business receivables 1 0 1
Increase (-) / decrease (+) in long-term
loan receivables 0 0 55
Cash flow from financing (C) 11810 2074 -16124
Increase (+)/decrease (-) in liquid assets -4069 -1790 2130
(A+B+C)
Liquid assets 1 January 7507 5698 5698
Effect of exchange rate changes -62 -32 -321
Liquid assets 30 Sep/31 Dec 3376 3876 7507
OLVI GROUP TABLE 5
NOTES TO THE INTERIM REPORT
The accounting policies used for this interim report are the same as those used
for the annual financial statements 2013.
The accounting policies are presented in the Annual Report 2013 which was
published on 20 March 2014. The information disclosed in the interim report is
unaudited.
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 Group has adopted the following new or revised standards and
interpretations in 2014:
-- Amendment to IFRSs 10, 11 and 12 on transition guidance
-- IFRS 10 “Consolidated Financial Statements”
-- IFRS 11 “Joint Arrangements”
-- IFRS 12 “Disclosures of Interests in Other Entities”
-- IAS 27 (Revised 2011) “Separate Financial Statements”
-- IAS 28 (Revised 2011) “Investments in Associates and Joint Ventures"
-- Amendment to IAS 32 “Financial Instruments: Presentation” concerning the
offset of assets and liabilities
-- Amendment to IAS 36 “Impairment of Assets” concerning the disclosure of
recoverable amounts
-- Amendment to IAS 39 “Financial Instruments: Recognition and Measurement”
concerning the novation of derivatives
The above changes in standards and their interpretations have no substantial
effect on the income statement or balance sheet.
Some changes in standards may affect the scope of disclosure of notes.
1. SEGMENT INFORMATION
SALES BY GEOGRAPHICAL SEGMENT (1,000 litres)
1-3/2014 1-3/2013 1-12/2013
Olvi Group total 107250 110705 557232
Finland 27817 36497 159909
Estonia 25124 25880 129314
Latvia 18243 15505 79724
Lithuania 16032 13373 69554
Belarus 29961 27161 156523
- sales between segments -9927 -7711 -37792
NET SALES BY GEOGRAPHICAL SEGMENT (EUR 1,000)
1-3/2014 1-3/2013 1-12/2013
Olvi Group total 61003 67995 327256
Finland 20917 29507 123608
Estonia 15757 15870 81261
Latvia 8308 7207 37571
Lithuania 7677 6562 34139
Belarus 12732 12560 68319
- sales between segments -4388 -3711 -17642
OPERATING PROFIT BY GEOGRAPHICAL SEGMENT (EUR 1,000)
1-3/2014 1-3/2013 1-12/2013
Olvi Group total 3467 5012 43221
Finland 1256 2843 12844
Estonia 2163 2118 15998
Latvia 316 112 2458
Lithuania -110 -226 1264
Belarus 576 122 10665
- eliminations -734 43 -8
2. PERSONNEL ON AVERAGE 1-3/2014 1-3/2013 1-12/2013
Finland 363 383 401
Estonia 312 304 314
Latvia 210 214 215
Lithuania 211 211 216
Belarus 812 823 853
Total 1908 1935 1999
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
1-3/2014 1-3/2013 1-12/2013
Managing Director 89 83 340
Chairman of the Board 21 21 85
Other members of the Board 31 33 130
Total 141 137 555
4. SHARES AND SHARE CAPITAL
31.3.2014 %
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 2014 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. TREASURY SHARES
Olvi plc held a total of 1,124 of its own Series A shares on 1 January 2014.
Olvi plc has not acquired more treasury shares or transferred them to others in
January-March 2014, which means that the number of Series A shares held by the
company was unchanged on 31 March 2014. 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 2014, 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 2014, the Board of Directors of Olvi plc has not exercised the
authorisations granted by the General Meeting.
6. NUMBER OF SHARES *) 1-3/2014 1-3/2013 1-12/2013
- average 20757684 20757684 20757684
- at end of period 20757684 20757684 20757684
*) Treasury shares deducted.
7. TRADING OF SERIES A SHARES ON THE HELSINKI STOCK
EXCHANGE
1-3/2014 1-3/2013 1-12/2013
Trading volume of Olvi A shares 699171 662388 2601699
Total trading volume, EUR 1,000 19164 14111 63938
Traded shares in proportion to
all Series A shares, % 4.1 3.9 15.3
Average share price, EUR 27.41 21.31 24.26
Price on the closing date, EUR 24.90 21.30 28.60
Highest quote, EUR 29.90 22.50 28.75
Lowest quote, EUR 23.94 19.70 19.70
8. FOREIGN AND NOMINEE-REGISTERED HOLDINGS ON 31 MARCH 2014
Book entries Votes Shareholders
qty % qty % qty %
Finnish total 16398510 79,00 85367902 93.12 9620 99.55
Foreign total 535099 2,58 2478571 2.70 36 0.37
Nominee-registered (foreign) 15428 0,07 15428 0.02 3 0.03
total
Nominee-registered (Finnish) 3809771 18,35 3809771 4.16 5 0.05
total
Total 20758808 100,00 91671672 100.00 9664 100.00
9. LARGEST SHAREHOLDERS ON 31 MARCH 2014
Series Series A Total % Votes %
K
1. Olvi Foundation 2363904 890613 3254517 15.68 48168693 52.55
2. Hortling Heikki 903488 103280 1006768 4.85 18173040 19.82
Wilhelm *)
3. The Heirs of Hortling 187104 25248 212352 1.02 3767328 4.11
Kalle Einari
4. Hortling Timo Einari 165824 34608 200432 0.97 3351088 3.66
5. Hortling-Rinne Laila 102288 2100 104388 0.50 2047860 2.23
Marit
6. Pohjola Bank plc, nominee 1902900 1902900 9.17 1902900 2.08
register
7. Nordea Bank Finland plc, 1302555 1302555 6.27 1302555 1.42
nominee register
8. Ilmarinen Mutual Pension 821218 821218 3.96 821218 0.90
Insurance Company
9. Skandinaviska Enskilda Banken Ab (Publ)
Helsinki branch, nominee register 552205 552205 2.66 552205 0.60
10. Varma Mutual Pension Insurance 461586 461586 2.22 461586 0.50
Company
Other 9648 10930239 10939887 52.70 11123199 12.13
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.
10. PROPERTY, PLANT AND EQUIPMENT
EUR 1,000
1-3/2014 1-3/2013 1-12/2013
Increase 11849 5790 34509
Decrease -2097 -378 -1087
Total 9752 5412 33422
11. CONTINGENT LIABILITIES
EUR 1,000
31.3.2014 31.3.2013 31.12.2013
Pledges and contingent liabilities
For own commitments 2715 7542 2715
Leasing and rental liabilities:
Due within one year 1284 1142 1238
Due within 1 to 5 years 703 815 637
Due in more than 5 years 5 7 6
Leasing and rental liabilities total 1992 1964 1881
Package liabilities 1390 3101 2781
Other liabilities 2000 2000 2000
12. 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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