2015-08-13 08:00:11 CEST
2015-08-13 08:01:15 CEST
REGULATED INFORMATION
Olvi Oyj - Interim report (Q1 and Q3)
OLVI GROUP’S INTERIM REPORT, 1 JANUARY TO 30 JUNE 2015 (6 MONTHS
Olvi Group's sales volume increased in January-June, but the operating profit
fell short of last year. A substantial part of the operating profit decline was
due to the Belarusian exchange rate, which was weaker than last year.
Second-quarter earnings were negatively impacted by extraordinarily cool and
rainy weather in the summer season.
Iisalmi, 2015-08-13 08:00 CEST (GLOBE NEWSWIRE) -- OLVI PLC
INTERIM REPORT 13 AUGUST 2015 at 9:00 am
OLVI GROUP'S INTERIM REPORT, 1 JANUARY TO 30 JUNE 2015 (6 MONTHS)
INTERIM REPORT IN BRIEF
Olvi Group's sales volume increased in January-June, but the operating profit
fell short of last year. A substantial part of the operating profit decline was
due to the Belarusian exchange rate, which was weaker than last year.
Second-quarter earnings were negatively impacted by extraordinarily cool and
rainy weather in the summer season.
January to June 2015 in brief:
- Olvi Group's sales volume was 284.1 (278.9) million litres
- The Group's net sales amounted to 152.7 (156.6) million euro
- The Group's operating profit amounted to 17.7 (19.3) million euro
- Olvi Group's earnings per share stood at 0.46 (0.66) euro per share
- The equity ratio remained good at 50.6 (50.5) percent
April to June 2015 in brief:
- Olvi Group's sales volume was 168.8 (171.7) million litres
- The Group's net sales amounted to 91.2 (96.9) million euro
- The Group's operating profit amounted to 13.9 (15.9) million euro
- Olvi Group's earnings per share stood at 0.39 (0.53) euro per share
Olvi estimates that the Group's sales volume for 2015 will increase slightly on
the previous year. Net sales and operating profit are estimated to be on a par
with 2014 or slightly lower.
CONSOLIDATED KEY RATIOS
4-6/ 4-6/ Change % 1-6/ 1-6/ Change % 1-12/
2015 2014 / pp 2015 2014 / pp 2014
--------------------------------------------------------------------------------
Sales volume, Mltr 168.8 171.7 -1.7 284.1 278.9 1.9 576.5
--------------------------------------------------------------------------------
Net sales, MEUR 91.2 96.9 -5.8 152.7 156.6 -2.5 320.8
--------------------------------------------------------------------------------
EBITDA, MEUR 18.1 19.5 -7.2 25.7 26.4 -2.7 55.9
--------------------------------------------------------------------------------
Operating profit, 13.9 15.9 -12.4 17.7 19.3 -8.4 41.0
MEUR
--------------------------------------------------------------------------------
% of net sales 15.2 16.4 11.6 12.4 12.8
--------------------------------------------------------------------------------
Net profit for the 8.2 11.2 -26.4 9.6 13.9 -31.1 33.1
period
--------------------------------------------------------------------------------
% of net sales 9.0 11.5 6.3 8.9 10.3
--------------------------------------------------------------------------------
Earnings per 0.39 0.53 -26.4 0.46 0.66 -30.3 1.57
share, EUR
--------------------------------------------------------------------------------
Gross capital 9.5 10.8 -11.6 16.1 23.5 -31.6 41.6
expenditure, MEUR
--------------------------------------------------------------------------------
Equity per share, 8.63 8.22 5.0 9.17
EUR
--------------------------------------------------------------------------------
Equity to total 50.6 50.5 0.1 57.9
assets, %
--------------------------------------------------------------------------------
Gearing, % 42.1 38.4 3.7 29.8
--------------------------------------------------------------------------------
BUSINESS DEVELOPMENT
LASSE AHO, MANAGING DIRECTOR:
In the second quarter, Olvi Group fell short of the previous year's result.
This was strongly affected by cool and rainy summer weather particularly in
Finland and Estonia. Another contributing factor was the weakened exchange rate
in Belarus. Our accumulated sales volume is greater than in the previous year
and net sales are almost on a par with last year, which can be considered quite
good performance in comparison to the general market development.
The market situation in Finland has remained challenging. Weakened consumer
purchasing power, pronounced price competition and a decline in the overall
market had a negative impact also on business development in Finland. However,
we have been able to balance this with cost savings and improvements in
production plant performance. The cost savings are also expected to support
earnings development in Finland during the rest of the year.
Profitability in Estonia remained on a strong level even though sales fell
short of the previous year due to cold weather in the spring and early summer.
Lithuania has succeeded in improving its market share and earnings in the first
half of the year when compared to 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.
However, positive development was seen in Latvia starting in late spring.
Business in Belarus developed favourably during the review period. Sales volume
increased clearly, and also net sales and operating profit measured in the
local currency increased on the previous year. However, the exchange rate is
weaker than in the previous year, and this causes a decline of 0.9 million euro
in the January-June earnings denominated in euro. In spite of the uncertainties
related to Belarus, the business is expected to develop well also in the rest
of the year. The Belarusian subsidiary has started co-operation with PepsiCo,
Inc, the second-largest soft drinks company in the world. The co-operation
agreement covers the sales, marketing and distribution of PepsiCo-manufactured
soft drinks in Belarus. The manufacture of products started during the summer
as planned.
A logistics investment in Finland was completed during the spring, making
operations even more efficient. Investments that will enable a substantial
increase in production capacity in Belarus will be completed towards the end of
the current summer season. The total amount of investments in 2015 will be less
than in the previous year, which will have a positive effect on the company's
cash flow.
SEASONAL NATURE OF THE OPERATIONS
The Group's business operations are characterised by seasonal variation. The
net sales and operating profit from the reported geographical segments do not
accumulate evenly but vary according to the time of the year and the
characteristics of each season.
SALES DEVELOPMENT
Olvi Group's sales volume increased in January-June by 1.9 percent to 284.1
(278.9) million litres. The sales volume from April to June was 168.8 (171.7)
million litres.
The sales volume increased in January-June in Belarus and Lithuania. However,
the volume fell short of the previous year in Finland and Estonia due to
reasons including cooler spring and summer weather. The volume development in
Latvia reflects the decline in sales to other Group entities.
Sales volume development by unit:
Sales volume, million 4-6/ 4-6/ Change 1-6/ 1-6/ Change
litres 2015 2014 % 2015 2014 %
--------------------------------------------------------------------------------
Finland (Olvi plc) 39.9 44.6 -10.5 69.8 72.4 -3.6
--------------------------------------------------------------------------------
Estonia (AS A. Le Coq) 37.8 41.5 -8.9 63.1 66.7 -5.4
--------------------------------------------------------------------------------
Latvia (A/S Cēsu Alus) 21.4 24.9 -14.3 35.3 43.2 -18.2
--------------------------------------------------------------------------------
Lithuania (AB Volfas 23.8 23.0 3.6 41.3 39.0 6.0
Engelman)
--------------------------------------------------------------------------------
Belarus (OAO Lidskoe 54.0 51.2 5.6 86.5 81.1 6.6
Pivo)
--------------------------------------------------------------------------------
Eliminations -8.1 -13.5 -11.9 -23.5
--------------------------------------------------------------------------------
Total 168.8 171.7 -1.7 284.1 278.9 1.9
--------------------------------------------------------------------------------
The Group's net sales in January-June amounted to 152.7 (156.6) million euro
and in April-June to 91.2 (96.9) million euro. The negative net sales
development is affected by declined sales volumes in Finland and Estonia, a
decrease in the average price of net sales due to price competition, as well as
the weakened exchange rate in Belarus.
The comparison figures for net sales have been changed to correspond to the
accounting policy adopted as of the beginning of the year, with marketing
subsidies to customers now being deducted from net sales as a sales adjustment
item similar to discounts.
Net sales development by unit:
Net sales, million euro 4-6/ 4-6/ Change 1-6/ 1-6/ Change
2015 2014 % 2015 2014 %
--------------------------------------------------------------------------------
Finland (Olvi plc) 27.3 30.8 -11.3 48.5 51.3 -5.4
--------------------------------------------------------------------------------
Estonia (AS A. Le Coq) 23.5 25.6 -8.1 38.8 41.1 -5.6
--------------------------------------------------------------------------------
Latvia (A/S Cēsu Alus) 9.7 11.3 -14.0 15.7 19.6 -19.6
--------------------------------------------------------------------------------
Lithuania (AB Volfas 10.0 10.5 -5.0 17.3 17.7 -2.3
Engelman)
--------------------------------------------------------------------------------
Belarus (OAO Lidskoe 24.0 23.9 0.4 37.4 36.6 2.2
Pivo)
--------------------------------------------------------------------------------
Eliminations -3.3 -5.2 -5.0 -9.6
--------------------------------------------------------------------------------
Total 91.2 96.9 -5.8 152.7 156.6 -2.5
--------------------------------------------------------------------------------
EARNINGS DEVELOPMENT
The Group's operating profit for January-June stood at 17.7 (19.3) million
euro, or 11.6 (12.4) percent of net sales. Operating profit in April-June stood
at 13.9 (15.9) million euro, which was 15.2 (16.4) percent of net sales. The
decline in profit reflects the negative development in net sales and the
Belarusian exchange rate.
Operating profit development by unit:
Operating profit 4-6/ 4-6/ Change 1-6/ 1-6/ Change
(comparable) million euro 2015 2014 % 2015 2014 %
--------------------------------------------------------------------------------
Finland (Olvi plc) 2.2 2.9 -26.0 2.8 3.5 *) -18.3
--------------------------------------------------------------------------------
Estonia (AS A. Le Coq) 5.4 6.1 -10.7 7.6 8.3 -7.8
--------------------------------------------------------------------------------
Latvia (A/S Cēsu Alus) 1.2 1.0 17.3 1.2 1.3 -7.3
--------------------------------------------------------------------------------
Lithuania (AB Volfas 0.7 0.7 -5.5 0.8 0.6 26.3
Engelman)
--------------------------------------------------------------------------------
Belarus (OAO Lidskoe Pivo) 4.5 5.1 -12.8 5.2 5.7 -8.8
--------------------------------------------------------------------------------
Eliminations 0.0 0.0 0.1 0.0 *)
--------------------------------------------------------------------------------
Total 13.9 15.9 -12.4 17.7 19.3 -8.4
--------------------------------------------------------------------------------
*) Reported operating profit in Finland 1-6/2014 stood at 4.2 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 1-6/2015 figures.
The Group's January-June profit after taxes fell short of the previous year and
amounted to 9.6 (13.9) million euro. In addition to business development, the
decline in profit for the period was affected by unrealised exchange rate
differences related to the Belarusian subsidiary, which were recognised in
financial items.
Earnings per share calculated from the profit belonging to parent company
shareholders in January-June stood at 0.46 (0.66) euro, and the April-June
figure was 0.39 (0.53) euro.
BALANCE SHEET, FINANCING AND INVESTMENTS
Olvi Group's balance sheet total at the end of June 2015 was 357.5 (341.9)
million euro. Equity per share at the end of June 2015 stood at 8.63 (8.22)
euro. The equity ratio was 50.6 (50.5) percent and the gearing ratio was 42.1
(38.4) percent. The current ratio, which represents the Group's liquidity, was
1.0 (1.1).
The amount of interest-bearing liabilities at the end of June was 80.8 (72.6)
million euro, including current liabilities of 48.7 (36.7) million euro.
Olvi Group's gross capital expenditure in January-June amounted to 16.1 (23.5)
million euro. The parent company Olvi accounted for 2.4 million euro, the
Baltic subsidiaries for 3.4 million euro and Lidskoe Pivo in Belarus for 10.3
million euro of the total.
PRODUCT DEVELOPMENT AND NEW PRODUCTS
Research and development includes projects to design and develop new products,
packages, processes and production methods, as well as further development of
existing products and packages. The R&D costs have been recognised as expenses.
The main objective of Olvi Group's product development is to create new
products for profitable and growing beverage segments.
NEW PRODUCTS
Finland
In June, the A. Le Coq Long Drink brand already familiar from tourism to
Estonia was introduced into Finnish retail stores. The grapefruit-flavoured A.
Le Coq Long Drink is sold in 12-packs. Earlier in the spring, the OLVI IPA
special beer and Crook's Head Dram were introduced in Finland.
Subsidiaries
In Estonia, the A. Le Coq company launched the A. Le Coq Extra Lime beer and
the A. Le Coq Radler Strawberry and Radler Lemon products. Both radlers have an
alcohol content of 2.5%. New flavour variants were launched in ciders, long
drinks, soft drinks and mineral waters. A completely new brand of juices was
introduced: Aura Fresh Plus, which is a juice drink family complemented with
vitamins and has three flavour variants. A new concept in sports beverages is
Arctic Sport Fresh, a beverage for aerobic sports that contains slowly absorbed
carbohydrates.
In Latvia, Cēsu Alus launched the Vinitto Blanco and Vinitto Rose (5.5%)
sparkling wine drinks in glass bottles in April. At the same time, the Lielbāta
spring water range was extended with three new products, one of which was the
Kids variant for children. In May, a completely new cider brand Ciderman was
launched in cans as well as plastic bottles. In June, the company's first juice
concentrate was launched. It was introduced under the Limpa brand. At the same
time, the Lielbāta spring water range was extended by carbonated versions in
three different bottle sizes.
In Lithuania, Volfas Engelman launched three new Volfas Engelman beers. These
were the dark beer Volfas Engelman Bohemijos Dark, the special beer Volfas
Engelman BA Oak Aged Bourbon, as well as Volfas Engelman Kolekcinis Galaxy
Special Limited Edition, which is a beer containing Galaxy special hops and
sold in aluminium bottles. In addition to beers, the A. Le Coq Coctails range
saw the introduction of Watermelon Margarita, and two new radlers Meister
Radler Cranberry and Meister Radler Orange were launched. The VitamineralWater
products familiar from Estonia were launched in Lithuania in two flavours. A
new premium kvass brand Volfas Engelman Imperial Kvass was introduced.
In the first quarter of the year, Lidskoe Pivo of Belarus launched a stout
version of its Koronet beer brand. Lidskoe Pivo did not launch any new products
in the second quarter.
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 1,969 (1,985).
The greatest decline in the Group's average number of personnel was seen in
Finland, where the figure dropped by 24 people. The decline in Finland reflects
the reduction in the number of sales promoters as well as the effects of the
efficiency measures and reorganisation carried out after the statutory
co-operation negotiations completed in January 2015. The reorganisation
resulted in reductions of 32 people, which will partially be reflected in the
development of personnel figures towards the end of the year.
The number of personnel in the Baltic states increased by 15 people, while the
number in Belarus decreased by 7.
Olvi Group's average number of personnel by country:
4-6/ 2015 4-6/ 2014 Change % 1-6/ 2015 1-6/ 2014 Change %
-------------------------------------------------------------------------
Finland 371 394 -5.8 354 378 -6.3
-------------------------------------------------------------------------
Estonia 364 354 2.8 341 333 2.4
-------------------------------------------------------------------------
Latvia 218 234 -6.8 208 222 -6.3
-------------------------------------------------------------------------
Lithuania 241 215 12.1 234 213 9.9
-------------------------------------------------------------------------
Belarus 870 865 0.6 832 839 -0.8
-------------------------------------------------------------------------
Total 2,064 2,062 0.1 1,969 1,985 -0.8
-------------------------------------------------------------------------
MANAGEMENT AND AUDITORS
During the period under review, the Chairman of the Board of Olvi plc has been
Heikki Hortling, M.Sc. (Econ), and the Vice Chairman has been Esa Lager, M.Sc.
(Econ), LL.M. Other members of the Board of Directors until the Annual General
Meeting of Olvi plc held on 16 April 2015 included Heikki Sinnemaa, LL.M.,
Jaakko Autere, M.Sc. (Econ) and Tarja Pääkkönen, Dr.Tech.
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, M.Sc. (Econ),
Elisa Markula, M.Sc. (Econ) and Heikki Sirviö, M.Sc. (Engineering), Industrial
Counsellor, as new members.
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.
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 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-June 2015.
Olvi's holdings in the subsidiaries are:
30 June 2015 31 December 2014 Change
---------------------------------------------------------------------
AS A. Le Coq, Estonia 100.00 100.00 -
---------------------------------------------------------------------
A/S Cēsu Alus, Latvia 99.86 99.86 -
---------------------------------------------------------------------
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 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-June 2015 was 1,478,324 (1,088,396) shares, which represented 8.7 (6.4)
percent of all Series A shares. The value of trading was 35.4 (28.8) million
euro.
The Olvi A share was quoted on Nasdaq OMX Helsinki (Helsinki Stock Exchange) at
26.30 (24.81) euro at the end of June 2015. In January-June, the highest quote
for the Series A share was 27.20 (29.90) euro and the lowest quote was 20.51
(23.30) euro. The average price in January-March was 23.94 (26.50) euro.
At the end of June 2015, the market capitalisation of Series A shares was 447.8
(422.4) million euro and the market capitalisation of all shares was 546.0
(515.0) million euro.
The number of shareholders at the end of June 2015 was 10,029 (9,973). Foreign
holdings plus foreign and Finnish nominee-registered holdings represented 22.5
(20.8) percent of the total number of book entries and 5.1 (4.7) 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-June 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-June 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 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 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 dividends were paid on 30 April 2015.
All decisions made at the General Meeting can be found in the bulletin released
on 16 April 2015.
NEAR-TERM OUTLOOK
Olvi estimates that the Group's sales volume for 2015 will increase slightly on
the previous year. Net sales and operating profit are estimated to be on a par
with 2014 or slightly lower.
OLVI PLC
Board of Directors
Further information:
Lasse Aho, Managing Director, Olvi plc
Telephone +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 Oy
Key media
www.olvi.fi
OLVI GROUP TABLE 1
INCOME STATEMENT
EUR 1,000
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2015 2014 2015 2014 2014
Net sales 91228 96893*) 152742 156613*) 320785*)
Other operating income 513 640 1080 743 1626
Operating expenses -73691 -78080*) -128111 -130934*) -266504*
)
Depreciation and impairment -4139 -3575 -7995 -7078 -14907
Operating profit 13911 15878 17716 19344 41000
Financial income 62 962 674 2105 3990
Financial expenses -2517 -928 -5329 -2033 -3985
Share of profit in associates 0 0 0 0 48
Earnings before tax 11456 15912 13061 19416 41053
Taxes **) -3241 -4758 -3501 -5534 -7974
NET PROFIT FOR THE PERIOD 8215 11154 9560 13882 33079
Other comprehensive income items:
Translation differences related to
foreign subsidiaries -2589 -950 -7560 -1954 -2874
TOTAL COMPREHENSIVE INCOME FOR 5626 10204 2000 11928 30205
THE PERIOD
Distribution of profit:
- parent company shareholders 8104 10938 9530 13639 32522
- non-controlling interests 111 216 30 243 557
Distribution of comprehensive income:
- parent company shareholders 5635 9991 2320 11779 29879
- non-controlling interests -9 213 -320 149 326
Earnings per share calculated from the profit
belonging
to parent company shareholders,
EUR
- undiluted 0.39 0.53 0.46 0.66 1.57
- diluted 0.39 0.53 0.46 0.66 1.57
*) The previous year's net sales have been adjusted for comparability with the
year 2015.
**) Taxes calculated from the profit for the review period.
OLVI GROUP TABLE 2
BALANCE SHEET
EUR 1,000
30 June 30 June 31 December
2015 2014 2014
ASSETS
Non-current assets
Tangible assets 191317 182189 192149
Goodwill 17064 18081 18217
Other intangible assets 4502 2647 4562
Shares in associates 1125 1077 1125
Financial assets available for sale 549 549 549
Loans receivable and other non-current 333 349 333
receivables
Deferred tax receivables 165 189 163
Total non-current assets 215055 205081 217098
Current assets
Inventories 49354 47110 43522
Accounts receivable and other 87150 83224 66309
receivables
Income tax receivable 845 338 1023
Other non-current assets held for sale 421 4 421
Liquid assets 4639 6192 4382
Total current assets 142409 136868 115657
TOTAL ASSETS 357464 341949 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 -30174 -22180 -22964
Retained earnings 187473 171018 191408
179142 170681 190287
Share belonging to non-controlling 1877 1927 2252
interests
Total shareholders' equity 181019 172608 192539
Non-current liabilities
Financial liabilities 32194 35875 30040
Other liabilities 3 0 2
Deferred tax liabilities 6090 4864 5598
Current liabilities
Financial liabilities 48652 36683 31652
Accounts payable and other liabilities 89050 91011 72899
Income tax liability 456 908 25
Total liabilities 176445 169341 140216
TOTAL SHAREHOLDERS' EQUITY AND 357464 341949 332755
LIABILITIES
OLVI GROUP TABLE 3
CHANGES IN
SHAREHOLDERS' EQUITY
EUR 1,000 Share Other Treasur Transla Retai Share of Total
capita reserv y tion ned non-controllin
l es shares differe earni g interests
reserve nces ngs
Shareholders' 20759 1092 -8 -20321 16742 2597 171539
equity 1 Jan 0
2014
Adjustments for 2781 160 2941
hyperinflation
Adjusted 20759 1092 -8 -20321 17020 2757 174480
shareholders' 1
equity 1 Jan
2014
Comprehensive
income:
Net profit for 13639 243 13882
the
period
Other comprehensive
income
items:
Translation -1859 -94 -1953
differences
Total comprehensive -1859 13639 149 11929
income for the period
Transactions with
shareholders:
Payment of -1349 -72 -13564
dividends 2
Total transactions with -1349 -72 -13564
shareholders 2
Changes in holdings in
subsidiaries:
Acquisition of shares from
non-controlling -237 -237
interests
Change in share belonging to
non-
controlling
interests 907 -907 0
Total changes in holdings in 670 -907 -237
subsidiaries
Shareholders' 20759 1092 -8 -22180 17101 1927 172608
equity 30 June 8
2014
EUR 1,000 Share Other Treasur Transla Retai Share of Total
capita reserv y tion ned non-controllin
l es shares differe earni g interests
reserve nces ngs
Shareholders' 20759 1092 -8 -22964 19140 2252 192539
equity 1 Jan 8
2015
Adjustments for 0 0 0
hyperinflation
Adjusted 20759 1092 -8 -22964 19140 2252 192539
shareholders' 8
equity 1 Jan
2015
Comprehensive
income:
Net profit for 9530 30 9560
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 -1349 -55 -13547
dividends 2
Share-based incentives 27 27
Total transactions with -1346 -55 -13520
shareholders 5
Shareholders' 20759 1092 -8 -30174 18747 1877 181019
equity 30 June 3
2015
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 1-6/201 1-12/2014
5 4
Net profit for the period 9560 13882 33079
Adjustments to profit for the 13135 12169 25699
period
Change in net working capital -10969 -7742 -2358
Interest paid -560 -1872 -3393
Interest received 82 130 385
Taxes paid 297 -1344 -7063
Cash flow from operations (A) 11545 15223 46349
Investments in tangible and intangible
assets -16201 -22412 -43855
Sales gains from tangible and intangible
assets -92 42 200
Expenditure on other investments 0 -250 -298
Cash flow from investments (B) -16293 -22620 -43953
Withdrawals of loans 24947 27751 32657
Repayments of loans -6384 -8024 -24542
Dividends paid -13516 -13532 -13531
Increase (-) / decrease (+) in current interest-
bearing business receivables 0 -15 -23
Increase (-) / decrease (+) in long-term
loan receivables 3 0 16
Cash flow from financing (C) 5050 6180 -5423
Increase (+)/decrease (-) in liquid 302 -1217 -3027
assets (A+B+C)
Liquid assets 1 January 4382 7507 7507
Effect of exchange rate changes -45 -98 -98
Liquid assets 30 June/31 December 4639 6192 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)
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2015 2014 2015 2014 2014
Olvi Group total 168823 171670 284096 278920 576478
Finland 39915 44612 69841 72429 151828
Estonia 37841 41545 63070 66669 131550
Latvia 21375 24931 35299 43174 76096
Lithuania 23781 22956 41322 38988 81054
Belarus 54010 51164 86484 81125 169919
- sales between segments -8099 -13538 -11920 -23465 -33969
NET SALES BY GEOGRAPHICAL SEGMENT (EUR 1,000)
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2015 2014 2015 2014 2014
Olvi Group total 91228 96893*) 152742 156613*) 320785*)
Finland 27284 30773 48474 51266 105329
Estonia 23534 25617 38779 41058 80666
Latvia 9722 11305 15714 19550 34112
Lithuania 9974 10495 17328 17739 36130
Belarus 24046 23943 37445 36628 78554
- sales between segments -3332 -5240 -4998 -9628 -14006
*) The previous year's figures have been adjusted for comparability
with the year 2015.
OPERATING PROFIT BY GEOGRAPHICAL SEGMENT (EUR 1,000)
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2015 2014 2015 2014 2014
Olvi Group total 13911 15878 17716 19344 41000
Finland 2155 2912 2849 4168*) 7436*)
Estonia 5444 6096 7611 8258 16504
Latvia 1180 1006 1226 1322 2058
Lithuania 692 733 787 623 2356
Belarus 4458 5113 5186 5689 13117
- eliminations -18 18 57 -716 -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
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2015 2014 2015 2014 2014
Finland 371 394 354 378 369
Estonia 364 354 341 333 331
Latvia 218 234 208 222 214
Lithuania 241 215 234 213 214
Belarus 870 865 832 839 830
Total 2064 2062 1969 1985 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
1-6/ 1-6/ 1-12/
2015 2014 2014
Managing Director 173 185 361
Chairman of the Board 45 41 84
Other members of the Board 71 64 125
Total 289 290 570
4. SHARES AND SHARE CAPITAL
30 June 2015 %
Number of A shares 17026552 82.0
Number of K shares 3732256 18.0
Total 20758808 100.0
Total votes carried by A shares 17026552 18.6
Total votes carried by K shares 74645120 81.4
Total number of votes 91671672 100.0
Votes per Series A share 1
Votes per Series K share 20
The registered share capital on 30 June 2015 totalled 20,759 thousand euro.
Olvi plc's Series A and Series K shares received a dividend of 0.65 euro per
share for 2014 (0.65 euro per share for 2013), totalling 13.5 (13.5) million
euro. The dividends were paid on 30 April 2015. The Series K and Series A
shares entitle to equal dividend. The Articles of Association include a
redemption clause concerning Series K shares.
5. SHARE-BASED PAYMENTS
Olvi Group has an active share-based incentive plan for key personnel. The aim
of the share-based incentive plan is to combine the objectives of the
shareholders and the key employees in order to increase the value of the
company, to make the key employees committed to the company, and to offer them
a competitive reward plan based on earning the company's shares.
The bonuses for the performance periods (2014-2016/2017) will be paid in 2017
partially in Olvi plc Series A shares and partially in cash.
The plan is directed to approximately 50 people. The rewards to be paid on the
basis of the plan are in total an approximate maximum of 40,000 series A shares
in Olvi plc and a cash payment needed for taxes and tax-related costs arising
from the shares.
From January to June 2015, accounting entries associated with the performance
period from 1 July 2014 to 30 June 2017 were recognised for a total of 45.0
thousand euro.
Olvi Group has no warrants or options.
6. TREASURY SHARES
Olvi plc held a total of 1,124 of its own Series A shares on 1 January 2015.
Olvi plc has not acquired more treasury shares or transferred them to others in
January-June 2015, which means that the number of Series A shares held by the
company was unchanged on 30 June 2015. The purchase price of the Series A
shares held as treasury shares totalled 8.5 thousand euro.
Series A shares held by Olvi plc as treasury shares represented 0.005 percent
of the share capital and 0.001 percent of the aggregate number of votes. The
treasury shares represented 0.007 percent of all Series A shares and associated
votes.
On 16 April 2015, the General Meeting of Shareholders of Olvi plc decided to
revoke any unused authorisations to acquire treasury shares and authorise the
Board of Directors of Olvi plc to decide on the acquisition of the company's
own shares using unrestricted equity. The authorisation is valid for one year
starting from the General Meeting and covers a maximum of 500,000 Series A
shares. The shares shall be acquired for the purpose of financing or executing
any upcoming corporate acquisitions or other arrangements, implementing the
company's incentive schemes or for other purposes decided upon by the Board of
Directors.
The Annual General Meeting also decided to revoke all existing unused
authorisations for the transfer of own shares and authorise the Board of
Directors to decide on the issue of a maximum of 1,000,000 new Series A shares
and the transfer of a maximum of 500,000 Series A shares held as treasury
shares.
In January-June 2015, the Board of Directors of Olvi plc has not exercised the
authorisations granted by the General Meeting.
7. NUMBER OF SHARES *) 1-6/2015 1-6/2014 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
1-6/2015 1-6/2014 1-12/2014
Trading volume of Olvi A shares 1478324 1088396 2174302
Total trading volume, EUR 1,000 35420 28834 54313
Traded shares in proportion to
all Series A shares, % 8.7 6.4 12.8
Average share price, EUR 23.94 26.50 25.03
Price on the closing date, EUR 26.30 24.81 21.07
Highest quote, EUR 27.20 29.90 29.90
Lowest quote, EUR 20.51 23.30 20.70
9. FOREIGN AND NOMINEE-REGISTERED HOLDINGS ON 30 JUNE 2015
Book entries Votes Shareholders
qty % qty % qty %
Finnish total 16092981 77.52 87005845 94.91 9964 99.35
Foreign total 399843 1.93 399843 0.44 56 0.56
Nominee-registered (foreign) 93636 0.45 93636 0.10 4 0.04
total
Nominee-registered (Finnish) 4172348 20.10 4172348 4.55 5 0.05
total
Total 20758808 100.00 91671672 100.00 10029 100.00
10. LARGEST SHAREHOLDERS ON 30 JUNE
2015
Series K Series A Total % Votes %
1. Olvi 2363904 890613 3254517 15.68 48168693 52.54
Foundation
2. Hortling 903488 103280 1006768 4.85 18173040 19.82
Heikki
Wilhelm *)
3. The Heirs 187104 25248 212352 1.02 3767328 4.11
of Hortling
Kalle Einari
4. Hortling 165824 35308 201132 0.97 3351788 3.66
Timo Einari
5. Pohjola 2152900 2152900 10.37 2152900 2.35
Bank plc,
nominee
register
6. 102288 2980 105268 0.51 2048740 2.23
Hortling-Rinn
e Laila Marit
7. Nordea Bank Finland 1817059 1817059 8.75 1817059 1.98
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
Other 9648 9861871 9871519 47.55 10054831 10.98
Total 3732256 17026552 20758808 100.00 91671672 100.00
*) The figures include the shareholder's own holdings and shares held by parties
in his control.
11. PROPERTY, PLANT AND EQUIPMENT
EUR 1,000
1-6/2015 1-6/201 1-12/2014
4
Opening balance 192149 165783 165783
Additions 15648 22475 38998
Deductions and transfers -39 -2659 -818
Depreciation -7570 -6694 -14139
Exchange rate differences and adjustment for -8871 3284 2325
hyperinflation
Total 191317 182189 192149
12. CONTINGENT LIABILITIES
EUR 1,000 30 June 30 June 31 December
2015 2014 2014
Pledges and contingent liabilities
For own commitments 2397 3152 2397
Leasing and rental liabilities:
Due within one year 1219 1209 1143
Due within 1 to 5 years 1123 880 758
Due in more than 5 years 5 5 5
Leasing and rental liabilities total 2347 2094 1906
Package liabilities 3282 3349 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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