2013-08-15 07:59:47 CEST
2013-08-15 08:00:50 CEST
REGULATED INFORMATION
Olvi Oyj - Interim report (Q1 and Q3)
OLVI GROUP’S INTERIM REPORT, 1 JANUARY TO 30 JUNE 2013 (6 MONTHS)
Olvi's earnings developed favourably. The Group's sales volume, net sales and
operating profit increased on the previous year.
Iisalmi, 2013-08-15 07:59 CEST (GLOBE NEWSWIRE) -- OLVI PLC
INTERIM REPORT 15 AUG 2013 at 9:00 am
OLVI GROUP'S INTERIM REPORT, 1 JANUARY TO 30 JUNE 2013 (6 MONTHS)
Olvi's earnings developed favourably. The Group's sales volume, net sales and
operating profit increased on the previous year.
January-June in brief:
- Olvi Group's sales volume increased by 7.9 percent to 282.0 (261.4) million
litres
- The Group's comparable net sales increased by 14.2 percent to 170.7 (149.5)*)
million euro
- The Group's comparable operating profit increased to 17.7 (14.7) million
euro, and operating profit adjusted for the change in depreciation policy
increased to 22.8 million euro.
KEY RATIOS
1-6/2013 1-6/2012 Change % 1-12/2012
Net sales, MEUR 170.7 149.5*) +14.2 304.9*)
Operating profit, MEUR 22.8**) 14.7 +55.3 30.5
Gross capital expenditure, MEUR 13.3 21.2 -37.2 29.8
Earnings per share, EUR 0.79 0.59 +33.9 1.24
Equity per share, EUR 7.39 6.41 +15.3 7.01
Equity to total assets, % 50.0 45.4 54.8
Gearing, % 34.8 55.8 35.8
*) The previous year's net sales in Finland have been adjusted for
comparability with the year 2013.
**) A new depreciation policy has been applied to the income statement for 2013.
Lasse Aho, Managing Director of Olvi plc, states the following in connection
with the disclosure of the accounts:
“Olvi Group's performance in the first half of 2013 was good. Development was
particularly good in the parent company and in Belarus. Aggregate operating
profit in the Baltic states also improved.”
CHANGES IN ACCOUNTING POLICIES STARTING FROM 1 JANUARY 2013
As of the beginning of 2013, the parent company Olvi plc has accounted for
marketing subsidies payable to customers as annual discounts under adjustments
to sales. The previous year's net sales figures in this interim report have
been adjusted for comparability with the year 2013. These marketing subsidies
were previously recognised under other operating expenses. The change did not
affect the parent company's or the Group's operating profit. After the change,
Olvi Group companies have a uniform policy of accounting for marketing
subsidies.
As of the beginning of the year, Olvi Group's depreciation periods for
buildings, production machinery and equipment, as well as storage and
fermentation tanks, have been extended to better correspond to their actual
economic life and the depreciation policies common in the industry. The new
depreciation period for buildings is 30 years, and for production machinery and
equipment 15 years. The depreciation period for tanks is 20 years. Due to the
change, consolidated depreciation in the period under review declined by 5.1
million euro on the corresponding period last year.
OLVI GROUP'S SALES VOLUME, NET SALES AND EARNINGS IN JANUARY-JUNE 2013
Olvi Group's sales in the first half of the year totalled 282.0 (261.4) million
litres, an increase of 20.6 million litres or 7.9 percent. Sales in Finland
increased by 11.3 million litres and in Belarus by 9.3 million litres. Sales in
the Baltic states declined by 4.2 million litres. Intra-Group sales declined by
4.2 million litres.
The Group's net sales from January to June amounted to 170.7 (149.5)*) million
euro, representing an increase of 21.2 million euro or 14.2 percent.
Net sales in Finland amounted to 67.5 (56.1)*) million euro, while the
aggregate total for the Baltic states was 77.2 (76.5) and the corresponding
figure for Belarus was 35.3 (27.4) million euro. Net sales in Finland increased
by 11.4 million euro or 20.4 percent, in the Baltic states by 0.7 million euro
or 0.9 percent, and in Belarus by 7.9 million euro or 28.9 percent.
The Group's comparable operating profit for January-June increased to 17.7
(14.7) million euro, or 10.4 (9.8) percent of net sales. Operating profit
adjusted for the change in depreciation policy increased by 8.1 million euro or
55.3 percent on the previous year.
Operating profit in Finland amounted to 7.1 (5.0) million euro. The operating
profit improved by 2.1 million euro. Aggregate operating profit in the Baltic
states improved by 1.9 million euro to 9.8 (7.9) million euro, and operating
profit in Belarus improved by 4.0 million euro to 5.8 (1.8) million euro. The
effects of the extended depreciation periods on the operating profits of
different Group companies are described in connection with performance by
geographical segments.
The Group's profit after taxes in the period under review improved
substantially on the previous year, amounting to 16.9 (12.4) million euro.
Earnings per share calculated from the profit belonging to parent company
shareholders in the first half of the year stood at 0.79 (0.59) euro per share.
Earnings per share improved by 0.20 euro or 33.9 percent.
OLVI GROUP'S SALES VOLUME, NET SALES AND EARNINGS IN APRIL-JUNE 2013
In the second half of the year, the Group's sales volume, net sales and
operating profit improved.
The Group's sales in the second quarter amounted to 171.3 (160.1) million
litres. Sales increased by 11.2 million litres or 7.0 percent. Sales in Finland
increased by 2.2 million litres to 48.6 (46.4) million litres and sales in
Belarus by 8.1 million litres to 50.6 (42.5) million litres. Sales in the
Baltic states declined by 3.6 million litres to 83.7 (87.3) million litres.
The Group's net sales from April to June amounted to 102.7 (92.8)*) million
euro. Net sales improved by 9.9 million euro or 10.6 percent. Net sales in
Finland amounted to 38.0 (34.4)*) million euro, an increase of 3.6 million
euro, and net sales in Belarus amounted to 22.7 (18.0) million euro, an
increase of 4.7 million euro. Net sales in the Baltic states were on a par with
the previous year at 47.6 (47.5) million euro.
The Group's operating profit for the second quarter stood at 17.8 (12.0)
million euro, or 17.4 (12.9)*) percent of net sales. The operating profit
increased substantially on the previous year, by 5.9 million euro or 49.1
percent. Operating profit in Finland amounted to 4.3 (3.7) million euro, in the
Baltic states to 7.8 (6.2) million euro and in Belarus to 5.7 (2.1) million
euro. Operating profit in Finland increased by 0.6 million euro, in the Baltic
states by 1.6 million euro and in Belarus by 3.6 million euro.
SALES VOLUME, NET SALES AND EARNINGS BY GEOGRAPHICAL SEGMENT IN JANUARY-JUNE
AND APRIL-JUNE 2013
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.
PARENT COMPANY OLVI PLC (Olvi)
January to June 2013
According to the Federation of the Brewing and Soft Drinks Industry, the
Finnish beverage market in January-June diminished by a total of 4 million
litres or one percent compared to the previous year. Sales declined in all
product groups except mineral waters. The decline in alcoholic products was
approximately one percent and in soft drinks 3.5 percent. The sales of mineral
waters improved by almost 10 percent.
Olvi's sales in the first half of the year increased by 15.4 percent to 85.1
(73.8) million litres. Among the product groups, strongest growth was seen in
soft drinks. The sales of mineral waters also improved but the sales of juice
and energy drinks declined on the previous year. In alcoholic beverages, slight
growth was seen in beers while the sales of long drinks and ciders declined.
Olvi is the market leader in retail sales of long drinks.
According to statistics by the Federation of the Brewing and Soft Drinks
Industry for January-June 2013, Olvi's market share in alcoholic beverages
(beers, ciders and long drinks) was on a par with the previous year at 24
percent. In mineral waters, Olvi had a market share of 23 (24), and in soft
drinks 5 (4) percent. The overall market share in January-June was 18 (18)
percent.
In the period under review, Olvi's exports and tax-free sales increased clearly
to 15.5 (3.3) million litres, an increase of 12.2 million litres. Olvi's export
sales were particularly based on exports to nearby regions.
The parent company's net sales growth in January-June was particularly
attributable to the development of exports. Net sales stood at 67.5 (56.1)*)
million euro, an increase of 11.4 million euro or 20.4 percent.
Olvi's operating profit stood at 7.1 (5.0) million euro, which was 10.5 (8.9)*)
percent of net sales. The operating profit improved by 2.1 million euro or 42.0
percent.
1.9 million euro of the operating profit improvement was attributable to the
extended depreciation periods. Olvi's earnings for January-June include
performance bonuses to employees, as well as scrapping costs for 0.33-litre
glass bottles, which were not included in last year's earnings.
April to June 2013
The parent company's sales in the second quarter increased by 2.2 million
litres or 4.9 percent to 48.6 (46.4) million litres.
Net sales stood at 38.0 (34.4)*) million euro, an increase of 3.6 million euro
or 10.6 percent.
Operating profit in April-June stood at 4.3 (3.7) million euro, or 11.2
(10.8)*) percent of net sales. The operating profit improved by 0.6 million
euro or 15.4 percent in the second quarter.
AS A. LE COQ (A. Le Coq, Estonia)
January to June 2013
With the exception of mineral waters, the sales of all other product groups
declined in the Estonian beverage market in the first half of the year. The
sales of mineral waters improved by almost 12 percent. The greatest decline was
seen in beers, almost nine percent. Ciders declined by some six percent and
long drinks by three percent. The sales of juices and soft drinks declined as
well. (Nielsen, April-May 2013).
However, A. Le Coq retained its strong position in the Estonian beverage
market. The company's sales in January-June amounted to 67.0 (68.7) million
litres. Sales declined slightly by 1.7 million litres or 2.5 percent. The sales
decline is due to the fact that intra-Group sales diminished by 4.8 million
litres. The company's domestic sales increased by 2.6 million litres.
The greatest sales increase was seen in mineral waters, more than 36 percent.
The sales of beers, long drinks and ciders also improved well. The sales of
soft drinks (including kvass) and juices declined slightly.
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 number two player. The company has increased its market
share in mineral waters and is equal in strength among the top three. (Nielsen,
April-May 2013).
The company's exports and tax-free sales increased by 16.1 percent on the
previous year. Exports and tax-free sales represented 4.5 (3.8) percent of
total sales.
The company's net sales from January to June amounted to 42.1 (41.0) million
euro, representing an increase of 1.1 million euro or 2.7 percent. Net sales
growth outperformed volume growth thanks to improved average price.
A. Le Coq's operating profit improved in the first half of the year. Operating
profit stood at 8.0 (6.3) million euro, which was 19.0 (15.4) percent of net
sales. The operating profit improved by 1.7 million euro or 26.7 percent. 0.9
million euro of the operating profit improvement was attributable to the
extended depreciation periods.
April to June 2013
A. Le Coq's sales in the second quarter declined by 0.4 million litres or 0.9
percent to 41.1 (41.5) million litres due to diminished intra-Group
manufacturing. Net sales from April to June amounted to 26.2 (25.1) million
euro. Net sales improved by 1.1 million euro or 4.3 percent.
The company's second-quarter operating profit stood at 5.9 (4.3) million euro,
or 22.4 (17.3) percent of net sales. The operating profit improved by 1.6
million euro or 35.0 percent.
A/S CESU ALUS (Cesu Alus, Latvia)
January to June 2013
During January-June, the sales of beers in Latvia declined by almost six
percent. The cider market saw an even more dramatic decline at more than 26
percent. On the other hand, the long drink market improved by more than two
percent during the first half of the year.
Cesu Alus improved its sales during the first half of the year. Sales amounted
to 39.6 (37.8) million litres, representing an increase of 1.8 million litres
or 4.8 percent. The improvement was attributable to increased internal sales to
other Olvi Group companies.
Among the company's main product groups, only the sales of soft drinks and
juice drinks increased during January-June. Sales of long drinks were on a par
with the previous year. There was a decline of some 6 percent in the sales of
beers. The greatest sales decline was seen in ciders; however, Fizz cider
remains Latvia's best-selling brand.
The company is a clear market leader in ciders and long drinks (Nielsen
April-May 2013). Cesu Alus retained its market share in the Latvian beer market
and is the number two player (Nielsen, May 2013).
The company's net sales from January to June were on a par with the previous
year at 19.1 (19.0) million euro.
Operating profit in January-June stood at 1.6 (1.0) million euro, or 8.5 (5.2)
percent of net sales. The increase in operating profit was 0.6 million euro or
65.2 percent. The extended depreciation periods had an effect of 0.8 million
euro on the operating profit.
April to June 2013
Cesu Alus's sales in the second quarter were on a par with the previous year at
24.1 (24.2) million litres. Net sales amounted to 11.9 (12.2) million euro,
representing a decline of 0.3 million euro or 2.3 percent on the previous year.
The company's operating profit in April-June stood at 1.5 (1.0) million euro,
or 12.7 (8.5) percent of net sales. The operating profit improved by 0.5
million euro or 47.0 percent.
AB VOLFAS ENGELMAN (Volfas Engelman, Lithuania)
January to June 2013
The Lithuanian beverage markets declined in the first half of the year
particularly due to stricter alcohol laws and new regulations concerning
package sizes. Only the sales of long drinks remained almost unchanged. The
total market in beers declined by almost 12 percent, in ciders as much as 20,
and in kvass more than 14 percent.
Volfas Engelman's sales in the first half of 2013 amounted to 32.0 (36.2)
million litres. Sales declined by 4.2 million litres or 11.7 percent, mainly
due to poor performance in the second quarter. The sales of long drinks and
soft drinks (including kvass) increased while the sales of beers and ciders
drinks declined clearly.
However, Volfas Engelman has retained its market position in the declining
Lithuanian beverage market. In the largest product group, beers, the company is
the number three player and has succeeded in slightly increasing its market
share on the previous year. The company is the market leader in kvass. In
ciders it belongs to the top two players. In long drinks it holds the number
two position. The company's market share in long drinks has improved on the
previous year. (Nielsen, April-May 2013).
The company's net sales stood at 16.0 (16.6) million euro, a decline of 0.6
million euro or 3.6 percent. The decline in net sales was smaller than the
decline in sales volume thanks to improved average price.
Operating profit declined by 0.4 million euro on the previous year to 0.2 (0.6)
million euro. Operating profit came to 1.4 (3.9) percent of net sales. The
extended depreciation periods had an effect of 0.5 million euro on the
operating profit. The company was unable to adapt its operating expenses to the
declined sales volume during January-June.
April to June 2013
The company's sales volume declined in the second quarter. Sales from April to
June amounted to 18.6 (21.7) million litres, representing a decline of 3.1
million litres or 14.3 percent. Second-quarter net sales stood at 9.4 (10.2)
million euro, representing a decline of 0.8 million euro or 7.2 percent.
Also the company's operating profit declined in the second quarter compared to
the previous year. The operating profit stood at 0.4 (0.8) million euro, which
was 4.7 (8.2) percent of net sales.
OAO LIDSKOE PIVO (Lidskoe Pivo, Belarus)
January to June 2013
The Belarusian beer market declined slightly more than one percent on the
previous year. The share of imports is slightly increasing. The sales of kvass
declined by almost 19 percent while the sales of mineral waters increased by
almost 13 percent. The sales of juices are strongly growing, almost 60 percent
on the previous year. (Nielsen, April-May 2013).
The day-to-day operations of Lidskoe Pivo developed favourably in January-June
thanks to the excellent second quarter. The company's sales amounted to 77.8
(68.4) million litres, representing an increase of 9.4 million litres or 13.6
percent. Among the main product groups, the greatest sales increase was seen in
mineral waters, approximately 72 percent. Clear growth was also seen in the
sales of beers even though the overall market declined slightly. The sales of
soft drinks (including kvass) and juice drinks were on a par with the previous
year, while the sales of ciders declined.
Lidskoe Pivo has retained its market leadership in kvass. In juice drinks, the
company is the number two in the market and has increased its market share by a
further couple of percentage points. In beers, the company's market share has
gone up a couple of percentage points and in mineral waters slightly. (Nielsen,
April-May 2013).
The company's exports increased by 3.8 million litres during the first half of
the year. Exports made 14.4 (10.7) percent of the company's total sales. The
main destinations for exports were Russia, Ukraine and Lithuania.
The company's net sales stood at 35.3 (27.4) million euro, an increase of 7.9
million euro or 28.9 percent. Factors contributing to net sales growth included
favourable development of sales volumes and a good average price of net sales.
Operating profit improved by 4.0 million euro on the previous year to 5.8 (1.8)
million euro, which is 16.5 (6.7) percent of net sales. 1.0 million euro of the
operating profit improvement was attributable to the extended depreciation
periods. Factors contributing to improved operating profit included growth in
sales volumes, improved average price of net sales and successful cost control.
April to June 2013
The company's operations were very successful in the second quarter. Sales
increased to 50.6 (42.5) million litres. This represents an increase of 8.1
million litres or 19.0 percent.
Net sales stood at 22.7 (18.0) million euro, an increase of 4.7 million euro or
26.2 percent.
The company's second-quarter operating profit increased to 5.7 (2.1) million
euro, or 25.1 (11.6) percent of net sales. The operating profit improved by 3.6
million euro.
FINANCING AND INVESTMENTS
Olvi Group's balance sheet total at the end of the period under review was
311.3 (296.8) million euro. Equity per share stood at 7.39 (6.41) euro. The
equity to total assets ratio improved by 4.6 percentage points to 50.0 (45.4)
percent. The amount of interest-bearing liabilities was 61.0 (77.2) million
euro, including current liabilities of 27.4 (31.6) million euro.
During the period under review, Olvi Group's gross capital expenditure amounted
to 13.3 (21.2) million euro. The parent company Olvi accounted for 7.2 million
euro and the subsidiaries in the Baltic states for 3.2 million euro of the
total. Lidskoe Pivo's gross capital expenditure in the first half of the year
was 2.9 million euro.
The largest investments in Finland in 2013 include improving the efficiency of
internal logistics, automated warehouse operations and automatic picking,
increasing the capacity of the juicing facility and improving the pre-treatment
of waste water.
In the Baltic states, A. Le Coq's largest investments include procurements
related to improving canning line efficiency, extensions to conveyor systems
and acquisition of a can storage hall. Cesu Alus's investments mainly consist
of extensions to the tank cellar and filtering department, and the acquisition
of a light-duty storage hall. Volfas Engelman's largest investments consist of
an extension to the boiling room and the associated control equipment, an
extension to the tank cellar and the introduction of a PET bottle format.
Lidskoe Pivo's largest investments in 2013 will be the second phase of the
fermentation cellar extension, extensions to cooling systems, and the
acquisition of a light-duty storage hall.
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
Finland
To celebrate Olvi's 135th anniversary, the CXX beer will be relaunched in the
September product range period, now under the name CXX XV. Originally launched
in 1998, CXX was the commercially most significant beer launch in Finland in
the 1990s. The TEHO energy drink will be supplemented by a new variant, TEHO
Crazy Apple in 0.33-litre cans. In soft drinks, profitable additional sales
will be sought through leveraging on the season. OLVI Halloween Cola will be
available during September-October in 0.33-litre cans. Angry Birds juice drinks
will be supplemented by a green pig with pear-mango flavour in one-litre
tetrapacks.
Subsidiaries
A. Le Coq launched the new beer A. Le Coq Premium Extra Cherry having a cherry
flavour that is popular in Central Europe. The A. Le Coq Coctails range
received a new variant Mango Daiquiri 4.7%. In ciders, the new introduction
Sherwood Rose 4.5% is flavoured with raspberry. In soft drinks, Angry Birds
Sunrise, which was launched in Finland in January, was brought to the market in
0.33-litre cans. The Aura Fruit Near Water range got a new flavour of blueberry
in both 0.5-litre and 1.5-litre plastic bottles.
Cesu launched a canned version of Grāfs fon Zīverss Ale, a beer originally
introduced earlier in the spring. Correspondingly, 1.5-litre plastic bottles of
the earlier spring launch Pilsener beer was introduced.
Volfas Engelman launched multi-packs of the Rinktinis and Bravoro beer brands.
Bravoro and Fortas Extra were also launched in pint-size cans. The Fortas brand
was expanded to Radlers (shandy, alc. 2.5%) in both 0.5-litre glass bottles and
1.0-litre plastic bottles. The Beer Shake (alc. 2.5%) range got a new flavour
Mojito. In alcoholic mixed drinks, the new brand Beach was introduced in four
flavours in 1.0-litre plastic bottles. The energy drink brand Dynamit was
expanded with a smaller 0.25-litre can in two flavour variants.
Lidskoe Pivo launched the new flavour FIZZ Yellow Plum under the Group's common
FIZZ cider brand in 0.33-litre cans. Two new flavours were added to the BCE
Vitamines Near Water range, apple and watermelon, both in three sizes of
bottles: 0.5 L, 1.0 L and 1.5 L. Correspondingly, two new flavours of Aura
mineral waters were launched, lemon and strawberry, also in bottle sizes of 0.5
L, 1.0 L and 1.5 L. Angry Birds soft drinks were supplemented by the new
flavour Paradise already known in Finland.
PERSONNEL
Olvi Group's average number of personnel in January-June 2013 was 2,030
(1,991). The Group's average number of personnel increased by 39 people or 2.0
percent. At the end of June, Olvi Group employed a total of 2,183 (2,124)
people.
Olvi Group's average number of personnel by country:
1-6/2013 1-6/2012
Finland 412 (404)
Estonia 318 (318)
Latvia 225 (223)
Lithuania 216 (211)
Belarus 859 (835)
Total 2,030 (1,991)
GROUP STRUCTURE
There were no changes in the Group structure in January-June 2013.
Olvi Group's holding in A. Le Coq is 100.0 percent, in Cesu Alus 99.67 percent,
in Volfas Engelman 99.57 percent and in Lidskoe Pivo 91.58 percent.
Furthermore, A. Le Coq has a 49.0 percent holding in Karme AS and 20.0 percent
holding in Verska Mineraalvee OÜ in Estonia.
OLVI A SHARE AND SHARE MARKET
Olvi's share capital at the end of June 2013 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 Ltd (Helsinki Stock
Exchange) at 26.86 (18.70) euro at the end of June. In January-June, the
highest quote for the Series A share was 27.00 (19.94) euro and the lowest
quote was 19.70 (14.75) euro. The average price was 22.42 (17.43) euro.
In January-June, a total of 1,257,113 (943,924) Series A shares were traded,
representing 7.4 (5.5) percent of the total number of Series A shares. The
value of trading was 28.1 (16.5) million euro.
At the end of June 2013, the market capitalisation of the entire stock was
557.6 (388.2) million euro and the market capitalisation of Series A shares was
457.3 (318.4) million euro.
The number of shareholders at the end of June 2013 was 9,419 (9,112). Foreign
holdings plus foreign and Finnish nominee-registered holdings represented 20.7
(17.7) percent of the total number of book entries and 6.8 (6.1) 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-June 2013. At the end of the reporting period, Olvi plc held 1,124
Series A shares as treasury shares. Treasury shares held by Olvi plc are
reported in the tables section of this interim report, in Table 5, Section 5.
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 targets
set. 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.
The Group's strategic risks refer to risks related to the characteristics of
the Group'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
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.
Raw materials
General economic development and annual fluctuations in crop yield affect the
prices and availability of major raw materials used within Olvi Group.
Disruptions in raw material deliveries may hamper customer relations and
business operations. Purchases of major raw materials are made under
procurement contracts standardised at the Group level. The predictability of
purchase prices for the most critical raw materials is improved through
long-term procurement agreements and potentially derivatives. All units
emphasise the significance of the quality of raw materials and other production
factors in the overall production chain.
Production process
The aim is to minimise production risks through clear documentation of
processes, increasing the degree of automation, compliance with quality
management system and the pursuit of clear operating methods in relation to
decision-making and supervision. The efficiency and applicability of processes
and methods are monitored using internal indicators. The monitoring and
development of production efficiency includes, among other things, the
reliability and utilisation rate of production machinery, development of the
working environment and factors related to people's work. The Group has a
property and loss-of-profits insurance programme covering all of the operating
areas, and its coverage is reviewed annually.
Markets and customers
The Group's business operations are characterised by substantial seasonal
variation. The net sales and operating profit from the reported geographical
segments do not accumulate evenly but vary substantially according to the time
of the year and the characteristics of each season.
Negative changes in the economy may impact consumers' purchasing behaviour and
hamper the liquidity of hotel and restaurant customers in particular. All Group
companies employ efficient credit controls as a major method for minimising
credit losses.
Legislative changes and other changes due to the operations of authorities,
such as changes in excise taxes and marketing restrictions, may affect the
demand for the Group's products and their relative competitive position.
Personnel
Risks related to personnel include, among others, risks in obtaining labour,
employment relationship risks, key person risks, competence risks and risks
arising from insufficient well-being and accidents at work.
Crucial focal points in HR management include maintaining and developing a good
employer image, as well as ensuring the availability and commitment of
personnel. Other focal points include maintaining and developing well-being and
safety at work, the functionality of management, training and incentive
schemes, as well as the construction and maintenance of backup personnel
systems.
Information security and IT
Olvi Group employs an information security policy pertaining to all of the
companies. It defines the principles for implementing information security and
provides guidelines for its development.
Risks related to information technology and systems are manifested as
operational disruptions and deficiencies, for example. The availability and
correctness of data is ensured through the choice of operating methods and
various technical solutions. The Group's operations in Finland and the Baltic
states utilise a common enterprise resource planning system. A risk analysis
pertaining to information security and the operation of information systems is
carried out annually.
Financing risks
The Group operates in an international market and is therefore exposed to
foreign exchange risk due to changes in exchange rates. Foreign exchange risk
consists of sales, purchases and balance sheet items in foreign currency
(transaction risk), as well as investments and loans in foreign subsidiaries
(valuation risk). Foreign exchange risk is reduced by the fact that most of the
Group's product sales and purchases of raw materials are denominated in euro.
The objective of financing risks management is to protect the Group against
unfavourable changes in the financial markets and to secure the Group's
earnings development, liquidity and equity. The parent company's financial
management bears central responsibility for the Group's financing, liquidity
and the management of financing risks in accordance with principles confirmed
by the Group's Board of Directors. The objectives of centralisation include
optimisation of cash flows, cost savings and efficient risk management.
Financing risks are described in more detail in the Investors section of the
corporate Web site.
BUSINESS RISKS AND UNCERTAINTIES IN THE NEAR TERM
The financial situation in Europe remains uncertain, and the unemployment rate
is still high. Weakened consumer purchasing power and changes in consumption
patterns may have a negative impact on demand for the Group's products. Demand
in Finland is also held back by the highest excise tax level in the European
Union, as well as increasing private imports.
The most substantial factor hampering the predictability of Olvi Group's
business relates to Belarus and its economic outlook for the next few years.
The IAS 29 standard “Financial Reporting in Hyperinflationary Economies” will
probably be applied at least until the end of 2014.
NEAR-TERM OUTLOOK
Sales volumes and net sales are expected to continue favourable development
during the rest of the year.
Comparable operating profit is expected to improve on the previous year.
Further information:
Lasse Aho, Managing Director, phone +358 17 838 5200 or +358 400 203 600
OLVI PLC
Board of Directors
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
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2013 2012 2013 2012 2012
Net sales 102705 92831*) 170700 149494 304891*)
*)
Other operating income 138 252 321 265 1020
Operating expenses -81597 -75637*) -141367 -12471 -253552*
9*) )
Depreciation and impairment -3427 -5494 -6823 -10343 -21822
Operating profit 17819 11953 22831 14697 30537
Financial income -255 2047 1831 2688 4871
Financial expenses 271 -106 -1734 -849 -3093
Financial expenses - net 16 1941 97 1839 1778
Earnings before tax 17835 13894 22928 16536 32315
Taxes ***) -5291 -3712 -5988 -4118 -6151
NET PROFIT FOR THE PERIOD 12544 10182 16940 12418 26164
Other comprehensive income items:
Translation differences related to
foreign subsidiaries -1563 1066 318 3104 527
TOTAL COMPREHENSIVE INCOME FOR THE 10981 11248 17258 15522 26691
PERIOD
Distribution of profit:
- parent company shareholders 12142 9933 16479 12191 25668
- non-controlling interests 402 249 461 227 496
Distribution of comprehensive profit:
- parent company shareholders 10703 10956 16795 15233 26229
- non-controlling interests 278 292 463 289 462
Earnings per share calculated from the profit belonging
to parent company shareholders, EUR
- undiluted 0.58 0.48 0.79 0.59 1.24
- diluted 0.58 0.48 0.79 0.59 1.24
*) The previous year's net sales in Finland have been adjusted for comparability
with the year 2013.
***) Taxes calculated from the profit for the review period.
OLVI GROUP TABLE 2
BALANCE SHEET
EUR 1,000
30.6.2013 30.6.2012 31.12.2012
ASSETS
Non-current assets
Tangible assets 154804 151088 146749
Goodwill 18141 17609 17730
Other intangible assets 2628 1741 2119
Shares in associates 1077 1077 1077
Financial assets available for sale 549 549 549
Loan receivables and other non-current 401 160 408
receivables
Deferred tax receivables 214 98 83
Total non-current assets 177814 172322 168715
Current assets
Inventories 45480 47414 40583
Accounts receivable and other receivables 81063 74473 53345
Income tax receivable 50 101 693
Other non-current assets available for sale 163 56 163
Liquid assets 6761 2464 5698
Total current assets 133517 124508 100482
TOTAL ASSETS 311331 296830 269197
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 -17371 -15205 -17687
Retained earnings 148828 126520 141317
153300 133157 145473
Share belonging to non-controlling 2486 1725 1939
interests
Total shareholders' equity 155786 134882 147412
Non-current liabilities
Financial liabilities 33559 45658 42474
Other liabilities 250 503 250
Deferred tax liabilities 3896 2507 3200
Current liabilities
Financial liabilities 27435 31568 15996
Accounts payable and other liabilities 88751 79247 58669
Income tax liability 1654 2465 1196
Total liabilities 155545 161948 121785
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 311331 296830 269197
OLVI GROUP TABLE 3
CHANGES IN OLVI GROUP'S CONSOLIDATED SHAREHOLDERS' EQUITY
Share Other Treasury Translati Retaine Share of Total
capit reser shares on d non-contro
al ves reserve differenc earnin lling
es gs interests
EUR 1,000
Shareholders' 20759 1092 -8 -18248 123286 1341 128222
equity 1 Jan
2012
Adjustments for 1397 128 1525
hyperinflation
Adjusted 20759 1092 -8 -18248 124684 1469 129747
shareholders
' equity 1
Jan 2012
Comprehensive income:
Net profit for the period 12191 227 12418
Other comprehensive income items:
Translation differences 3043 61 3104
Total comprehensive income for the 3043 12191 288 15522
period
Transactions with shareholders:
Payment of dividends -10379 -13 -10392
Total transactions with shareholders -10379 -13 -10392
Changes in holdings in subsidiaries:
Acquisition of shares from non-
controlling interests 5 5
Change in shares held by non-
controlling interests 19 -19 0
Total changes in holdings in subsidiaries 24 -19 5
Shareholders' 20759 1092 -8 -15205 126520 1725 134882
equity 30
June 2012
Share Other Treasury Transl Retained Share of Total
capit reser shares ation earnings non-contro
al ves reserve differ lling
ences interests
EUR 1,000
Shareholders' 20759 1092 -8 -17687 141317 1939 147412
equity 1 Jan
2013
Adjustments for 1411 130 1541
hyperinflation
Adjusted 20759 1092 -8 -17687 142728 2069 148953
shareholders
' equity 1
Jan 2013
Comprehensive income:
Net profit for the period 16479 461 16940
Other comprehensive income items:
Translation differences 316 2 318
Total comprehensive income for the 316 16479 463 17258
period
Transactions with shareholders:
Payment of dividends -10379 -46 -10425
Total transactions with shareholders -10379 -46 -10425
Shareholders' 20759 1092 -8 -17371 148828 2486 155786
equity 30
June 2013
Other reserves include the share premium account, legal reserve and other
reserves.
OLVI GROUP TABLE 4
CASH FLOW STATEMENT
EUR 1,000
1-6/2013 1-6/2012 1-12/2012
Net profit for the period 16940 12418 26164
Adjustments to profit for the period 13137 17359 29754
Change in net working capital -5892 -15796 -8967
Interest paid -1092 -1304 -2077
Interest received 195 72 315
Taxes paid -2324 -1574 -4900
Cash flow from operations (A) 20964 11175 40289
Investments in tangible and intangible
assets -12053 -20080 -23757
Sales gains from tangible and intangible
assets 326 54 125
Expenditure on other investments 0 -582 -582
Cash flow from investments (B) -11727 -20608 -24214
Withdrawals of loans 9587 41957 32738
Repayments of loans -7063 -23449 -36179
Dividends paid -10549 -10393 -10377
Increase (-) / decrease (+) in current interest-
bearing business receivables -1 2 0
Increase (-) / decrease (+) in long-term
loan receivables 8 0 -265
Cash flow from financing (C) -8018 8118 -14083
Increase (+)/decrease (-) in liquid assets 1219 -1315 1992
(A+B+C)
Liquid assets 1 January 5698 3836 3836
Effect of exchange rate changes -155 -58 -130
Liquid assets 30 June/31 December 6762 2464 5698
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 2012, with the following changes
implemented as of 1 January 2013:
1) As of the beginning of 2013, marketing subsidies payable to customers on the
basis of litres sold have been accounted for as annual discounts under
adjustments to sales. These marketing subsidies were previously recognised
under other operating expenses. Due to the change, the consolidated net sales
and other operating expenses for the previous year's January-to-June period
have declined by the amount of the marketing subsidies, 3.9 million euro. The
change concerned the parent company Olvi.
2) As of the beginning of the year, Olvi Group's depreciation periods for
buildings, production machinery and equipment, as well as storage and
fermentation tanks, have been extended to better correspond to their actual
economic life. The depreciation period for buildings was extended from 20 to 30
years and the depreciation period for production machinery and equipment from 8
years to 15 years. The depreciation period for tanks was extended from 8 years
to 20 years. Due to the change, depreciation in January-June 2013 declined by
5.1 million euro.
Other accounting policies are presented in the Annual Report 2012 which was
published on 18 March 2013. The information disclosed in the interim report is
unaudited.
The interim report information 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 2013:
-- Amendment to IAS 12 “Income Taxes” concerning deferred taxes
-- Amendment to IAS 1 “Presentation of Financial Statements” concerning other
comprehensive income items
-- Amendment to IAS 19 “Employee Benefits”
-- Amendment to IFRS 7 “Financial Instruments: Disclosures” concerning the
offset of assets and liabilities
-- IFRS 13 “Fair Value Measurement”
1. SEGMENT INFORMATION
SALES BY GEOGRAPHICAL SEGMENT (1,000 litres)
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2013 2012 2013 2012 2012
Olvi Group total 171300 160146 282004 261361 526753
Finland 48628 46376 85125 73780 148764
Estonia 41080 41464 66960 68701 134027
Latvia 24087 24189 39592 37792 72358
Lithuania 18580 21683 31953 36202 71661
Belarus 50603 42522 77763 68448 141496
- sales between segments -11678 -16088 -19389 -23562 -41553
NET SALES BY GEOGRAPHICAL SEGMENT (EUR 1,000)
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2013 2012 2013 2012 2012
Olvi Group total 102705 92831*) 170700 149494*) 304891*)
Finland 38028 34388*) 67535 56070*) 113612*)
Estonia 26210 25124 42080 40959 80043
Latvia 11940 12217 19147 19001 36185
Lithuania 9425 10157 15987 16578 34245
Belarus 22746 18028 35306 27380 59030
- sales between segments -5644 -7083 -9355 -10493 -18224
*) The previous year's figures have been adjusted for comparability with the
year 2013.
OPERATING PROFIT BY GEOGRAPHICAL SEGMENT (EUR 1,000)
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2013 2012 2013 2012 2012
Olvi Group total 17819 11953 22831 14697 30537
Finland 4269 3700 7112 5009 9066
Estonia 5876 4354 7994 6311 13017
Latvia 1522 1035 1634 989 1654
Lithuania 447 837 221 639 1753
Belarus 5716 2092 5838 1821 4979
- eliminations -11 -65 32 -72 68
2. PERSONNEL ON AVERAGE
1-6/2013 1-6/2012 1-12/2012
Finland 412 404 401
Estonia 318 318 313
Latvia 225 223 217
Lithuania 216 211 212
Belarus 859 835 834
Total 2030 1991 1977
3. RELATED PARTY TRANSACTIONS
Employee benefits to management
Salaries and other short-term employee benefits to the Board of Directors and
Managing Directors
EUR 1,000
1-6/2013 1-6/2012 1-12/2012
Managing Directors 550 592 931
Chairman of the Board 43 43 84
Other members of the Board 66 63 125
Total 659 698 1140
4. SHARES AND SHARE CAPITAL
30.6.2013 %
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 2013 totalled 20,759 thousand euro.
Olvi plc's Series A and Series K shares received a dividend of 0.50 euro per
share for 2012 (0.50 euro per share for 2011), totalling 10.4 (10.4) million
euro. The dividends were paid on 22 April 2013. 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 2013.
Olvi plc has not acquired more treasury shares or transferred them to others in
January-June 2013, which means that the number of Series A shares held by the
company was unchanged on 30 June 2013. 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 10 April 2013, 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-June 2013, the Board of Directors of Olvi plc has not exercised the
authorisations granted by the General Meeting.
6. NUMBER OF SHARES *) 1-6/2013 1-6/2012 1-12/2012
- 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
1-6/2013 1-6/2012 1-12/2012
Trading volume of Olvi A shares 1257113 943924 1793149
Total trading volume, EUR 1,000 28119 16504 32789
Traded shares in proportion to
all Series A shares, % 7.38 5.5 10.5
Average share price, EUR 22.42 17.43 18.26
Price on the closing date, EUR 26.86 18.70 19.65
Highest quote, EUR 27.00 19.94 20.43
Lowest quote, EUR 19.70 14.75 14.75
8. FOREIGN AND NOMINEE-REGISTERED HOLDINGS ON 30 JUNE 2013
Book entries Votes Shareholders
qty % qty % qty %
Finnish total 16460655 79.30 85430047 93.19 9374 99.53
Foreign total 468715 2.26 2412187 2.63 37 0.39
Nominee-registered (foreign) 19201 0.09 19201 0.02 3 0.03
total
Nominee-registered (Finnish) 3810237 18.35 3810237 4.16 5 0.05
total
Total 20758808 100.00 91671672 100.00 9419 100.00
9. LARGEST SHAREHOLDERS ON 30 JUNE 2013
Series Series A Total % Votes %
K
1. Olvi Foundation 2363904 890613 3254517 15.68 48168693 52.54
2. Hortling Heikki 903488 159194 1062682 5.12 18228954 19.88
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 1902700 1902700 9.17 1902700 2.08
register
7. Nordea Bank Finland plc, 1043894 1043894 5.03 1043894 1.14
nominee register
8. Nasdaq OMXBS/Skandinaviska Enskilda
Banken Ab, nominee register 805114 805114 3.88 805114 0.88
9. Autocarrera Oy Ab 460000 460000 2.22 460000 0.50
10. Ilmarinen Mutual Pension 429026 429026 2.07 429026 0.47
Insurance Company
Others 9648 11274055 11283703 54.34 11467015 12.51
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
1-6/2013 1-6/2012 1-12/2012
Increase 12503 20751 28197
Decrease -335 -589 -1122
Total 12168 20162 27075
11. CONTINGENT LIABILITIES
EUR 1,000
30.6.2013 30.6.2012 31.12.2012
Pledges and contingent liabilities
For own commitments 5150 7744 7415
For others 0 130 0
Leasing and rental liabilities:
Due within one year 1013 1022 1119
Due within 1 to 5 years 621 858 580
Due in more than 5 years 7 7 7
Leasing and rental liabilities total 1641 1886 1706
Package liabilities 4121 4166 2265
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)
© 2024 Nasdaq, Inc. All Rights Reserved |