2008-10-23 08:45:00 CEST
2008-10-23 08:45:01 CEST
REGULATED INFORMATION
Olvi Oyj - Interim report (Q1 and Q3)
OLVI GROUP'S INTERIM REPORT, 1 JANUARY TO 30 SEPTEMBER 2008 (9 MONTHS)
OLVI PLC INTERIM REPORT 23 OCT 2008 at 9:45 am
OLVI GROUP'S INTERIM REPORT, 1 JANUARY TO 30 SEPTEMBER 2008 (9 MONTHS)
Olvi Group secured its future growth by acquiring a majority in the Belarusian
brewery Lidskoe Pivo in early October.
January to September 2008 in brief
- consolidated net sales increased by almost 10%
- market position strengthened
- substantial investments created required additional capacity
July to September 2008 in brief
- net sales increased by 6.8%
- earnings in Finland as well as the Baltic states were burdened by the rainy
summer and increased production costs due to changes in packaging
- Olvi has become the most appreciated beer brand among consumers.
(Source: Brand survey conducted by Taloustutkimus for the Markkinointi&Mainonta
magazine, 26 September 2008). In 2007 Olvi was ranked second.
Key ratios:
--------------------------------------------------------------------------------
| | 1-9/2008 | 1-9/2007 | Change % | 1-12/2007 |--------------------------------------------------------------------------------
| Net sales, MEUR | 170.6 | 155.7 | + 9.6 | 205.2 |
--------------------------------------------------------------------------------
| Operating profit, MEUR | 16.5 | 19.9 | - 17.3 | 23.1 |
--------------------------------------------------------------------------------
| Gross capital | 27.8 | 14.8 | + 88.5 | 25.4 |
| expenditure, MEUR | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | 1.25 | 1.58 | - 20.9 | 1.83 |
| EUR | | | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | 9.10 | 8.35 | + 9.0 | 8.61 |
--------------------------------------------------------------------------------
| Equity to total | 44.9 | 49.7 | | 47.7 |
| assets, % | | | | |
--------------------------------------------------------------------------------
| Gearing, % | 66.0 | 42.4 | | 45.6 |
--------------------------------------------------------------------------------
Olvi Group's net sales from January to June increased by 9.6 percent while the
sales volume increased by 1.4 percent. The sales prices of our products
improved. This was not enough, however, as the costs of materials and supplies,
human resources, energy and logistics increased more than expected. In Finland,
refillable bottles have been used in parallel with recyclable plastic deposit
bottles for the entire year. Maintaining two parallel systems has contributed to
cost increases. There is clear upward pressure in pricing for 2009,” says Lasse
Aho, Managing Director of Olvi plc.
SALES VOLUME, NET SALES AND EARNINGS
OLVI GROUP
January to September 2008
From January to September, Olvi Group's sales volume increased by 1.4 percent to
263.3 (259.8) million litres, an increase of 3.5 million litres. The volume
improvement in Finland was 6.5 million litres or 6.5 percent. The aggregate
volume of the Baltic companies was 179.4 (182.1) million litres, representing a
decrease of 2.7 million litres or 1.5 percent on the previous year.
The Group's net sales from January to September amounted to 170.6 (155.7)
million euro, representing an increase of 14.9 million euro or 9.6 percent. Net
sales in Finland improved by 9.6 million euro or 13.5 percent. Net sales in the
Baltic states increased by 6.4 million euro or 6.9 percent.
Olvi Group's operating profit for January-September stood at 16.5 (19.9) million
euro, or 9.7 (12.8) percent of net sales. The operating profit declined by 3.5
million euro on the previous year. Operating profit in Finland fell 2.7 million
euro short of the previous year, while operating profit in the Baltic states
declined by 1.0 million euro (excluding eliminations).
Earnings after taxes from January to September stood at 13.0 (16.4) million
euro.
July to September 2008
Olvi Group's sales in the third quarter of 2008 amounted to 91.0 (91.4) million
litres. Sales in Finland increased by 1.4 million litres but sales in the Baltic
states declined by 4.1 million litres. Intra-Group sales declined by 2.4 million
litres in the third quarter due to the commissioning of production investments.
Olvi Group's net sales in the third quarter increased by 6.8 percent to 60.0
(56.2) million euro. Net sales in Finland increased by 3.3 million euro or 13.1
percent, while net sales in the Baltic states were on a par with the previous
year at 34.2 (34.1) million euro.
Olvi Group's operating profit for July-September stood at 6.2 (8.5) million
euro, or 10.4 (15.2) percent of net sales. Operating profit in Finland declined
by 1.0 million euro and in the Baltic states by 1.3 million euro.
Cool and rainy weather from July to September impacted sales and earnings
development both in Finland and in the Baltic states.
PARENT COMPANY OLVI PLC
January to September 2008
The parent company Olvi plc's sales from January to September amounted to 106.9
(100.4) million litres, representing an increase of 6.5 million litres or 6.5
percent. Factors affecting the growth included Olvi plc's improved market
position, good sales development in new product groups, as well as successful
launches of new products. In terms of litres sold, the greatest increase was
seen in beers, while proportional growth was greatest in long drinks. The sales
of mineral waters and ciders remained on the previous year's level, while a
slight decline was seen in soft drinks. For the first half of the year, Olvi
plc's sales development was hindered by a lack of canning capacity. The
situation improved substantially in August when a new canning line was
introduced to production. The share of canned products has increased to
approximately one-third of Olvi plc's aggregate sales in Finland. The proportion
of canned products is still increasing in beers and potentially in long drinks
and ciders.
From the beginning of 2008, Olvi plc's market position in Finland is monitored
using statistics from the Federation of the Brewing and Soft Drinks Industry as
AC Nielsen market share monitoring is no longer available in Finland. According
to the statistics, Olvi plc's overall market position in the main product groups
in the January-September period continued to improve clearly on the previous
year. Olvi's overall market share in the alcoholic product groups: beers, ciders
and long drinks, including HoReCa sales, was 20.8 (17.7) percent. Olvi plc's
market share in mineral waters was 19.9 (18.3) percent, including HoReCa sales.
Olvi plc's net sales from January to September stood at 80.5 (71.0) million
euro, representing an increase of 9.6 million euro or 13.5 percent on the
previous year. Net sales growth has clearly outperformed the growth in sales
volume throughout the year.
Olvi plc's operating profit in January-September stood at 4.7 (7.4) million euro
or 5.8 (10.5) percent of net sales. The operating profit declined by 2.7 million
euro.
The most significant factors behind the decline in profitability include
substantially higher-than-expected demand for canned products and the lack of
canning line capacity during the first half of the year. The efficiency of
operations was hampered by the introduction of several simultaneous major
investments, as well as a slower-than-expected pace of adopting the new
recyclable plastic bottle system and the resulting costs of maintaining two
systems across the entire industry. The situation is also affected by
higher-than-expected cost increases in raw materials, packaging supplies, energy
and logistics, which could not be fully transferred to price increases during
the first half of the year.
Scrapping of the obsolete package inventory resulted in 1.3 (1.3) million euro
of write-downs on inventories that burdened the January-June earnings.
July to September 2008
Olvi plc's sales in the third quarter amounted to 37.0 (35.6) million litres,
representing an increase of 1.4 million litres or 3.9 percent. The rainy and
cool summer hampered sales development in the third quarter. The parent
company's net sales in July-September increased by 13.1 percent to 28.8 (25.5)
million euro. Third-quarter operating profit amounted to 2.2 (3.2) million euro
or 7.6 (12.6) percent of net sales.
Olvi plc launched several new products on the 1st of September, and these were
discussed in the Q2 stock exchange release. Olvi Glögg Drink 4.7% is currently
being introduced to the market in 0.5 L cans. It is an apple cider with a strong
flavour of glögg, the Nordic form of mulled wine, and is targeted at consumers
of cider as well as glögg.
During the autumn, Olvi plc will start to use the traditional barrel logo in the
labels and other packaging materials for OLVI beers (Ykkönen, III, Export,
Doppelbock, Dark and Christmas Beer). The traditional logo will completely
replace the red rectangular logo used since 1978. According to a survey by
Consumer Compass Oy, consumers regard the barrel logo more positive, more
personal, more distinguishable and more appropriate for Olvi. Consumers clearly
liked the barrel logo more.
AS A. LE COQ
January to September 2008
The total sales of the Estonian subsidiary AS A. Le Coq in January-September
declined by 6.5 percent to 99.3 (106.2) million litres. The sales volume in
beers was on a par with the previous year but declined clearly in mineral waters
and well-being beverages, with a slight decline in soft drinks, long drinks,
juices and energy drinks. The sales of ciders were on a par with the previous
year. The sales decline is attributable to an overall decline in the volumes of
all product groups across the Estonian beverage industry.
In spite of the declined sales volume, AS A. Le Coq has retained its market
position.
AS A. Le Coq's market share in beers is approximately 38 percent and in ciders
approximately 45 percent. AS A. Le Coq is the clear market leader in long drinks
with an approximate 53 percent share. With the exception of mineral waters, AS
A. Le Coq's market share has remained on a good and stable level also in other
product groups.
Net sales in January—September increased by 1.0 million euro to 56.7 (55.7)
million euro.
AS A. Le Coq's operating profit in January-September was 9.7 (8.8) million euro
or 17.2 (15.8) percent of net sales. The operating profit improved by 0.9
million euro or 10.8 percent. The operating profit improvement was made possible
by production efficiency, an increased share of Premium products and cost
control.
July to September 2008
AS A. Le Coq's sales from July to September amounted to 31.0 (37.2) million
litres, while net sales stood at 18.0 (20.0) million euro. In addition to the
overall sales decline across the industry, the rainy and cool summer impacted
sales development also in the Baltic states. Operating profit for July-September
stood at 3.1 (3.7) million euro, or 17.0 (18.6) percent of net sales.
AS A. Le Coq, which is the largest beverage manufacturer in Estonia, controls
approximately one-half of the country's long drink market in terms of value as
well as volume. This product group is A. Le Coq's most successful by market
share, and saw the introduction of the new A. Le Coq Red Gin Red Mixer in 0.5 L
cans and 1.5 L bottles in September.
FIZZ is the market-leading cider in Estonia, with a market share of more than 40
percent in both value and volume. The brand gained new momentum with the
introduction of the new flavour FIZZ Yellow Plum Cider in late September. The
product is available in 0.5 L cans and 1.5 L bottles.
AS A. Le Coq is the Estonian market leader in juices and launched the new
product Aura Fruits of the Forest. The product contains 20 percent natural berry
juice and is free of preservatives. It is sold in 1 L tetrapacks.
A/S CESU ALUS
January to September 2008
From January to September, the sales of A/S Cesu Alus, the subsidiary operating
in Latvia, totalled 46.8 (42.2) million litres. This represents an increase of
4.5 million litres or 10.7 percent. 2.8 million litres of the sales improvement
came from intra-Group sales. The growth in sales volume came from beers that
represent approximately 70 percent of total sales.
In the primary product group, beers, A/S Cesu Alus's market share is
approximately 27 percent, and the brewery is clearly the number two player in
the market. A/S Cesu Alus's market share in ciders and long drinks is
approximately 40 percent. The overall volumes of the Latvian beverage market are
declining across all product groups.
The company's net sales from January to September amounted to 25.2 (20.8)
million euro, representing an increase of 4.4 million euro or 21.3 percent.
Operating profit for January-September stood at 1.5 (2.1) million euro, or 6.0
(10.3) percent of net sales. The operating profit declined by 0.6 million euro
on the previous year.
July to September 2008
In the third quarter, A/S Cesu Alus's sales increased by 0.9 million litres to
16.6 (15.7) million litres.
A/S Cesu Alus's net sales growth clearly outperformed the growth in sales
volume. Third-quarter net sales stood at 9.2 (7.9) million euro, representing an
increase of 1.3 million euro or 15.9 percent.
Third-quarter operating profit came to 0.6 (1.2) million euro, a decline of 0.6
million euro on the previous year's level. The operating profit represented 6.5
(14.7) percent of net sales.
A/S Cesu Alus introduced the new FIZZ Yellow Plum Cider already familiar in
Estonia. The new local beer Mitava, which was originally launched in the spring,
was introduced in eight-packs in September. The local Cesu Special in 0.5 L
transparent bottles was introduced in September in six-packs containing five
bottles and a glass.
AB RAGUTIS
January to September 2008
The total sales of the Lithuanian subsidiary AB Ragutis in January-September
were approximately on a par with the previous year at 33.3 (33.6) million
litres. Compared with the previous year, the sales of soft drinks and the
low-alcoholic Kwass malt beverage increased. Beers, long drinks and juices have
approximately retained their previous-year levels, while the sales of ciders
have clearly declined. AB Ragutis's sales to other Olvi Group companies
increased by 1.7 million litres on the previous year. AB Ragutis's market
position in beers has remained stable at slightly less than 10 percent. The
company's market share in ciders has remained at approximately 27 percent in
spite of the sales decline. The market share in long drinks is approximately 20
percent.
The company's net sales from January to September amounted to 18.3 (17.3)
million euro, representing an increase of 1.0 million euro or 5.7 percent.
Operating profit in January-September stood at 0.3 (1.6) million euro, which was
1.5 (9.3) percent of net sales. Factors hampering the company's profitability
include increases in the prices of raw materials and packaging supplies, as well
as increased personnel and logistics costs. Problems with commissioning the new
plastic bottle filling line delayed the start of production and utilisation of
the investment.
July to September 2008
AB Ragutis's sales in the third quarter amounted to 13.1 (11.9) million litres,
representing an increase of 1.2 million litres or 9.8 percent.
The company's third-quarter net sales improved by 0.8 million euro to 7.0 (6.2)
million euro. The operating profit stood at 0.3 (0.4) million euro, which was
4.8 (6.4) percent of net sales.
In September, AB Ragutis launched the new long drink A. Le Coq Red Gin Red Mixer
in 0.5 L cans. The autumn's new FIZZ product, FIZZ Yellow Plum Cider, was
launched also in Lithuania in 0.5 L cans and 1.5 L bottles in September. The
Volfas Engelman beer, which was originally launched in Lithuania in May, saw the
introduction of Volfas Engelman Porter 6.0% in 0.5 L bottles. Local novelties
also included red and white wines in 0.7 L bottles, launched in September.
FINANCING AND INVESTMENTS
Olvi Group's balance sheet total at the end of September was 210.5 (174.0)
million euro. Equity per share in January-September stood at 9.10 (8.35) euro.
The equity to total assets ratio was 44.9 (49.7) percent. The amount of
interest-bearing liabilities was 66.2 (41.5) million euro, including current
liabilities of 41.0 (9.7) million euro.
Olvi Group's gross capital expenditure in the period under review was
exceptionally high. Capital expenditure increased to 27.8 (14.8) million euro.
The parent company Olvi plc accounted for 12.1 million euro and the subsidiaries
in the Baltic states for 15.7 million euro of the total.
The largest investments in 2008 in the parent company Olvi plc include a filling
line for recyclable plastic deposit bottles, an automatic storage facility and a
new canning line. The largest investments in Latvia include a canning line and a
storehouse extension, and in Lithuania a PET plastic bottle filling line and a
fermentation cellar extension. Most of the investments for 2008 have already
been made, with the exception of the acquisition of shares in the Lidskoe Pivo
brewery, which will be recognised in the final quarter.
Olvi Group's cash flow in the final quarter is expected to be clearly positive.
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.
Olvi Group has launched several new products during the period under review.
PERSONNEL
Olvi Group's average number of personnel in January-September was 1,291 (1,219),
445 (387) of them in Finland, 402 (417) in Estonia, 234 (211) in Latvia and 210
(204) in Lithuania. The average number of personnel increased by 72 people or
5.9 percent on the previous year. The total number of personnel at the end of
September was 1,212 (1,184).
CHANGES IN CORPORATE STRUCTURE
In the beginning of October, Olvi plc acquired a majority of shares in the
Belarusian brewery Lidskoe Pivo. The acquisition was implemented through a
private placing directed to Olvi plc by Lidskoe Pivo.
Lidskoe Pivo is in private ownership. After the transaction, Olvi plc is the
majority shareholder with a 51 percent holding. The remaining 49 percent is
distributed evenly among the brewery's personnel. The acquisition price was
approximately USD 16 million, in addition to which Olvi plc has made a
commitment to grant loans of USD 20 million to the company within the next five
years for the purpose of business investments.
Lidskoe Pivo's net sales in 2007 amounted to USD 30.5 million at 70 million
litres of annual production volume. Beer accounted for 62 percent of total
production, with the remaining 38 percent consisting of soft drinks, mineral
waters and kvass, which is a Russian-style low-alcoholic beer. The company was
the fourth largest brewery in Belarus in 2007 and has a market share of
approximately 12 percent. The brewery was established in 1876 and remains at its
original location in the city of Lida, approximately 200 kilometres west of
Minsk. The Lidskoe Pivo brewery is in a good technical and financial condition,
and its products are of good quality. The greatest needs for investments are in
logistics and sales. Production capacity will be increased.
The shares acquired through the private placing will probably be registered
during the first week of November. If registration takes place as planned, the
Lidskoe Pivo company will be consolidated with Olvi Group as of November 2008.
From July to September, Olvi Group increased its holding in A/S Cesu Alus by 11
shares or 0.01 percent. At the end of September 2008, Olvi plc's holding in A/S
Cesu Alus stood at 98.16 percent, in AB Ragutis 99.57 percent and in AS A. Le
Coq 100 percent.
BUSINESS RISKS AND UNCERTAINTIES IN THE NEAR TERM
The financial situation in the Baltic states has worsened quickly. A factor
contributing to this is the deepened financial crisis, which may impose pressure
on foreign exchange rates.
The markets of the brewing industry are expected to decline in Finland and in
the Baltic states. Profitable increases in sales volume will require the
creation and maintenance of strong brands. As the consumers' purchasing power is
declining and inflation is going up, less expensive product alternatives will be
in favour.
The prices of raw materials and packaging supplies, as well as the costs of
energy and logistics, will continue to increase towards the end of the year
across Olvi Group's entire operating area. This will present a great challenge
to control cost increases and improve productivity.
NEAR-TERM OUTLOOK
The overall market position of Olvi Group companies has remained good or
improved both in Finland and in the Baltic states. Thanks to substantial
investments, Olvi Group's capacity has increased by 45 percent in the current
year, which enables cost-efficient production of versatile product ranges and
packaging alternatives during the rest of the year. A crucial target is to fully
utilise the completed additional capacity and to improve the entire Olvi Group's
profitability and competitive ability.
We expect Olvi Group's net sales to increase, the market position to remain
strong and the operating profit to decline on the previous year.
Further information:
Olvi plc
Lasse Aho
Managing Director
Phone +358 17 838 5200 or +358 400 203 600
OLVI PLC
Board of Directors
APPENDICES
- Balance sheet, Appendix 1
- Income statement, Appendix 2
- Changes in consolidated shareholders' equity, Appendix 3
- Cash flow statement, Appendix 4
- Notes to the interim report, Appendix 5
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Key media
www.olvi.fi
OLVI GROUP APPENDIX 1
BALANCE SHEET
EUR 1,000
--------------------------------------------------------------------------------
| | 30.9.2008 | 30.9.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Tangible assets | 113,536 | 89,468 | 97,706 |
--------------------------------------------------------------------------------
| Goodwill | 10,675 | 10,675 | 10,679 |
--------------------------------------------------------------------------------
| Other intangible assets | 1,004 | 1,228 | 1,002 |
--------------------------------------------------------------------------------
| Financial assets available for sale | 286 | 284 | 285 |
--------------------------------------------------------------------------------
| Other non-current assets | 430 | 326 | 63 |
| available for sale | | | |
--------------------------------------------------------------------------------
| Loan receivables and other | 119 | 44 | 118 |
| non-current receivables | | | |
--------------------------------------------------------------------------------
| Deferred tax receivables | 372 | 143 | 362 |
--------------------------------------------------------------------------------
| Total non-current assets | 126,422 | 102,168 | 110,215 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 38,747 | 30,613 | 30,159 |
--------------------------------------------------------------------------------
| Accounts receivable and other | 41,449 | 36,438 | 42,181 |
| receivables | | | |
--------------------------------------------------------------------------------
| Deferred tax receivables | 18 | 0 | 110 |
--------------------------------------------------------------------------------
| Liquid assets | 3,824 | 4,826 | 4,332 |
--------------------------------------------------------------------------------
| Total current assets | 84,038 | 71,877 | 76,782 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 210,460 | 174,045 | 186,997 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| Shareholders' equity held by parent company | | |
| shareholders | | |
--------------------------------------------------------------------------------
| Share capital | 20,759 | 20,759 | 20,759 |
--------------------------------------------------------------------------------
| Other reserves | 1,092 | 1,092 | 1,092 |
--------------------------------------------------------------------------------
| Treasury shares | -63 | -722 | -722 |
--------------------------------------------------------------------------------
| Retained earnings | 59,621 | 48,925 | 48,979 |
--------------------------------------------------------------------------------
| Net profit for the period | 12,997 | 16,340 | 18,944 |
--------------------------------------------------------------------------------
| | 94,406 | 86,394 | 89,052 |
--------------------------------------------------------------------------------
| Minority interest | 130 | 137 | 136 |
--------------------------------------------------------------------------------
| Total shareholders' equity | 94,536 | 86,531 | 89,188 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 25,165 | 31,827 | 28,592 |
--------------------------------------------------------------------------------
| Interest-free liabilities | 0 | 1,195 | 0 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 1,312 | 1,186 | 1,113 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 41,015 | 9,711 | 16,383 |
--------------------------------------------------------------------------------
| Accounts payable and other | 48,432 | 43,595 | 51,721 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Total liabilities | 115,924 | 87,514 | 97,809 |
--------------------------------------------------------------------------------
| TOTAL SHAREHOLDERS' EQUITY AND | 210,460 | 174,045 | 186,997 |
| LIABILITIES | | | |
--------------------------------------------------------------------------------
OLVI GROUP APPENDIX 2
INCOME STATEMENT
EUR 1,000
--------------------------------------------------------------------------------
| | 7-9/2008 | 7-9/2007 | 1-9/2008 | 1-9/2007 | 1-12/200 |
| | | | | | 7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 60,004 | 56,160 | 170,587 | 155,703 | 205,188 |
--------------------------------------------------------------------------------
| Other operating | 221 | 299 | 652 | 716 | 894 |
| income | | | | | |
--------------------------------------------------------------------------------
| Operating expenses | -50,318 | -44,983 | -144,391 | -127,716 | -171,222 |
--------------------------------------------------------------------------------
| Depreciation and | -3,682 | -2,959 | -10,364 | -8,767 | -11,759 |
| impairment | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 6,225 | 8,517 | 16,484 | 19,936 | 23,101 |
--------------------------------------------------------------------------------
| Financial income | 90 | 67 | 168 | 142 | 186 |
--------------------------------------------------------------------------------
| Financial expenses | -928 | -554 | -2,205 | -1,456 | -1,953 |
--------------------------------------------------------------------------------
| Earnings before tax | 5,387 | 8,030 | 14,447 | 18,622 | 21,334 |
--------------------------------------------------------------------------------
| Taxes *) | -557 | -936 | -1,443 | -2,245 | -2,354 |
--------------------------------------------------------------------------------
| Net profit for the | 4,830 | 7,094 | 13,004 | 16,377 | 18,980 |
| period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Distribution: | | | | | |
--------------------------------------------------------------------------------
| - parent company | 4,827 | 7,072 | 12,997 | 16,340 | 18,944 |
| shareholders | | | | | |
--------------------------------------------------------------------------------
| - minority | 3 | 22 | 7 | 37 | 36 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Ratios calculated from the profit belonging to parent | | |
| company shareholders: | | |
--------------------------------------------------------------------------------
| - earnings per | | | 1.25 | 1.58 | 1.83 |
| share, euro | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) Taxes calculated from the profit for the review | | |
| period. | | |
--------------------------------------------------------------------------------
OLVI GROUP APPENDIX 3
CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY
--------------------------------------------------------------------------------
| EUR 1,000 | A | B | C | D | E | F | G | H | I |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' |20759 | 857 | 127 | -290 | 143 | -18 |55688 | 101 | 77367
|
| equity 1 Jan | | | | | | | | |
|
| 2007 | | | | | | | | |
|
--------------------------------------------------------------------------------
| Transfer of reserve | | | -35 | | 35 | | 0 |
| to retained earnings | | | | | | | |
--------------------------------------------------------------------------------
| Acquisition of | | | | -432 | | | | | -432 |
| treasury shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Translation | | | | | | -44 | | -1 | -45 |
| differences | | | | | | | | | |
--------------------------------------------------------------------------------
| Payment of | | | | | | |-6736 | | -6736 |
| dividends | | | | | | | | | |
--------------------------------------------------------------------------------
| Net profit for | | | | | | |16377 | | 16377 |
| the period | | | | | | | | | |
--------------------------------------------------------------------------------
| Share of profit belonging | | | | -37 | 37 | 0 |
| to the minority | | | | | | |
--------------------------------------------------------------------------------
| Shareholders' |20759| 857 | 127 | -722 | 108 | -62 |65327 | 137 | 86531 |
| equity 30 Sep | | | | | | | | | |
| 2007 | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR 1,000 | A | B | C | D | E | F | G | H | I |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' |20759| 857 | 127 | -722 | 108 | -9 |67932 | 136 | 89188 |
| equity 1 Jan | | | | | | | 2 | | |
| 2008 | | | | | | | | | |
--------------------------------------------------------------------------------
| Translation | | | | | | -22 | | -2 | -24 |
| differences | | | | | | | | | |
--------------------------------------------------------------------------------
| Transfer of treasury | | | 659 | | | | | 659 |
| shares | | | | | | | | |
--------------------------------------------------------------------------------
| Payment of | | | | | | |-8291 | | -8291 |
| dividends | | | | | | | | | |
--------------------------------------------------------------------------------
| Net profit for | | | | | | |13004 | | 13004 |
| the period | | | | | | | | | |
--------------------------------------------------------------------------------
| Change in minority | | | | | | 11 | -11 | 0 |
| interest | | | | | | | | |
--------------------------------------------------------------------------------
| Share of profit belonging | | | | -7 | 7 | 0 |
| to the minority | | | | | | |
--------------------------------------------------------------------------------
| Shareholders' |20759 | 857 | 127 | -63 | 108 | -31 |72649 | 130 | 94536|
| equity 30 Sep | | | | | | | | | |
| 2008 | | | | | | | | | |
--------------------------------------------------------------------------------
A = Share capital
B = Share premium account
C = Legal reserve
D = Treasury shares reserve
E = Other reserves
F = Translation differences
G = Retained earnings
H = Minority interest
I = Total
OLVI GROUP APPENDIX 4
CASH FLOW STATEMENT
EUR 1,000
--------------------------------------------------------------------------------
| | 1-9/2008 | 1-9/2007 | 1-12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net profit for the period | 12823 | 16377 | 18980 |
--------------------------------------------------------------------------------
| Adjustments to profit for the period | 13862 | 12879 | 15542 |
--------------------------------------------------------------------------------
| Change in net working capital | -9768 | -4666 | -1597 |
--------------------------------------------------------------------------------
| Interest paid | -1699 | -1063 | -1806 |
--------------------------------------------------------------------------------
| Interest received | 114 | 54 | 72 |
--------------------------------------------------------------------------------
| Taxes paid | -2413 | -2342 | -3307 |
--------------------------------------------------------------------------------
| Cash flow from operations (A) | 12919 | 21239 | 27884 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital expenditure | -26559 | -14395 | -25140 |
--------------------------------------------------------------------------------
| Disposals of fixed assets | 211 | 50 | 308 |
--------------------------------------------------------------------------------
| Cash flow from investments (B) | -26348 | -14345 | -24832 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Withdrawals of loans | 44505 | 12000 | 16000 |
--------------------------------------------------------------------------------
| Repayments of loans | -23296 | -9013 | -9665 |
--------------------------------------------------------------------------------
| Acquisition of treasury shares | 0 | -432 | -432 |
--------------------------------------------------------------------------------
| Dividends paid | -8288 | -6725 | -6725 |
--------------------------------------------------------------------------------
| Cash flow from financing (C) | 12921 | -4170 | -822 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Increase (+)/decrease (-) in liquid | -508 | 2724 | 2230 |
| assets (A+B+C) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid assets 1 January | 4332 | 2102 | 2102 |
--------------------------------------------------------------------------------
| Liquid assets 30 Sep/31 Dec | 3824 | 4826 | 4332 |
--------------------------------------------------------------------------------
| Change in liquid assets | -508 | 2724 | 2230 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
OLVI GROUP APPENDIX 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 2007. The accounting policies are presented
in the Annual Report 2007 that was published on 2 April 2008. 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 interpretation IFRIC 11, Group and Treasury Share
Transactions. The introduction of the new interpretation does not have any
substantial effect on interim reports or upcoming financial statements.
1. SEGMENT INFORMATION
SALES BY GEOGRAPHICAL SEGMENT (1,000 LITRES)
--------------------------------------------------------------------------------
| | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ |
| | 2008 | 2007 | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Olvi Group total | 91043 | 91370 | 263341 | 259820 | 341765 |
--------------------------------------------------------------------------------
| Finland | 36952 | 35550 | 106932 | 100442 | 137586 |
--------------------------------------------------------------------------------
| Estonia | 31019 | 37239 | 99279 | 106217 | 138163 |
--------------------------------------------------------------------------------
| Latvia | 16634 | 15689 | 46758 | 42244 | 54124 |
--------------------------------------------------------------------------------
| Lithuania | 13087 | 11918 | 33325 | 33627 | 42778 |
--------------------------------------------------------------------------------
| - sales between | -6649 | -9026 | -22953 | -22710 | -30886 |
| segments | | | | | |
--------------------------------------------------------------------------------
NET SALES BY GEOGRAPHICAL SEGMENT (EUR 1,000)
--------------------------------------------------------------------------------
| | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ |
| | 2008 | 2007 | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Olvi Group total | 60004 | 56160 | 170587 | 155703 | 205188 |
--------------------------------------------------------------------------------
| Finland | 28826 | 25497 | 80534 | 70967 | 96546 |
--------------------------------------------------------------------------------
| Estonia *) | 18002 | 20008 | 56731 | 55697 | 72494 |
--------------------------------------------------------------------------------
| Latvia | 9196 | 7937 | 25171 | 20759 | 26686 |
--------------------------------------------------------------------------------
| Lithuania | 6977 | 6156 | 18255 | 17271 | 22069 |
--------------------------------------------------------------------------------
| - sales between | -2997 | -3438 | -10104 | -8991 | -12607 |
| segments | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) The comparison data for 2007 has been | | | |
| adjusted. | | | |
--------------------------------------------------------------------------------
OPERATING PROFIT BY GEOGRAPHICAL SEGMENT (EUR 1,000)
--------------------------------------------------------------------------------
| | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ |
| | 2008 | 2007 | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Olvi Group total | 6225 | 8517 | 16484 | 19936 | 23101 |
--------------------------------------------------------------------------------
| Finland | 2181 | 3222 | 4702 | 7434 | 8514 |
--------------------------------------------------------------------------------
| Estonia | 3055 | 3728 | 9732 | 8783 | 10838 |
--------------------------------------------------------------------------------
| Latvia | 597 | 1168 | 1518 | 2143 | 2294 |
--------------------------------------------------------------------------------
| Lithuania | 338 | 396 | 270 | 1602 | 1553 |
--------------------------------------------------------------------------------
| - eliminations | 54 | 3 | 262 | -26 | -98 |
--------------------------------------------------------------------------------
2. PERSONNEL ON AVERAGE
--------------------------------------------------------------------------------
| | 1-9/2008 | 1-9/2007 | 1-12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finland | 445 | 387 | 389 |
--------------------------------------------------------------------------------
| Estonia | 402 | 417 | 409 |
--------------------------------------------------------------------------------
| Latvia | 234 | 211 | 211 |
--------------------------------------------------------------------------------
| Lithuania | 210 | 204 | 202 |
--------------------------------------------------------------------------------
| Total | 1,291 | 1,219 | 1,211 |
--------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------
| | 1-9/2008 | 1-9/2007 | 1-12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Managing Directors | 697 | 462 | 577 |
--------------------------------------------------------------------------------
| Chairman of the Board | 159 | 153 | 203 |
--------------------------------------------------------------------------------
| Other members of the Board | 83 | 78 | 106 |
--------------------------------------------------------------------------------
| Total | 939 | 693 | 886 |
--------------------------------------------------------------------------------
4. SHARES AND SHARE CAPITAL
--------------------------------------------------------------------------------
| | 30.9.2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Number of A shares | 8,513,276 |
--------------------------------------------------------------------------------
| Number of K shares | 1,866,128 |
--------------------------------------------------------------------------------
| Total | 10,379,404 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total votes carried by A shares | 8,513,276 |
--------------------------------------------------------------------------------
| Total votes carried by K shares | 37,322,560 |
--------------------------------------------------------------------------------
| Total number of votes | 45,835,836 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Registered share capital, EUR 1,000 | 20,759 |
--------------------------------------------------------------------------------
The Series A and Series K shares received a dividend of 0.80 euro per share for
2007 (0.65 euro per share for 2006), totalling 8.3 (6.7) million euro. The
dividends were paid on 22 April 2008.
--------------------------------------------------------------------------------
| Nominal value of A and K shares, EUR | 2.00 |
--------------------------------------------------------------------------------
| Votes per Series A share | 1 |
--------------------------------------------------------------------------------
| Votes per Series K share | 20 |
--------------------------------------------------------------------------------
The shares entitle to equal dividend.
The Articles of Association include a redemption clause concerning Series K
shares.
5. TREASURY SHARES
On the basis of authorisations granted by General Meetings of Shareholders, Olvi
plc's Board of Directors has in 2006 and 2007 acquired a total of 32,000 of the
company's own Series A shares for an aggregate purchase price of 722 thousand
euro.
On the basis of an authorisation granted by the General Meeting of Shareholders
on 10 April 2008, the company's Board of Directors decided to hand over treasury
shares for use as rewards in Olvi Group's share-based incentive system for key
personnel for the achievement of targets for 2006 and 2007. A total of 29,600
treasury shares were handed over to the Group's key personnel in April 2008.
On 10 April 2008, the General Meeting of Shareholders of Olvi plc decided to
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 245,000
Series A shares. From January to September 2008, the Board of Directors of Olvi
plc has not exercised the authorisation granted by the General Meeting to
acquire more treasury shares.
At the end of September 2008, Olvi plc held a total of 2,400 of its own Series A
shares acquired for a price of 54 thousand euro. Treasury shares held by Olvi
plc represent 0.02 percent of the share capital and 0.01 percent of the
aggregate number of votes. The treasury shares represent 0.03 percent of all
Series A shares and associated votes.
6. SHARE-BASED PAYMENTS
Olvi plc's Board of Directors decided on 26 January 2006 on a share-based
incentive scheme for Olvi Group's key personnel. The share-based bonus scheme is
a part of the incentive and commitment scheme for the Group's key personnel and
its purpose is to combine the objectives of shareholders and key personnel to
improve the company's value.
The scheme includes two vesting periods, the first one extending from 1 January
2006 to 31 December 2007 and the second one from 1 January 2008 to 31 December
2010. The amount of bonuses payable out of the scheme is linked to Olvi Group's
net sales and the operating profit percentage in relation to net sales.
The bonuses for the first vesting period were paid in April 2008. The shares
carry a ban on transferring them within two years of reception.
On 17 December 2007, Olvi plc's Board of Directors decided on the targets for
the second vesting period and the people included in the scheme. Any bonuses for
the second vesting period will be paid in April 2011. 50 percent of the shares
received as bonus for the second vesting period may be transferred after one
year of reception, and 100 percent after two years of reception. The right to
dividends begins when the shares are transferred to the key employees'
book-entry accounts. On the basis of this incentive scheme, a total of 48,000
Olvi plc Series A shares may become payable in 2011 for the second vesting
period if the targets are achieved in full.
No accounting entries associated with the 2008-2010 vesting period were
recognised in January-September 2008.
Olvi Group has no warrants or options.
7. NUMBER OF SHARES *)
--------------------------------------------------------------------------------
| | 1-9/2008 | 1-9/2007 | 1-12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| - average | 10365570 | 10361967 | 10358296 |
--------------------------------------------------------------------------------
| - at end of period | 10377004 | 10347404 | 10347404 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) Treasury shares deducted. | |
--------------------------------------------------------------------------------
8. TRADING OF SHARES ON THE HELSINKI STOCK EXCHANGE
--------------------------------------------------------------------------------
| | 1-9/2008 | 1-9/2007 | 1-12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Trading volume of Olvi A shares | 1151568 | 1722884 | 2286279 |
--------------------------------------------------------------------------------
| Total trading volume, EUR 1,000 | 27748 | 41323 | 55328 |
--------------------------------------------------------------------------------
| Traded shares in proportion to | | | |
--------------------------------------------------------------------------------
| all Series A shares, % | 13.5 | 20.2 | 26.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average share price, EUR | 23.69 | 23.86 | 24.14 |
--------------------------------------------------------------------------------
| Price on the closing date, EUR | 19.00 | 26.05 | 24.00 |
--------------------------------------------------------------------------------
| Highest quote, EUR | 27.00 | 30.80 | 30.80 |
--------------------------------------------------------------------------------
| Lowest quote, EUR | 18.91 | 19.50 | 19.50 |
--------------------------------------------------------------------------------
9. FOREIGN AND NOMINEE-REGISTERED HOLDINGS ON 30 SEPTEMBER 2008
Number of Number of Number of
--------------------------------------------------------------------------------
| | book | % | votes | % | share- | % |
| | entrie | | | | holder | |
| | s | | | | s | |
--------------------------------------------------------------------------------
| Finnish total |8245788 | 79.44 | 4273048 | 93.22 | 6088 | 99.3 |
| | | | 4 | | | |
--------------------------------------------------------------------------------
| Foreign total | 292177 | 2.82 | 1263913 | 2.76 | 34 | 0.6 |
--------------------------------------------------------------------------------
| Nominee registered | 1000 | 0.01 | 1000 | 0.00 | 1 | 0.0 |
| (foreign) total | | | | | | |
--------------------------------------------------------------------------------
| Nominee registered | 184043 | 17.73 | 1840439 | 4.02 | 6 | 0.1 |
| (Finnish) total | 9 | | | | | |
--------------------------------------------------------------------------------
| Total |10379404| 100.00 |45835836 | 100.00 | 6129 | 100.00 |
| | | | | | | |
--------------------------------------------------------------------------------
10. LARGEST SHAREHOLDERS
--------------------------------------------------------------------------------
| |Series |Series | Total | % | Votes | % |
| | K | A | | | | |
--------------------------------------------------------------------------------
| 1. Olvi Foundation |1181952|354408 | 1536360 | 14.80 |23993448 | 52.35 |
| | | | | | | |
--------------------------------------------------------------------------------
| 2. Hortling Heikki |450712 | 85380 | 536092 | 5.16 | 9099620 | 19.85 |
| Wilhelm *) | | | | | | |
--------------------------------------------------------------------------------
| 3. The Heirs of | 93552 | 12624 | 106176 | 1.02 | 1883664 | 4.11 |
| Hortling Kalle Einari | | | | | | |
--------------------------------------------------------------------------------
| 4. Hortling Timo Einari | 82912 | 17304 | 100216 | 0.97 | 1675544 | 3.66 |
--------------------------------------------------------------------------------
| 5. Skandinaviska Enskilda |1368155| 1368155 | 13,18 | 1368155 | 2.98 |
| Banken, | | | | | |
| nominee register | | | | | |
--------------------------------------------------------------------------------
| 6. Hortling-Rinne Marit | 51144 | 1050 | 52194 | 0.50 | 1023930 | 2.23 |
--------------------------------------------------------------------------------
| 7. Ilmarinen Mutual | |515748 | 515748 | 4.97 | 515748 | 1.13 |
| Pension Insurance | | | | | | |
| Company | | | | | | |
--------------------------------------------------------------------------------
| 8. Nordea Bank Finland | |358078 | 358078 | 3.45 | 358078 | 0.78 |
| plc, | | | | | | |
| nominee register | | | | | | |
--------------------------------------------------------------------------------
| 9. Autocarrera Oy Ab | |221891 | 221891 | 2.14 | 221891 | 0.48 |
| | | | | | | |
--------------------------------------------------------------------------------
| 10. | |208000 | 208000 | 2.00 | 208000 | 0.45 |
| Pensionsförsäkringsakti | | | | | | |
| ebolaget | | | | | | |
| Veritas Pension | | | | | | |
| Insurance | | | | | | |
| Company | | | | | | |
--------------------------------------------------------------------------------
| Others | 5856 |5370638| 5376494 | 51.81 | 5487758 | 11.98 |
| | | | | | | |
--------------------------------------------------------------------------------
| Total |1866128 |8513276|10379404 | 100.00 |45835836 |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
--------------------------------------------------------------------------------
| | 1-9/2008 | 1-9/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Increase | 27288 | 14457 |--------------------------------------------------------------------------------
| Decrease | -414 | -187 |
--------------------------------------------------------------------------------
| Total | 26874 | 14270 |
--------------------------------------------------------------------------------
12. CONTINGENT LIABILITIES
EUR 1,000
--------------------------------------------------------------------------------
| | 30.9.2008 | 30.9.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| Debts for which mortgages have been | | | |
| given as collateral: | | | |
--------------------------------------------------------------------------------
| Loans from financial institutions | 0 | 773 | 0 |
--------------------------------------------------------------------------------
| For own commitments | 0 | 229 | 0 |
--------------------------------------------------------------------------------
| For others | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Pledges and contingent liabilities: | | | |
--------------------------------------------------------------------------------
| For own commitments | 1134 | 1135 | 1134 |
--------------------------------------------------------------------------------
| For others | 0 | 731 | 0 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Leasing liabilities: | | | |
--------------------------------------------------------------------------------
| Due within one year | 901 | 667 | 882 |
--------------------------------------------------------------------------------
| Due within 1 to 5 years | 1097 | 1132 | 1101 |
--------------------------------------------------------------------------------
| Due in more than 5 years | 0 | 5 | 5 |
--------------------------------------------------------------------------------
| Total leasing liabilities | 1998 | 1804 | 1988 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Package liabilities | 5627 | 4879 | 4604 |
--------------------------------------------------------------------------------
| Other liabilities | 2477 | 1980 | 1980 |
--------------------------------------------------------------------------------
13. CALCULATION OF FINANCIAL RATIOS
Equity to total assets, % = 100 * (Shareholders' equity held by parent company
shareholders + minority interest) / (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 + minority interest)
© 2024 Nasdaq, Inc. All Rights Reserved |