2013-04-25 07:59:47 CEST
2013-04-25 08:00:54 CEST
REGULATED INFORMATION
Olvi Oyj - Interim report (Q1 and Q3)
OLVI GROUP’S INTERIM REPORT, 1 JANUARY TO 31 MARCH 2013 (3 MONTHS)
Olvi Group's sales volume and net sales increased in the first quarter of the
year. Commensurate operating profit improved slightly on the previous year.
Iisalmi, 2013-04-25 07:59 CEST (GLOBE NEWSWIRE) -- OLVI PLC
INTERIM REPORT 25 APR 2013 at 9:00 am
OLVI GROUP'S INTERIM REPORT, 1 JANUARY TO 31 MARCH 2013 (3 MONTHS)
Olvi Group's sales volume and net sales increased in the first quarter of the
year. Commensurate operating profit improved slightly on the previous year.
January-March in brief:
- The Group's sales volume increased by 9.4 percent to 110.7 (101.2) million
litres
- The Group's net sales increased by 20.0 percent to 68.0 (56.7*)) million euro
- The Group's commensurate operating profit remained on the previous year's
healthy level**)
KEY RATIOS
1-3/2013 1-3/2012 Change % 1-12/2012
Net sales, MEUR 68.0 56.7*) +20.0 304.9*)
Operating profit, MEUR 5.0 2.7 +82.6 30.5
Gross capital expenditure, MEUR 6.0 14.5 -58.5 29.8
Earnings per share, EUR 0.21 0.11 +90.9 1.24
Equity per share, EUR 7.30 6.36 +14.8 7.01
Equity to total assets, % 53.6 50.1 54.8
Gearing, % 36.9 50.2 35.8
*) The previous year's net sales 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, said the following in connection with
the disclosure of the accounts: “Olvi Group's year 2013 started well. Net sales
increased in all of the Group's operating areas. The best improvements in sales
volume, net sales and operating profit were seen in Finland. The commensurate
operating profits in the Baltic states and Belarus fell slightly short of the
previous year due to reasons including changes in alcohol laws.”
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. Due to the change,
the parent company's and the Group's net sales and other operating expenses for
the previous year have declined by the amount of marketing subsidies. 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, the Group's depreciation for the quarter declined by 2.2 million euro.
OLVI GROUP'S SALES VOLUME, NET SALES AND EARNINGS IN JANUARY-MARCH 2013
In the first quarter of 2013, Olvi Group's sales volume was 110.7 (101.2)
million litres, an increase of 9.5 million litres or 9.4 percent.
Sales in Finland increased by 9.1 million litres or 33.2 percent, while sales
in the Baltic states declined by a total of 0.6 million litres or 1.1 percent.
Sales in Estonia and Lithuania declined but sales in Latvia increased slightly.
During the period under review, sales in Belarus increased by 1.2 million
litres or 4.8 percent. Intra-Group sales declined by 0.2 million litres on the
previous year.
The Group's net sales from January to March amounted to 68.0 (56.7*)) million
euro. This represents an increase of 11.3 million euro or 20.0 percent. Net
sales increased in all of the Group's operating areas.
Net sales in Finland amounted to 29.5 (21.7*)) million euro, while the
aggregate total for the Baltic states was 29.6 (29.0) and the corresponding
figure for Belarus was 12.6 (9.4) million euro. Net sales in Finland increased
by 7.8 million euro or 36.1 percent, in the Baltic states by 0.6 million euro
or 2.1 percent, and in Belarus by 3.2 million euro or 34.3 percent.
Olvi Group's operating profit for January-March stood at 5.0 (2.7) million
euro, or 7.4 (4.8*)) percent of net sales. The Group's operating profit
improved by 2.3 million euro. 2.2 million euro of the operating profit
improvement is attributable to the extended depreciation periods. Operating
profit in Finland improved by 1.5 million euro. Operating profit in the Baltic
states increased by 0.3 million euro, and operating profit in Belarus increased
by 0.4 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.
Olvi Group's profit after taxes in the period under review was 4.4 (2.2)
million euro. Earnings per share calculated from the profit belonging to parent
company shareholders in January-March improved to 0.21 (0.11) euro per share.
SALES VOLUME, NET SALES AND EARNINGS BY GEOGRAPHICAL SEGMENT IN JANUARY-MARCH
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 season.
PARENT COMPANY OLVI PLC (Olvi)
According to statistics by the Federation of the Brewing and Soft Drinks
Industry, the Finnish beverage market in January-March diminished by 0.7
percent compared to the previous year. Sales of alcoholic beverages increased
by 2.7 percent while sales of non-alcoholic beverages declined by 5.1 percent.
The sales volume of beers increased by 4.0 percent, but ciders declined by 1.4
and long drinks by 6.9 percent.
The sales of soft drinks in January-March declined by 7.7 percent and energy
drinks by 12.5 percent, while the sales of mineral waters increased by 8.4
percent.
Olvi's sales in January-March increased substantially to 36.5 (27.4) million
litres. The sales improvement was 9.1 million litres. The strong sales
improvement was boosted by exceptionally low sales figures from the previous
year due to customers topping up their stocks in December 2011 before tax
hikes, export sales and the market share development particularly in beers and
soft drinks.
Among Olvi's main product groups, the sales of beers increased but the sales of
ciders and long drinks declined. In non-alcoholic beverages, the sales of soft
drinks increased substantially. A good increase was also seen in the sales of
mineral waters.
According to statistics by the Federation of the Brewing and Soft Drinks
Industry, Olvi's market share in alcoholic beverages (beers, ciders and long
drinks) in January-March 2013 was 24 (23) percent. In spite of the decline in
long drink sales, Olvi is the market leader in retail sales of long drinks.
Thanks to good sales development, the market share in non-alcoholic beverages
had increased from 6 percent to 9 percent. The overall market share in
January-March was 18 (16) percent.
Olvi's exports and tax-free sales increased very substantially during the
review period, amounting to 7.1 million litres. Main factors contributing to
the increase were exports of soft drinks to Russia and increased tax-free
sales. Exports and tax-free sales represented 19.6 (3.6) percent of total
sales.
Thanks to good sales development, Olvi's net sales for January-March increased
to 29.5 (21.7*)) million euro. This represents an increase of 7.8 million euro
or 36.1 percent.
The operating profit also increased substantially. Operating profit stood at
2.8 (1.3) million euro, which was 9.6 (6.0) percent of net sales. The operating
profit increased by 1.5 million euro. 0.6 million euro of the operating profit
improvement was attributable to the extended depreciation periods. In other
respects, the operating profit improvement originated not only from the
increases in exports and tax-free sales but also from an increased share of
high-margin products and good cost control.
AS A. LE COQ (A. Le Coq)
The Estonian subsidiary AS A. Le Coq's January-March sales amounted to 25.9
(27.2) million litres. Sales declined by 1.4 million litres or 5.0 percent.
The Estonian beverage market continued to diminish, with the exception of
mineral waters and ciders. The sales of A. Le Coq's ciders increased while the
sales of beers and long drinks were approximately on a par with the previous
year. The sales of mineral waters improved substantially, juices were on a par
with the previous year, and the sales of soft drinks declined slightly.
A. Le Coq has retained its good position in the Estonian beverage market. The
company is the clear market leader in long drinks and juices. In beers and
ciders, the company is in a tight struggle for the number one position, and in
soft drinks it is the clear number two player. In mineral waters it holds the
number three position. (Nielsen December-January 2013)
The company's exports and tax-free sales represented 3.4 (3.6) percent of total
sales.
A. Le Coq's net sales in the first quarter were on a par with the previous year
at 15.9 (15.8) million euro in spite of the decline in sales volume.
Operating profit in January-March stood at 2.1 (2.0) million euro, which was
13.3 (12.4) percent of net sales. The operating profit increased slightly by
0.1 million euro or 8.2 percent compared to the previous year. The extended
depreciation periods had an effect of 0.4 million euro on A. Le Coq's operating
profit.
A/S CESU ALUS (Cesu Alus)
From January to March 2013, the sales of Cesu Alus operating in Latvia totalled
15.5 (13.6) million litres. Sales increased by 1.9 million litres or 14.0
percent. The sales increase was attributable to internal sales to other Olvi
Group companies.
The Latvian beer and cider markets diminished during the period under review,
while the sales of long drinks were clearly increasing.
In Cesu Alus's domestic sales for the period, sales of beers were on a par with
the previous year in spite of the market decline. The sales of long drinks were
also on a par with the previous year, while the sales of ciders declined
clearly. The sales of soft drinks (including kvass) increased.
Cesu Alus is the clear market leader in ciders, and in long drinks the company
is competing for the number one position with an equal main competitor. The
company has the number two position in the beer market. (Nielsen
December-January 2013)
Cesu Alus's net sales from January to March amounted to 7.2 (6.8) million euro,
representing an increase of 0.4 million euro or 6.2 percent.
The operating profit for the first quarter of 2013 stood at 0.1 (-0.05) million
euro. The extended depreciation periods had an effect of 0.4 million euro on
Cesu Alus's operating profit.
AB VOLFAS ENGELMAN (Volfas Engelman)
Volfas Engelman's sales from January to March amounted to 13.4 (14.5) million
litres, representing a decline of 1.1 million litres or 7.9 percent.
The markets of all main product groups in Lithuania declined in the period
under review, particularly due to stricter alcohol laws.
The sales of Volfas Engelman's beers declined clearly in the first quarter,
while the sales of long drinks increased. The sales of ciders were on a par
with the previous year. The sales of soft drinks (including kvass) declined
slightly on the previous year.
Volfas Engelman has further improved its position in the Lithuanian beverage
market. In long drinks, ciders and kvass the company is the clear market
leader. The company has the number three position in the beer market. (Nielsen
December-January 2013)
The company's first-quarter net sales amounted to 6.6 (6.4) million euro. Net
sales improved by 0.2 million euro or 2.2 percent. Net sales improved in spite
of the decline in sales volume.
Volfas Engelman's operating result in January—March showed a loss of -0.2
million euro. The extended depreciation periods had an effect of 0.2 million
euro on the operating profit.
OAO LIDSKOE PIVO (Lidskoe Pivo)
The January-March sales of OAO Lidskoe Pivo operating in Belarus amounted to
27.2 (25.9) million litres. Sales increased by 1.2 million litres or 4.8
percent on the previous year.
In the period under review, the overall beverage market declined also in
Belarus.
The sales of Lidskoe Pivo's beers saw a good increase but the sales of ciders
declined slightly. The sales of mineral waters and soft drinks (including
kvass) increased clearly while the sales of juice drinks declined slightly.
Lidskoe Pivo is the market leader in kvass and juice drinks. The market share
in beers has also improved. The company's market shares in mineral waters and
soft drinks have remained unchanged.
Lidskoe Pivo's exports increased by 41.8 percent in the review period. Exports
accounted for 10.6 (7.8) percent of total sales.
The company's net sales from January to March increased to 12.6 (9.4) million
euro. Net sales improved by 3.2 million euro or 34.3 percent.
Operating profit from January to March stood at 0.1 (-0.3) million euro. The
extended depreciation periods had an effect of 0.5 million euro on Lidskoe
Pivo's operating profit.
FINANCING AND INVESTMENTS
Olvi Group's balance sheet total at the end of March 2013 was 286.5 (266.1)
million euro. Equity per share in January-March stood at 7.30 (6.36) euro, an
increase of 0.94 euro per share. The equity to total assets ratio increased to
53.6 (50.1) percent. The amount of interest-bearing liabilities was 60.5 (69.4)
million euro, including current liabilities of 23.5 (30.8) million euro.
During the period under review, Olvi Group's gross capital expenditure amounted
to 6.0 (14.5) million euro. The parent company Olvi accounted for 1.9 million
euro and the subsidiaries in the Baltic states for 2.6 million euro of the
total. Lidskoe Pivo's gross capital expenditure in the first quarter was 1.5
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.
A substantial share of the year's investments will be completed during the
second quarter of the year, and the full-year investment level will be lower
than in the previous year.
In the Baltic states, A. Le Coq's largest investments include the procurement
of a more efficient canning line, 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, acquisition of a
light-duty storage hall, as well as coolers and kegs for sales purposes.
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
New products for the spring and summer were presented in the financial
statements bulletin in February. In addition to those, April saw the
introduction of Angry Birds juice drinks in one-litre tetrapacks with two
flavour variants Forest Berry and Multi-Vitamin.
Subsidiaries
A. Le Coq in Estonia introduced the top-fermented A. Le Coq Imperial Ale
(5.0%). In the same connection, A. Le Coq Imperial Gold (4.8%) was launched.
The G:N long drink range saw the introduction of Orange. The Aura product range
was complemented with the new Aura Yellow Plum nectar, Aura Apple-Blueberry
juice drink and Aura Sugar-free Raspberry juice concentrate. The new Sportwater
was introduced to the Arctic sports beverage range. The energy drink range
Dynami:t saw the introduction of a new variant Dynami:t Juice with 25% juice
content.
Cesu in Latvia launched the amber beer Cēsu Premium Amber (5.2%) in 0.568 litre
or pint-size glass bottles. Cesu wss the first Latvian brewery to introduce a
beer for women, Cēsu La Femme (4.8%) in 0.5-litre cans. Grāfs fon Zīverss Lager
(4.8%) and Ale (5%) were introduced in unique 0.4-litre glass bottles. New
introductions in beers also included Pagraba alus (7%) in 2-litre plastic
bottles, as well as Pilsener (4.7%) and Cēsu Nefiltrētais Griku (5%) in
0.5-litre glass bottles. Ciders saw the introduction of FIZZ Cranberry Dry
previously known from Finland, and new long drinks included Cēsu Džons
Strawberry Daiquiri (5%) and Mango Daiquiri (4.7%). Two new flavours GT and
Francu Piladzis were introduced in the range of stronger 14-percent long
drinks. The Dynami:t Juice energy drink was launched.
Volfas Engelman in Lithuania introduced all Volfas Engelman beers also in pint
size (0.568 litres). Volfas Engelman celebrates its 160th anniversary with the
Volfas Engelman Jubiliejinis beer (5.3%). New beers also include Fortas Export
(4.6%) in three different package sizes. The kvass Blue Sheep was introduced in
a new orange flavour in half-litre cans. In ciders, the Sherwood brand was
expanded with perry in one-litre bottles. Dynami:t Juice was also launched in
Lithuania.
Lidskoe Pivo in Belarus launched the new beer brand Koronet (4.6%) lager in
pint-size bottles. The parent company's Sandels was also launched in Belarus,
after which Sandels is available in all of the Group's countries.
PERSONNEL
Olvi Group's average number of personnel in January-March was 1,935 (1,911).
The Group's average number of personnel increased by 24 people or 1.3 percent.
The total number of personnel at the end of March was 1,976 (1,939).
Olvi Group's average number of personnel by country:
Finland 383 (364)
Estonia 304 (305)
Latvia 214 (219)
Lithuania 211 (206)
Belarus 823 (817)
Total 1,935 (1,911)
GROUP STRUCTURE
There were no changes in the Group structure in January-March 2013.
At the end of March 2013, Olvi Group's holding in A. Le Coq was 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 March 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 (Helsinki Stock Exchange) at
21.30 (17.47) euro at the end of March 2013. In January-March, the highest
quote for the Series A share was 22.50 (17.60) euro and the lowest quote was
19.70 (14.75) euro. The average price was 21.31 (16.18) euro.
In January-March, a total of 662,388 (389,199) Olvi A shares were traded,
representing 3.9 (2.3) percent of the total number of Series A shares. The
value of trading was 14.1 (6.3) million euro.
At the end of March 2013, the market capitalisation of Series A shares was
362.7 (297.5) million euro and the market capitalisation of all shares was
442.2 (362.7) million euro.
Olvi had a total of 9,350 (9,316) shareholders at the end of March 2013.
Foreign holdings plus foreign and Finnish nominee-registered holdings
represented 18.6 (16.3) percent of the total number of book entries and 6.3
(5.8) percent of total votes.
Foreign and nominee-registered holdings are reported in Table 5, Section 8 of
the tables attached to this interim report, and the largest shareholders are
reported in Table 5, Section 9.
TREASURY SHARES
There were no changes in the number of treasury shares held by Olvi in
January-March 2013. At the end of March 2013, Olvi held 1,124 of its own Series
A shares. Treasury shares held by Olvi plc are reported in the tables section
of this interim report, in Table 5, Section 5.
FLAGGING NOTICES
During the first quarter, Olvi received one flagging notice in accordance with
Chapter 2, Section 10 of the Securities Markets Act from The Family Kamprad
Foundation on 15 March 2013.
RESOLUTIONS OF OLVI PLC'S ANNUAL GENERAL MEETING
The Annual General Meeting was held on 10 April 2013. A separate stock exchange
release was issued on the same day regarding the decisions made and
authorisations given by the meeting.
BUSINESS RISKS AND THEIR MANAGEMENT
Risk management is a part of Olvi Group's everyday management and operations.
It increases corporate security and contributes to the achievement of
operational targets. The objective of risk management is to operate proactively
and create operating conditions in which business risks are managed
comprehensively and systematically in all of the Group companies and all levels
of the organisation. In addition to the company itself, risk management
benefits its personnel, customers, shareholders and other related groups.
The objective of risk management is to ensure the realisation of the company's
strategy and secure the continuity of business. Olvi Group identifies,
assesses, manages and monitors its crucial risks regularly. With regard to
identified risks, the effects, scope and probability of realisation are
assessed together with the means of eliminating or reducing the risk.
Furthermore, risk management aims to identify and utilise any business
opportunities that may arise.
Olvi Group's strategic risks refer to risks related to the characteristics of
the company's business and strategic choices. The Group's operations are
located in several countries that differ substantially in terms of their social
and economic situations and the phases and directions of development. For
example, strategic risks relate to changes in tax legislation and other
regulations, the 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 in 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, 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. The system will be
introduced into use in Belarus during the financial year 2012. 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 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 has become more positive, and the euro crisis
is gradually becoming a thing of the past. However, the unemployment rate
remains high and is even increasing in Olvi Group's operating area. Weakened
consumer purchasing power may have a negative impact on demand for the Group's
products. Demand in Finland is also held back by Europe's highest excise tax
rates.
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 2014.
NEAR-TERM OUTLOOK
The full-year sales volumes and net sales in 2013 are expected to develop
favourably in the current accounting period. The commensurate operating profit
for 2013 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
1-3/2013 1-3/2012 1-12/2012
Net sales 67995 56664*) 304891*)
Other operating income 183 13 1020
Operating expenses -59770 -49084 -253552
Depreciation and impairment -3396 -4849 -21822
Operating profit 5012 2744 30537
Financial income 2086 641 4871
Financial expenses -2005 -743 -3093
Financial expenses - net 81 -102 1778
Earnings before tax 5093 2642 32315
Taxes ***) -697 -406 -6151
NET PROFIT FOR THE PERIOD 4396 2236 26164
Other comprehensive income items:
Translation differences related to
foreign subsidiaries 1881 2038 527
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 6277 4274 26691
Distribution of profit:
- parent company shareholders 4337 2258 25668
- non-controlling interests 59 -22 496
Distribution of comprehensive profit:
- parent company shareholders 6092 4278 26229
- non-controlling interests 185 -4 462
Earnings per share calculated from the profit belonging
to parent company shareholders, EUR
- undiluted 0.21 0.11 1.24
- diluted 0.21 0.11 1.24
*) The previous year's figures 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
31.3.2013 31.3.20 31.12.2012
12
ASSETS
Non-current assets
Tangible assets 149279 147070 146749
Goodwill 18262 17118 17730
Other intangible assets 2246 1548 2119
Shares in associates 1077 1000 1077
Financial assets available for sale 549 552 549
Loan receivables and other non-current 408 142 408
receivables
Deferred tax receivables 214 221 83
Total non-current assets 172035 167651 168715
Current assets
Inventories 44062 42021 40583
Accounts receivable and other receivables 66200 53711 53345
Income tax receivable 202 252 693
Other non-current assets available for 163 56 163
sale
Liquid assets 3876 2458 5698
Total current assets 114503 98498 100482
TOTAL ASSETS 286538 266149 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 -15932 -16228 -17687
Retained earnings 145674 126347 141317 151585 131962 145473
Share belonging to non-controlling 2127 1398 1939
interests
Total shareholders' equity 153712 133360 147412
Non-current liabilities
Financial liabilities 37021 38033 42474
Other liabilities 250 500 250
Deferred tax liabilities 3223 2152 3200
Current liabilities
Financial liabilities 23524 30820 15996
Accounts payable and other liabilities 68568 61284 58669
Income tax liability 240 0 1196
Total liabilities 132826 132789 121785
TOTAL SHAREHOLDERS' EQUITY AND 286538 266149 269197
LIABILITIES
OLVI GROUP TABLE 3
CHANGES IN OLVI GROUP'S CONSOLIDATED SHAREHOLDERS' EQUITY
EUR 1,000 Share Other Treas Transl. Retained Share Total capital reserve ury diff. earnings of
s share non-con
s trollin
reser g
ve interes
ts
Shareholders' 20759 1092 -8 -18248 123286 1341 128222
equity 1 Jan 2012
Adjustments for hyperinflation 803 74 877
Adjusted 20759 1092 -8 -18248 124089 1415 129099
shareholders'
equity 1 Jan 2012
Comprehensive income:
Net profit for the period 2258 -22 2236
Other comprehensive income items:
Translation differences 2020 18 2038
Total comprehensive income for the period 2020 2258 -4 4274
Transactions with shareholders:
Payment of dividends -13 -13
Total transactions with shareholders -13 -13
Shareholders' 20759 1092 -8 -16228 126347 1398 133360
equity 31 Mar 2012
EUR 1,000 Share Other Treas Transl. Retained Share Total
capital reserve ury diff. earnings of
s share non-con
s trollin
reser g
ve interes
ts
Shareholders' 20759 1092 -8 -17687 141317 1939 147412
equity 1 Jan 2013
Adjustments for hyperinflation 21 2 23
Adjusted 20759 1092 -8 -17687 141338 1941 147435
shareholders'
equity 1 Jan 2013
Comprehensive income:
Net profit for the period 4337 59 4396
Other comprehensive income items:
Translation differences 1755 126 1881
Total comprehensive income for the period 1755 4337 185 6277
Shareholders' 20759 1092 -8 -15932 145675 2126 153712
equity 31 Mar 2013
Other reserves include the share premium account, legal reserve and other
reserves.
OLVI GROUP TABLE 4
CASH FLOW STATEMENT
EUR 1,000
1-3/2013 1-3/2012 1-12/2012
Net profit for the period 4396 2258 26164
Adjustments to profit for the period 6871 4147 29754
Change in net working capital -7251 -5848 -8967
Interest paid -295 -559 -2077
Interest received 67 505 315
Taxes paid -948 -950 -4900
Cash flow from operations (A) 2840 -447 40289
Investments in tangible and intangible
assets -6771 -10484 -23757
Sales gains from tangible and intangible
assets 67 32 125
Expenditure on other investments 0 -508 -582
Cash flow from investments (B) -6704 -10960 -24214
Withdrawals of loans 4129 19810 32738
Repayments of loans -2055 -9670 -36179
Dividends paid 0 0 -10377
Increase (-) / decrease (+) in current interest-
bearing business receivables 0 2 0
Increase (-) / decrease (+) in long-term
loan receivables 0 0 -265
Cash flow from financing (C) 2074 10142 -14083
Increase (+)/decrease (-) in liquid assets -1790 -1265 1992
(A+B+C)
Liquid assets 1 January 5698 3836 3836
Effect of exchange rate changes -32 -113 -130
Liquid assets 31 Mar/31 Dec 3876 2458 5698
OLVI GROUP
TABLE 5
NOTES TO THE FINANCIAL STATEMENTS
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 have declined by the amount of the marketing
subsidies, 1.6 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 declined by 2.2 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)
1-3/2013 1-3/2012 1-12/2012
Olvi Group total 110705 101215 526753
Finland 36497 27404 148764
Estonia 25880 27237 134027
Latvia 15505 13603 72358
Lithuania 13373 14519 71661
Belarus 27161 25926 141496
- sales between segments -7711 -7474 -41553
NET SALES BY GEOGRAPHICAL SEGMENT (EUR 1,000)
1-3/2013 1-3/2012 1-12/2012
Olvi Group total 67995 56664*) 304891*)
Finland 29507 21682 113612
Estonia 15870 15835 80043
Latvia 7207 6784 36185
Lithuania 6562 6421 34245
Belarus 12560 9352 59030
- sales between segments -3711 -3410 -18224
*) The previous year's figures have been adjusted for comparability with the
year 2013.
OPERATING PROFIT BY GEOGRAPHICAL SEGMENT (EUR 1,000)
1-3/2013 1-3/2012 1-12/2012
Olvi Group total 5012 2744 30537
Finland 2843 1309 9066
Estonia 2118 1958 13017
Latvia 112 -46 1654
Lithuania -226 -199 1753
Belarus 122 -271 4979
- eliminations 43 -7 68
2. PERSONNEL ON AVERAGE
1-3/2013 1-3/2012 1-12/2012
Finland 383 364 401
Estonia 304 305 313
Latvia 214 219 217
Lithuania 211 206 212
Belarus 823 817 834
Total 1935 1911 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
1-3/2013 1-3/2012 1-12/2012
Managing Directors 360 401 931
Chairman of the Board 21 21 84
Other members of the Board 33 31 125
Total 414 453 1140
4. SHARES AND SHARE CAPITAL
31.3.2013 %
Number of A shares 17026552 82.0
Number of K shares 3732256 18.0
Total 20758808 100.00
Total votes carried by A shares 17026552 18.6
Total votes carried by K shares 74645120 81.4
Total number of votes 91671672 100.00
Votes per Series A share 1
Votes per Series K share 20
The registered share capital on 31 March 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.
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-March 2013, which means that the number of Series A shares held by the
company was unchanged on 31 March 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-March 2013, the Board of Directors of Olvi plc has not exercised the
authorisations granted by the General Meeting.
6. NUMBER OF SHARES *) 1-3/2013 1-3/2012 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
1-3/2013 1-3/2012 1-12/2012
Trading volume of Olvi A shares 662388 389199 1793149
Total trading volume, EUR 1,000 14111 6298 32789
Traded shares in proportion to
all Series A shares, % 3.9 2.3 10.5
Average share price, EUR 21.31 16.18 18.26
Price on the closing date, EUR 21.30 17.47 19.65
Highest quote, EUR 22.50 17.60 20.43
Lowest quote, EUR 19.70 14.75 14.75
8. FOREIGN AND NOMINEE-REGISTERED HOLDINGS ON 31 MARCH 2013
Book entries Votes Shareholders
qty % qty % qty %
Finnish total 16903507 81.42 85872899 93.68 9297 99.44
Foreign total 476966 2.30 2420438 2.64 45 0.48
Nominee-registered (foreign) 1546 0.01 1546 0.00 2 0.02
total
Nominee-registered (Finnish) 3376789 16.27 3376789 3.68 6 0.06
total
Total 20758808 100.00 91671672 100.00 9350 100.00
9. LARGEST SHAREHOLDERS ON 31 MARCH 2013
Series Series A Total % Votes %
K
1. Olvi Foundation 2363904 890613 3254517 15.68 48168693 52.54
2. Hortling Heikki 901424 159194 1060618 5.11 18187674 19.84
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, 858674 858674 4.14 858674 0.94
nominee register
8. Nasdaq OMXBS/Skandinaviska Enskilda
Banken Ab, nominee register 562272 562272 2.71 562272 0.61
9. Ilmarinen Mutual Pension 529026 529026 2.55 529026 0.58
Insurance Company
10. Autocarrera Oy Ab 460000 460000 2.22 460000 0.50
Others 11712 11602117 11613829 55.93 11836357 12.91
Total 3732256 17026552 20758808 100.00 91671672 100.00
*) The figures include the shareholder's own holdings and shares held by parties
in his control.
10. PROPERTY, PLANT AND EQUIPMENT
EUR 1,000
1-3/2013 1-3/2012 1-12/2012
Increase 5790 33886 28197
Decrease -378 -20085 -1122
Total 5412 13801 27075
11. CONTINGENT LIABILITIES
EUR 1,000 31.3.2013 31.3.2012 31.12.2012
Pledges and contingent liabilities
For own commitments 7542 7591 7415
For others 0 130 0
Leasing and rental liabilities:
Due within one year 1020 867 1119
Due within 1 to 5 years 629 908 580
Due in more than 5 years 7 20 7
Leasing and rental liabilities total 1656 1795 1706
Package liabilities 3101 3466 2265
Other liabilities 2000 1980 2000
12. CALCULATION OF FINANCIAL RATIOS
Equity to total assets, % = 100 * (Shareholders' equity held by parent company
shareholders + non-controlling interests) / (Balance sheet total - advances
received)
Earnings per share = Profit belonging to parent company shareholders / Average
number of shares during the period, adjusted for share issues
Equity per share = Shareholders' equity held by parent company shareholders /
Number of shares at end of period, adjusted for share issues
Gearing, % = 100 * (Interest-bearing debt - cash in hand and at bank) /
(Shareholders' equity held by parent company shareholders + non-controlling
interests)
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