2012-08-09 07:59:52 CEST
2012-08-09 08:00:57 CEST
REGULATED INFORMATION
Olvi Oyj - Interim report (Q1 and Q3)
OLVI GROUP’S INTERIM REPORT, 1 JANUARY TO 30 JUNE 2012 (6 MONTHS)
Iisalmi, 2012-08-09 07:59 CEST (GLOBE NEWSWIRE) -- OLVI PLC
INTERIM REPORT 9 AUG 2012 at 9:00 am
OLVI GROUP'S INTERIM REPORT, 1 JANUARY TO 30 JUNE 2012 (6 MONTHS)
Olvi's earnings developed favourably. The Group's net sales increased in all
geographical areas, and consolidated operating profit improved slightly on the
previous year.
January-June in brief:
- Olvi Group's sales volume increased by 2.9 percent to 261.4 (254.0) million
litres
- The Group's net sales increased by 8.3 percent to 153.4 (141.7) million euro
- The Group's operating profit stood at 14.7 (13.8) million euro, improving on
the previous year by 6.3 percent
KEY RATIOS
1-6/2012 1-6/2011 Change % 1-12/2011
Net sales, MEUR 153.4 141.7 +8.3 285.2
Operating profit, MEUR 14.7 13.8 +6.3 26.7
Gross capital expenditure, MEUR 21.2 22.2 -4.5 43.2
Earnings per share, EUR 0.59 0.28 +110.7 0.65
Equity per share, EUR 6.41 5.34 +20.4 6.11
Equity to total assets, % 45.4 43.9 50.6
Gearing, % 55.8 54.9 43.2
Lasse Aho, Managing Director of Olvi plc, states the following in connection
with the disclosure of the accounts:
“Olvi Group's earnings in January-June were up to expectations, thanks to good
performance in the second quarter. The Group's net sales and operating profit
improved slightly on the previous year. Performance in Belarus, Latvia and
Lithuania improved substantially. Earnings in Finland and Estonia fell slightly
short of the previous year due to factors such as the rainy and cool April-June
period causing a decline in the overall market, as well as cost increases. Our
overall market position remained strong across our operating area, and our
financial position remained good.”
OLVI GROUP'S SALES VOLUME, NET SALES AND EARNINGS IN JANUARY-JUNE 2012
Olvi Group's sales in the first half of the year totalled 261.4 (254.0) million
litres, an increase of 7.3 million litres or 2.9 percent. Sales in Finland
increased by 1.5 million litres, in the Baltic states by 2.3 million litres and
in Belarus by 8.3 million litres. Intra-Group sales increased by 4.8 million
litres.
The Group's net sales from January to June amounted to 153.4 (141.7) million
euro, representing an increase of 11.7 million euro or 8.3 percent. Net sales
growth outperformed the growth in sales volume across all of the Group's
operating areas.
Net sales in Finland amounted to 60.0 (58.4) million euro, while the aggregate
total for the Baltic states was 76.5 (70.7) and the corresponding figure for
Belarus was 27.4 (19.9) million euro. Net sales in Finland increased by 1.6
million euro or 2.7 percent, in the Baltic states by 5.8 million euro or 8.2
percent, and in Belarus by 7.5 million euro or 37.4 percent.
The Group's operating profit for January-June stood at 14.7 (13.8) million
euro, or 9.6 (9.8) percent of net sales. The operating profit improved by 0.9
million euro or 6.3 percent on the previous year.
Operating profit in Finland amounted to 5.0 (7.1) million euro. Commensurate
operating profit declined by 0.5 million euro. The previous year's operating
profit included 1.5 million euro of sales gains from the sales of
decommissioned production machinery.
Aggregate operating profit in the Baltic states improved by 1.2 million euro to
7.9 (6.7) million euro, and operating profit in Belarus improved by 0.3 million
euro to 1.8 (1.5) million euro. The Belarusian figures are affected by a high
inflation rate and hyperinflationary accounting required under IFRS.
The Group's profit after taxes in the period under review improved
substantially on the previous year, amounting to 12.4 (5.4) million euro.
Earnings per share calculated from the profit belonging to parent company
shareholders in the first half of the year stood at 0.59 (0.28) euro per share.
Earnings per share improved by 0.31 euro or 110.7 percent.
OLVI GROUP'S SALES VOLUME, NET SALES AND EARNINGS IN APRIL-JUNE 2012
The Group's sales in the second quarter amounted to 160.1 (155.9) million
litres. Sales increased by 4.3 million litres or 2.8 percent. Sales in Finland
increased by 2.8 million litres to 46.4 (43.6) million litres and sales in
Belarus by 3.9 million litres to 42.5 (38.6) million litres. Sales in the
Baltic states remained on a par with the previous year at approximately 87
million litres.
The Group's net sales from April to June amounted to 95.2 (86.0) million euro.
Net sales improved by 9.2 million euro or 10.7 percent. Net sales in Finland
amounted to 36.7 (35.3) million euro, in the Baltic states to 47.5 (44.7)
million euro and in Belarus to 18.0 (11.3) million euro.
The Group's operating profit for the second quarter stood at 12.0 (10.4)
million euro, or 12.6 (12.1) percent of net sales. The operating profit
increased by 1.5 million euro or 14.6 percent compared to the previous year.
Operating profit in Finland amounted to 3.7 (3.9) million euro, in the Baltic
states to 6.2 (5.7) million euro and in Belarus to 2.1 (0.8) million euro.
Operating profit in Finland declined by 0.2 million euro. Operating profit in
the Baltic states increased by 0.5 million euro, and operating profit in
Belarus increased by 1.3 million euro.
SALES VOLUME, NET SALES AND EARNINGS BY GEOGRAPHICAL SEGMENT IN JANUARY-JUNE
AND APRIL-JUNE 2012
Seasonal nature of the operations
The Group's business operations are characterised by seasonal variation. The
net sales and operating profit from the reported geographical segments do not
accumulate evenly but vary according to the time of the year and the
characteristics of each season.
PARENT COMPANY OLVI PLC (Olvi)
January to June 2012
According to the Federation of the Brewing and Soft Drinks Industry, the
Finnish beverage market in January-June diminished by a total of 21 million
litres or 5.1 percent compared to the previous year. Sales declined in all
product groups. The sales decline in beers amounted to six, in long drinks
five, in ciders ten, in soft drinks four and in mineral waters approximately
two percent.
Olvi's sales in the reporting period increased by 2.1 percent thanks to good
sales in the second quarter. Sales in the reporting period amounted to 73.8
(72.3) million litres. Among the product groups, strongest growth was seen in
soft drinks. Sales development in juices and mineral waters was also very
favourable. The sales of energy drinks declined on the previous year. In
alcoholic beverages, the sales of beers and long drinks declined. The sales of
ciders increased thanks to a reform of the cider concept.
According to statistics by the Federation of the Brewing and Soft Drinks
Industry for January-June 2012, Olvi's market share in alcoholic beverages
(beers, ciders and long drinks) was on a par with the previous year at 24
percent. In mineral waters, Olvi's market share increased from 20 to 24
percent, and in soft drinks to 4 (2) percent.
Olvi's exports and tax-free sales increased by 29.8 percent on the previous
year, making up 4.4 (3.5) percent of total sales.
Intra-Group sales increased by 1.5 million litres from 0.4 million to 1.9
million litres, thanks to increased capacity created by a new canning line.
The parent company's net sales from January to June amounted to 60.0 (58.4)
million euro, representing an increase of 1.6 million euro or 2.7 percent.
Operating profit stood at 5.0 (7.1) million euro, which was 8.4 (12.2) percent
of net sales. The operating profit declined by 2.1 million euro. The previous
year's operating profit includes 1.5 million euro of sales gains from the sales
of decommissioned production machinery. Commensurate operating profit declined
by 0.5 million euro or 9.7 percent compared to the previous year.
The decline in operating profit was affected by cost increases that the company
was unable to cover in full in a declining overall market situation for brewery
products.
April to June 2012
The parent company's sales in the second quarter increased by 2.8 million
litres or 6.4 percent to 46.4 (43.6) million litres. Net sales stood at 36.7
(35.3) million euro, an increase of 1.4 million euro or 3.9 percent.
Operating profit in April-June stood at 3.7 (3.9) million euro, or 10.1 (11.1)
percent of net sales. The operating profit declined by 0.2 million euro or 6.0
percent in the second quarter. Reasons for the decline in operating profit
included cost increases as reported above, as well as a substantially cooler
and rainier April-June period compared to the previous year.
AS A. LE COQ (A. Le Coq, Estonia)
January to June 2012
In the Estonian beverage market, the sales of ciders increased by 23 percent in
the first half of the year, the sales of long drinks increased by 9 percent and
the sales of waters by 5 percent, while the markets for beers and soft drinks
remained on a par with the previous year. The industry saw a 10 percent decline
in the sales of juices (Nielsen, April-May 2012).
The Estonian subsidiary A. Le Coq retained its strong market position in the
Estonian beverage market. The company's sales in January-June were on a par
with the previous year at approximately 69 million litres.
The sales of mineral waters increased by 6.2 percent, while the sales of juices
and ciders remained on a par with the previous year. The sales of beers
declined by one percent and the sales of long drinks by 7.4 percent. The sales
of soft drinks (including kvass) declined by 13.0 percent.
In the Estonian beverage market, A. Le Coq is the clear market leader in beers,
ciders and long drinks. A. Le Coq has a market share of 41 (39) percent in
beers, 42 (44) in ciders and 55 (55) in long drinks (Nielsen, April-May 2012).
The company is a market leader also in juices and juice drinks. A. Le Coq's
measured market share in juices made an all-time high in April-May 2012 at 38
(32) percent. In soft drinks, the company is the number two player with a
market share of 30 (34) percent, and this is also the case in waters with a
market share of 16 (15) percent (Nielsen, April-May 2012).
The company's exports and tax-free sales declined by 16.6 percent on the
previous year. Exports and tax-free sales represented 3.8 (4.6) percent of
total sales. Intra-Group sales increased by 2.3 million litres.
The company's net sales from January to June amounted to 41.0 (38.6) million
euro, representing an increase of 2.3 million euro or 6.0 percent. Net sales
growth outperformed volume growth thanks to improved average price of net
sales.
In spite of increased net sales, operating profit in the first half of the year
fell slightly short of the previous year due to increased variable and fixed
costs. Operating profit stood at 6.3 (6.5) million euro, which was 15.4 (16.9)
percent of net sales.
April to June 2012
A. Le Coq's second-quarter sales declined by 0.8 million litres or 1.8 percent
to 41.5 (42.2) million litres. Net sales from April to June amounted to 25.1
(24.2) million euro. Net sales improved by 0.9 million euro or 4.0 percent.
The company's second-quarter operating profit stood at 4.3 (4.9) million euro,
or 17.3 (20.4) percent of net sales. The operating profit declined by 0.6
million euro or 11.8 percent due to increased costs.
A/S CESU ALUS (Cesu Alus, Latvia)
January to June 2012
In the Latvian beverage market, the sales of beers remained almost on a par
with the previous year but there was substantial growth in other main product
groups. In the first half of the year, the cider market increased by
approximately 14 and long drinks by approximately 16 percent (Nielsen,
April-May 2012).
Cesu Alus's sales in the first half of 2012 were on a par with the previous
year at 38 million litres. In the first half of the year, the company's efforts
have been focused on profitability improvement instead of volume growth.
The sales of the company's beers declined by 7.8 percent and the sales of
ciders declined by 16.8 percent. On the other hand, the sales of long drinks
increased by 15.9 percent. The sales of soft drinks (including kvass) declined
by 6.8 percent. Fizz cider still holds the number one position in Latvia with
an approximate market share of 52 percent.
The company had a market share of approximately 28 (29) percent in beers
(Nielsen, May 2012), 52 (53) percent in ciders and 50 (51) percent in long
drinks (Nielsen, April-May 2012). The company is the clear market leader in
ciders and long drinks and a strong number two player in beers. Intra-Group
sales increased by 1.6 million litres.
The company's net sales from January to June amounted to 19.0 (17.8) million
euro, representing an increase of 1.2 million euro or 7.0 percent. Net sales
growth outperformed volume growth thanks to improved average price of net
sales.
Operating profit in January-June improved substantially on the previous year.
Operating profit stood at 1.0 (0.4) million euro, which was 5.2 (2.2) percent
of net sales. The operating profit increased by 0.6 million euro. The operating
profit improvement was attributable to improved profitability as well as cuts
in fixed costs and depreciation.
April to June 2012
Cesu Alus's sales in the second half of the year were on a par with the
previous year at 24.2 (24.2) million litres. Net sales amounted to 12.2 (11.7)
million euro, representing an increase of 0.5 million euro or 4.6 percent on
the previous year.
The company's operating profit in April-June increased by 32.8 percent to 1.0
(0.8) million euro. The operating profit represented 8.5 (6.7) percent of net
sales.
AB VOLFAS ENGELMAN (Volfas Engelman, Lithuania)
January to June 2012
The Lithuanian beer market declined by 3 percent in the first half of the year,
while the sales of long drinks increased substantially by more than 46 percent.
The sales of ciders also increased by almost 9 percent (Nielsen, April-May
2012).
The company's position in the Lithuanian beverage market has become stronger.
The company's market share in the largest product group, beers, was
approximately 14 (11) percent, which is the company's all-time high. The
company is the market leader in ciders with a market share of 32 (38) percent
and in long drinks with a market share of 24 (38) percent. The strong growth of
the long drinks market has attracted several new players. The company is also
the clear market leader in kvass with a market share of 30 (29) percent
(Nielsen, April-May 2012).
The company's sales in the first half of 2012 amounted to 36.2 (33.3) million
litres. Sales increased by 2.9 million litres or 8.6 percent. The sales of
beers increased by 15.0 and long drinks by 25.3 percent, while the sales of
ciders declined by 13.3 percent. The sales of soft drinks and kvass declined by
a total of 13.7 percent.
The company's net sales stood at 16.6 (14.3) million euro, an increase of 2.3
million euro or 15.7 percent. Net sales growth was made possible by good growth
of sales volumes and an increased share of branded products in the portfolio.
The company's operating profit improved substantially thanks to a successful
second quarter. Operating profit in the first half of the year amounted to 0.6
(-0.2) million euro, an increase of 0.8 million euro. Factors contributing to
the increased operating profit included, above all, increased total volume,
increased share of branded products and cuts in fixed operating expenses.
April to June 2012
The company's sales volumes developed favourably also in the second quarter of
the year. Sales from April to June amounted to 21.7 (20.5) million litres,
representing an increase of 1.1 million litres or 5.6 percent. Second-quarter
net sales stood at 10.2 (8.8) million euro, representing an increase of 1.4
million euro or 15.4 percent.
The company's operating result improved substantially in the second quarter:
operating profit stood at 0.8 (0.0) million euro. As reported above, the growth
was made possible by increased sales of branded products and cuts in fixed
expenses.
OAO LIDSKOE PIVO (Lidskoe Pivo, Belarus)
January to June 2012
After the devaluation in October 2011, the exchange rate of the Belarusian
rouble has gradually stabilised and inflation has decelerated. The country's
polito-economic situation is still unstable, and consumer purchasing power has
weakened. Lidskoe Pivo's financial reporting is still subject to the IAS 29
standard “Financial Reporting in Hyperinflationary Economies”.
During the first half of the year, the country's beverage markets declined in
all main product groups except kvass. The beer market declined by 17 percent
and the sales of ciders by 24 percent. There was a 15-percent decline in the
sales of juices and a 6-percent decline in soft drinks. The sales of kvass
increased by 11 percent on the previous year (Nielsen, February-May 2012). The
company's market position has become stronger. The company is a clear market
leader in ciders, kvass and juice drinks. Its market share in kvass was 61
(52), in ciders 60 (60) and in juice drinks 41 (31) percent. The company's
market share in beers was 13 (11) percent (Nielsen February-May 2012).
The company's day-to-day operations developed well in the first half of the
year in spite of the polito-economic instability of the country. First-half
sales amounted to 68.4 (60.1) million litres, an increase of 8.3 million litres
or 13.8 percent. The sales of the company's beers increased by 5.3 percent,
soft drinks and kvass by a total of 25.8 percent and mineral waters by 48.8
percent. The sales of ciders declined by 6.7 percent, and the sales of juices
declined by 23.6 percent.
In the first half of the year, the company's exports increased substantially.
Exports made 10.7 (7.2) percent of the company's total sales. The main
destinations for exports were Russia and Lithuania.
The company's net sales stood at 27.4 (19.9) million euro, an increase of 7.5
million euro or 37.4 percent. Factors contributing to net sales growth included
favourable development of sales volumes and a sustained good average price of
net sales.
Operating profit increased on the previous year by 0.3 million euro to 1.8
(1.5) million euro. The company's relative profitability improved: the
operating profit percentage was 12.4 (7.5).
April to June 2012
The company's operations were successful in the second quarter. Sales amounted
to 42.5 (38.6) million litres, an increase of 10.2 percent.
Net sales improved by 60.0 percent on the previous year, amounting to 18.0
(11.3) million litres.
Second-quarter operating profit amounted to 2.1 (0.8) million euro. The
operating profit improved by 1.3 million euro. In addition to good sales
volumes, the favourable earnings development was attributable to profitability
improvements in all product groups.
FINANCING AND INVESTMENTS
Olvi Group's balance sheet total at the end of the period under review was
296.8 (254.8) million euro. Equity per share stood at 6.41 (5.34) euro. The
equity to total assets ratio improved by 1.5 percentage points to 45.4 (43.9)
percent. The amount of interest-bearing liabilities was 77.7 (66.7) million
euro, including current liabilities of 31.6 (32.3) million euro.
During the period under review, Olvi Group's gross capital expenditure amounted
to 21.2 (22.2) million euro. The parent company Olvi accounted for 9.4 million
euro and the subsidiaries in the Baltic states for 2.9 million euro of the
total. Lidskoe Pivo's gross capital expenditure in the first half of the year
was 8.8 million euro.
The largest investments in Finland in 2012 include the completion of the
commissioning of a new can filling line and tank cellar extension, as well as
modernisation of beer filtering.
In the Baltic States, A. Le Coq's largest investments comprise extensions to
storage facilities and the pressure tank cellar, as well as a labelling machine
for glass bottles. Cesu Alus's major investments are associated with conveyors
for the glass bottle line, as well as other production machinery and equipment.
Volfas Engelman's investments consist of a general renovation of the brewery, a
glass bottle reform, wine and kvass mixing equipment and other smaller
purchases of machinery and equipment.
The first stage of Lidskoe Pivo's extensive investment programme is mainly
completed. It includes, among other things, storage, filling department and
tank cellar buildings, filling line machinery and equipment, an extension to
the kvass cellar, a new beer filter and air compressor.
A substantial share of the year's investments was completed during the second
quarter. The full-year imvestment level will be clearly lower than in the
previous year.
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
Olvi's new product launches in the spring of 2012 have received a warm welcome.
The spring season's new beer products included OLVI Reino, Sven Tuuva, a
less-alcoholic 3.5-percent product in the medium-strength group, as well as
Sandels Special Edition in 0.5-litre recyclable glass bottles. Cider novelties
were OLVI Aino, OLVI Cider Tropical Fruit and the sparkling-wine-like FIZZ
Sparkling Dry. The long drink market saw the introduction of OLVI Leguana.
New soft drinks included the popular brand Angry Birds, launched in the
beginning of April with Tropic and Paradise flavours. The range of Angry Birds
soft drinks will be expanded in September with two new products: Angry Birds
Lagon and Space Comet.
The OLVI family of soft drinks also saw some development. New mineral waters
included KevytOlo Aloe Vera, as well as juice-mineral waters KevytOlo Cranberry
and Orange-Carrot. The new Super Teho was introduced in the energy drink range.
Olvi also entered a completely new product segment through the launch of the
TEHO Sport range of sports beverages. The range of juices was supplemented by
functional Aura Active juices in the flavours of Multivitamin, Apple-Pear and
Cranberry.
The variety of licensed products is also expanded by the new Viivi cider and
Wagner beer in packaging designed by the comic strip artist Juba Tuomola
himself. Olvi's long drinks segment will see further growth through the launch
of another light version in the flavoured drinks range: OLVI Cranberry Light
Long Drink will be supplemented by a light version of OLVI Mojito Long Drink.
The beer range will be supplemented by the non-alcoholic Bitburger Drive 0.0%,
which is manufactured in Germany in compliance with the German purity law.
Subsidiaries
Olvi's English-type Sherwood cider became international in the summer of 2012
when it was launched in apple and pear flavours in Estonia, Latvia and
Lithuania. All of the Baltic subsidiaries also made a simultaneous launch of a
cocktail drink range including flavours such as Mojito, Cuba Libre, Pina Colada
and Cosmopolitan. The Angry Birds soft drinks were also launched in all of the
three Baltic states.
A. Le Coq launched the Dynami:t energy drink in Estonia in a new 0.335-litre
sleek can. Further launches in Estonia in the spring included the Aura Fruit
Green Tea-Peach tea-based beverage, the Premium Extra, Premium Extra Lemon and
Alexander the Great beers, as well as the FIZZ Fragolino cider.
Cesu Alus introduced new imported beers to the Latvian market: Krusovice Cerne,
Krusovice Imperial and Edelweis. Volfas Engelman was the first to launch a
pint-sized single-use glass bottle in the local Lithuanian market. It was first
used for the new Bravoro Pinta beer.
PERSONNEL
Olvi Group's average number of personnel in January-June 2012 was 1,991
(2,049). The Group's average number of personnel decreased by 58 people or 2.8
percent. Personnel decreases were seen in Belarus, while in the other operating
areas, the number was either unchanged or increased slightly. At the end of
June, Olvi Group employed a total of 2,124 (2,193) people.
Olvi Group's average number of personnel by country:
1-6/2012 1-6/2011
Finland 404 (382)
Estonia 318 (318)
Latvia 223 (224)
Lithuania 211 (205)
Belarus 835 (920)
Total 1,991 (2,049)
GROUP STRUCTURE
During the reporting period, Olvi plc acquired a total of 190 shares in A/S
Cesu Alus, corresponding to 0.07 percent of the company's share capital. At the
end of the reporting period, Olvi plc's holding in A/S Cesu Alus was 99.60
percent, in AS A. Le Coq 100.0, in AB Volfas Engelman 99.57 and in OAO Lidskoe
Pivo 91.58 percent.
ANNUAL GENERAL MEETING
Olvi plc's Annual General Meeting was held on 11 April 2012. A separate stock
exchange release was issued on the same day regarding the decisions made and
authorisations given by the meeting.
OLVI A SHARE AND SHARE MARKET
Olvi's share capital at the end of June 2012 stood at 20.8 million euro. The
total number of shares was 20,758,808, of these 17,026,552 or 82.0 percent
being Series A shares and 3,732,256 or 18.0 percent Series K shares. Each
Series A share carries one (1) vote and each Series K share carries twenty (20)
votes. Series A and Series K shares have equal rights to dividends.
The Olvi A share was quoted on Nasdaq OMX Helsinki Ltd (Helsinki Stock
Exchange) at 18.70 (18.60) euro at the end of June. In January-June, the
highest quote for the Series A share was 19.94 (19.86) euro and the lowest
quote was 14.75 (15.30) euro. The average price was 17.43 (17.67) euro.
In January-June, a total of 943,924 (1,508,059) Series A shares were traded,
representing 5.5 (8.9) percent of the total number of Series A shares. The
value of trading was 16.5 (35.3) million euro.
At the end of June 2012, the market capitalisation of the entire stock was
388.2 (386.1) million euro and the market capitalisation of Series A shares was
318.4 (316.7) million euro.
The number of shareholders at the end of June 2012 was 9,112 (8,839). Foreign
holdings plus foreign and Finnish nominee-registered holdings represented 17.7
(19.0) percent of the total number of book entries and 6.1 (6.4) percent of
total votes. Foreign and nominee-registered holdings are reported in Table 5,
Section 8 of the tables attached to this interim report, and the largest
shareholders are reported in Table 5, Section 9.
TREASURY SHARES
There were no changes in the number of treasury shares held by Olvi in
January-June 2012. At the end of the reporting period, Olvi plc held 1,124
Series A shares as treasury shares. Treasury shares held by Olvi plc are
reported in the tables section of this interim report, in Table 5, Section 5.
FLAGGING NOTICES
On 10 May 2012, Olvi plc received a flagging notice concerning its shares in
accordance with Chapter 2, Section 9 of the Securities Markets Act from
Ilmarinen Mutual Pension Insurance Company. According to the notice, Ilmarinen
Mutual Pension Insurance Company's holding had increased to 5.03 percent of
Olvi plc's share capital and 1.14 percent of the votes.
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.
The Group's strategic risks refer to risks related to the characteristics of
the Group's business and strategic choices. The Group's operations are located
in several countries that differ substantially in terms of their social and
economic situations and the phases and directions of development. For example,
strategic risks relate to changes in tax legislation and other regulations, the
environment and foreign exchange markets. If realised, strategic risks can
substantially hamper the company's operational preconditions. The Group's most
substantial identified strategic risks relate to Belarus, particularly the
situation in the country's economy and politics.
The Group's most substantial identified operational risks relate to the
procurement and quality of raw materials, the production process, markets and
customers, personnel, information security and systems, as well as changes in
foreign exchange rates.
Raw materials
General economic development and annual fluctuations in crop yield affect the
prices and availability of major raw materials used within Olvi Group.
Disruptions in raw material deliveries may hamper customer relations and
business operations. Purchases of major raw materials are made under
procurement contracts standardised at the Group level. The predictability of
purchase prices for the most critical raw materials is improved through
long-term procurement agreements and potentially derivatives. All units
emphasise the significance of the quality of raw materials and other production
factors in the overall production chain.
Production process
The aim is to minimise production risks through clear documentation of
processes, increasing the degree of automation, compliance with quality
management system and the pursuit of clear operating methods in relation to
decision-making and supervision. The efficiency and applicability of processes
and methods are monitored using internal indicators. The monitoring and
development of production efficiency includes, among other things, the
reliability and utilisation rate of production machinery, development of the
working environment and factors related to people's work. The Group has a
property and loss-of-profits insurance programme covering all of the operating
areas, and its coverage is reviewed annually.
Markets and customers
The Group's business operations are characterised by substantial seasonal
variation. The net sales and operating profit from the reported geographical
segments do not accumulate evenly but vary substantially according to the time
of the year and the characteristics of each season.
Negative changes in the economy may impact consumers' purchasing behaviour and
hamper the liquidity of hotel and restaurant customers in particular. All Group
companies employ efficient credit controls as a major method for minimising
credit losses.
Legislative changes and other changes 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 economic situation and future development in Europe is still characterised
by uncertainty. However, the outlook for the daily consumer goods market can be
considered stable in comparison to many other industries. The economic
situation in Estonia is stable, and the economies of Latvia and Lithuania are
showing signs of resurrection.
The most substantial factor hampering the predictability of Olvi Group's
business relates to Belarus and its economic and political outlook for the next
few years. 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 level are expected to develop
favourably in 2012. The full-year operating profit is estimated to equal or
slightly exceed the previous year's result.
Further information:
Lasse Aho
Managing Director
phone +358 17 838 5200 or +358 400 203 600
OLVI PLC
Board of Directors
TABLES:
- Statement of comprehensive income, Table 1
- Balance sheet, Table 2
- Changes in shareholders' equity, Table 3
- Cash flow statement, Table 4
- Notes to the interim report, Table 5
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Key media
www.olvi.fi
OLVI GROUP TABLE 1
INCOME STATEMENT
EUR 1,000
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2012 2011 2012 2011 2011
Net sales 95166 85987 153405 141666 285174
Other operating income 252 88 265 251 522
Operating expenses -77971 -71225 -128630 -118987 -240376
Depreciation and impairment -5494 -4416 -10343 -9108 -18637
Operating profit 11953 10434 14697 13822 26683
Financial income 2047 -318 2688 86 8352
Financial expenses -106 -7246 -849 -8327 -16596
Financial expenses - net 1941 -7564 1839 -8241 -8244
Earnings before tax 13894 2870 16536 5581 18439
Taxes *) -3712 381 -4118 -142 -5485
NET PROFIT FOR THE PERIOD 10182 3251 12418 5439 12954
Other comprehensive income items:
Translation differences related to
foreign subsidiaries 1066 -7715 3104 -12361 -15170
TOTAL COMPREHENSIVE INCOME FOR 11248 -4464 15522 -6922 -2216
THE PERIOD
Distribution of profit:
- parent company shareholders 9933 3653 12191 5801 13506
- non-controlling interests 249 -402 227 -362 -552
Distribution of comprehensive profit:
- parent company shareholders 10956 -3534 15233 -5716 -340
- non-controlling interests 292 -930 289 -1206 -1876
Earnings per share calculated from the profit
belonging
to parent company shareholders,
EUR
- undiluted 0.48 0.18 0.59 0.28 0.65
- diluted 0.48 0.18 0.59 0.28 0.65
*) Taxes calculated from the profit for the review period.
OLVI GROUP TABLE 2
BALANCE SHEET
EUR 1,000 30 Jun 2012 30 Jun 31 Dec
2011 2011
ASSETS
Non-current assets
Tangible assets 151088 122277 142443
Goodwill 17609 14315 16761
Other intangible assets 1741 1303 1017
Shares in associates 1077 0 0
Financial assets available for sale 549 544 548
Loan receivables and other non-current 160 138 141
receivables
Deferred tax receivables 98 2435 196
Total non-current assets 172322 141012 161106
Current assets
Inventories 47414 41764 35875
Accounts receivable and other receivables 74473 66638 52718
Income tax receivable 101 0 0
Other non-current assets available for 56 50 56
sale
Liquid assets 2464 5316 3836
Total current assets 124508 113768 92485
TOTAL ASSETS 296830 254780 253591
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 -15205 -15919 -18248
Retained earnings 126520 104906 123286
Total shareholders' equity held by parent 133157 110830 126881
company shareholders
Share belonging to non-controlling 1725 1033 1341
interests
Total shareholders' equity 134882 111863 128222
Non-current liabilities
Loans 44115 32743 29436
Other liabilities 2046 1652 1513
Deferred tax liabilities 2507 1909 2097
Current liabilities
Loans 30592 31344 27039
Accounts payable and other liabilities 80223 74800 64953
Income tax liability 2465 469 331
Total liabilities 161948 142917 125369
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 296830 254780 253591
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. earning of
s shar s non-c
es ontrol
rese ling
rve inter
ests
Shareholders' 20759 1092 -222 -4402 109750 2277 129254
equity 1 Jan 2011
Comprehensive
income
Net profit for the period 5801 -362 5439
Other comprehensive income items
Translation differences -11517 -844 -12361
Total comprehensive income for the -11517 5801 -1206 -6922
period
Transactions with shareholders
Payment of dividends -10660 -10660
Transfer of treasury shares 214 -214 0
Gains from transfer of treasury shares 216 216
Total transactions with shareholders 214 -10658 -10444
Changes in holdings in subsidiaries
Acquisition of shares from non-
controlling shareholders 13 13
Change in share belonging to non-
controlling interests -38 -38
Shareholders' 20759 1092 -8 -15919 104906 1033 111863
equity 30 Jun
2011
EUR 1,000 Share Other Treas Transla Accrued Share Total
capita reserv ury tion earning of
l es share differe s non-con
s nces trollin
accou g
nt interes
ts
Shareholders' equity 1 20759 1092 -8 -18248 123286 1341 128222
Jan 2012
Adjustments for hyperinflation 1397 128 1525
Adjusted shareholders' 20759 1092 -8 -18248 124684 1469 129747
equity 1 Jan 2011
Comprehensive income
Net profit for the period 12191 227 12418
Other comprehensive income items
Translation differences 3043 61 3104
Total comprehensive income for the 3043 12191 288 15522
period
Transactions with shareholders
Payment of dividends -10379 -13 -10392
Changes in holdings in subsidiaries
Acquisition of shares from non-
controlling shareholders 5 5
Change in share belonging to non-
controlling interests 19 -19 0
Shareholders' equity 20759 1092 -8 -15205 126520 1725 134882
30 Jun 2012
OLVI GROUP TABLE 4
CASH FLOW STATEMENT
EUR 1,000
1-6/ 1-6/ 1-12/
2012 2011 2011
Net profit for the period 12418 5439 12954
Adjustments to profit for the period 17359 11373 32530
Change in net working capital -15796 -12860 -3910
Interest paid -1304 -874 -2205
Interest received 72 43 151
Taxes paid -1574 -1972 -5064
Cash flow from operations (A) 11175 1149 34456
Investments in tangible assets -19106 -15205 -33358
Investments in intangible assets -974 -502 -295
Sales gains from tangible and intangible
assets 54 1712 130
Expenditure on other investments -582 1 -2980
Cash flow from investments (B) -20608 -13994 -36503
Withdrawals of loans 41957 32316 30266
Repayments of loans -23449 -11666 -17103
Increase (-) / decrease (+) in current interest-
bearing business receivables 2 2 0
Dividends paid -10393 -10382 -10377
Cash flow from financing (C) 8118 10270 2785
Increase (+)/decrease (-) in liquid assets -1315 -2575 738
(A+B+C)
Liquid assets 1 January 3836 7891 7891
Effect of exchange rate changes -58 0 -4793
Liquid assets 30 June/31 December 2464 5316 3836
OLVI GROUP TABLE 5
NOTES TO THE INTERIM REPORT
Olvi Group's interim report for January-June 2012 has been prepared in
accordance with IAS 34, Interim Financial Reporting. The accounting policies
used for the interim report are the same as those used for the annual financial
statements 2011. The accounting policies are presented in the Annual Report
2011 which was published on 19 March 2012. 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 in 2012:
- IFRS 7 (Amendment), Financial Instruments: Disclosures - Derecognition
- IAS 12 (Amendment), Income taxes - Deferred tax
1. SEGMENT INFORMATION
SALES BY GEOGRAPHICAL SEGMENT (1,000 litres)
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2012 2011 2012 2011 2011
Olvi Group total 160146 155859 261361 254039 518211
Finland 46376 43592 73780 72274 149084
Estonia 41464 42239 68701 68870 133421
Latvia 24189 24161 37792 38142 75352
Lithuania 21683 20537 36202 33347 67540
Belarus 42522 38572 68448 60158 128005
- sales between segments -16088 -13242 -23562 -18752 -35191
NET SALES BY GEOGRAPHICAL SEGMENT (EUR 1,000)
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2012 2011 2012 2011 2011
Olvi Group total 95166 85987 153405 141666 285174
Finland 36723 35347 59980 58413 119788
Estonia 25124 24168 40959 38632 75964
Latvia 12217 11679 19001 17754 35184
Lithuania 10157 8804 16578 14325 29495
Belarus 18028 11266 27380 19927 39609
- sales between segments -7083 -5277 -10493 -7385 -14866
OPERATING PROFIT BY GEOGRAPHICAL SEGMENT (EUR 1,000)
4-6/2012 4-6/2011 1-6/2012 1-6/2011 1-12/2011
Olvi Group total 11953 10434 14697 13822 26683
Finland 3700 3934 5009 7097 13239
Estonia 4354 4938 6311 6521 12973
Latvia 1035 779 989 382 737
Lithuania 837 8 639 -178 411
Belarus 2092 810 1821 1503 737
- eliminations -65 -35 -72 -1503 -1414
2. PERSONNEL ON AVERAGE 1-6/2012 1-6/2011 1-12/2011
Finland 404 382 383
Estonia 318 318 311
Latvia 223 224 217
Lithuania 211 205 205
Belarus 835 920 916
Total 1991 2049 2032
3. RELATED PARTY TRANSACTIONS
Employee benefits to management
Salaries and other short-term employee benefits to the Board of Directors and
Managing Directors
EUR 1,000
1-6/2012 1-6/2011 1-12/2011
Managing Directors 592 665 1017
Chairman of the Board 43 108 150
Other members of the Board 63 61 125
Total 698 834 1292
4. SHARES AND SHARE CAPITAL
30 Jun 2012 %
Number of A shares 17026552 82.02
Number of K shares 3732256 17.98
Total 20758808 100.00
Total votes carried by A shares 17026552 18.57
Total votes carried by K shares 74645120 81.43
Total number of votes 91671672 100.00
The registered share capital on 30 June 2012 totalled 20,759 thousand euro.
Olvi plc's Series A and Series K shares received a dividend of 0.50 euro per
share for 2011 (0.50 euro per share for 2010), totalling 10.4 (10.4) million
euro. The dividends were paid on 23 April 2012. The Series K and Series A
shares entitle to equal dividend. The Articles of Association include a
redemption clause concerning Series K shares.
5. TREASURY SHARES
Olvi plc held a total of 1,124 of its own Series A shares on 1 January 2012.
Olvi plc has not acquired more treasury shares or transferred them to others in
January-June 2012, which means that the number of Series A shares held by the
company was unchanged on 30 June 2012.
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 11 April 2012, the General Meeting of Shareholders of Olvi plc decided to
revoke any unused authorisations to acquire treasury shares and authorise the
Board of Directors of Olvi plc to decide on the acquisition of the company's
own shares using distributable funds. The authorisation is valid for one year
starting from the General Meeting and covers a maximum of 500,000 Series A
shares.
The Annual General Meeting also decided to revoke all existing unused
authorisations for the transfer of own shares and authorise the Board of
Directors to decide on the issue of a maximum of 1,000,000 new Series A shares
and the transfer of a maximum of 500,000 Series A shares held as treasury
shares.
In January-June 2012, the Board of Directors of Olvi plc has not exercised the
authorisations granted by the General Meeting.
6. NUMBER OF SHARES *) 1-6/2012 1-6/2011 1-12/2011
- average 20757684 20744996 20751392
- at end of period 20757684 20757684 20757684
*) Treasury shares deducted.
7. TRADING OF SERIES A SHARES ON THE HELSINKI STOCK
EXCHANGE
1-6/2012 1-6/2011 1-12/2011
Trading volume of Olvi A shares 943924 1508059 3208911
Total trading volume, EUR 1,000 16504 35302 62299
Traded shares in proportion to
all Series A shares, % 5.5 8.9 18.8
Average share price, EUR 17.43 17.67 16.68
Price on the closing date, EUR 18.70 18.60 14.75
Highest quote, EUR 19.94 19.86 19.86
Lowest quote, EUR 14.75 15.30 13.49
8. FOREIGN AND NOMINEE-REGISTERED HOLDINGS ON 30 JUNE 2012
Book entries Votes Shareholders qty % qty % qty %
Finnish total 17087566 82.31 86056958 93.88 9063 99.46
Foreign total 404248 1.95 2347720 2.56 41 0.45
Nominee-registered (foreign) 602 0.00 602 0.00 2 0.02
total
Nominee-registered (Finnish) 3266392 15.74 3266392 3.56 6 0.07
total
Total 20758808 100.00 91671672 100.00 9112 100.00
9. LARGEST SHAREHOLDERS ON 30 JUNE 2012
Series Series A Total % Votes %
K
1. Olvi Foundation 2363904 896332 3260236 15.71 48174412 52.55
2. Hortling Heikki 901424 155674 1057098 5.09 18184154 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 1895700 1895700 9.13 1895700 2.07
register
7. Ilmarinen Mutual Pension 1066526 1066526 5.14 1066526 1.16
Insurance Company
8. Nordea Bank Finland plc, 863140 863140 4.16 863140 0.94
nominee register
9. Oy Autocarrera Ab 460000 460000 2.22 460000 0.50
10. Nasdaq OMXBS/Skandinaviska
Enskilda
Banken AB, nominee register 425200 425200 2.05 425200 0.46
Others 11712 11202024 11213736 54.02 11436264 12.49
Total 3732256 17026552 20758808 100.00 91671672 100.00
*) The figures include the shareholder's own holdings and shares held by
parties in his control.
10. PROPERTY, PLANT AND EQUIPMENT
EUR 1,000
1-6/2012 1-6/2011 1-12/2011
Increase 20751 21787 42937
Decrease -589 -2731 -6436
Total 20162 19056 36501
11. CONTINGENT LIABILITIES 1-6,2012 1-6,2011 1-12,2011
EUR 1,000
Pledges and contingent liabilities
For own commitments 7744 5184 4632
For others 130 134 130
Leasing liabilities:
Due within one year 673 772 644
Due within 1 to 5 years 821 843 663
Due in more than 5 years 0 0 0
Total leasing liabilities 1494 1615 1307
Package liabilities 4166 4277 4208
Other liabilities 2000 1980 1980
12. CALCULATION OF FINANCIAL RATIOS
Equity to total assets, % = 100 * (Shareholders' equity belonging to parent
company shareholders + non-controlling interests + voluntary provisions and
depreciation difference deducted by deferred tax liability)/(Balance sheet
total - advances received)
Earnings per share (EPS) = (Profit before taxes - taxes +/- non-controlling
interests)/ Average number of shares during the year, adjusted for share issues
Equity per share = (Shareholders' equity + voluntary provisions and
depreciation difference deducted by deferred tax liability and non-controlling
interests) / Number of shares at end of period, adjusted for share issues
Gearing, % = 100 * (Interest-bearing liabilities + advances received - cash and
other liquid assets) /(Shareholders' equity + voluntary provisions and
depreciation difference deducted by deferred tax liability)
© 2024 Nasdaq, Inc. All Rights Reserved |