Interim / Quarterly Report • Aug 12, 2010
Interim / Quarterly Report
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OLVI GROUP'S INTERIM REPORT, 1 JANUARY TO 30 JUNE 2010 (6 MONTHS)
Olvi Group's performance was good. Sales volumes increased in all of the Group's geographical areas.
January-June in brief:
KEY RATIOS
| 1-6/2010 | 1-6/2009 | Change % |
1-12/2009 | |
|---|---|---|---|---|
| Net sales, MEUR |
126.3 | 119.7 | 5.5 | 244.2 |
| Operating profit, MEUR Gross capital |
13.3 | 13.2 | 1.1 | 27.8 |
| expenditure, MEUR |
13.8 | 10.8 | +27.5 | 48.4 |
| Earnings per share, EUR |
1.03 | 1.00 | 3.0 | 2.15 |
| Equity per share, EUR Equity to total assets, |
11.01 | 9.28 | 18.6 | 10.56 |
| % | 44.8 | 42.7 | 47.3 | |
| Gearing, % |
48.0 | 62.5 | 48.0 |
"Olvi Group's performance in the first half of the year was good. Our performance improved slightly on the previous year, and we are satisfied with this. Our performance improved substantially in Finland and Belarus. The performance figures in Estonia and Lithuania were almost on a par with the previous year but there was a decline in Latvia. We were able to improve our overall market position across the entire operating area, and Olvi Group's financial position improved. We have a confident outlook towards the rest of the operating year," says Lasse Aho, Managing Director of Olvi plc.
SALES VOLUME, NET SALES AND EARNINGS
OLVI GROUP
January to June 2010
Olvi Group's sales from January to June 2010 amounted to 222 (201) million litres. This represents an increase of 21 million litres or 10.2 percent. Sales volumes improved in all operating areas.
During the first half of the year, sales in Finland increased by 5 million litres, sales in the Baltic states by 6 million and sales in Belarus by 10 million litres.
The Group's net sales from January to June amounted to 126.3 (119.7) million euro. This represents an increase of 6.5 million euro or 5.5 percent.
Domestic net sales amounted to 53.0 (49.0) million euro. The Baltic subsidiaries generated net sales of 60.6 (62.7) million euro, while net sales in Belarus amounted to 17.8 (14.5) million euro. Net sales in Finland increased by 4.0 million euro or 8.1 percent, and net sales in Belarus increased by 3.4 million euro or 23.4 percent. Net sales in the Baltic states fell 2.1 million euro or 3.3 percent short of the previous year.
The Group's operating profit for January-June stood at 13.3 (13.2) million euro, or 10.6 (11.0) percent of net sales.
Operating profit in Finland improved by 1.2 million euro to 5.9 (4.7) million euro. Operating profit in Belarus improved substantially by 0.7 million euro to 1.9 (1.2) million euro. Operating profit in Estonia fell slightly short of the previous year but improved clearly during the spring. The Baltic subsidiaries generated an aggregate operating profit of 6.2 (7.2) million euro.
The Group's profit after taxes in the period under review was 10.9 (11.5) million euro. Earnings per share calculated from the profit belonging to parent company shareholders in the first half of the year stood at 1.03 (1.00) euro per share.
Owing to the seasonal character of the brewing industry, the majority of the full-year net sales and operating profit is made during the second and third quarters.
April to June 2010
Olvi's business developed favourably during the second quarter.
Olvi Group's sales in the second quarter amounted to a total of 135 (123) million litres. Sales increased by 12 million litres or 9.7 percent. Domestic sales were on a par with the previous year at 37 million litres. Sales in the Baltic states increased by 4 million litres to 74 (70) million, and in Belarus by 8 million litres to 33 (25) million litres.
The Group's net sales from April to June amounted to 76.8 (72.6) million euro. Net sales improved by 3.8 million euro or 5.2 percent. Net sales in Finland amounted to 30.3 (29.4) million euro and net sales in the Baltic states to 38.2 (38.8) million euro. Net sales in Belarus increased substantially by 34.9 percent, to 12.0 (8.9) million euro.
The Group's operating profit for the second quarter stood at 11.2 (10.8) million euro, or 14.7 (14.9) percent of net sales. The operating profit increased by 0.4 million euro or 4.1 percent compared to the previous year. Operating profit in Finland increased by 0.7 million euro, and operating profit in Belarus increased by 0.5 million euro. The aggregate operating profit of the Baltic subsidiaries declined by 0.6 million euro, amounting to 5.8 (6.4) million euro.
Parent company Olvi plc
January to June 2010
The parent company Olvi plc's sales volume in January-June was 65 (60) million litres. The sales volume increased by 5 million litres or 8.6 percent.
According to statistics by the Federation of the Brewing and Soft Drinks Industry, the Finnish beverage market in January-June diminished by an approximate total of 4 percent compared to the previous year. Sales went down in all product groups, with the greatest decline seen in ciders -8 percent and in soft drinks -7 percent. The sales of long drinks saw the smallest decline of -1 percent.
In spite of the above, Olvi plc's sales in the most important brewery product groups increased substantially on the previous year. The sales of ciders increased by some 25 percent, and long drinks by some 28 percent. The sales of long drinks are further boosted by the highly popular Olvi Cranberry Long Drink and Gold Long Drink. The sales of ciders were boosted by the Olvi ciders launched in March, which were well-received in the market.
The sales of beers also increased clearly, by almost 14 percent. The sales of mineral waters increased by two percent, while the sales of soft drinks declined on the previous year.
According to statistics by the Federation of the Brewing and Soft Drinks Industry, Olvi plc's market shares in January-June had increased in all product groups except soft drinks. In alcoholic beverages (beers, ciders and long drinks), Olvi's market share was 21 (18) percent. In mineral waters, Olvi had a market share of 20 (19), and in soft drinks 4 (5) percent.
The parent company's net sales from January to June amounted to 53.0 (49.0) million euro, representing an increase of 4.0 million euro or 8.1 percent.
Olvi plc's first-half operating profit improved substantially. Operating profit in January-June stood at 5.9 (4.7) million euro, which was 11.2 (9.7) percent of net sales. The operating profit improved by 1.2 million euro or 25.1 percent. The profitability improvement was made possible by decreased costs, increased production capacity, improved efficiency of operations and successful new products in the beer, long drink and cider segments. The operating profit includes 0.6 million euro of sales gains recognised in the first quarter from the sales of decommissioned production machinery.
April to June 2010
The parent company's sales volume in the second quarter was on a par with the previous year at 37 (37) million litres. Net sales stood at 30.3 (29.4) million euro, an increase of 0.9 million euro or 3.0 percent.
Operating profit from April to June stood at 3.7 (3.0) million euro. The operating profit improved by 0.7 million euro or 22.7 percent in the second quarter.
AS A. LE COQ
January to June 2010
The Estonian subsidiary AS A. Le Coq's January-June sales amounted to 60 (58) million litres. Sales increased by 2 million litres or 4.6 percent even though total consumption in the Estonian beverage market declined during the first half of the year.
The company strengthened its market position in the most important beverage groups. The sales of beers increased by approximately 7 percent. The sales of ciders increased by 2 percent and long drinks by 4 percent. The sales of soft drinks increased by 5 percent. The sales of juices declined slightly. The sales of mineral waters declined clearly as consumption shifted more and more to lowprice private label products.
The company's exports and tax-free sales increased substantially on the previous year.
The company's net sales from January to June were on a par with the previous year at 33.8 (33.7) million euro.
Operating profit for the first half of the year was almost on a par with the previous year at 5.5 (5.7) million euro, which was 16.2 (17.0) percent of net sales.
April to June 2010
AS A. Le Coq's second quarter was strong and outperformed the previous year.
Sales in the second quarter amounted to 38 (35) million litres, an increase of 3 million litres or 7.5 percent on the previous year. Net sales from April to June amounted to 21.6 (20.6) million euro. Net sales improved by 1.0 million euro or 4.9 percent.
The company's second-quarter operating profit was 4.3 percent better than in the previous year, 4.5 (4.3) million euro.
A/S CESU ALUS
January to June 2010
In the first half of 2010, the sales of A/S Cesu Alus operating in Latvia totalled 33 (31) million litres. Sales increased by 2 million litres or 5.3 percent. The sales of beers increased by 14 percent and soft drinks by more than 29 percent. The sales of ciders and long drinks declined by some 17 percent due to a decline in the total market. Fizz cider still holds the number one position in Latvia with an approximate market share of 52 percent.
The company's net sales from January to June amounted to 14.7 (16.5) million euro, representing a decline of 1.8 million euro or 10.7 percent. The decline in net sales is due to a weakened structure of sales. The decline in net sales is almost entirely attributable to the second quarter.
Operating profit in January-June stood at 0.4 (1.1) million euro, which was 2.6 (6.7) percent of net sales. The operating profit declined by 0.7 million euro or 66.1 percent compared to the previous year. In addition to the decline in net sales, operating profit was burdened by an increase in planned depreciation.
April to June 2010
In the second quarter, A/S Cesu Alus's sales increased by 5.9 percent to 20 (19) million litres. Net sales amounted to 9.2 (10.6) million euro. Net sales declined by 1.4 million euro or 12.9 percent compared to the previous year.
The company's net sales from April to June amounted to 0.9 (1.5) million euro, representing a decline of 0.6 million euro or 42.5 percent on the previous year.
In April 2010, A/S Cesu Alus received an award for being the country's best company in observing the principles of sustainable development. The Sustainability Index indicator is used to assess the realisation of sustainable development and the company's responsible action towards the environment, market, working environment and society. This was the first time company operations were evaluated in Latvia.
AB RAGUTIS
January to June 2010
In the first half of the year, the sales volume of AB Ragutis operating in Lithuania increased by 4.5 percent to 27 (26) million litres. The sales of beers increased by some 10 percent, and long drinks by some 20 percent. An increase of approximately 14 percent was also seen in soft drinks, while the sales of ciders declined by 8 percent.
The company's net sales from January to June amounted to 12.0 (12.4) million euro, representing a decline of 0.4 million euro or 3.4 percent. The decline in net sales is due to a weakened sales structure.
The company's operating profit in the first half of the year stood at 0.3 (0.4) million euro, which was 2.7 (3.1) percent of net sales.
April to June 2010
AB Ragutis's sales in April-June were on a par with the previous year at 16 million litres. Second-quarter net sales were also almost on a par with the previous year at 7.3 (7.5) million euro, a decline of 0.2 million euro or 2.6 percent.
Second-quarter operating profit amounted to 0.5 (0.7) million euro. The operating profit declined by 0.2 million euro or 24.3 percent on the previous year.
OAO Lidskoe Pivo
January to June 2010
During the period under review, the operations of OAO Lidskoe Pivo operating in Belarus developed very favourably.
The company's sales from January to June 2010 amounted to 50 (40) million litres, representing an increase of 10 million litres or 24.0 percent. Sales increased clearly in all of the core product groups: kvass by 58 percent, beers 11 percent, soft drinks 35 percent, mineral waters 21 percent and long drinks 12 percent. Also the sales of juices increased clearly in the period under review.
The company's exports doubled in the period under review and represented five percent of total sales.
The company's net sales stood at 17.8 (14.5) million euro, an increase of 3.4 million euro or 23.4 percent. The increase in net sales denominated in euro was affected by very positive development in sales volumes and a favourable change in foreign exchange rates.
Operating profit for the first half of the year stood at 1.9 (1.2) million euro, which was 10.9 (8.5) percent of net sales. This represents an increase of 0.7 million euro or 58.6 percent on the previous year. Good net sales development, strict control of costs and improved efficiency boosted the operating profit particularly in the second quarter.
April to June 2010
OAO Lidskoe Pivo's sales volume in the second quarter was 33 (25) million litres, an increase of 8 million litres or 33.5 percent.
The company's net sales increased by 3.1 million euro or 34.9 percent to 12.0 (8.9) million euro.
Operating profit improved clearly during the second quarter and stood at 1.9 (1.4) million euro, an increase of 0.5 million euro or 34.2 percent.
The company started to make investments in additional production and storage capacity during the period under review. The new capacity will be commissioned by the 2011 summer season.
FINANCING AND INVESTMENTS
Olvi Group's balance sheet total at the end of June 2010 was 262.1 (248.8) million euro. Equity per share in January-June stood at 11.01 (9.28) euro, an increase of 1.73 euro per share. The equity ratio of 44.8 (42.7) percent improved by 2.1 percentage points on the previous year. The amount of interestbearing liabilities was 69.7 (74.4) million euro, including current liabilities of 28.8 (33.3) million euro.
During the period under review, Olvi Group's gross capital expenditure amounted to 13.8 (10.8) million euro. The parent company Olvi plc accounted for 2.9 million euro and the subsidiaries in the Baltic states for 2.3 million euro of the total. OAO Lidskoe Pivo's gross capital expenditure in the first half of the year was 8.6 million euro. Investments were mainly focused on the construction of production premises, acquisition of production machinery, new packaging, as well as maintenance and replacement investments.
The largest investments in Finland in 2010 comprise machines for labelling, cardboard packaging and wrapping, as well as development of internal logistics in the storehouse. The largest investments in the Baltic states are new glass and PET bottle formats for AS A. Le Coq, together with a yeast separator and screw-cap machine for the tetrapack line; A/S Cesu Alus gets a new filling, labelling and capping machine, a new bottle format and an air compressor, and AB Ragutis gets extensions to the fermentation tank and waste yeast cellars, as well as water treatment equipment for the boiling room. In Belarus, a new
storehouse and two filling lines will be built, and the tank cellar and filtering section will get extensions. Cooling equipment will also be modernised.
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.
The Finnish market will see the introduction of the innovative TEHO Energy Water in a white 0.5-litre recyclable plastic bottle. TEHO Energy Water is based on mineral water and contains all of the active ingredients of energy drinks.
Sandels beers will be complemented with Sandels Dark packaged in pint-size cans.
OLVI Gold Long Drink will become available in 0.45-litre recyclable plastic bottles in addition to canned packaging. There are three new cider products. FIZZ Dry Perry in 0.5-litre cans. The OLVI Cider family introduced in the spring will get the new flavour Wild Raspberry in 0.45-litre recyclable plastic bottles and 4-packs, as well as the seasonal cider Vanilla-Almond.
The KevytOlo mineral water family will get the new flavours Apple-Rhubarb with added Vitamin B, and Raspberry containing calcium and magnesium. The soft drink segment will see the pear-flavoured HeviSaurus drink.
Kvass, which has become very popular in Olvi Group's other markets, will be launched in Finland under the name A. Le Coq Kvassi. The product is made through fermentation and contains a maximum of 0.5 percent alcohol.
In May, AS A. Le Coq launched A. Le Coq Maiz in 0.33-litre glass bottles and 6 packs. In long drinks, the company launched A. Le Coq G Safari Sunrise in 0.5 litre cans and FIZZ Cooler Passion cider in 0.5-litre cans. The non-alcoholic product segment saw the launch of Aura Fruit Lemon in 0.5- and 1.5-litre recyclable plastic bottles.
The cola market makes up approximately 30 percent of the soft drinks market in Estonia. In the spring, AS A. Le Coq signed an agreement with the American company Royal Crown Cola concerning the sales of RC Cola. Production of RC Cola started in the USA in 1905, and it is currently sold in 60 countries. The product will be introduced in 0.33-litre cans as well as 0.5- and 1.5-litre recyclable plastic bottles.
The cola market also makes up approximately 30 percent of the soft drinks market in Latvia. RC Cola was also launched there, and sales started in June in 0.33 litre cans as well as 0.5- and 2-litre recyclable plastic bottles.
Maize beer was also launched in Latvia. Cesu Maiz is available in 0.33-litre glass bottles and corresponding 6-packs. FIZZ Cooler Passion, which was available in the Estonian market, was also launched in Latvia.
Ragutis operating in Lithuania launched a beer called 1410 to celebrate the victorious Battle of Tannenberg fought 600 years ago. The beer contains 5.3% alcohol and is packaged in pint-size cans. In ciders, Real Cider Pineapple 6.0% was launched in 1.5-litre recyclable plastic bottles. Jamaica Long Drink became available as Tequila-Lemon 8.1% in 1.5-litre recyclable plastic bottles.
In Belarus, OAO Lidskoe Pivo launched the pale Lidskoe Pilsner beer in 0.5-litre glass bottles as well as 0.75- and 1.5-litre recyclable plastic bottles.
The Limpa family of soft drinks saw the introduction of the Banana-Strawberry flavour. The Aura brand was introduced also in Belarus as a mineral water. The kvass product group was expanded with a honey-flavoured product. BCE Vitamin juice drinks were complemented with a new flavour of Coconut-Pineapple-Apple in 0.5- and 1-litre recyclable plastic bottles.
Olvi Group's average number of personnel in January-June was 2,041 (2,100), 378 (374) of them in Finland, 314 (355) in Estonia, 208 (217) in Latvia, 191 (197) in Lithuania and 950 (957) in Belarus. The Group's average number of personnel decreased by 59 people or 2.8 percent. The number of personnel in Finland increased by 4 people. The average number of personnel in the Baltic states decreased by 56 people on the previous year. Belarus saw a decrease of 7 people. The total number of personnel at the end of June was 2,171 (2,220).
In April-June 2010, Olvi plc increased its holding of A/S Cesu Alus to 99.36 percent (previously 99.30 percent) and holds 100.00 percent of AS A. Le Coq and 99.57 percent of AB Ragutis. At the end of June 2010, Olvi plc's holding of OAO Lidskoe Pivo was 87.84 percent but after the review period in July, Olvi plc increased its holding in OAO Lidskoe Pivo by 3.74 percentage points. The holding is now 91.58 percent.
Olvi plc's share capital at the end of June 2010 was 20,758,808 euro. The total number of shares at the end of June 2010 was 10,379,404, of these 8,513,276 or 82.0 percent being Series A shares and 1,866,128 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 26.49 euro at the end of 2009 and 27.40 euro at the end of June 2010. In January-June, the highest quote for the Series A share was 28.70 euro and the lowest quote was 24.01 euro.
At the end of June 2010, the market capitalisation of Series A shares was 233 million euro. 777,315 Series A shares were traded in January-June 2010.
The company held 12,400 Series A shares as treasury shares at the end of June 2010.
The number of shareholders at the end of June 2010 was 7,892.
Olvi plc did not receive any flagging notices during the period under review.
BUSINESS RISKS AND UNCERTAINTIES IN THE NEAR TERM
The global economy is recovering from the downturn that followed the financial crisis, and world trade is estimated to become livelier. The gross national product, employment rate and consumer demand are estimated to develop positively. However, there are great differences between countries. Any signs of an economic upturn particularly in Latvia and Lithuania are minor for the time being. If the positive development lasts only for a short term, weakening consumer purchasing power will cause a decrease in product demand and guide it towards products of a lower price category.
Country-specific downturns in the economic situation may affect customers' solvency and the schedule of payments, leading to credit losses. The control of accounts receivable has been intensified in order to prevent credit loss risks. On the othyer hand, credit loss risk is reduced by the fact that Olvi Group's customer base is wide and distributed in several countries.
Olvi's operations are dependent on the reliability of materials management, production facilities, logistics and IT systems. The aim is to prevent the realisation of related risks through continuous analysis and development of processes. Olvi Group companies have insurance covering their assets and business interruptions.
Olvi operates internationally, and its business involves risks arising from foreign exchange fluctuations due to cash flows from purchases and sales, as well as the conversion of balance sheet items in foreign subsidiaries into euro. Olvi Group's parent company is centrally responsible for managing foreign exchange and financing risks in accordance with the Board of Directors' guidance.
Olvi upgrades its outlook for 2010 thanks to performance development in the first half of the year, favourable summer weather and market outlook for the rest of the year.
Olvi Group's main objective for 2010 is to maintain good profitability. Olvi Group's comparable full-year operating profit for 2010 is expected to be on a par with the 2009 level.
Interim Report 29 April 2010
Olvi Group's objective for 2010 is to maintain good profitability. Olvi Group's comparable full-year operating profit for 2010 is estimated to fall slightly short of the 2009 level.
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
DISTRIBUTION NASDAQ OMX Helsinki Ltd Key media www.olvi.fi
BALANCE SHEET
| EUR 1,000 |
|||
|---|---|---|---|
| 30 Jun |
31 Dec |
||
| 30 Jun 2010 |
2009 | 2009 | |
| ASSETS | |||
| Non-current assets |
|||
| Tangible assets |
127406 | 128495 | 125268 |
| Goodwill | 17171 | 10791 | 17176 |
| Other intangible assets |
1018 | 895 | 953 |
| Financial assets available for sale |
288 | 288 | 288 |
| Other non-current assets available |
|||
| for sale Loan receivables and other non |
0 | 429 | 0 |
| current receivables |
137 | 123 | 143 |
| Deferred tax receivables |
1622 | 719 | 909 |
| Total non-current assets |
147642 | 141740 | 144737 |
| Current assets |
|||
| Inventories | 38860 | 38839 | 35355 |
| Accounts receivable and other |
|||
| receivables | 62268 | 60246 | 48703 |
| Liquid assets |
13308 | 7983 | 8402 |
| Total current assets |
114436 | 107068 | 92460 |
| TOTAL ASSETS |
262078 | 248808 | 237197 |
| SHAREHOLDERS' EQUITY AND LIABILITIES |
|||
| Shareholders' equity held by parent shareholders |
company | ||
| Share capital |
20759 | 20759 | 20759 |
| Other reserves |
1092 | 1092 | 1092 |
| Treasury shares |
-222 | -222 | -222 |
| Translation differences |
-2616 | -2775 | -4853 |
| Retained earnings |
95095 | 77399 | 92746 |
| 114108 | 96253 | 109522 | |
| Minority interest |
3244 | 10001 | 2764 |
| Total shareholders' equity |
117352 | 106254 | 112286 |
| Non-current liabilities |
|||
| Loans | 38896 | 41081 | 36101 |
| Other liabilities |
1936 | 0 | 0 |
| Deferred tax liabilities |
1714 | 1459 | 1581 |
| Current liabilities |
|||
| Loans | 27879 | 33286 | 26238 |
| Accounts payable and other |
|||
| liabilities | 74301 | 66728 | 60991 |
| Total liabilities |
144726 | 142554 | 124911 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES |
262078 | 248808 | 237197 |
| CHANGES IN OLVI GROUP'S CONSOLIDATED SHAREHOLDERS' EQUITY | Transla | ||||||
|---|---|---|---|---|---|---|---|
| Share | Other | Treasury | tion differe |
Accrued earning |
Minority interes |
||
| EUR 1,000 | capital | reserves | shares | nces | s | t | Total |
| account | |||||||
| Shareholders' | |||||||
| equity 1 Jan 2009 | 20759 | 1092 | -63 | -23 | 72339 | 11618 | 105722 |
| Payment of dividends |
-5287 | -5287 | |||||
| Acquisition of treasury | |||||||
| shares | -159 | -159 | |||||
| Total comprehensive income for the period |
-2752 | 11487 | -2757 | 5978 | |||
| Share of profit belonging to the minority Shareholders' |
-1140 | 1140 | 0 | ||||
| equity 30 June 2009 |
20759 | 1092 | -222 | -2775 | 77399 | 10001 | 106254 |
| Transla | |||||||
|---|---|---|---|---|---|---|---|
| Share | Other | Treasury | tion differe |
Accrued earning |
Minority interes |
||
| capital | reserves | shares | nces | s | t | Total | |
| account | |||||||
| EUR 1,000 | |||||||
| Shareholders' equity 1 Jan 2010 Payment of |
20759 | 1092 | -222 | -4853 | 92746 | 2764 | 112286 |
| dividends | -8345 | -8345 | |||||
| Acquisition of treasury shares |
0 | ||||||
| Total comprehensive income for the period |
2237 | 10941 | 233 | 13411 | |||
| Share of profit belonging to the minority |
-247 | 247 | 0 | ||||
| Shareholders' equity 30 Jun 2010 |
20759 | 1092 | -222 | -2616 | 95095 | 3244 | 117352 |
Other reserves include the share premium account, legal reserve and other reserves.
CASH FLOW STATEMENT EUR 1,000
| 1-6/2010 | 1-6/2009 | 1-12/2009 | |
|---|---|---|---|
| Net profit for the period |
10941 | 11487 | 23009 |
| Adjustments to profit for the period |
12312 | 8157 | 20697 |
| Change in net working capital |
-5700 | -2064 | -2351 |
| Interest paid |
-884 | -2441 | -3538 |
| Interest received |
129 | 401 | 663 |
| Taxes paid |
-1066 | -806 | -3014 |
| Cash flow from operations (A) |
15732 | 14734 | 35466 |
| Investments in tangible assets |
-9639 | -9320 | -17457 |
| Investments in intangible assets |
-236 | -29 | -265 |
| Sales gains from tangible and intangible |
|||
| assets | 60 | 123 | 345 |
| Expenditure on other investments |
-2 | -2 | |
| Cash flow from investments (B) |
-9815 | -9228 | -17379 |
| Withdrawals of loans |
25000 | 25861 | 20912 |
| Repayments of loans |
-17680 | -33695 | -40774 |
| Acquisition of treasury shares |
0 | -159 | -160 |
| Dividends paid |
-8331 | -5278 | -5411 |
| Cash flow from financing (C) |
-1011 | 13271 | -25433 |
| Increase (+)/decrease (-) in liquid assets |
|||
| (A+B+C) | 4906 | -7765 | -7346 |
| Liquid assets 1 January |
8402 | 15748 | 15748 |
| Liquid assets 30 June /31 Dec |
13308 | 7983 | 8402 |
| Change in liquid assets |
4906 | -7765 | -7346 |
Olvi Group's interim report for January-June 2010 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 2009. The accounting policies are presented in the Annual Report 2009 which was published on 16 March 2010. 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 2010:
IFRS 2 (Amendment) Share-based Payments – Group Cash-settled Share-based Payment Transactions and Scope - IFRS 5 (Amendment) Long-term Assets Held for Sale and Discontinued Operations - IFRS 8 (Amendment) Operating Segments - IAS 1 (Amendment) Presentation of Financial Statements - IAS 7 (Amendment) Statement of Cash Flows - IAS 17 (Amendment) Leases - IAS 18 (Amendment) Revenue - IAS 36 (Amendment) Impairment of Assets - IAS 38 (Amendment) Intangible Assets - IAS 39 (Amendment) Financial Instruments: Recognition and Measurement - IFRIC 9 (Amendment) Reassessment of Embedded Derivatives - IFRIC 16 (Amendment) Hedges of a Net Investment in a Foreign Operation
SEGMENT INFORMATION
SALES BY GEOGRAPHICAL SEGMENT (1,000 litres)
| 4-6/ | 4-6/ | 1-6/ | 1-6/ | 1-12/ |
|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2009 |
| 134897 | 122928 | 221650 | 201144 | 419023 |
| 36834 | 37329 | 65184 | 60041 | 129671 |
| 37779 | 35131 | 60389 | 57717 | 113362 |
| 20315 | 19181 | 32584 | 30946 | 58935 |
| 16276 | 15806 | 26854 | 25699 | 51746 |
| 32901 | 24644 | 49527 | 39926 | 87453 |
| -9208 | -9163 | -12888 | -13185 | -22144 |
NET SALES BY GEOGRAPHICAL SEGMENT (EUR 1,000)
| 4-6/ 2010 |
4-6/ 2009 |
1-6/ 2010 |
1-6/ 2009 |
1-12/ 2009 |
|
|---|---|---|---|---|---|
| Olvi Group total: |
76772 | 72649 | 126269 | 119730 | 244165 |
| Finland | 30323 | 29445 | 53001 | 49007 | 104511 |
| Estonia *) |
21656 | 20641 | 33845 | 33723 | 65194 |
| Latvia | 9243 | 10612 | 14719 | 16480 | 30036 |
| Lithuania | 7335 | 7532 | 12024 | 12449 | 24644 |
| Belarus | 11985 | 8887 | 17847 | 14468 | 30288 |
| - sales between segments |
-3770 | -4468 | -5167 | -6397 | -10508 |
OPERATING PROFIT BY GEOGRAPHICAL SEGMENT (EUR 1,000)
| 4-6/ 2010 |
4-6/ 2009 |
1-6/ 2010 |
1-6/ 2009 |
1-12/ 2009 |
|
|---|---|---|---|---|---|
| Olvi Group total: |
11248 | 10803 | 13342 | 13197 | 27763 |
| Finland | 3669 | 2990 | 5931 | 4740 | 9596 |
| Estonia | 4476 | 4290 | 5492 | 5725 | 10156 |
| Latvia | 858 | 1492 | 376 | 1108 | 1019 |
| Lithuania | 497 | 656 | 321 | 382 | 909 |
| Belarus | 1868 | 1392 | 1947 | 1227 | 5797 |
| - eliminations |
-120 | -17 | -725 | 15 | 286 |
| 2. PERSONNEL ON AVERAGE |
1-6/2010 | 1-6/2009 | 1-12/2009 | ||
| Finland | 378 | 374 | 377 | ||
| Estonia | 314 | 355 | 337 | ||
| Latvia | 208 | 217 | 206 | ||
| Lithuania | 191 | 197 | 195 | ||
| Belarus | 950 | 957 | 961 | ||
| Total | 2041 | 2100 | 2076 | ||
| 3. RELATED PARTY TRANSACTIONS Employee benefits to management Salaries and other short-term Directors and Managing Director EUR 1,000 |
employee | benefits 1-6/ 2010 |
to the Board |
of 1-6/ 2009 |
1-12/ 2009 |
| Managing Directors |
371 | 358 | 620 | ||
| Chairman of the Board |
113 | 109 | 222 | ||
| Other members of the Board |
55 | 52 | 110 | ||
| Total | 539 | 519 | 952 | ||
| 4. SHARES AND SHARE CAPITAL |
|||||
| 30 | June 2010 |
% | |||
| Number of A shares |
8513276 | 82.0 | |||
| Number of K shares |
1866128 | 18.0 | |||
| Total | 10379404 | 100.0 | |||
| Total votes carried by A shares |
8513276 | 18.6 | |||
| Total votes carried by K shares |
37322560 | 81.4 | |||
| Total number of votes |
45835836 | 100.0 | |||
| Registered share capital, EUR |
1,000 | 20759 | |||
| The Series A and Series K shares 2009 (0.50 euro per share for dividends were paid on 20 April |
received 2008), 2010. |
a totalling |
dividend of 0.80 8.3 (5.2) |
euro per million euro. |
share for The |
| Nominal value of A and K shares, |
EUR | 2.00 | |||
| Votes per Series A share |
1 |
The shares entitle to equal dividend. The Articles of Association include a redemption clause concerning Series K shares.
Votes per Series K share 20
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 are payable partially in Olvi plc's Series A shares and partially in cash. The proportion payable in cash covers the taxes and other statutory fees arising from the share-based bonuses. The bonuses for the first vesting period were paid in April 2008. The shares carried a ban on transferring them within two years of reception.
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.
The target group of the scheme currently includes 20 key employees.
No accounting entries associated with the incentive scheme were recognised in January-June 2010 or January-June 2009. The incentive scheme does not have any diluting effect. Olvi Group has no warrants or options.
Olvi plc held a total of 12,400 of its own Series A shares on 1 January 2010. The total purchase price of treasury shares was 222 thousand euro.
Olvi plc has not acquired more treasury shares or transferred them to others in January-June 2010, which means that the number of Series A shares held by the company is unchanged on 30 June 2010.
Series A shares held by Olvi plc as treasury shares represented 0.12 percent of the share capital and 0.03 percent of the aggregate number of votes. The treasury shares represented 0.15 percent of all Series A shares and associated votes.
On 8 April 2010, 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 245,000 Series A shares.
The Annual General Meeting decided to revoke all existing unused authorisations for the transfer of own shares and authorise the Board of Directors of Olvi plc to decide on the transfer of any A shares acquired on the company's own account within one year of the Annual General Meeting.
The Board of Directors of Olvi plc has not exercised the acquisition or transfer authorisations granted by the General Meeting between January and June 2010.
| 7. NUMBER OF SHARES *) |
1-6/2010 | 1-6/2009 | 1-12/2009 |
|---|---|---|---|
| - average |
10367004 | 10376011 | 10371470 |
| - at end of period |
10367004 | 10367004 | 10367004 |
| *) Treasury shares deducted. |
|||
| 8. TRADING OF SERIES A SHARES ON THE STOCK EXCHANGE |
HELSINKI | ||
| 1-6/2010 | 1-6/2009 | 1-12/2009 | |
| Trading volume of Olvi A shares |
777315 | 907628 | 2223423 |
| Total trading volume, EUR 1,000 Traded shares in proportion to |
20462 | 13571 | 42445 |
| all Series A shares, % |
9.1 | 10.7 | 26.1 |
| Average share price, EUR |
26.32 | 15.38 | 19.29 |
| Price on the closing date, EUR |
27.40 | 15.90 | 26.49 |
| Highest quote, EUR |
28.70 | 17.90 | 26.49 |
| Lowest quote, EUR |
24.01 | 12.80 | 12.80 |
| Book | entries | Votes | Shareholders | |||||
|---|---|---|---|---|---|---|---|---|
| qty | % | qty | % | qty | % | |||
| Finnish total |
8449738 | 81.41 | 42934434 | 93.67 | 7858 | 99.57 | ||
| Foreign total |
403445 | 3.89 | 1375181 | 3.00 | 27 | 0.34 | ||
| Nominee-registered | ||||||||
| (Finnish) total |
1526221 | 14.70 | 1526221 | 3.33 | 7 | 0.09 | ||
| Total | 10379404 | 100.00 | 45835836 | 100.00 | 7892 | 100.00 |
| Series | ||||||
|---|---|---|---|---|---|---|
| K | Series A | Total | % | Votes | % | |
| 1. Olvi Foundation | 1181952 | 433486 | 1615438 | 15.56 | 24072526 | 52.52 |
| 2. Hortling Heikki Wilhelm *) 3. The Heirs of Hortling Kalle |
450712 | 87472 | 538184 | 5.19 | 9101712 | 19.86 |
| Einari | 93552 | 12624 | 106176 | 1.02 | 1883664 | 4.11 |
| 4. Hortling Timo Einari | 82912 | 17304 | 100216 | 0.97 | 1675544 | 3.66 |
| 5. Hortling-Rinne Marit 6. Skandinaviska Enskilda Banken, nominee |
51144 | 1050 | 52194 | 0.50 | 1023930 | 2.23 |
| reg. | 798788 | 798788 | 7.70 | 798788 | 1.74 | |
| 7. Nordea Bank Finland plc, nominee register 8. Ilmarinen Mutual Pension Insurance |
595087 | 595087 | 5.73 | 595087 | 1.30 | |
| Company | 415000 | 415000 | 4.00 | 415000 | 0,91 | |
| 9. Autocarrera Oy Ab | 223000 | 223000 | 2.15 | 221891 | 0.48 | |
| 10. Kamprad Ingvar | 211400 | 211400 | 2.04 | 211400 | 0.46 | |
| Others | 5856 | 5718065 | 5723921 | 55.15 | 5836294 | 12.74 |
| 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.
EUR 1,000 1-6/2010 1-6/2009 Increase 13579 10721 Decrease -2323 -2415 Total 11256 8306
| 30 Jun |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
| 12. | CONTINGENT | LIABILITIES | 30 | Jun | 2010 | 2009 | 31 | Dec | 2009 |
| EUR | 1,000 |
| Debts for which mortgages have been Loans from financial |
given as |
collateral | |
|---|---|---|---|
| institutions | |||
| For own commitments |
0 | 0 | 0 |
| For others |
0 | 0 | 0 |
| Pledges and contingent liabilities |
|||
| For own commitments |
6259 | 6651 | 6376 |
| For others |
810 | 810 | 810 |
| Leasing liabilities: |
|||
| Due within one year |
551 | 535 | 642 |
| Due within 1 to 5 years |
720 | 738 | 515 |
| Due in more than 5 years |
0 | 0 | 0 |
| Total leasing liabilities |
1271 | 1273 | 1157 |
| Package liabilities |
2256 | 8898 | 3317 |
| Other liabilities |
1980 | 1980 | 1980 |
Equity to total assets, % = (Shareholders' equity held by parent company shareholders + minority interest)/100 * (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, % = (Interest-bearing debt – cash in hand and at bank) / (Shareholders' equity held by parent company shareholders + minority interest)
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