Quarterly Report • Oct 29, 2009
Quarterly Report
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OLVI PLC INTERIM REPORT 29 OCT 2009 OLVI GROUP'S INTERIM REPORT, 1 JANUARY TO 30 SEPTEMBER 2009 (9 MONTHS) OLVI GROUP'S EARNINGS CONTINUED TO DEVELOP STRONGLY January to September 2009 in brief: - The Group's sales volume increased by 23.8 percent to 326 (263) million litres - The Group's net sales increased by 12.3 percent to 191.6 (170.6) million euro - The Group's operating profit improved on the previous year by 48.7 percent, ending up at 24.5 (16.5) million euro - The aggregate operating profit of the Baltic subsidiaries remained on a par with the previous year - The parent company Olvi plc's operating profit improved substantially - The business in Belarus has been profitable
July to September 2009 in brief:
Sales grew by 37.2 percent to 125 (91) million litres
Net sales increased by 19.9 percent to 71.9 (60.0) million euro
Consolidated operating profit increased by a total of 5.1 million euro or 81.8%
Key ratios:
| 1-9/2009 | 1-9/2008 | Change % |
1-12/2008 | |
|---|---|---|---|---|
| Net sales, MEUR |
191.6 | 170.6 | + 12.3 |
222.1 |
| Operating profit, MEUR |
24.5 | 16.5 | + 48.7 |
17.5 |
| Gross capital expenditure, |
||||
| MEUR | 12.2 | 27.8 | - 56.3 |
43.6 |
| Earnings per share, EUR |
1.91 | 1.25 | + 52.8 |
1.22 |
| Equity per share, EUR |
10.33 | 9.10 | + 13.5 |
9.07 |
| Equity to total assets, % |
45.6 | 44.9 | 43.3 | |
| Gearing, % |
50.9 | 66.0 | 62.9 |
"Olvi Group's performance after three quarters was excellent. Our profitability in Finland improved significantly, and the takeover and business operations of the OAO Lidskoe Pivo brewery in Belarus have had a better start than expected. Also in the Baltic states, Group companies maintained the previous year's earnings levels despite the difficult economic situation in their countries. Our overall market position remained strong," says Lasse Aho, Managing Director of Olvi plc.
SALES VOLUME, NET SALES AND EARNINGS
OLVI GROUP
January to September 2009
Olvi Group's sales from January to September 2009 amounted to 326 (263) million litres. This represents an increase of 63 million litres or 23.8 percent on the previous year. The Belarusian OAO Lidskoe Pivo's sales from January to September amounted to 69 million litres. Domestic sales declined by 8 million litres, and sales in the Baltic states declined by 2 million litres on the previous year. Intra-Group sales declined by 4 million litres.
The Group's net sales from January to September amounted to 191.6 (170.6) million euro. The improvement on the previous year was 21.0 million euro. Net sales in Finland remained on a par with the previous year at 79.9 (80.5) million euro. Net sales in the Baltic states declined by 4 percent to 96.1 (100.2) million euro. OAO Lidskoe Pivo's net sales from January to September amounted to 24.8 million euro.
Olvi Group's operating profit for January-September 2009 stood at 24.5 (16.5) million euro, or 12.8 (9.7) percent of net sales. The operating profit improved substantially. The parent company Olvi plc posted an operating profit of 8.6 (4.7) million euro, while the operating profit of the Baltic subsidiaries was on a par with the previous year at 11.5 (11.5) million euro. OAO Lidskoe Pivo's operating profit was 4.2 million euro.
Olvi Group's profit after taxes in the period under review was 20.3 (13.0) million euro.
July to September 2009
Olvi Group's sales from July to September amounted to 125 (91) million litres. In the third quarter, sales increased by 34 million litres or 37.2 percent. The sales volume of the Belarusian OAO Lidskoe Pivo was 29 million litres. Sales in Finland increased by two million litres or 5.2 percent, and likewise, sales in the Baltic states increased by two million litres or 3.0 percent.
Olvi Group's net sales from July to September amounted to 71.9 (60.0) million euro. Net sales improved by 11.9 million euro or 19.9 percent. OAO Lidskoe Pivo's net sales in the third quarter amounted to 10.3 million euro. Net sales in Finland amounted to 30.9 (28.8) million euro and net sales in the Baltic states to 33.5 (34.2) million euro.
Olvi Group's operating profit in the third quarter amounted to 11.3 (6.2) million euro. The operating profit increased by 5.1 million euro or 81.8 percent compared to the previous year. The parent company Olvi plc's operating profit amounted to 3.9 (2.2) million euro. Operating profit in the Baltic states amounted to 4.3 (4.0) million euro. OAO Lidskoe Pivo's operating profit in the third quarter stood at 3.0 million euro.
PARENT COMPANY OLVI PLC
January to September 2009
The parent company Olvi plc's sales volume in January-September was 99 (107) million litres. From January to September, sales volumes declined by a total of 8 million litres or 7.5 percent. The decline was mainly attributable to the first quarter of 2009.
According to statistics by the Federation of the Brewing and Soft Drinks industry, the Finnish beverage market grew by an approximate total of two percent in January-September. The sales of long drinks and beers increased, ciders were on a par with the previous year, and other product groups declined on the previous year.
Among Olvi plc's product groups, the greatest proportional growth was seen in the sales of long drinks. Olvi plc's new product groups, juices and spring waters, have received a warm welcome in the market.
The parent company's exports and tax-free sales have improved well during the three quarters. The increase in January-September was 37.2 percent. Exports accounted for 4 percent of total sales.
The parent company's net sales from January to September amounted to 79.9 (80.5) million euro. Net sales declined by 0.6 million euro or 0.8 percent compared to the previous year. The decline in net sales took place in January-March, and an improvement of 5.5 percent was seen in April-September.
Olvi plc's operating profit in January-September improved substantially. The operating profit stood at 8.6 (4.7) million euro, which was 10.8 (5.8) percent of net sales. The operating profit increased by 3.9 million euro or 82.9 percent compared to the previous year.
The profitability improvement was made possible by decreased costs, increased production capacity, improved efficiency of operations and successful new
products in the long drink and soft drink segments. Furthermore, demand for alcoholic products just before the alcohol excise tax hike on 1 October 2009 was higher than expected, and favourable summer weather extended well into the autumn, which contributed to Olvi plc's performance improvement.
July to September 2009
Olvi plc's sales from July to September 2009 amounted to 39 (37) million litres, representing an increase of 2 million litres or 5.2 percent. The parent company's net sales in July-September increased by 7.2 percent to 30.9 (28.8) million euro. Third-quarter operating profit amounted to 3.9 (2.2) million euro or 12.5 (7.6) percent of net sales. The operating profit increased by 1.7 million euro or 77.1 percent compared to the previous year.
AS A. LE COQ
January to September 2009
The Estonian subsidiary AS A. Le Coq's total sales in January-September amounted to 89 (99) million litres. The sales declined by 10 million litres, most of which was intra-Group freighted work.
The sales of soft drinks and ciders increased, while the sales of mineral waters and long drinks declined. The sales of beers were on a par with the previous year. In January-September, AS A. Le Coq's freighted work for other Group companies declined by 8 million litres on the previous year due to additional capacity acquired for subsidiaries in the other Baltic states.
The company's net sales from January to September amounted to 51.6 (56.7) million euro, representing a decline of 5.1 million euro or 9.1 percent.
Operating profit in January-September stood at 8.9 (9.7) million euro, which was 17.2 (17.2) percent of net sales. The operating profit decreased by 0.8 million euro compared to the previous year.
July to September 2009
AS A. Le Coq's sales in July-September were on a par with the previous year at 31 million litres. The net sales of 17.9 (18.0) million euro were also on a par with the previous year, and the same is true for the operating profit of 3.1 (3.1) million euro, which was 17.6 (17.0) percent of net sales.
A/S CESU ALUS
January to September 2009
From January to September, the sales of A/S Cesu Alus operating in Latvia were on a par with the previous year at 47 (47) million litres. The sales of beer continued to increase, while other product groups declined in line with the diminishing total market. However, during this year, Fizz cider has become the best-selling cider in Latvia (source: Nielsen).
A/S Cesu Alus's sales to other Olvi Group companies have increased by two million litres or 70.8 percent on the previous year thanks to the additional capacity created through substantial investments.
A/S Cesu Alus's net sales in January–September totalled 24.8 (25.2) million euro, a change of -0.4 million euro or 1.5 percent on the previous year.
Operating profit for January-September stood at 1.2 (1.5) million euro, or 5.0 (6.0) percent of net sales. The operating profit declined by 0.3 million euro or 18.0 percent compared to the previous year. The operating profit includes 0.6 million euro of non-recurring costs attributable to the package inventory.
July to September 2009
A/S Cesu Alus's sales in the third quarter were on a par with the previous year at 16 (16) million litres.
The company's net sales amounted to 8.3 (9.2) million euro. Net sales declined by 0.9 million euro or 9.6 percent on the previous year.
A/S Cesu Alus's operating profit in July-September was 0.1 (0.6) million euro, or 1.7 (6.5) percent of net sales. The third-quarter earnings include 0.6 million euro of non-recurring costs attributable to the package inventory.
AB RAGUTIS
January to September 2009
From January to September, the sales of AB Ragutis operating in Lithuania increased to 41 (33) million litres. This represents an increase of 8 million litres or 22.2 percent on the previous year. The sales increase was attributable to beer, and particularly the new product group kvass. AB Ragutis's freighted work to other Olvi Group companies increased by 2 million litres or 91.9 percent. Sales of ciders and long drinks declined in line with the diminishing total market.
The company's net sales from January to September amounted to 19.7 (18.3) million euro, representing an increase of 1.4 million euro or 8.0 percent.
AB Ragutis's operating profit improved clearly in January-September. The operating profit stood at 1.4 (0.3) million euro, which was 6.9 (1.5) percent of net sales. The operating profit increased by 1.1 million euro or 403.1 percent compared to the previous year. This was made possible by good sales development, improved production efficiency and cost cuts.
July to September 2009
AB Ragutis's sales in the third quarter amounted to 15 (13) million litres. Sales increased by 2 million litres or 14.7 percent. The company's net sales from July to September amounted to 7.3 (7.0) million euro, representing an increase of 0.3 million euro or 4.3 percent.
AB Ragutis's operating profit in the third quarter amounted to 1.0 (0.3) million euro, which was 13.4 (4.8) percent of net sales. The operating profit improved by 0.7 million euro or 189.4 percent.
OAO LIDSKOE PIVO
January to September 2009
The January-September sales of OAO Lidskoe Pivo operating in Belarus amounted to 69 million litres. The sales of kvass, waters and juices increased. A slight increase was also seen in the sales of beer, while the sales of long drinks and soft drinks declined. OAO Lidskoe Pivo's sales to other Olvi Group companies amounted to 1.4 million litres. Lack of capacity limited any greater increase in beer sales.
The company's net sales stood at 24.8 million euro, while the January-September operating profit was 4.2 million euro or 17.0 percent of net sales. The operating profit includes non-recurring income of approximately one million euro attributable to the cancellation of a write-down on a prescribed debt.
OAO Lidskoe Pivo has deposits denominated in United States dollars, which created foreign exchange gains. The company's profit before taxes was 5.9 million euro, and after-tax profit for the period was 4.2 million euro.
Factors contributing to the favourable development of business in Belarus include the successful takeover of OAO Lidskoe Pivo, good new product introductions, successful sales in the summer season, as well as improved production efficiency and reliability. The company has initiated substantial investments to boost production capacity, increase the level of automation, secure the standard of quality and develop the organisation.
OAO Lidskoe Pivo's income statement has been consolidated with Olvi Group as of the beginning of 2009. The company's balance sheet was consolidated at the end of fiscal 2008.
OAO Lidskoe Pivo's sales in the third quarter of 2009 amounted to 29 million litres, with net sales at 10.3 million euro. The operating profit improved clearly during the third quarter and amounted to 3.0 million euro. The operating profit includes non-recurring income of approximately one million euro attributable to the cancellation of write-downs on old debts.
Olvi Group's balance sheet total at the end of September 2009 was 241.0 (210.5) million euro. Equity per share in January-September stood at 10.33 (9.10) euro, an increase of 1.23 euro per share. The equity ratio improved slightly on the previous year to 45.6 (44.9) percent. The amount of interest-bearing liabilities was 64.9 (66.2) million euro, including current liabilities of 24.7 (41.0) million euro.
During the period under review, Olvi Group's gross capital expenditure amounted to 12.2 (27.8) million euro. The parent company Olvi plc accounted for 3.6 million euro and the subsidiaries in the Baltic states for 5.7 million euro of the total. OAO Lidskoe Pivo's gross capital expenditure during the first nine months amounted to 2.9 million euro. In addition to these investments, Olvi plc has invested 29.1 million euro in the shares of the subsidiaries A/S Cesu Alus and OAO Lidskoe Pivo through a private placing and acquisition of minority interests.
The largest investments in Finland in 2009 include the extension and development of Olvi plc's pressure and fermentation tank cellar, while the Baltic states will see the acquisition of a bottle washing machine for AS A. Le Coq, an extension to the pressure tank cellar at A/S Cesu Alus, as well as additional cooling capacity at AB Ragutis and A/S Cesu Alus. This year's largest investments in Belarus will include extension of tank capacity to enable sales growth, as well as a product storage building.
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.
A substantial number of new products were launched in Finland at the beginning of September. These were described in the January-June interim report. October 2009 saw the introduction of the Kalpa ice hockey team's 80th anniversary beer in 0.33 L bottles. The sales of OLVI Christmas Beer as well as glögg in ready-to-drink and concentrate versions will also begin in October.
In October, the Estonian AS A. Le Coq introduced a 30% juice version of its Dynamit energy drink. The product contains five different fruits and is packaged in an orange 0.5-litre PET bottle. A new introduction in ciders was FIZZ Mandarin in 0.5-litre cans.
The Latvian A/S Cesu Alus introduced FIZZ Mandarin, already familiar in Estonia, in 0.5-litre cans and 1-litre PET bottles. October saw the introduction of two soft drinks carrying the name of the popular Latvian ice hockey team Dynamo: Dynamo Cola + Energy and Dynamo Strawberry, both in 0.5-litre and 1-litre PET bottles.
In September, the Lithuanian AB Ragutis introduced the new long drink Jamaica Orange 8.1% in 1.5-litre PET bottles. October saw the re-introduction of the premium Volfas Engelman Imperial Porter 6.0% in brown 0.5-litre glass bottles. Smetoniska Gira kvass is the Lithuanian market leader with an approximate market share of 30 percent. A 2-litre promotional version will be available to consumers in October-November for the price of a 1.5-litre bottle. November will see the introduction of the new FIZZ cider flavour Mandarin in 0.5-litre cans and 1.5 litre plastic bottles. The Dynamit energy drink + juice version will be introduced in November in 0.5-litre PET bottles.
The Belarusian OAO Lidskoe Pivo introduced a completely new brand of soft drinks, Limpa, which has its roots in Estonia. The range starts with three flavours: pear, lemon and vanilla. The products are packaged in 1- and 1.5-litre plastic bottles. The new beer brand Lidskoe Premium will be launched in October in 0.5 litre glass bottles as well as 0.5-litre cans. The product is an impressive beer belonging to the highest price segment.
Olvi Group's average number of personnel in January-September was 2,098 (1,291), 383 (445) of them in Finland, 346 (402) in Estonia, 211 (234) in Latvia, 196 (210) in Lithuania and 962 in Belarus. The Group's average number of personnel increased by 807 employees or 62.5 percent on the previous year due to OAO Lidskoe Pivo's consolidation with Olvi Group. The number of personnel in Finland and the Baltic states declined by 155 people on the previous year. The total number of personnel at the end of September was 2,015 (1,212).
Between July and September 2009, Olvi Group increased its holding in the Belarusian brewery OAO Lidskoe Pivo by 36.84 percentage points through acquiring a total of 27,847 shares from the company's personnel. Olvi plc's holding in OAO Lidskoe Pivo at the end of September 2009 is 87.84 percent.
In the third quarter of 2009, Olvi Group also increased its holding in A/S Cesu Alus by 36 shares or 0.01 percentage points. At the end of September 2009, Olvi plc's holding in A/S Cesu Alus stood at 99.30 percent, in AB Ragutis 99.57 percent and in AS A. Le Coq 100 percent.
On 21 October 2009, Olvi plc made a disclosure in accordance with Chapter 2, Section 9 of the Securities Markets Act with regard to a change in the company's ownership. Artio Global Management LLC announced that its holding had diminished from 7.6 percent to 4.7 percent of Olvi plc's share capital and 1.06 percent of votes. The number of shares held by Artio Global Management LLC is 487,621 Series A shares.
The economies of the Baltic states are still having great difficulties even though some weak positive signs can already be seen. Unemployment is still rising and private consumption diminishing all over the Baltic states. The Baltic and Belarusian currencies are still threatened by devaluation.
The brewing industry market may still decline slightly in the Baltic states. As
the consumers' purchasing power is declining and inflation is going up, consumption will shift to less expensive products and product groups. Alcohol excise tax hikes in Finland may increase private imports from countries with lower excise rates, as well as tax-free sales.
NEAR-TERM OUTLOOK
Olvi Group companies aim to retain their good overall market positions across the entire operating area and boost product development in all beverage product groups. Substantial investments made in previous years will ensure sufficient capacity and cost-effective production of versatile product ranges and packaging alternatives.
In spite of threatening factors affecting the fourth quarter of 2009, such as the risk of devaluation of the Baltic and Belarusian currencies, we anticipate that Olvi Group's full-year 2009 operating profit will be clearly better than last year.
Further information:
Olvi plc Lasse Aho Managing Director Phone +358 17 838 5200 or +358 400 203 600
OLVI PLC Board of Directors
APPENDICES
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd Key media www.olvi.fi
INCOME STATEMENT
| EUR 1,000 | |||||
|---|---|---|---|---|---|
| 7-9/ 2009 |
7-9/ 2008 |
1-9/ 2009 |
1-9/ 2008 |
1-12/ 2008 |
|
| Net sales | 71917 | 60004 | 191647 | 170587 | 222124 |
| Other operating income | 1408 | 221 | 1891 | 652 | 1005 |
| Operating expenses | -57510 | -50318 | -155816 | -144391 | -191496 |
| Depreciation and impairment | -4498 | -3682 | -13208 | -10364 | -14155 |
| Operating profit | 11317 | 6225 | 24514 | 16484 | 17478 |
| Financial income | 3 | 90 | 2148 | 168 | 247 |
| Financial expenses | -509 | -928 | -2666 | -2205 | -3420 |
| Earnings before tax | 10811 | 5387 | 23996 | 14447 | 14305 |
| Taxes *) | -1987 | -557 | -3684 | -1443 | -1631 |
| NET PROFIT FOR THE PERIOD | 8824 | 4830 | 20312 | 13004 | 12674 |
| Other comprehensive income items: Translation differences related to foreign subsidiaries TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
-292 8532 |
-53 4777 |
-5801 14511 |
-24 12980 |
-15 12659 |
| Distribution of profit | |||||
| - parent company shareholders | 9445 | 4826 | 19793 | 12997 | 12684 |
| - minority | -621 | 4 | 519 | 7 | -10 |
| Distribution of comprehensive profit: | |||||
| - parent company shareholders | 7435 | 4775 | 15030 | 12975 | 12670 |
| - minority | 1097 | 2 | -519 | 5 | -11 |
| Ratios calculated from the profit belonging to parent company shareholders: |
|||||
| - earnings per share, euro | 1.91 | 1.25 | 1.22 |
**) Taxes calculated from the profit for the review period.
BALANCE SHEET EUR 1,000
| 30 Sep 2009 |
30 Sep 2008 |
31 Dec 2009 |
|
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Tangible assets | 125912 | 113536 | 132028 |
| Goodwill | 15542 | 10675 | 10743 |
| Other intangible assets | 857 | 1004 | 1023 |
| Financial assets available for sale Other non-current assets available for |
288 | 286 | 288 |
| sale Loan receivables and other non-current |
429 | 430 | 429 |
| receivables | 123 | 119 | 350 |
| Deferred tax receivables | 210 | 372 | 1042 |
| Total non-current assets | 143361 | 126422 | 145903 |
| Current assets | |||
| Inventories | 36063 | 38747 | 33699 |
| Accounts receivable and other receivables | 52487 | 41449 | 48839 |
| Deferred tax receivables | 103 | 18 | 23 |
| Liquid assets | 8944 | 3824 | 15748 |
| Total current assets | 97597 | 84038 | 98309 |
| TOTAL ASSETS | 240958 | 210460 | 244212 |
| SHAREHOLDERS' EQUITY AND LIABILITIES Shareholders' equity held by parent company shareholders |
|||
| Share capital | 20759 | 20759 | 20759 |
| Other reserves | 1092 | 1092 | 1092 |
| Treasury shares | -222 | -63 | -63 |
| Translation differences | -4786 | 78 | -23 |
| Retained earnings | 90242 | 72540 | 72339 |
| 107085 | 94406 | 94104 | |
| Minority interest | 2820 | 130 | 11618 |
| Total shareholders' equity | 109905 | 94536 | 105722 |
| Non-current liabilities | |||
| Interest-bearing liabilities | 40200 | 25165 | 42361 |
| Interest-free liabilities | 0 | 0 | 4 |
| Deferred tax liabilities | 1496 | 1312 | 1421 |
| Current liabilities | |||
| Interest-bearing liabilities | 24691 | 41015 | 39840 |
| Accounts payable and other liabilities | 64666 | 48432 | 54864 |
| Total liabilities | 131053 | 115924 | 138490 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 240958 | 210460 | 244212 |
CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY
| EUR 1,000 | A | B | C | D | E | F | G | H | I |
|---|---|---|---|---|---|---|---|---|---|
| Shareholders' equity 1 Jan 2008 |
20759 | 857 | 127 | -722 | 108 | -9 | 67932 | 136 | 89188 |
| Payment of dividends | -8291 | -8291 | |||||||
| Transfer of treasury shares Total comprehensive income for the |
659 | 659 | |||||||
| period | -22 | 13004 | -2 | 12980 | |||||
| Change in minority interest Share of profit belonging to the |
11 | -11 | 0 | ||||||
| minority Shareholders' equity 30 |
-7 | 7 | 0 | ||||||
| Sep 2008 | 20759 | 857 | 127 | -63 | 108 | -31 | 72649 | 130 | 94536 |
| EUR 1,000 | A | B | C | D | E | F | G | H | I |
|---|---|---|---|---|---|---|---|---|---|
| Shareholders' equity 1 Jan 2009 |
20759 | 857 | 127 | -63 | 108 | -23 | 72339 | 11618 | 105722 |
| Payment of dividends | -5552 | -5552 | |||||||
| Acquisition of treasury shares | -159 | -159 | |||||||
| Profit arising from the acquisition of minority shares | 3662 | 3662 | |||||||
| Total comprehensive income for the period |
-4763 | 20312 | -1038 | 14511 | |||||
| Share of profit belonging to the | |||||||||
| minority | -519 | 519 | 0 | ||||||
| Change in minority interest Shareholders' equity 30 |
-8279 | -8279 | |||||||
| Sep 2009 | 20759 | 857 | 127 | -222 | 108 | -4786 | 90242 | 2820 | 109905 |
A = Share capital B = Share premium account C = Legal reserve D = Treasury shares reserve E = Other reserves F = Translation differences G = Retained earnings H = Minority interest I = Total
CASH FLOW STATEMENT EUR 1,000
| 1-9/ | 1-9/ | 1-12/ | |
|---|---|---|---|
| 2009 | 2008 | 2008 | |
| Net profit for the period | 20312 | 12823 | 12674 |
| Adjustments to profit for the period | 15789 | 13862 | 18971 |
| Change in net working capital | -3816 | -9768 | -5282 |
| Interest paid | -2818 | -1699 | -2959 |
| Interest received | 574 | 114 | 234 |
| Taxes paid | -1570 | -2413 | -3054 |
| Cash flow from operations (A) | 28471 | 12919 | 20584 |
| Capital expenditure | -12490 | -26559 | -32160 |
| Disposals of fixed assets | 129 | 211 | 245 |
| Cash flow from investments (B) | -12361 | -26348 | -31915 |
| Withdrawals of loans | 23500 | 44505 | 78000 |
| Repayments of loans | -40811 | -23296 | -46965 |
| Acquisition of treasury shares | -159 | 0 | 0 |
| Dividends paid | -5444 | -8288 | -8288 |
| Cash flow from financing (C) | -22914 | 12921 | 22747 |
| Increase (+)/decrease (-) in liquid | |||
| assets (A+B+C) | -6804 | -508 | 11416 |
| Liquid assets 1 January | 15748 | 4332 | 4332 |
| Liquid assets 30 Sep/31 Dec | 8944 | 3824 | 15748 |
| Change in liquid assets | -6804 | -508 | 11416 |
NOTES TO THE INTERIM REPORT
The accounting policies used for this interim report are the same as those used for the annual financial statements 2008. The accounting policies are presented in the Annual Report 2008 that was published on 31 March 2009. 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 2009:
IAS 1 (Revised), Presentation of Financial Statements. The Group presents all income and expense items recognised in the financial period in one statement of comprehensive income.
IFRS 8, Operating Segments. The reporting of geographical segment information corresponds to the company's internal reporting.
IAS 23, Borrowing Costs. The Group will start to capitalise borrowing costs in projects that start in 2009 and fulfil the conditions specified in the standard.
IFRS 2, Share-based Payments. Group management is investigating the effects of amendments to the standard.
IFRIC 11, IFRS 2, Group and Treasury Share Transactions. This interpretation does not have any substantial effect on the Group.
SALES BY GEOGRAPHICAL SEGMENT (1,000 litres)
| 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ | |
|---|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | 2008 | |
| Olvi Group total | 124881 | 91043 | 326025 | 263341 | 340938 |
| Finland | 38880 | 36952 | 98922 | 106932 | 138155 |
| Estonia | 31288 | 31019 | 89005 | 99279 | 125170 |
| Latvia | 16259 | 16634 | 47205 | 46758 | 58753 |
| Lithuania | 15016 | 13087 | 40715 | 33325 | 44085 |
| Belarus | 29201 | 69126 | |||
| - sales between segments | -5763 | -6649 | -18948 | -22953 | -25225 |
NET SALES BY GEOGRAPHICAL SEGMENT (EUR 1,000)
| 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ | |
|---|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | 2008 | |
| Olvi Group total | 71917 | 60004 | 191647 | 170587 | 222124 |
| Finland | 30891 | 28826 | 79899 | 80534 | 106291 |
| Estonia | 17865 | 18002 | 51588 | 56731 | 71995 |
| Latvia | 8312 | 9196 | 24792 | 25171 | 31366 |
| Lithuania | 7274 | 6977 | 19723 | 18255 | 23824 |
| Belarus | 10297 | 24765 | |||
| - sales between segments | -2722 | -2997 | -9120 | -10104 | -11352 |
OPERATING PROFIT BY GEOGRAPHICAL SEGMENT (EUR 1,000)
| 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ | |
|---|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | 2008 | |
| Olvi Group total | 11317 | 6225 | 24514 | 16484 | 17477 |
| Finland | 3862 | 2181 | 8602 | 4702 | 4252 |
| Estonia | 3140 | 3055 | 8866 | 9732 | 11618 |
| Latvia | 138 | 597 | 1245 | 1518 | 1281 |
| Lithuania | 977 | 338 | 1360 | 270 | 32 |
| Belarus | 2991 | 4218 | |||
| - eliminations | 209 | 54 | 223 | 262 | 294 |
| 2. PERSONNEL ON AVERAGE |
1-9/2009 | 1-9/2008 | 1-12/2008 | ||
| Finland | 383 | 445 | 431 | ||
| Estonia | 346 | 402 | 388 | ||
| Latvia | 211 | 234 | 231 | ||
| Lithuania | 196 | 210 | 206 | ||
| Belarus | 962 | ||||
| Total | 2098 | 1291 | 1256 | ||
Employee benefits to management Salaries and other short-term employee benefits to the Board of Directors and Managing Director EUR 1,000
| 1- | ||||
|---|---|---|---|---|
| 1-9/2009 | 9/2008 | 1-12/2008 | ||
| Managing Directors | 481 | 697 | 995 | |
| Chairman of the Board | 167 | 159 | 209 | |
| Other members of the Board | 81 | 83 | 109 | |
| Total | 729 | 939 | 1313 |
| 30 Sep 2009 | |
|---|---|
| Number of A shares Number of K shares |
8513276 1866128 |
| Total | 10379404 |
| Total votes carried by A shares | 8513276 |
| Total votes carried by K shares | 37322560 |
| Total number of votes | 45835836 |
| Registered share capital, EUR 1,000 | 20759 |
The Series A and Series K shares received a dividend of 0.50 euro per share for 2008 (0.80 euro per share for 2007), totalling 5.2 (8.3) million euro. The dividends were paid on 21 April 2009.
| Nominal value of A and K shares, EUR |
2.00 |
|---|---|
| Votes per Series A share |
1 |
| Votes per Series K share |
20 |
The shares entitle to equal dividend.
The Articles of Association include a redemption clause concerning Series K shares.
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 carry 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 21 key employees.
Olvi Group has no warrants or options.
On 7 April 2009, the General Meeting of Shareholders of Olvi plc decided to authorise the Board of Directors of Olvi plc to decide on the acquisition of the company's own shares using distributable funds. The authorisation is valid for one year starting from the General Meeting and covers a maximum of 245,000 Series A shares.
On 29 May 2009, on the basis of the authorisation granted by the General Meeting, the Board of Directors of Olvi plc decided to acquire a maximum total of 10,000 of the company's own Series A shares. In compliance with the rules of the stock exchange and guidelines concerning treasury shares of a listed company, the shares were acquired through public trading on Nasdaq OMX Helsinki Ltd at the current market price at the time of acquisition. The acquisition was carried out between 8 and 23 June 2009. 10,000 shares were bought at an average price of 15.96 euro per share. The total purchase price was 159 thousand euro.
Between January and September 2009, Olvi plc's Board of Directors has not exercised its authorisation to transfer the company's own Series A shares granted by the General Meeting.
Olvi plc previously held 2,400 Olvi plc Series A shares, which means that the company held a total of 12,400 Series A shares at the end of September 2009. The total purchase price of treasury shares was 222 thousand euro.
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.
| 7. NUMBER OF SHARES *) |
1-9/2009 | 1-9/2008 | 1-12/2008 |
|---|---|---|---|
| - average |
10372976 | 10365570 | 10368444 |
| - at end of period |
10367004 | 10377004 | 10377004 |
*) Treasury shares deducted.
| 8. TRADING OF SERIES A SHARES ON THE |
HELSINKI | ||
|---|---|---|---|
| STOCK EXCHANGE |
1-9/ 2009 |
1-9/ 2008 |
1-12/ 2008 |
| Trading volume of Olvi A shares |
1492485 | 1151568 | 1622708 |
| Total trading volume, EUR 1,000 |
25343 | 27748 | 35436 |
| Traded shares in proportion to |
|||
| all Series A shares, % |
17.5 | 13.5 | 19.1 |
| Average share price, EUR |
17.47 | 23.69 | 20.82 |
| Price on the closing date, EUR |
22.30 | 19.00 | 15.59 |
| Highest quote, EUR |
24.01 | 27.00 | 27.00 |
| Lowest quote, EUR |
12.80 | 18.91 | 12.50 |
| Book entries | Votes | Shareholders | ||||
|---|---|---|---|---|---|---|
| qty | % | qty | % | qty | % | |
| Finnish total | 8353919 | 80.49 | 42838615 | 93.45 | 6923 | 99.4 |
| Foreign total | 198650 | 1.91 | 1170386 | 2.55 | 33 | 0.5 |
| Nominee-registered | ||||||
| (foreign) total | 1000 | 0.01 | 1000 | 0.00 | 1 | 0.0 |
| Nominee-registered | ||||||
| (Finnish) total | 1825835 | 17.59 | 1825835 | 3.98 | 6 | 0.1 |
| Total | 10379404 | 100.00 | 45835836 | 100.00 | 6963 | 100.0 |
| Series | ||||||
|---|---|---|---|---|---|---|
| Series K | A | Total | % | Votes | % | |
| 1. Olvi Foundation | 1181952 421286 |
1603238 | 15.46 | 24060326 | 52.49 | |
| 2. Hortling Heikki Wilhelm *) 3. The Heirs of Hortling |
450712 86980 |
537692 | 5.18 | 9101220 | 19.86 | |
| Kalle Einari | 93552 12624 |
106176 | 1.02 | 1883664 | 4.11 | |
| 4. Hortling Timo Einari 5. Skandinaviska Enskilda Banken, nominee |
82912 17304 |
100216 | 0.97 | 1675544 | 3.66 | |
| reg. | 1129515 | 1129515 | 10.88 | 1129515 | 2.46 |
| 6. Hortling-Rinne Marit 7. Nordea Bank Finland plc, nominee |
51144 | 1050 | 52194 | 0.50 | 1023930 | 2.23 |
|---|---|---|---|---|---|---|
| register | 594309 | 594309 | 5.73 | 594309 | 1.30 | |
| 8. Ilmarinen Mutual Pension Insurance | ||||||
| Company | 450000 | 450000 | 4.34 | 450000 | 0.98 | |
| 9. Autocarrera Oy Ab | 221891 | 221891 | 2.14 | 221891 | 0.48 | |
| 10. Kamprad Ingvar | 205000 | 205000 | 1.98 | 205000 | 0.45 | |
| Others | 5856 | 5373317 | 5379173 | 51.84 | 5490437 | 11.99 |
| Total | 1866128 | 8513276 | 10379404 | 100.00 | 45835836 | 100.00 |
*) The figures include the shareholder's own holdings and shares held by parties in his control.
| 11. PROPERTY, PLANT |
AND EQUIPMENT |
|||||
|---|---|---|---|---|---|---|
| EUR | 1,000 1-9/2009 |
1-9/2008 | ||||
| Increase | 14374 | 27288 | ||||
| Decrease | -3901 | -414 | ||||
| Total | 10473 | 26874 | ||||
| 12. CONTINGENT LIABILITIES EUR 1,000 |
30 Sep 2009 |
30 Sep 2008 |
31 Dec 2008 |
|||
| Debts for which mortgages collateral Loans from financial institutions |
have | been given |
as | |||
| For own commitments |
0 | 0 | 1594 | |||
| For others |
0 | 0 | 0 | |||
| Pledges and contingent |
liabilities | |||||
| For own commitments |
5716 | 1134 | 6227 | |||
| For others |
810 | 0 | 5 | |||
| Leasing liabilities: |
||||||
| Due within one year |
459 | 901 | 834 | |||
| Due within 1 to 5 |
years | 846 | 1097 | 1055 | ||
| Due in more than 5 |
years | 0 | 0 | 0 | ||
| Total leasing liabilities |
1305 | 1998 | 1889 | |||
| Package liabilities |
4846 | 5627 | 6402 | |||
| Other liabilities |
1980 | 2477 | 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 /100*(Shareholders' equity held by parent company shareholders + minority interest)
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