Olvi Group's interim report January-September 2024 - Profitability improved in line with targets

10/16/2024 09:00

OLVI PLC                  Interim report 16 October 2024 at 9 am

Olvi Group's interim report January-September 2024 - Profitability improved in line with targets

July-September 2024

  • Sales volume increased by 3.2% from the comparison period and was 272.6 (264.1) million litres.
  • Net sales increased by 8.1% and were EUR 184.9 (171.1) million.
  • The adjusted operating result increased by 45.4% to EUR 29.8 (20.5) million.

 

January-September 2024

  • Sales volume remained at the comparison period's level and was 775.7 (773.1) million litres.
  • Net sales increased by 2.8% to EUR 510.0 (495.9) million.
  • The adjusted operating result increased by 21.5% to EUR 72.0 (59.3) million.
  • The equity ratio was 60.3% (57.3%).

 

Near-term outlook for 2024 (changed on 14 October 2024)

 

Olvi Group's adjusted operating result for the 2024 financial year is expected to be EUR 78-84 million (previously EUR 74-80 million).

 

The Group's key figures

 

7-9/

2024

7-9/

2023

Change,

%

1-9/ 2024

1-9/ 2023

Change,

%

1-12/ 2023

Sales volume, Mltr

272.6

264.1

3.2

775.7

773.1

0.3

975.8

Net sales, MEUR

184.9

171.1

8.1

510.0

495.9

2.8

630.6

Gross profit, MEUR

78.5

64.3

22.2

208.4

185.0

12.7

235.6

% of net sales

42.5

37.6

 

40.9

37.3

 

37.4

Adjusted operating result, MEUR

29.8

20.5

45.4

72.0

59.3

21.5

67.1

% of net sales

16.1

12.0

 

14.1

12.0

 

10.6

Items affecting the comparability of the operating result, MEUR

0.0

0.0

 

0.0

-12.2

 

-12.2

Operating result, MEUR

29.8

20.5

45.4

72.0

47.1

52.9

54.9

% of net sales

16.1

12.0

 

14.1

9.5

 

8.7

Adjusted profit for the period, MEUR

23.4

16.7

40.2

55.0

44.2

24.4

50.7

% of net sales

12.7

9.8

 

10.8

8.9

 

8.0

Profit for the period, MEUR

23.4

16.7

40.2

55.0

32.0

71.9

38.5

% of net sales

12.7

9.8

 

10.8

6.5

 

6.1

Earnings per share, EUR

1.12

0.80

40.0

2.62

1.54

70.1

1.85

Investments, MEUR

12.2

3.5

251.3

27.0

17.3

56.3

24.9

Equity per share, EUR

 

 

 

15.32

13.66

12.1

13.95

Equity ratio, %

 

 

 

60.3

57.3

 

59.0

Gearing, %

 

 

 

-11.3

-7.7

 

-8.5

 

Olvi presents the adjusted operating result (EBIT) and the adjusted profit for the period as alternative performance measures to improve comparability between reporting periods. In January-September 2023, items affecting comparability not included in the adjusted operating result and the profit for the period totalled EUR 12.2 million and were related to the fine imposed on the Belarusian subsidiary.

 

CEO's review (Patrik Lundell)

 

Strategy implementation supports profitability improvement

This year is the first year of our renewed strategy. During 2024, we have focused on people, profitability and data in particular. In terms of personnel, we have strengthened the organisation, increased training and created new job descriptions to support development. We have succeeded in improving profitability by improving our own operational efficiency and through price and range optimisation. In terms of data, we have started developing and harmonising processes, improving data-based management capabilities, and strengthening the efficiency of the production and supply chain.

In line with our strategy, we are aiming for an operating result level of more than 12%. We have been operating in a market situation where the development of consumers' purchasing power has been weak and the market as a whole has not grown. Despite the more intense competitive situation, we have been able to grow or maintain our strong market shares and improve our profitability, supported by our strong brands. In addition, we aim to meet local customer and consumer needs through leading brands and the launch of new products. Our measures to compensate for cost inflation have been systematic and successful.

Our vision is to be the preferred multi-local beverage company for customers, consumers, employees and partners. Growth is made possible by our extensive product selection, which meets a diverse range of consumer demand in both the alcoholic and non-alcoholic product categories, as well as multichannel availability. Our sales of non-alcoholic products have increased, and we continue to see opportunities for growth in these products as consumer behaviour changes.

To accelerate the Group's growth, we are also actively seeking expansion opportunities, both organically and inorganically.

Financial development

July-September 2024

Sales volume increased by 3.2% from the comparison period to 272.6 (264.1) million litres. Compared with the previous year, the warm weather increased the sales volume, particularly in July. Throughout the summer season, the delivery accuracy was better than in previous years, which supported sales development. However, consumers' weak purchasing power was reflected in the development of the sales volume in Finland and the Baltic Sea segments throughout the quarter. Net sales increased by 8.1% to EUR 184.9 (171.1) million. Net sales grew in all reporting segments as the average price increased. The average price increased as a result of changes in the product portfolio and targeted increases in sales prices.

Profitability continued to improve in all reporting segments as a result of the stabilisation of raw material price increases, product portfolio development and market-specific price increases. Gross profit increased by 22.2% from the comparison period to EUR 78.5 (64.3) million. The adjusted operating result was EUR 29.8 (20.5) million, with an increase of 45.4% from the comparison period.

January-September 2024

 

The sales volume remained at the previous year's level and was 775.7 (773.1) million litres. The overall development of the market has been affected by consumers' weak purchasing power. Price competition increased as consumers sought more affordable products. Despite intensified competition, we were able to increase sales volumes in both retail sales and the hotel and restaurant channel (HoReCa), as well as maintaining our market shares. On the other hand, harbour and cross-border sales were lower than in the previous year, especially between Finland and Estonia. Thanks to good average price development in the third quarter, net sales increased by 2.8% to EUR 510.0 (495.9) million in January-September.

 

The adjusted operating result increased by 21.5% from the comparison period and was EUR 72.0 (59.3) million. Profitability improved during the first and third quarters in particular. Production costs ceased to increase, the weather was warm in the summer season, and the efficiency of our own operations improved, which contributed to better profitability.

 

Segment-specific business development: January-September 2024

 

Profitability recovered as planned in Finnish operations

 

The net sales of our business operations in Finland grew by 3.9% to EUR 182.1 (175.2) million, but the sales volume decreased by 3.2% to 201.1 (207.8) million litres. The decline in the sales volume was affected by changes to the product portfolio in retail in particular, but also by changes in consumers' purchasing behaviour. Meanwhile, sales were supported by the markedly higher delivery accuracy than in previous years, as both the buffering of products in preparation for the season and an increase in collection capacity were carried out successfully. In product categories, the best sales development was recorded for water, while the beer product portfolio was optimised systematically in terms of volume. The market share of beer has remained strong at more than 50%. Sales volumes in the hard seltzer product category have also continued to grow, and Olvi is the market leader in the category despite intensified competition.

 

As a result of the amendment to alcohol legislation, retailers adjusted their selections to include beverages with an alcoholic strength by volume of 5.5% to 8.0%, which increased Olvi's sales. As a whole, however, these products do not represent a significant portion of the sales volume or net sales of our Finnish business operations, but they have become part of the retail selection and thereby also part of Olvi's product portfolio. 

 

The operating result of our Finnish business operations was EUR 22.2 (15.4) million. The operating result improved by 44.7% year-on-year, primarily because of improved operational efficiency, product range changes and price increases. The most significant price increases were implemented during the first half of the year. As a whole, however, profitability has not returned to the level achieved before the pandemic and the Ukrainian war. We will continue to implement measures to improve profitability and achieve targets in line with the strategy through product selection development and by improving cost-effectiveness, among other means.

 
Net sales in the Baltic Sea region remained at the previous year's level, and profitability improved despite intensified price competition and weak consumer demand

 

The sales volume in the Baltic Sea region decreased by 2.7% to 299.3 (307.6) million litres, and net sales remained at the previous year's level, at EUR 212.6 (213.6) million. The sales volume decreased mainly as a result of the product portfolio optimisation measures carried out in Denmark to improve the average sales price and profitability. In the Baltic countries, especially in Estonia, consumers' purchasing power developed weakly during the reporting period. This also reduced beverage demand and sales volumes and led to price competition, particularly towards the end of the reporting period. However, the segment's hotel, restaurant and catering channel (HoReCa) sales improved year-on-year.

 

The operating result increased by 7.2% to EUR 21.4 (20.0) million. Profitability improved, as costs were no longer increasing, measures were taken to improve production efficiency, and targeted price increases were implemented. Development measures in our Danish business operations continue, and profitability has improved.

 

The total market in Belarus grew

 

In Belarus, consumer demand developed favourably and supported the growth of the market as a whole. The segment's sales volume increased by 7.5% to 280.5 (260.9) million litres. The sales volume increased most in non-alcoholic product categories such as water, energy drinks and soft drinks. Net sales increased by 8.7% and were EUR 118.7 (109.2) million. The exchange rate of the Belarusian rouble weakened from the comparison period. In the local currency, net sales grew by 18.3%. The adjusted operating result increased by 16.9% from the comparison period and was EUR 29.2 (24.9) million. In the local currency, the adjusted operating result improved by 27.0%. Although our business operations in Belarus are reported as part of Olvi Group, they are funded through local income financing, and the distribution of profits to the parent company is limited.

 

Sales development


In January-September, Olvi Group's sales volume remained at the comparison period's level and was 775.7 (773.1) million litres.

 

Sales volume, Mltr

7-9/ 2024

7-9/ 2023

Change, %

 1-9/ 2024

 1-9/ 2023

Change, %

Finland

68.0

68.9

-1.3

201.1

207.8

-3.2

Baltic Sea region

105.1

107.1

-1.9

299.3

307.6

-2.7

Belarus

101.4

89.2

13.7

280.5

260.9

7.5

Eliminations

-1.9

-1.1

 

-5.2

-3.2

 

Total

272.6

264.1

3.2

775.7

773.1

0.3

 

The Group's net sales in January-September increased by 2.8% to EUR 510.0 (495.9) million.

 

Net sales, MEUR

7-9/ 2024

7-9/ 2023

Change, %

 1-9/ 2024

 1-9/ 2023

Change, %

Finland

63.0

59.5

5.9

182.1

175.2

3.9

Baltic Sea region

77.2

75.8

1.9

212.6

213.6

-0.5

Belarus

46.0

36.4

26.3

118.7

109.2

8.7

Eliminations

-1.3

-0.6

 

-3.4

-2.1

 

Total

184.9

171.1

8.1

510.0

495.9

2.8

 

On 1 January 2024, Olvi Group changed the presentation of the segments to correspond to the monitoring carried out by the management. Intra-segment business transactions are eliminated from the segments' sales volumes and net sales in their presentation. The comparison information has been changed accordingly.

 

Financial performance

 

The Group's operating result in July-September was EUR 29.8 (20.5) million, or 16.1% (12.0%) of net sales. The third-quarter operating result does not include items affecting comparability. The adjusted operating result increased by 21.5% in January-September and was EUR 72.0 (59.3) million. The improvement in the adjusted operating result was mainly caused by improved profitability in our Finnish operations, compared with the corresponding period in the previous year. The operating result in January-September increased by 52.9% from the comparison period to EUR 72.0 (47.1) million. In the comparison period, the operating result was burdened by a fine imposed on the Belarusian subsidiary.

Adjusted operating result, MEUR

7-9/ 2024

7-9/ 2023

Change, %

 1-9/ 2024

 1-9/ 2023

Change, %

Finland

8.6

5.7

51.6

22.2

15.4

44.7

Baltic Sea region

8.7

7.7

13.4

21.4

20.0

7.2

Belarus

12.6

7.4

69.7

29.2

24.9

16.9

Eliminations

-0.1

-0.3

 

-0.8

-1.0

 

Total

29.8

20.5

45.4

72.0

59.3

21.5

 

Operating result, MEUR

7-9/ 2024

7-9/ 2023

Change, %

 1-9/ 2024

 1-9/ 2023

Change, %

Finland

8.6

5.7

51.6

22.2

15.4

44.7

Baltic Sea region

8.7

7.7

13.4

21.4

20.0

7.2

Belarus

12.6

7.4

69.7

29.2

12.7

128.4

Eliminations

-0.1

-0.3

 

-0.8

-1.0

 

Total

29.8

20.5

45.4

72.0

47.1

52.9

 

The Group's profit after taxes in January-September was EUR 55.0 (32.0) million.

Earnings per share calculated from the profit attributable to the owners of the parent company in January-September were EUR 2.62 (1.54).

Financial position and the balance sheet

 

Olvi Group's balance sheet total was EUR 527.8 (494.2) million on 30 September 2024. The increase in the balance sheet mainly resulted from growth in equity and non-current assets following investments. Equity per share was EUR 15.32 (13.66). The equity ratio was 60.3% (57.3%), and gearing was -11.3% (-7.7%). The Group's liquidity indicator, the current ratio, improved to 1.4 (1.3). Interest-bearing liabilities amounted to EUR 8.3 (5.1) million at the end of September. Of the interest-bearing liabilities, current liabilities accounted for EUR 1.9 (2.5) million.

Olvi Group's balance sheet and financial position are strong. The company has no net debt, and its ability to invest remained good.

The Group's cash and cash equivalents stood at EUR 44.4 (26.8) million at the end of September. Olvi has various short-term financial instruments such as credit facilities for liquidity management. Cash flow from operating activities was EUR 64.8 (10.6) million. It improved as a result of an increase in the operating result and a change in working capital from the comparison period, especially in terms of accounts receivable. Cash flow from investing activities was EUR -25.4 (-17.5) million, and cash flow from financing activities was EUR -25.9 (-25.1) million. 

Investments

 

In its investments, Olvi focuses on environmental friendliness, cost-effective operations and capacity development to meet business requirements. Olvi Group's expansion and replacement investments were EUR 27.0 (17.3) million in January-September. Of the investments, EUR 13.9 million was related to Finland, and EUR 10.4 million to subsidiaries in the Baltic Sea region. The warehouse and logistics investment at the Iisalmi plant has proceeded on schedule, and the brew house investment is in progress. Investments in the Baltic Sea region were mainly related to production line improvements. Replacement investments necessary for the continuity of production were made in Belarus through the subsidiary's income financing, totalling EUR 2.7 million.

Seasonal nature of operations
 

The nature of the Group's business operations involves seasonal fluctuation. The net sales and operating result of the geographical reporting segments are not accumulated steadily. Instead, they fluctuate in accordance with the special characteristics of the seasons of the year and product seasons.

 

Personnel

In January-September, Olvi Group had an average of 2,446 (2,395) employees, with an increase of 2.1% from the comparison period.

Olvi Group's average number of personnel by segment:

 

7-9/ 2024

7-9/ 2023

Change, %

 1-9/ 2024

 1-9/ 2023

Change, %

Finland

472

482

-2.1

458

459

-0.2

Baltic Sea region

1,077

1,087

-0.9

1,080

1,075

0.5

Belarus

928

870

6.7

908

861

5.5

Total

2,477

2,439

1.6

2,446

2,395

2.1


Sustainability  

 

Environmental sustainability 

Olvi Group was selected to participate in the science-based targets for nature programme of UN Global Compact Finland, which supports the development of the Group's nature work in accordance with the framework of the Science Based Targets Network.

Social sustainability 

 

To further develop its DEI (Diversity, Equity, Inclusion) work, Olvi Group is participating in UN Global Compact Finland's DEI peer learning group. The goal is to identify best practices and tools for promoting the DEI theme within Olvi Group and reducing the identified human rights risks.

 

Good governance 

 

Preparation for the requirements of the Corporate Sustainability Reporting Directive (CSRD) continues. The focus is on the collection and digitalisation of sustainability data. Sustainability information regarding the value chain is currently being developed using the self-assessment operating model for suppliers. In addition, Olvi

 

Group is preparing to act in accordance with the obligations of the Deforestation Regulation. It is also monitoring and preparing for other changes in the EU's sustainability legislation. The most topical of these include environmental claims, the Packaging and Packaging Waste Regulation, and the Corporate Sustainability Due Diligence Directive.

 

Board of Directors and management

No changes took place in Olvi plc's Board of Directors and management during the third quarter.

 

Other events during the review period

 

Changes in the Group structure

No significant changes took place in Olvi's subsidiary holdings in January-September 2024.

Business risks and their management

Geopolitical situation

The geopolitical situation has affected Olvi's operating environment. The war in Ukraine has significantly increased business risks. The pandemic caused problems in the availability of raw materials and packaging materials, and the war has further complicated the procurement of materials. The increase in the costs of materials, which started during the pandemic and continued in 2023, has levelled out as a whole since the beginning of 2024. However, uncertainty about prices and availability has continued in the market as a result of the war in Ukraine, geopolitical tension and weather events caused by climate change. Logistics costs have remained at a high level. Olvi is responding to the increase in costs by improving operational productivity and assessing sales prices and selections to maintain profitability.

 

Consumer behaviour

Despite the easing of the increase in the overall cost level, high consumer prices continue to weaken consumers' purchasing power and affect consumer behaviour. This change is already being reflected in a shift in consumption to more affordable product options. In addition, overall consumption may decrease, and the premiumisation trend may come to a halt. However, there are differences between markets. Olvi Group is responding to the change by developing its product portfolio in line with consumer demand and by maintaining and strengthening market shares.

 

Operating environment in Belarus

The business operations and financial forecasting in Belarus continue to involve considerable uncertainty. For example, the uncertainty concerns the development of exchange rates, the unpredictability of the operating environment, local legislation and taxation, trade sanctions, and the functioning of financial transactions with Western countries. Olvi's subsidiary operates independently in Belarus and finances its operations with cash flow from its own operations.

 

During 2024, legislative changes have been implemented in terms of dividend payments and laws preventing the sale of companies. The payment of dividends abroad by Western-owned companies has been restricted for 2024-2025 by setting regulations on maximum amounts. According to the current interpretation, the dividend that the Belarusian company can legally pay to the parent company is around EUR 1-3 million annually in 2024 and 2025. Despite legislative changes related to the prohibition to sell, the sales restrictions concerning shares in Olvi's subsidiary remain in force. Olvi has no permission to sell shares in its Belarusian subsidiary.  We are actively following the legislative situation.  

 

Other current risks

Cybersecurity threats have increased because of the escalation of the global geopolitical situation, among other reasons. Olvi Group has prepared for increased information security threats in a variety of ways, and the new requirements under the NIS2 cybersecurity directive have been implemented according to schedule.

 

If the EU Packaging and Packaging Waste Regulation is to be implemented using the manner now proposed, it will increase climate emissions from product manufacturing and logistics, as well as water consumption. This would have a direct impact on Olvi's chances of achieving its environmental targets. It would also cause changes in terms of filling and handling products. We are following the regulation process closely, seeking to influence the final content and implementation guidelines of the regulation so that the sustainability aspects of Olvi Group's countries of operation and, for example, the recycling solutions already in use in Finland related to deposit-based packaging are also taken into account.   

Sustainability risks are identified through human rights and climate change assessments as part of the company's strategic, business, financial and compliance risks.

Preparedness

Olvi Group has prepared several scenarios related to the development of the business environment and is prepared to respond to changing situations. The company is prepared for production disruptions and has drawn up continuity plans related to the availability of labour, raw materials and energy, for example. The company has made investments to secure energy supply and has also made efforts to ensure the availability of raw materials and packaging materials. Particular attention has been paid to the adequacy of risk management plans in accordance with risk assessments and the introduction of new risk assessment methods in terms of information security and sustainability risks, for example. 

 

A more detailed description of the risks related to business operations is provided in Olvi Group's Board of Directors' report and the notes to the financial statements and on the company website at www.olvigroup.fi/en/ (Investors > Olvi as an investment > Risks and risk management). 


Events after the review period

 

There are no significant events to report after the review period.

 

OLVI PLC
Board of Directors

Webcast

 

Olvi plc and its CEO will hold a press conference, which can be followed at
https://olvi.videosync.fi/q3-2024, on 16 October 2024, the date of publication of the interim report, at 12 noon. The press conference will be held in English.


A recording of the webcast can be viewed later on the company's website at
https://www.olvigroup.fi/en/releases-and-publications/financial-releases/

 


More information:


Patrik Lundell, CEO, Olvi plc, tel. +358 290 00 1050
Tiina-Liisa Liukkonen, CFO & CIO, Olvi plc, tel. +358 290 00 1050

 

 

TABLES:
- Consolidated statement of comprehensive income, Table 1
- Consolidated balance sheet, Table 2
- Consolidated statement of changes in equity, Table 3
- Consolidated cash flow statement, Table 4
- Notes to the interim report bulletin, Table 5


 

DISTRIBUTION:
Nasdaq Helsinki Ltd
Main media
www.olvi.fi

 

OLVI GROUP

 

 

 

 

TABLE 1

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

 

 

 

EUR 1,000

 

 

 

 

 

 

7-9/2024

7-9/2023

1-9/2024

1-9/2023

1-12/2023

 

 

 

 

 

 

Gross sales

374,911

355,248

1,045,609

1,036,026

1,326,568

Excise taxes and other adjustments

-189,991

-184,194

-535,587

-540,081

-695,963

Net sales

184,920

171,054

510,022

495,945

630,605

 

 

 

 

 

 

Cost of sales

-106,375

-106,762

-301,595

-310,966

-394,977

Gross profit

78,545

64,292

208,427

184,979

235,628

 

 

 

 

 

 

Logistics, sales and marketing expenses

-37,110

-33,378

-102,804

-95,698

-126,605

Administrative expenses

-11,738

-10,562

-34,568

-30,016

-41,472

Other operating income and expenses

151

172

977

-12,165

-12,633

Operating result

29,848

20,524

72,032

47,100

54,918

 

 

 

 

 

 

Financial income

695

93

1,353

515

990

Financial expenses

-390

-422

-1,084

-1,229

-1,682

Share of the profit of associated companies and joint ventures

0

0

0

0

45

Profit before tax

30,153

20,195

72,301

46,386

54,271

 

 

 

 

 

 

Income taxes

-6,722

-3,478

-17,297

-14,388

-15,798

PROFIT FOR THE PERIOD

23,431

16,717

55,004

31,998

38,473

 

 

 

 

 

 

Other items of comprehensive income that may be subsequently reclassified as profit or loss:

 

 

 

 

 

Translation differences related to foreign subsidiaries

-2,280

-1,184

-888

-4,576

-5,003

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

21,151

15,533

54,116

27,422

33,470

 

 

 

 

 

 

Distribution of the profit for the period:

 

 

 

 

 

- Owners of the parent company

23,118

16,536

54,308

31,924

38,251

- Non-controlling interest

313

181

696

74

222

 

 

 

 

 

 

Distribution of comprehensive income for the period:

 

 

 

 

 

 - Owners of the parent company

20,921

15,445

53,452

27,714

33,430

 - Non-controlling interest

230

88

664

-292

40

 

 

 

 

 

 

Earnings per share calculated from profit attributable to owners of the parent company, EUR

 

 

 

 

 

- Undiluted

1.12

0.80

2.62

1.54

1.85

- Diluted

1.12

0.80

2.62

1.54

1.85

 

OLVI GROUP

 

 

TABLE 2

CONSOLIDATED BALANCE SHEET

 

 

 

EUR 1,000

30 Sep 2024

 

30 Sep 2023

31 Dec 2023

ASSETS

 

 

 

Non-current assets

 

 

 

Intangible assets

9,623

10,794

10,518

Goodwill

22,204

22,204

22,204

Tangible assets

224,954

208,525

213,182

Holdings in associated companies and joint ventures

1,032

987

1,032

Other investments

892

1,043

1,042

Loans receivable and other long-term receivables

7,222

3,308

5,544

Deferred tax assets

3,527

2,882

4,370

Total non-current assets

269,454

249,743

257,892

 

 

 

 

Current assets

 

 

 

Inventories

81,783

80,610

74,190

Accounts receivable and other receivables

131,512

137,072

125,815

Income tax receivables

662

0

645

Cash and cash equivalents

44,380

26,792

31,458

Total current assets

258,337

244,474

232,108

TOTAL ASSETS

527,791

494,217

490,000

 

 

 

 

EQUITY AND LIABILITIES

 

 

 

Equity attributable to owners of the parent company

 

 

 

Share capital

20,759

20,759

20,759

Other reserves

1,092

1,092

1,092

Fair value reserve

295

295

295

Treasury shares

-658

-881

-881

Translation differences

-57,624

-56,157

-56,768

Retained earnings

353,202

317,666

324,120

 

317,066

282,774

288,617

Non-controlling interest

1,339

651

721

Total equity

318,405

283,425

289,338

 

 

 

 

Non-current liabilities

 

 

 

Financial liabilities

6,397

2,565

4,098

Other liabilities

756

804

782

Deferred tax liabilities

13,555

13,044

14,100

 

 

 

 

Current liabilities

 

 

 

Financial liabilities

1,944

2,525

2,908

Accounts payable and other payables

179,987

187,356

178,751

Income tax liability

6,747

4,498

23

Total liabilities

209,386

210,792

200,662

TOTAL EQUITY AND LIABILITIES

527,791

494,217

490,000

 

OLVI GROUP

 

 

 

TABLE 3

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

 

 

 

 

EUR 1,000

Share capital

Other reserves

Fair value reserve

Reserve for treasury shares

Translation differences

Retained earnings

Attributable to non-controlling interest

Total

Equity 1 Jan 2024

20,759

1,092

295

-881

-56,768

324,120

721

289,338

Comprehensive income:

 

 

 

 

 

 

 

 

     Profit for the period

 

 

 

 

54,308

696

55,004

     Other items of comprehensive income:

 

 

 

 

 

          Translation differences

 

-856

 

-32

-888

Total comprehensive income for the period

 

-856

54,308

664

54,116

Business transactions with shareholders:

 

 

 

 

 

     Dividend payment

 

 

 

 

 

-24,826

-24

-24,850

     Share-based incentives, value of work performed

 

 

718

 

718

     Issue of treasury shares to personnel

223

 

-387

 

-164

     Other changes

 

 

-713

 

-713

Business transactions with shareholders, total

 

223

 

-25,208

-24

-25,009

Changes in holdings in subsidiaries:

 

 

 

 

 

 

      Acquisition of shares from non-controlling interest

 

 

-40

 

-40

      Change in non-controlling interest

 

 

22

-22

0

Changes in holdings in subsidiaries, total

 

 

-18

-22

-40

Equity 30 Sep 2024

20,759

1,092

295

-658

-57,624

353,202

1,339

318,405

EUR 1,000

Share capital

Other reserves

Fair value reserve

Reserve for treasury shares

Translation differences

Retained earnings

Attributable to non-controlling interest

Total

Equity 1 Jan 2023

20,759

1,092

295

-1,079

-52,030

310,194

2,514

281,745

Comprehensive income:

 

 

 

 

 

 

 

 

     Profit for the period

 

 

 

 

31,924

74

31,998

     Other items of comprehensive income:

 

 

 

 

 

 

          Translation differences

 

 

 

-4,210

 

-366

-4,576

Total comprehensive income for the period

 

 

-4,210

31,924

-292

27,422

Business transactions with shareholders:

 

 

 

 

 

 

     Dividend payment

 

 

 

 

 

-24,817

-386

-25,203

Share-based incentives, value of work performed

 

 

524

 

524

     Acquisition of treasury shares

 

-604

 

 

 

-604

     Issue of treasury shares to personnel

802

 

-1,376

 

-574

     Other changes

 

 

83

54

-22

115

Business transactions with shareholders, total

 

198

83

-25,615

-408

-25,742

Changes in holdings in subsidiaries:

 

 

 

 

 

 

      Change in non-controlling interest

 

 

1,163

-1,163

0

Changes in holdings in subsidiaries, total

 

 

1,163

-1,163

0

Equity 30 Sep 2023

20,759

1,092

295

-881

-56,157

317,666

651

283,425

OLVI GROUP

 

 

TABLE 4

CONSOLIDATED CASH FLOW STATEMENT

 

 

 

EUR 1,000

 

 

 

 

1-9/2024

1-9/2023

1-12/2023

 

 

 

 

Profit for the period

55,004

31,998

38,473

Adjustments:

 

 

 

     Depreciation and impairment

19,282

18,364

24,779

     Other adjustments

16,466

18,039

11,778

Change in net working capital:

 

 

 

     Change in accounts receivable and other receivables

-7,535

-32,132

-20,279

     Change in inventories

-7,869

-12,428

-6,377

     Change in accounts payable and other payables

-1,054

-3,147

-4,789

Interest paid

-406

-262

-408

Interest received

1,065

189

531

Dividends received

5

3

10

Taxes paid

-10,197

-10,026

-15,764

Cash flow from operating activities (A)

64,761

10,598

27,954

 

 

 

 

Investments in tangible and intangible assets

-25,894

-17,832

-25,550

Capital gains on disposal of tangible and intangible assets

514

294

591

Acquisition of shares from non-controlling interest

0

0

-2,737

Dividends received

0

41

41

Cash flow from investing activities (B)

-25,380

-17,497

-27,655

 

 

 

 

Loan withdrawals

15,684

3,849

4,577

Repayment of loans

-18,260

-4,747

-6,165

Acquisition of treasury shares

0

-604

-604

Dividends paid

-23,302

-23,606

-25,339

Cash flow from financing activities (C)

-25,878

-25,108

-27,531

 

 

 

 

Increase (+) / decrease (-) in cash and cash equivalents (A+B+C)

13,503

-32,007

-27,232

 

 

 

 

Cash and cash equivalents 1 Jan

31,458

61,207

61,207

Impact of exchange rate changes

-581

-2,408

-2,517

Cash and cash equivalents 30 Sep / 31 Dec

44,380

26,792

31,458

 


OLVI GROUP     TABLE 5

NOTES TO THE INTERIM REPORT BULLETIN

The interim report has been prepared in accordance with IAS 34 Interim Financial Reporting, applying the same accounting principles that were applied to the 2023 financial statements (31 December 2023). On 1 January 2024, Olvi Group changed the presentation of the segments to correspond to the monitoring carried out by the management. Intra-segment business transactions are eliminated from the segments' sales volumes and net sales in their presentation. The comparison information has been changed accordingly.

The information in the interim report is presented in thousands (1,000) of euros. For presentation, individual figures and totals have been rounded up to full thousands, which causes rounding differences in the totals. Exchange rates obtained from the Central Bank of Belarus have been used as the exchange rate for the Belarusian rouble. The key ratios have been calculated by using accurate euro-denominated figures. The information published in the interim report has not been audited.

 

1  SEGMENT INFORMATION

 

 

 

SEGMENTS' NET SALES AND PROFIT FOR THE PERIOD 1-9/2024

 

EUR 1,000

 

Finland

Baltic Sea region

Belarus

Eliminations

 

Group

 

 

 

 

 

 

INCOME

 

 

 

 

 

External sales

181,655

209,640

118,727

 

510,022

     Beverage sales

179,866

209,640

118,727

 

508,233

     Equipment services

1,789

0

0

 

1,789

Internal sales

425

2,919

0

-3,344

0

Total net sales

182,080

212,559

118,727

-3,344

510,022

 

 

 

 

 

 

Total profit for the period

40,989

15,689

18,656

-20,330

55,004


 

 

SEGMENTS' NET SALES AND PROFIT FOR THE PERIOD 1-9/2023

 

EUR 1,000

 

Finland

Baltic Sea region

Belarus

Eliminations

 

Group

 

 

 

 

 

 

INCOME

 

 

 

 

 

External sales

175,191

211,576

109,178

 

495,945

     Beverage sales

173,566

211,576

109,178

 

494,320

     Equipment services

1,625

0

0

 

1,625

Internal sales

27

2,058

0

-2,085

0

Total net sales

175,218

213,634

109,178

-2,085

495,945

 

 

 

 

 

 

Total profit for the period

35,289

14,897

1,570

-19,758

31,998

 

 

 

 

 

 

 

 

2  RELATED PARTY TRANSACTIONS

 

Management's employee benefits

 

Board members' and the CEO's salaries and other short-term employee benefits

 

EUR 1,000

 1-9/2024

 1-9/2023

 1-12/2023

CEO

521

268

358

Chair of the Board

71

60

93

Other Board members

 

170

124

165

Total

762

452

616

 


3 SHARES AND SHARE CAPITAL

 

 

 

30 Sep 2024

      %

 

 

 

Series A shares, number of shares

16,989,976

82.0

Series K shares, number of shares

3,732,256

18.0

Total

20,722,232

100.0

 

 

 

Total number of votes, Series A shares

16,989,976

18.5

Total number of votes, Series K shares

74,645,120

81.5

Total number of votes

91,635,096

100.0

 

 

 

Votes per Series A share

1

 

Votes per Series K share

20

 

 

The registered share capital totalled EUR 20,759 thousand on 30 September 2024.


A dividend of EUR 1.20 per share for 2023 (EUR 1.20 per share for 2022), totalling EUR 24.8 (24.8) million, was paid on shares in Olvi plc. The dividend was paid in two instalments. The first instalment, EUR 0.60 per share, was paid on 18 April 2024. The second instalment, EUR 0.60 per share, was paid on 3 September 2024. Series K shares and Series A shares provide their holders with equal rights to dividends. The Articles of Association include a redemption clause concerning Series K shares.

 

4 SHARE-BASED REWARDS

 

During the review period, Olvi plc's Board of Directors decided to transfer Series A shares in Olvi plc to a key person of the company through a directed share issue without payment as part of the performance share plans for 2022-2024 and 2023-2025 in accordance with the terms and conditions of the plans in connection with the retirement of the key person. A total of 528 Series A shares were transferred as rewards. In accordance with the terms and conditions of the plans that ended, the rewards were paid in Series A shares in Olvi plc and partly in cash.

 

The costs related to incentive plans totalled EUR 718.3 thousand in the review period. Olvi Group has no other share or option arrangements in place.

 

5 TREASURY SHARES

 

Olvi plc transferred a total of 528 Series A shares in the company as part of the performance share plans for 2022-2024 and 2023-2025 in accordance with the terms and conditions of the plans in connection with the retirement of a key person. The Series A shares transferred accounted for 0.003% of all shares.  

On 30 September 2024, Olvi plc held a total of 21,714 Series A shares in the company. The total acquisition price of treasury shares was EUR 657.8 thousand. The treasury shares do not provide the company with voting rights. The Series A shares held by Olvi plc represent 0.10% of all shares in the company and 0.02% of all votes provided by the shares in the company. The treasury shares account for 0.13% of all Series A shares in the company and 0.13% of the votes provided by all Series A shares in the company.

 

6 NUMBER OF SHARES OUTSTANDING

 1-9/2024

 1-9/2023

1-12/2023

 

 

 

 

  - Average

20,697,546

20,690,017

20,690,905

  - At the end of the period

20,700,518

20,693,540

20,693,540

 

 

7 TRADING IN SERIES A SHARES ON THE NASDAQ HELSINKI

 

 

 

 1-9/2024

 1-9/2023

1-12/2023

 

Trading in Series A shares in Olvi, number of shares

1,191,776

1,212,484

1,608,889

Total value of trading, EUR 1,000

36,710

36,537

48,077

Proportion of the trading out of the total number of Series A shares, %

7.0

7.1

9.5

 

 

 

 

Average share price, EUR

30.80

30.13

29.88

Closing price, EUR

29.50

30.20

28.05

Highest price, EUR

33.80

34.95

34.95

Lowest price, EUR

28.35

26.80

26.80


 

 

8 FOREIGN AND NOMINEE-REGISTERED HOLDINGS 30 Sep 2024

 

Book-entry shares

Number of votes

Shareholders

 

number

%

number

%

number

%

Finnish, total

17,112,125

82.59

88,024,989

96.06

23,583

99.64

Foreign, total

38,038

0.18

38,038

0.04

71

0.30

Nominee-registered (foreign), total

417,216

2.01

417,216

0.46

6

0.03

Nominee-registered (Finnish), total

3,154,853

15.22

3,154,853

3.44

6

0.03

Total

20,722,232

100.00

91,635,096

100.00

23,666

100.00


 

9 LARGEST SHAREHOLDERS 30 Sep 2024

 

 

 

 

 

Series K

Series A

Total

%

Number of votes

%

1 Olvi Foundation       

2,363,904

990,613

3,354,517

16.19

48,268,693

52.67

2 The estate of Heikki Hortling*                                   

903,488

103,280

1,006,768

4.86

18,173,040

19.83

3 Timo Einari Hortling

212,888

49,152

262,040

1.26

4,306,912

4.70

4 Marit Hortling-Rinne    

149,064

14,234

163,298

0.79

2,995,514

3.27

5 Nordea Bank Abp, nominee-registered

1,750,433

1,750,433

8.45

1,750,433

1.91

6 Skandinaviska Enskilda Banken Ab (publ), Helsinki branch, nominee-registered

1,338,037

1,338,037

6.46

1,338,037

1.46

7 Varma Mutual Pension Insurance Company

828,075

828,075

4.00

828,075

0.90

8 Ilmarinen Mutual Pension Insurance Company

683,000

683,000

3.30

683,000

0.75

9 Pia Johanna Hortling

23,388

28,894

52,282

0.25

496,654

0.54

10 Jens Einari Hortling

23,388

18,444

41,832

0.20

486,204

0.53

Other

56,136

11,185,814

11,241,950

54.24

12,308,534

13.44

Total

3,732,256

16,989,976

20,722,232

100.00

91,635,096

100.00

 

* The shareholding includes shares held by the shareholder and the entities they control.

 

Olvi did not receive any flagging notifications under chapter 9, section 5 of the Securities Markets Act in January-September 2024.

 

 

10 PROPERTY, PLANT AND EQUIPMENT

 

EUR 1,000

 

 

 

 

 1-9/2024

  1-9/2023

  1-12/2023

 

 

 

 

Opening balance

213,182

208,165

208,165

Additions

29,550

17,065

26,643

Deductions and transfers

-262

28

1,311

Depreciation and impairment

-17,516

-16,482

-22,709

Exchange rate differences

0

-251

-228

Total

224,954

208,525

213,182

 


11 COMMITMENTS

 

 

 

EUR 1,000

 

 

 

 

30 Sep 2024

30 Sep 2023

31 Dec 2023

 

 

 

 

Pledged assets and commitments

 

 

 

   For own commitments

2,342

3,225

3,268

 

 

 

 

Lease and rental liabilities:

 

 

 

   Maturing in less than a year

918

1,256

1,300

   Maturing within 1-5 years

734

1,374

1,254

Total lease and rental liabilities

1,652

2,630

2,554

 

 

 

 

Other liabilities

67

67

567

 

 

12 VALUATION OF THE BELARUSIAN BUSINESS SEGMENT

 

For the 2022 financial statements (31 December 2022), the management assessed the book value of the Belarusian business segment in a changed operating environment. An impairment of EUR 35.0 million was recognised based on the assessment. Based on the management's assessment and testing, the balance sheet valuation of the Belarusian business segment on 30 September 2024 is materially at the right level, and there is no need to change the impairment recognised. The Belarusian business segment's balance sheet value was EUR 49.3 million on 30 September 2024. The valuation has been carried out in accordance with the previous year's model.

 

13 CALCULATION PRINCIPLES FOR KEY FIGURES


In its summary of key ratios (page 1), the Group presents key ratios directly derived from the consolidated income statement (net sales, operating result, profit for the period and their proportions of net sales, as well as earnings per share). (Earnings per share = Profit for the period attributable to owners of the parent company / Average number of shares during the period, adjusted for share issues).

 

In addition to its IFRS-based consolidated financial statements, Olvi plc presents Alternative Performance Measures that describe the financial performance of its business operations and provide a comparable overview of the company's profitability, solvency and liquidity.

 

The Group has applied the European Securities and Markets Authority's (ESMA) guidelines (effective since 3 July 2016) on Alternative Performance Measures and has determined such measures as follows:

 

The Group presents sales volume data in millions of litres as an Alternative Performance Measure that supports net sales. Sales volume is an important and widely used indicator in the industry that describes the scope of operations. To improve comparability between reporting periods, the Group also presents the adjusted operating result and the adjusted profit for the period as Alternative Performance Measures. The adjusted operating result is calculated by deducting significant items affecting comparability from net sales. The corresponding items have been deducted from the profit for the period when calculating the adjusted profit for the period.

 

Investments consist of increases in fixed assets, excluding increases under IFRS 16.

 

Earnings per share = Equity attributable to owners of the parent company / Number of shares at the end of the period, adjusted for share issues.


Equity ratio, % = 100 * (Equity attributable to owners of the parent company + non-controlling interest) / (Balance sheet total).

 

Gearing, % = 100 * (Interest-bearing liabilities - cash in hand and at bank) / (Equity attributable to owners of the parent company + non-controlling interest).

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