OLVI PLC INTERIM REPORT 30 October 2019 at 9:00 am
OLVI GROUP'S INTERIM REPORT, 1 JANUARY TO 30 SEPTEMBER 2019 (9 MONTHS)
INTERIM REPORT IN BRIEF
Olvi Group's good development continued from the first half of the year throughout this review period. Olvi Group's sales volume, net sales and operating profit are higher than last year. The Group's financial position has improved further.
Near-term outlook
Olvi retains its full-year earnings outlook and estimates that the Group's operating profit for 2019 will remain on the previous year's healthy level.
CONSOLIDATED KEY RATIOS
| 7-9/ 2019 | 7-9/ 2018 | Change % / pp | 1-9/ 2019 | 1-9/ 2018 | Change % / pp | 1-12/ 2018 | |
| Sales volume, Mltr | 194.1 | 200.3 | -3.1 | 559.1 | 551.0 | 1.5 | 701.3 |
| Net sales, MEUR | 113.6 | 110.7 | 2.6 | 315.1 | 298.1 | 5.7 | 384.3 |
| Gross margin, MEUR | 25.0 | 24.3 | 3.3 | 62.4 | 59.6 | 4.8 | 70.8 |
| % of net sales | 22.1 | 21.9 | 19.8 | 20.0 | 18.4 | ||
| Operating profit, MEUR | 19.1 | 18.9 | 1.2 | 44.9 | 44.4 | 1.1 | 50.1 |
| % of net sales | 16.8 | 17.1 | 14.3 | 14.9 | 13.0 | ||
| Net profit for the period, MEUR | 17.1 | 16.0 | 6.9 | 35.3 | 36.1 | -2.0 | 41.1 |
| % of net sales | 15.0 | 14.4 | 11.2 | 12.1 | 10.7 | ||
| Earnings per share, EUR | 0.82 | 0.77 | 6.5 | 1.69 | 1.72 | -1.7 | 1.97 |
| Gross capital expenditure, MEUR | 5.9 | 8.3 | -28.0 | 24.1 | 24.2 | -0.5 | 34.2 |
| Equity per share, EUR | 12.38 | 11.10 | 11.5 | 11.31 | |||
| Equity to total assets, % | 66.2 | 63.9 | 2.3 | 64.9 | |||
| Gearing, % | -9.9 | -5.5 | 4.4 | -6.0 |
BUSINESS DEVELOPMENT
LASSE AHO, MANAGING DIRECTOR:
Olvi Group's business has continued to develop favourably throughout the year so far. During the review period, net sales increased by 5.7 percent and operating profit also improved slightly in spite of increased raw material costs and personnel expenses in the Baltic states.
Across the entire market area, weather during the latter half of high season was clearly worse than in the previous year. This had an impact on overall demand particularly for mineral waters and the traditional malt beverage kvass. However, the Group's profitability improved also in the third quarter.
Business in Finland has developed favourably during the entire period under review. Sales volume, net sales and operating profit have increased on the previous year. The demand for mild alcoholic beverages in particular has remained strong, and as a result, Olvi's market position strengthened further.
After the cut in alcohol tax that became effective in the beginning of July, the Estonian market clearly recovered. The tax cut has had a healthy effect on domestic sales in Estonia as well as on-board and harbour sales directed to Finland. The sales of mild alcoholic beverages in Estonia are on a growth track. In the third quarter, this clearly improved net sales and operating profit.
In Latvia, excise taxes were increased in the beginning of the year, which has caused a slight dip in demand on the local market. The demand for mild alcoholic beverages in particular has weakened because their taxation is relatively higher compared to strong alcoholic beverages. In spite of this, earnings are almost on a par with the previous year, thanks to successful adaptation and operational efficiency improvements. We have been successful in increasing the sales volume particularly in non-alcoholic beverages and premium products.
In Lithuania, good sales development has continued since the beginning of the year. Particular growth can be seen in mild alcoholic beverages and waters, both locally and in exports. The Volfas Engelman brand has developed well and the market share in beers has steadily improved. Cumulative operating profit is still burdened by the costs of launching the water business and introducing new brands.
In Belarus, business development has continued on a good track during the review period. The cumulative figures for both net sales and operating profit have improved on the previous year. In the third quarter, the sales volume declined particularly in kvass, both locally and for exports to Russia, due to cool weather in the high season. Kvass is the company's second-largest product group and similarly to water products, the demand is strongly linked to weather conditions.
Investments have been completed as planned during the review period. Production capacity increases have been implemented for beers in Finland and juices in Estonia. Olvi Group's first natural mineral water plant in Lithuania started operations in the spring.
SEASONAL NATURE OF THE OPERATIONS
The Group's business operations are characterised by seasonal variation. The net sales and operating profit from the reported geographical segments do not accumulate evenly but vary according to the time of the year and the characteristics of each season.
SALES DEVELOPMENT
Olvi Group's sales volume increased in January-September by 1.5 percent to 559.1 (551.0) million litres. In July-September the sales volume declined by 3.1 percent to 194.1 (200.3) million litres.
Total sales volume in the third quarter was substantially affected by a decline in the demand for waters and kvass, as the weather was cooler than in the comparison period. In spite of this, sales in Finland, Lithuania and Estonia increased, thanks to good demand for mild alcoholic beverages.
| Sales volume, million litres | 7-9/ 2019 | 7-9/ 2018 | Change % | 1-9/ 2019 | 1-9/ 2018 | Change % | |
| Finland | 59.4 | 56.7 | 4.7 | 165.9 | 161.8 | 2.5 | |
| Estonia | 31.8 | 31.6 | 0.7 | 86.2 | 87.4 | -1.3 | |
| Latvia | 19.3 | 22.2 | -13.0 | 56.0 | 60.4 | -7.2 | |
| Lithuania | 29.8 | 28.7 | 3.7 | 82.3 | 75.0 | 9.7 | |
| Belarus | 60.6 | 68.5 | -11.5 | 186.0 | 184.3 | 1.0 | |
| Eliminations | -6.8 | -7.5 | -17.5 | -17.9 | |||
| Total | 194.1 | 200.3 | -3.1 | 559.1 | 551.0 | 1.5 | |
The Group's net sales in January-September increased by 5.7 percent and amounted to 315.1 (298.1) million euro. In July-September, net sales increased by 2.6 percent and amounted to 113.6 (110.7) million euro. Growth was seen in all markets except Latvia, where the market for mild alcoholic beverages in particular has declined strongly.
| Net sales, million euro | 7-9/ 2019 | 7-9/ 2018 | Change % | 1-9/ 2019 | 1-9/ 2018 | Change % |
| Finland | 46.1 | 44.5 | 3.6 | 127.9 | 119.8 | 6.8 |
| Estonia | 21.3 | 20.2 | 5.5 | 56.1 | 55.6 | 0.9 |
| Latvia | 10.8 | 11.9 | -9.4 | 30.7 | 31.7 | -3.3 |
| Lithuania | 13.8 | 13.1 | 5.6 | 37.7 | 33.7 | 11.8 |
| Belarus | 24.7 | 24.0 | 2.7 | 71.0 | 64.9 | 9.4 |
| Eliminations | -3.1 | -3.0 | -8.3 | -7.7 | ||
| Total | 113.6 | 110.7 | 2.6 | 315.1 | 298.1 | 5.7 |
EARNINGS DEVELOPMENT
The Group's operating profit in January-September stood at 44.9 (44.4) million euro, or 14.3 (14.9) percent of net sales. Operating profit in July-September stood at 19.1 (18.9) million euro, which was 16.8 (17.1) percent of net sales. In the third quarter, operating profit improved particularly in Estonia as demand grew stronger.
| Operating profit, million euro | 7-9/ 2019 | 7-9/ 2018 | Change % | 1-9/ 2019 | 1-9/ 2018 | Change % |
| Finland | 7.3 | 7.3 | 0.4 | 16.2 | 15.3 | 5.9 |
| Estonia | 5.6 | 5.0 | 10.8 | 11.9 | 12.2 | -2.8 |
| Latvia | 1.5 | 1.9 | -19.3 | 3.7 | 4.1 | -9.2 |
| Lithuania | 1.6 | 1.5 | 1.6 | 3.1 | 3.4 | -10.6 |
| Belarus | 3.4 | 3.5 | -0.8 | 10.9 | 9.6 | 13.5 |
| Eliminations | -0.3 | -0.3 | -0.8 | -0.2 | ||
| Total | 19.1 | 18.9 | 1.2 | 44.9 | 44.4 | 1.1 |
The Group's January-September profit after taxes amounted to 35.3 (36.1) million euro. Profit in July-September amounted to 17.1 (16.0) million euro. Profit after taxes is slightly lower compared to the previous year. This is due to increased taxes as the amount of dividends repatriated from subsidiaries increased substantially.
Earnings per share calculated from the profit belonging to parent company shareholders in January-September stood at 1.69 (1.72) euro, and the July-September figure was 0.82 (0.77) euro.
BALANCE SHEET, FINANCING AND INVESTMENTS
Olvi Group's balance sheet total at the end of September 2019 was 392.9 (365.0) million euro. Equity per share at the end of September 2019 stood at 12.38 (11.10) euro. The equity ratio was 66.2 (63.9) percent and the gearing ratio was -9.9 (-5.5) percent. The current ratio, which represents the Group's liquidity, was 1.2 (1.1).
The amount of interest-bearing liabilities amounted to 3.7 (7.5) million euro at the end of September. Current liabilities made up 0.8 (5.9) million euro of all interest-bearing liabilities.
The Group's cash flow from operations increased slightly on the previous year, amounting to 51.5 (50.1) million euro.
Olvi Group's capital expenditure on extensions and replacements from January to September amounted to 24.1 (24.2) million euro. The companies in Finland accounted for 9.3 million euro, the Baltic subsidiaries for 11.4 million euro and Lidskoe Pivo in Belarus for 3.4 million euro of the total. Olvi Group has invested in increasing and diversifying its production capacity, as well as the modernisation of production facilities. On the annual level, investments will remain on a par with the previous year.
PERSONNEL
Olvi Group's average number of personnel in January-September remained unchanged from the comparison period at 1,805 (1,805) people. The average number of personnel in July-September was 1,837 (1,875).
Olvi Group's average number of personnel by country:
| 7-9/ 2019 | 7-9/ 2018 | Change % | 1-9/ 2019 | 1-9/ 2018 | Change % | |
| Finland | 411 | 406 | 1.2 | 394 | 372 | 5.9 |
| Estonia | 326 | 313 | 4.2 | 313 | 304 | 3.0 |
| Latvia | 202 | 196 | 3.1 | 198 | 197 | 0.5 |
| Lithuania | 222 | 215 | 3.3 | 222 | 213 | 4.2 |
| Belarus | 676 | 745 | -9.3 | 678 | 719 | -5.7 |
| Total | 1,837 | 1,875 | -2.0 | 1,805 | 1,805 | 0.0 |
BOARD OF DIRECTORS AND MANAGEMENT
There have been no changes in Olvi plc's Board of Directors or management during the review period.
OTHER EVENTS DURING THE REVIEW PERIOD
Changes in corporate structure
There were no changes in Olvi's holdings in subsidiaries in January-September 2019.
Share-based payments
At the beginning of the year, Olvi plc initiated a share-based incentive plan for key personnel, the performance period of which is from 1 February 2019 to 31 January 2021. Detailed information on the incentive plan is provided in Table 5, Section 4 of the tables attached to this interim report.
BUSINESS RISKS AND THEIR MANAGEMENT
Continuous changes in excise taxes and stricter alcohol legislation in Olvi Group's operating countries bring uncertainty to operations. In addition to the risks described above, there have been no significant changes in Olvi Group's business risks. A more detailed description of the risks is provided in the Board of Directors' report and the notes to the financial statements, as well as in the Investors/Corporate Governance section of the company's Web site.
EVENTS AFTER THE REVIEW PERIOD
There have been no significant reportable events after the review period.
OLVI PLC
Board of Directors
Further information: Lasse Aho, Managing Director, Olvi plc, phone +358 290 00 1050 or +358 400 203 600
TABLES:
- Statement of comprehensive income, Table 1
- Balance sheet, Table 2
- Changes in shareholders' equity, Table 3
- Cash flow statement, Table 4
- Notes to the interim report bulletin, Table 5
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Key media
www.olvi.fi
| OLVI GROUP | TABLE 1 | ||||
| STATEMENT OF COMPREHENSIVE INCOME | |||||
| EUR 1,000 | |||||
| 7-9/ 2019 | 7-9/ 2018 | 1-9/ 2019 | 1-9/ 2018 | 1-12/ 2018 | |
| Net sales | 113,587 | 110,661 | 315,127 | 298,085 | 384,302 |
| Other operating income | 324 | 502 | 1,251 | 1,181 | 2,144 |
| Operating expenses | -88,862 | -86,906 | -253,933 | -239,673 | -315,694 |
| Depreciation and impairment | -5,933 | -5,360 | -17,509 | -15,146 | -20,602 |
| Operating profit | 19,116 | 18,897 | 44,936 | 44,447 | 50,150 |
| Financial income | 509 | 50 | 1,111 | 331 | 432 |
| Financial expenses | -99 | -932 | -366 | -1,245 | -1,429 |
| Share of profit in associates | 0 | 0 | 0 | 0 | 23 |
| Earnings before tax | 19,526 | 18,015 | 45,681 | 43,533 | 49,176 |
| Income taxes *) | -2,442 | -2,036 | -10,333 | -7,482 | -8,039 |
| NET PROFIT FOR THE PERIOD | 17,084 | 15,979 | 35,348 | 36,051 | 41,137 |
| Other comprehensive income items that may be subsequently reclassified to profit and loss: | |||||
| Translation differences related to foreign subsidiaries | 1,456 | -3,285 | 5,661 | -2,260 | -2,713 |
| Income taxes related to these items | -25 | 0 | -197 | 0 | 0 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 18,515 | 12,694 | 40,812 | 33,791 | 38,424 |
| Distribution of profit: | |||||
| - parent company shareholders | 16,953 | 15,866 | 34,944 | 35,677 | 40,809 |
| - non-controlling interests | 131 | 113 | 404 | 374 | 328 |
| Distribution of comprehensive income: | |||||
| - parent company shareholders | 18,335 | 12,670 | 40,262 | 33,478 | 38,169 |
| - non-controlling interests | 180 | 24 | 550 | 313 | 255 |
| Earnings per share calculated from the profit belonging | |||||
| to parent company shareholders, EUR | |||||
| - undiluted | 0.82 | 0.77 | 1.69 | 1.72 | 1.97 |
| - diluted | 0.82 | 0.77 | 1.69 | 1.72 | 1.97 |
*) Income taxes calculated from the profit for the review period.
| OLVI GROUP | TABLE 2 | ||||||||||
| BALANCE SHEET | |||||||||||
| EUR 1,000 | 30 Sep 2019 | 30 Sep 2018 | 31 Dec 2018 | ||||||||
| ASSETS | |||||||||||
| Non-current assets | |||||||||||
| Tangible assets | 207,852 | 193,065 | 195,599 | ||||||||
| Goodwill | 26,537 | 26,169 | 26,134 | ||||||||
| Other intangible assets | 10,790 | 10,449 | 11,481 | ||||||||
| Shares in associates | 953 | 1,113 | 1,016 | ||||||||
| Investments | 542 | 543 | 543 | ||||||||
| Loans receivable and other non-current receivables | 253 | 264 | 235 | ||||||||
| Deferred tax receivables | 416 | 706 | 558 | ||||||||
| Total non-current assets | 247,343 | 232,309 | 235,566 | ||||||||
| Current assets | |||||||||||
| Inventories | 48,164 | 41,762 | 39,882 | ||||||||
| Accounts receivable and other receivables | 68,175 | 71,210 | 71,038 | ||||||||
| Income tax receivable | 28 | 0 | 440 | ||||||||
| Liquid assets | 29,158 | 19,731 | 18,520 | ||||||||
| Total current assets | 145,525 | 132,703 | 129,880 | ||||||||
| TOTAL ASSETS | 392,868 | 365,012 | 365,446 | ||||||||
| SHAREHOLDERS' EQUITY AND LIABILITIES | |||||||||||
| Shareholders' equity held by parent company shareholders | |||||||||||
| Share capital | 20,759 | 20,759 | 20,759 | ||||||||
| Other reserves | 1,092 | 1,092 | 1,092 | ||||||||
| Treasury shares | -503 | -1,332 | -956 | ||||||||
| Translation differences | -41,428 | -46,305 | -46,746 | ||||||||
| Retained earnings | 276,523 | 255,737 | 259,864 | ||||||||
| 256,443 | 229,951 | 234,013 | |||||||||
| Share belonging to non-controlling interests | 3,664 | 3,387 | 3,165 | ||||||||
| Total shareholders' equity | 260,107 | 233,338 | 237,178 | ||||||||
| Non-current liabilities | |||||||||||
| Financial liabilities | 2,953 | 1,603 | 1,167 | ||||||||
| Other liabilities | 4,747 | 4,851 | 4,765 | ||||||||
| Deferred tax liabilities | 7,479 | 7,876 | 8,085 | ||||||||
| Current liabilities | |||||||||||
| Financial liabilities | 756 | 5,914 | 3,554 | ||||||||
| Accounts payable and other liabilities | 114,162 | 109,565 | 110,222 | ||||||||
| Income tax liability | 2,664 | 1,865 | 475 | ||||||||
| Total liabilities | 132,761 | 131,674 | 128,268 | ||||||||
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 392,868 | 365,012 | 365,446 | ||||||||
| OLVI GROUP TABLE 3 | |||||||||||
| CHANGES IN SHAREHOLDERS' EQUITY | |||||||||||
| Share capital | Other reserves | Treasury shares account | Translation differences | Retained earnings | Share of non-controlling interests | Total | |||||
| EUR 1,000 | |||||||||||
| Shareholders' equity 1 Jan 2018 | 20,759 | 1,092 | -228 | -44,106 | 238,242 | 1,228 | 216,987 | ||||
| Comprehensive income: | |||||||||||
| Net profit for the period | 35,677 | 374 | 36,051 | ||||||||
| Other comprehensive income items: | |||||||||||
| Translation differences | -2,199 | -61 | -2,260 | ||||||||
| Total comprehensive income for the period | -2,199 | 35,677 | 313 | 33,791 | |||||||
| Transactions with shareholders: | |||||||||||
| Payment of dividends | -16,574 | -34 | -16,608 | ||||||||
| Acquisition of treasury shares | -1,104 | -1,104 | |||||||||
| Share-based incentives, value of work performed | 391 | 391 | |||||||||
| Total transactions with shareholders | -1,104 | -16,183 | -34 | -17,321 | |||||||
| Changes in holdings in subsidiaries: | |||||||||||
| Obligation to redeem shares from non-controlling interests | -1,999 | -1,999 | |||||||||
| Change in share belonging to non-controlling interests | 0 | 1,880 | 1,880 | ||||||||
| Total changes in holdings in subsidiaries | -1,999 | 1,880 | -119 | ||||||||
| Shareholders' equity 30 Sep 2018 | 20,759 | 1,092 | -1,332 | -46,305 | 255,737 | 3,387 | 233,338 | ||||
| Share capital | Other reserves | Treasury shares account | Translation differences | Retained earnings | Share of non-controlling interests | Total | |||||
| EUR 1,000 | |||||||||||
| Shareholders' equity 1 Jan 2019 | 20,759 | 1,092 | -956 | -46,746 | 259,864 | 3,165 | 237,178 | ||||
| Comprehensive income: | |||||||||||
| Net profit for the period | 34,944 | 404 | 35,348 | ||||||||
| Other comprehensive income items: | |||||||||||
| Translation differences | 5,318 | 146 | 5,464 | ||||||||
| Total comprehensive income for the period | 5,318 | 34,944 | 550 | 40,812 | |||||||
| Transactions with shareholders: | |||||||||||
| Payment of dividends | -18,640 | -35 | -18,675 | ||||||||
| Acquisition of treasury shares | -726 | -726 | |||||||||
| Sales of treasury shares to employees | 1,179 | 1,179 | |||||||||
| Share-based incentives, value of work performed | 392 | 392 | |||||||||
| Total transactions with shareholders | 453 | -18,248 | -35 | -17,830 | |||||||
| Changes in holdings in subsidiaries: | |||||||||||
| Acquisition of shares from non-controlling interests | -53 | -53 | |||||||||
| Change in share belonging to non-controlling interests | 16 | -16 | 0 | ||||||||
| Total changes in holdings in subsidiaries | -37 | -16 | -53 | ||||||||
| Shareholders' equity 30 Sep 2019 | 20,759 | 1,092 | -503 | -41,428 | 276,523 | 3,664 | 260,107 | ||||
Other reserves include the share premium account, legal reserve and other reserves.
| OLVI GROUP | TABLE 4 | ||
| CASH FLOW STATEMENT | |||
| EUR 1,000 | |||
| 1-9/2019 | 1-9/2018 | 1-12/2018 | |
| Net profit for the period | 35,348 | 36,051 | 41,137 |
| Adjustments to profit for the period | 27,421 | 25,146 | 31,061 |
| Change in net working capital | -3,049 | -4,334 | 1,409 |
| Interest paid | -193 | -370 | -603 |
| Interest received | 29 | 299 | 440 |
| Dividends received | 3 | 3 | 123 |
| Taxes paid | -8,061 | -6,665 | -10,525 |
| Cash flow from operations (A) | 51,498 | 50,130 | 63,042 |
| Investments in tangible and intangible | |||
| assets | -21,504 | -21,609 | -32,315 |
| Sales gains from tangible and intangible | |||
| assets | 1,370 | 1,591 | 1,796 |
| Acquisition of shares from non-controlling interests | -53 | 0 | 0 |
| Shares purchased in subsidiaries | -355 | -16,059 | -16,059 |
| Dividends received | 63 | 0 | 0 |
| Cash flow from investments (B) | -20,479 | -36,077 | -46,578 |
| Withdrawals of loans | 2,449 | 13,648 | 13,543 |
| Repayments of loans | -6,027 | -18,602 | -21,641 |
| Acquisition of treasury shares | -726 | -1,104 | -1,770 |
| Sales of treasury shares to employees | 1,179 | 0 | 0 |
| Dividends paid | -17,664 | -16,587 | -16,587 |
| Increase (-) / decrease (+) in current interest- | |||
| bearing business receivables | -2 | 119 | 316 |
| Cash flow from financing (C) | -20,791 | -22,526 | -26,139 |
| Increase (+)/decrease (-) in liquid assets (A+B+C) | 10,228 | -8,473 | -9,675 |
| Liquid assets 1 January | 18,520 | 28,625 | 28,625 |
| Effect of exchange rate changes | 410 | -421 | -430 |
| Liquid assets 30 Sep/31 Dec | 29,158 | 19,731 | 18,520 |
OLVI GROUP TABLE 5
NOTES TO THE INTERIM REPORT
The interim report has been prepared in accordance with IAS 34, applying the same accounting policies as for the financial statements of 31 December 2018, with the exception of the adoption of IFRS 16 Leases.
The information in the interim report 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 ratios are calculated from exact amounts in euros. The information disclosed in the interim report is unaudited.
| 1. SEGMENT INFORMATION | |||||||
| NET SALES BY SEGMENT 1-9/2019 | |||||||
| EUR 1,000 | Finland | Estonia | Latvia | Lithuania | Belarus | Elimi- nations | Group |
| INCOME | |||||||
| External sales | 126,735 | 52,893 | 29,252 | 35,382 | 70,865 | 0 | 315,127 |
| Beverage sales | 125,493 | 52,893 | 29,252 | 35,382 | 70,865 | 0 | 313,885 |
| Equipment services | 1,242 | 0 | 0 | 0 | 0 | 0 | 1,242 |
| Internal sales | 1,197 | 3,243 | 1,415 | 2,276 | 164 | -8,295 | 0 |
| Total net sales | 127,932 | 56,136 | 30,667 | 37,658 | 71,029 | -8,295 | 315,127 |
| NET SALES BY SEGMENT 1-9/2018 | |||||||
| EUR 1,000 | Finland | Estonia | Latvia | Lithuania | Belarus | Elimi- nations | Group |
| INCOME | |||||||
| External sales | 119,313 | 51,768 | 29,918 | 32,166 | 64,920 | 0 | 298,085 |
| Beverage sales | 118,017 | 51,768 | 29,918 | 32,166 | 64,920 | 0 | 296,789 |
| Equipment services | 1,296 | 0 | 0 | 0 | 0 | 0 | 1,296 |
| Internal sales | 495 | 3,873 | 1,793 | 1,526 | 0 | -7,687 | 0 |
| Total net sales | 119,808 | 55,641 | 31,711 | 33,692 | 64,920 | -7,687 | 298,085 |
| 2. RELATED PARTY TRANSACTIONS | ||||||||
| Employee benefits to management | ||||||||
| Salaries and other short-term employee benefits to the Board of Directors and Managing Director | ||||||||
| EUR 1,000 | ||||||||
| 1-9/2019 | 1-9/2018 | 1-12/2018 | ||||||
| Managing Director | 680 | 738 | 823 | |||||
| Chairman of the Board | 53 | 51 | 71 | |||||
| Other members of the Board | 126 | 117 | 164 | |||||
| Total | 859 | 906 | 1,058 | |||||
| 3. SHARES AND SHARE CAPITAL | ||
| 30 Sep 2019 | % | |
| Number of A shares | 16,989,976 | 82.0 |
| Number of K shares | 3,732,256 | 18.0 |
| Total | 20,722,232 | 100.0 |
| Total votes carried by A shares | 16,989,976 | 18.5 |
| Total votes carried by 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 on 30 September 2019 totalled 20,759 thousand euro.
Olvi plc's shares received a dividend of 0.90 euro per share for 2018 (0.80 euro per share for 2017), totalling 18.6 (16.6) million euro. The dividends were paid in two instalments. The first instalment of 0,45 euro per share was paid on 9 May 2019. The second instalment of 0,45 euro per share was paid on 9 September 2019. The Series K and Series A shares entitle to equal dividend. The Articles of Association include a redemption clause concerning Series K shares.
4. SHARE-BASED PAYMENTS
The aim of Olvi plc's share-based incentive plan is to combine the objectives of the shareholders and the key employees in order to increase the value of the company, to make the key employees committed to the company, and to offer them a competitive reward plan based on earning the company's shares.
Olvi plc initiated a new share-based incentive plan for key personnel, the performance period of which is from 1 February 2019 to 31 January 2021. The plan is directed to approximately 60 people. In accordance with the share-based incentive plan, Olvi plc sold a total of 36,450 treasury shares to the target group members for a price of 1,179,330.37 euro. From January to September 2019, costs associated with the plan were recognised for a total of 849.6 thousand euro. Olvi Group does not have any other share-based plans or option plans.
5. TREASURY SHARES
Olvi plc holds a total of 11,549 of its own Series A shares. The total purchase price of treasury shares was 502,956.28 euro. Olvi plc's share repurchase scheme ended on 21 January 2019. Treasury shares held by the company itself are ineligible for voting. Series A shares held by Olvi plc as treasury shares represent 0.06 percent of all shares and 0.01 percent of the aggregate number of votes. The treasury shares represent 0.07 percent of all Series A shares and associated votes.
On 16 April 2019, the General Meeting of Shareholders of Olvi plc decided to revoke any unused authorisations to acquire treasury shares and authorise the Board of Directors of Olvi plc to decide on the acquisition of the company's own shares using distributable funds. The authorisation is valid for one year starting from the General Meeting and covers a maximum of 500,000 Series A shares.
The Annual General Meeting also decided to revoke all existing unused authorisations for the transfer of own shares and authorise the Board of Directors to decide on the issue of a maximum of 1,000,000 new Series A shares and the transfer of a maximum of 500,000 Series A shares held as treasury shares.
| 6. NUMBER OF SHARES *) | 1-9/2019 | 1-9/2018 | 1-12/2018 |
| - average | 20,707,368 | 20,710,496 | 20,711,397 |
| - at end of period | 20,710,683 | 20,717,233 | 20,696,504 |
| *) Treasury shares deducted. | |||
| 7. TRADING OF SERIES A SHARES ON THE HELSINKI STOCK EXCHANGE | |||
| 1-9/2019 | 1-9/2018 | 1-12/2018 | |
| Trading volume of Olvi A shares | 1,064,290 | 1,164,965 | 1,741,051 |
| Total trading volume, EUR 1,000 | 35,922 | 35,067 | 52,140 |
| Traded shares in proportion to | |||
| all Series A shares, % | 6.3 | 6.9 | 10.2 |
| Average share price, EUR | 33.80 | 30.10 | 29.95 |
| Price on the closing date, EUR | 38.15 | 28.60 | 31.50 |
| Highest quote, EUR | 38.85 | 34.00 | 34.00 |
| Lowest quote, EUR | 31.20 | 27.00 | 27.00 |
| 8. FOREIGN AND NOMINEE-REGISTERED HOLDINGS ON 30 SEPTEMBER 2019 | ||||||||||||
| Book entries | Votes | Shareholders | ||||||||||
| qty | % | qty | % | qty | % | |||||||
| Finnish total | 15,488,758 | 74.74 | 86,401,622 | 94.28 | 11,995 | 99.54 | ||||||
| Foreign total | 279,728 | 1.35 | 279,728 | 0.31 | 46 | 0.38 | ||||||
| Nominee-registered (foreign) total | 135,405 | 0.65 | 135,405 | 0.15 | 4 | 0.03 | ||||||
| Nominee-registered (Finnish) total | 4,818,341 | 23.26 | 4,818,341 | 5.26 | 6 | 0.05 | ||||||
| Total | 20,722,232 | 100.00 | 91,635,096 | 100.00 | 12,051 | 100.00 | ||||||
9. LARGEST SHAREHOLDERS ON 30 SEPTEMBER 2019 | ||||||||||||
| Series K | Series A | Total | % | Votes | % | |||||||
| 1. Olvi Foundation | 2,363,904 | 890,613 | 3,254,517 | 15.71 | 48,168,693 | 52.57 | ||||||
| 2. The Estate of Hortling Heikki *) | 903,488 | 103,280 | 1,006,768 | 4.86 | 18,173,040 | 19.83 | ||||||
| 3. Hortling Timo Einari | 212,600 | 49,257 | 261,857 | 1.26 | 4,301,257 | 4.69 | ||||||
| 4. Hortling-Rinne Marit | 149,064 | 14,699 | 163,763 | 0.79 | 2,995,979 | 3.27 | ||||||
| 5. OP Corporate Bank plc, nominee reg. | 2,318,787 | 2,318,787 | 11.19 | 2,318,787 | 2.53 | |||||||
| 6. Nordea Bank Abp, nominee register | 1,836,380 | 1,836,380 | 8.86 | 1,836,380 | 2.00 | |||||||
| 7. Varma Mutual Pension Insurance Company | 828,075 | 828,075 | 4.00 | 828,075 | 0.90 | |||||||
| 8. Ilmarinen Mutual Pension Insurance Company | 771,401 | 771,401 | 3.72 | 771,401 | 0.84 | |||||||
| 9. Skandinaviska Enskilda Banken AB (publ), Helsinki branch, nominee register | 575,220 | 575,220 | 2.78 | 575,220 | 0.63 | |||||||
| 10. Hortling Pia Johanna | 23,388 | 23,566 | 46,954 | 0.23 | 491,326 | 0.54 | ||||||
| Others | 79,812 | 9,578,698 | 9,658,510 | 46.60 | 11,174,938 | 12.20 | ||||||
| Total | 3,732,256 | 16,989,976 | 20,722,232 | 100.00 | 91,635,096 | 100.00 | ||||||
| *) The figures include the shareholder's own holdings and shares held by parties in his control. | ||||||||||||
During January-September 2019, Olvi has not received any flagging notices in accordance with Chapter 2, Section 10 of the Securities Markets Act.
| 10. PROPERTY, PLANT AND EQUIPMENT | |||
| EUR 1,000 | |||
| 1-9/2019 | 1-9/2018 | 1-12/2018 | |
| Opening balance | 195,599 | 188,155 | 188,155 |
| Effect of IFRS 16 | 941 | 0 | 0 |
| Additions | 25,253 | 24,354 | 32,833 |
| Deductions and transfers | -1,973 | -3,725 | -4,395 |
| Depreciation | -15,884 | -14,007 | -18,922 |
| Exchange rate differences | 3,916 | -1,712 | -2,072 |
| Total | 207,852 | 193,065 | 195,599 |
| 11. CONTINGENT LIABILITIES | |||
| EUR 1,000 | |||
| 30 Sep 2019 | 30 Sep 2018 | 31 Dec 2018 | |
| Pledges and contingent liabilities | |||
| For own commitments | 2,114 | 1,916 | 2,114 |
| Leasing and rental liabilities: | |||
| Due within one year | 754 | 1,046 | 1,129 |
| Due within 1 to 5 years | 221 | 976 | 805 |
| Due in more than 5 years | 1 | 30 | 2 |
| Leasing and rental liabilities total | 976 | 2,052 | 1,936 |
| Other liabilities | 60 | 2,000 | 57 |
12. CALCULATION OF FINANCIAL RATIOS
In the summary of financial indicators (page 1), the Group presents figures directly derived from the consolidated income statement: net sales, operating profit and profit for the period, the corresponding percentages in proportion to net sales, as well as the earnings per share ratio. (Earnings per share = Profit belonging to parent company shareholders / Average number of shares during the period, adjusted for share issues.)
In addition to the consolidated financial statements prepared in accordance with IFRS, Olvi Group presents Alternative Performance Measures that describe the financial development of its business and provide a commensurate overall view of the company's profitability, financial position and liquidity.
The Group has applied the ESMA (European Securities and Markets Authority) new guidelines on Alternative Performance Measures that entered into force on 3 July 2016 and defined APMs as described below.
As an APM supporting net sales, the Group presents sales volumes in millions of litres. Sales volume is an important indicator of the extent of operations generally used in the industry.
The definition of gross margin is operating profit plus depreciation and impairment.
Equity per share = Shareholders' equity held by parent company shareholders / Number of shares at end of period, adjusted for share issues.
Equity to total assets, % = 100 * (Shareholders' equity held by parent company shareholders + non-controlling interests) / (Balance sheet total).
Gearing, % = 100 * (Interest-bearing debt - cash in hand and at bank) / (Shareholders' equity held by parent company shareholders + non-controlling interests).
Attachment
- Olve152019 (https://ml-eu.globenewswire.com/Resource/Download/d32eebd8-2114-4d06-900c-616fff636109)
