OLVI PLC PRESS RELEASE 4 AUG 2005 at 09.00 am 1 of 5
OLVI GROUP'S INTERIM REPORT, 1 JANUARY TO 30 JUNE 2005 (6 MONTHS)
At 71.27 million euro, the Olvi Group's net sales were 11.6% higher
than in the previous year (63.84 million euro). Operating profit for
the period under review fell slightly by 1.3% to 4.67 (4.74) million
euro. The Group’s gross capital expenditure amounted to 14.1 (13.3)
million euro, and its equity to total assets ratio stood at 40.1
percent (40.0%). The parent company’s earnings weakened. The
operations of the Baltic companies developed favourably.
IFRS reporting
Olvi Group adopted the International Financial Reporting Standards
(IFRS) as of 1 January 2005. The interim report from 1 January to 30
June 2005 has been prepared in accordance with IFRS recognition and
valuation principles. Comparison figures related to the transition
have been provided as an appendix to the interim report published for
the first quarter of the fiscal year. The comparison figures used for
this report are the IFRS figures for 2004 provided in the appendix in
question.
Net sales and earnings
The Group’s net sales from January to June amounted to 71.27 (63.84)
million euro. This is 7.4 million euro or 11.6 percent more than in
the previous year.
Net sales by geographical segments (million euro)
1-6/2005 1-6/2004
Finland 36.72 36.16
Estonia 23.73 20.14
Latvia 6.18 5.15
Lithuania 6.83 5.68
Eliminations -2.18 -3.30
Olvi Group total 71.27 63.84
The Group's operating profit amounted to 4.67 (4.74) million euro and
the net result for the period under review showed a profit of 2.98
(3.70) million euro.
Operating profit by geographical segments (million euro)
1-6/2005 1-6/2004
Finland 0.99 1.97
Estonia 3.78 3.33
Latvia -0.08 -0.20
Lithuania 0.07 -0.25
Eliminations -0.08 -0.12
Olvi Group total 4.67 4.74
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Sales volumes by market area (million litres)
1-6/2005 1-6/2004
Finland 53.0 50.4
Estonia 53.6 48.7
Latvia 15.3 13.7
Lithuania 16.4 13.7
Eliminations -6.6 -12.9
Olvi Group total 131.7 113.6
Total sales of the parent company Olvi plc amounted to 53.0 million
litres, which is 2.6 million litres or 5.1 percent more than a year
earlier. Olvi’s domestic sales increased by 13.4 percent to 50.6
(44.7) million litres. Olvi’s tax free and export sales from January
to June totalled 2.4 million litres, which was 3.4 million litres less
than a year earlier. The decrease is attributable to a diminished
volume of intra-Group freighted work as investments in the Baltic
countries increased the in-house capacity of the Baltic subsidiaries.
The parent company Olvi plc’s operating profit in the period under
review amounted to 0.99 (1.97) million euro. The operating profit fell
to 0.99 million euro particularly due to intense price competition and
associated increases in marketing efforts, as well as problems related
to the introduction of an automatic collection system.
The total sales of the Estonian subsidiary AS A. Le Coq Tartu
Õlletehas amounted to 53.6 (48.7) million litres. AS A. Le Coq Tartu
Õlletehas’s operating profit for the period under review was good and
improved by 21.9 percent on the previous year.
From January to June, the sales of A/S Cesu Alus operating in Latvia
totalled 15.3 (13.7) million litres. The company’s operating result
for the period was slightly in the red but clearly improved on the
previous year.
From January to June, the sales of AB Ragutis operating in Lithuania
totalled 16.4 (13.7) million litres. The beer prices are still
persistently low in Lithuania. The company’s operating result clearly
improved on the previous year and turned positive.
Investments
During the period under review, the Olvi Group’s gross capital
expenditure amounted to 14.09 million euro (13.34 million euro). The
parent company Olvi plc accounted for 3.64 million euro and the
subsidiaries in the Baltic states for 10.45 million euro of the total.
The largest investments included the boiling room and bottling line at
the brewery in Latvia, as well as an automatic collection system
acquired to Iisalmi.
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Personnel
The Group’s average number of personnel during the period under review
was 1118 (1058), 339 (340) of them in Finland, 401 (368) in Estonia,
191 (164) in Latvia and 187 (186) in Lithuania.
Payment of dividends
In accordance with the Board’s proposal, the shareholders’ meeting on
5 April 2005 decided that a dividend of 0.65 euro be paid on each K
and A share for fiscal 2004. The dividend according to the decision
represented 110.7 percent of earnings per share. The dividend was paid
on 15 April 2005 to all shareholders recorded in the company’s
register of shareholders maintained by the Finnish Central Securities
Depository Ltd on the record date 8 April 2005 at the latest.
The Olvi plc share and warrants
Olvi plc’s registered share capital was 10,379,404.00 euro on 30 June
2005. The share capital is divided into 933,064 K shares and 4,256,638
A shares. The share’s nominal value is 2.00 euro.
The share subscription period for warrants associated with Olvi plc’s
1999 bond with warrants expired on 30 April 2005. The warrants were
directed at Olvi Group’s personnel and the members of the parent
company’s Board of Directors. A total of 175,600 Olvi A shares were
subscribed for using the warrants by the end of April. The increase in
share capital, 351,200 euro, was recorded in the Trade Register on 6
June 2005. The new shares are equal in value and series to the Olvi
plc A shares quoted on the Main List of the Helsinki Exchanges.
In May 2002, Olvi plc’s Board of Directors decided to allocate all of
the stock options issued by the Annual General Meeting on 4 April 2002
to Olvin Juomaa Oy, a wholly owned subsidiary of Olvi plc. Olvi plc’s
Board of Directors will decide on the eventual distribution of the
stock options allocated to Olvin Juomaa Oy to current or future key
personnel of the Olvi Group.
A maximum of 200,000 A shares in Olvi plc can be subscribed for using
the stock options. The exercise price of the stock options is the
average quote weighted by trade volume of the Olvi plc A share on the
Helsinki Stock Exchange from 1 July to 31 December 2002. The exercise
price of the stock options will be reduced by the amount of any
dividends distributed after the price-setting period has started and
before the shares are subscribed. The exercise price of the stock
options must be equal to or greater than the nominal value of the
share.
The subscription period for the stock options 2002A started on 1 April
2005, and for the stock options 2002B it will start on 1 April 2007.
The subscription period for both stock options ends on 30 April 2008.
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A total of 1,294,543 Olvi plc shares changed hands from January to
June 2005, totalling 20.12 million euro in trading volume. The traded
shares represented 30.4 percent of the total number of A shares. The
average share price was 15.55 euro, with a low of 13.30 euro quoted in
January and a high of 18.00 euro quoted in June.
The company does not hold any of its own shares, and the company’s
Board of Directors has not exercised its authorisation to sell the
company’s shares.
A total of 100,235 warrants associated with the personnel bond with
warrants, the subscription period of which ended at the end of April,
were traded on the Main List from January to April 2005, representing
1.52 million euro in trading volume. From January to April, the
average price of the warrants was 15.20 euro, with a low of 11.70 euro
and a high of 18.50 euro.
Shareholders
At the end of the period under review, Finnish shareholders accounted
for about 94.9 percent and non-Finnish shareholders for the remaining
5.1 percent of Olvi plc's ownership. On 1 July 2005, Olvi plc had
4,456 shareholders in the book-entry system of securities.
Outlook for the rest of the year
Olvi Group’s market position in the primary product groups has
strengthened.
The level of beer prices in Finland is estimated to remain low due to
intense price competition and the role of beers as a product for
attracting customers to retail stores. A slight increase in total
consumption is expected in 2005, above all due to the boosting effect
of the warm summer.
We expect Olvi Group’s full-year operating profit to be on a par with
the previous year’s level or slightly better. This is attributable to
the favourable development of volumes, as well as the development and
overhead cost cutting programme initiated in the parent company in the
spring.
Further information:
Lasse Aho, Managing Director
Phone +358 17 838 5200 or +358 400 203 600
The information in this interim report is unaudited.
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OLVI PLC
Board of Directors
APPENDICES
- Income statement
- Balance sheet
- Key financial ratios
- Cash flow statement
DISTRIBUTION
Hex Plc
Key media
www.olvi.fi
APPENDIX 1
OLVI GROUP
INTERIM REPORT, JANUARY-JUNE 2005
4-6/05 4-6/04 1-6/05 1-6/04 1-12/04
INCOME STATEMENT
Net sales 41152 38185 71271 63837 128894
Other operating
income 57 93 158 175 637
Operating expenses -34767 -31233 -61568 -54215 -109974
Depreciation and
write-downs -2571 -2568 -5187 -5061 -10284
Operating profit 3871 4476 4674 4735 9274
Financial income
and expenses -790 -365 -1266 -400 -1996
Profit after
financial items 3081 4111 3408 4335 7279
Profit before
taxes 3081 4111 3408 4335 7279
Taxes -370 -541 -506 -781 -1535
Minority interest -4 26 75 148 225
Profit/loss
for the period 2707 3595 2977 3701 5968
- Profit to the
parent company’s
shareholders 2711 3569 2902 3553 5743
- Profit/loss to
the minority -4 26 75 148 225
KEY RATIOS
Ratios calculated from the profit belonging to parent company
shareholders:
- earnings per share, euro 0.57 0.72 1.16
- earnings per share
adjusted for dilution
from warrants, euro 0.56 0.69 1.13
Equity per share, euro 11.65 11.49 11.89
Equity to total assets, % 40.06 39.98 45.10
Gross capital expenditure 14093 13339 18400
APPENDIX 2
OLVI GROUP
30.6.05 30.6.04 31.12.04
EUR 1000 EUR 1000 EUR 1000
BALANCE SHEET
ASSETS
Non-current assets
Intangible assets 2583 3112 2844
Goodwill 8706 8706 8706
Tangible assets 76982 70811 70130
Other investments 253 257 253
Non-current assets 86 93 88
available for sale
Receivables 44 108 39
Total non-current assets 88655 83087 82061
Current assets
Inventories 24287 25645 21987
Receivables 33248 29635 24267
Liquid assets 5154 4366 4436
Current assets
total 62689 59646 50690
TOTAL ASSETS 151344 142733 132753
SHAREHOLDERS’ EQUITY AND LIABILITIES
Shareholders’ equity held by
parent company shareholders
Share capital 10379 9879 10028
Reserves 11507 10383 10752
Accrued earnings 35581 32770 32859
Net profit for the period 2977 3701 5969
Shareholders’ equity
before minority interest 60443 56733 59607
Minority interest 185 337 260
Total shareholders’ equity 60629 57070 59867
Long-term liabilities
Interest-bearing liabilities 27993 38509 35394
Deferred tax liabilities 1669 1833 1668
Short-term liabilities
Interest-bearing liabilities 26697 13379 8989
Interest-free liabilities 34357 31942 26835
Total liabilities 90716 85663 72886
SHAREHOLDERS’ EQUITY
AND LIABILITIES TOTAL 151344 142733 132753
OLVI GROUP APPENDIX 3
CASH FLOW STATEMENT, 1,000 euro
1.1.-30.6.05 1.1.-30.6.04 1.1.-31.12.04
Cash flow
from operations 4674 4735 7279
Depreciation and
other adjustments 5180 4392 11873
Change in net
working capital -1989 -5073 -754
Net financial
expenses and
taxes paid -3518 -1832 -4276
Cash flow
from operations(A) 4346 2222 14124
Investments -11842 -7244 -12646
Disposals of
fixed assets 65 20 550
Cash flow
from investments (B) -11777 -7224 -12096
Change in
debt capital
and other
financial items 11408 9086 2124
Dividends paid -3259 -3409 -3409
Cash flow
from financing(C) 8149 5677 -1285
Increase (+)/
decrease (-)
in liquid assets
(A+B+C) 718 675 745
Liquid assets
1 January 4436 3691 3691
Liquid assets
30 Jun/31 Dec 5154 4366 4436
APPENDIX 4
CHANGES IN CONSOLIDATED SHAREHOLDERS’ EQUITY
1000 euro
Shareh. Sub- Change in Change in Dividend Profit Shareh.
equity scr. transl. minority payment for the equity
1.1.2004 of diff. interest period 30.6.2004
shares
Share
capital 9873 +6 9879
Share
premium
account 10097 +16 10113
Legal
reserve 127 127
Other
reserves 143 143
Transl.
differences -185 -185
Accrued
earnings 36364 -3409 +3701 36656
Minority
interest 496 -159 337
Shareholders'
equity
total 57100 +22 -185 -159 -3409 +3701 57070
1000 euro
Shareh. Sub- Change in Change in Dividend Profit Shareh.
equity scr. transl. minority payment for the equity
1.1.2005 of diff. interest period 30.6.2005
shares
Share
capital 10028 +351 10379
Share
premium
account 10481 +755 11236
Legal
reserve 127 127
Other
reserves 143 143
Transl.
differences -155 +12 -143
Accrued
earnings 38983 -3259 +2977 38701
Minority
interest 260 -75 185
Shareholders'
equity
total 59867 +1106 +12 -75 -3259 +2977 60629
1.1.-30.6.05 1.1.-30.6.04 1.1.-31.12.04
Number of shares
- average 5102387 4937013 4958491
- at end of period 5189702 4939602 5014102
- average number of shares
adjusted for dilution
from warrants 5152663 5129158 5105002
PERSONNEL
Finland
Full-time 266 271 270
Part-time 73 69 64
Total 339 340 334
Estonia 401 368 354
Latvia 191 164 164
Lithuania 187 186 180
Total 779 718 698
OLVI Group total 1118 1058 1032
CONTINGENT LIABILITIES, 1,000 euro
30.6.05 30.6.04 31.12.04
Pledges and
contingent liabilities
For own commitments:
Mortgages on land
and buildings 1135 1135 1135
Leasing liabilities:
due next year 1863 1805 1696
due later 2737 2043 1735
Total leasing liabilities 4600 3848 3431
Package liabilities 2786 5635 3676
Debts for which assets have
been pledged as collateral:
Loans from
financial institutions 7504 8021 12132
DERIVATIVE CONTRACTS
The business significance of the derivatives is minor. Some of the
derivative contracts will expire in 2007, some in 2008.
The derivatives have been recognised at fair value on the interim
report. The earnings effect of the recognition increased financial
expenses by 0.38 million euro.
APPENDIX 5
RECONCILIATION OF CONSOLIDATED PROFIT (LOSS)
(EUR 1000) FAS IFRS IFRS FAS FAS IFRS
4-6/04 adjust- 4-6/04 1-6/04 adjust- 1-6/04
ments ments
Net sales 38185 38185 63837 63837
Other operating
income 93 93 175 175
Materials and
services -12864 -12864 -21071 -21071
Personnel
expenses -5444 - 5444 -9857 -9857
Depreciation and
write-downs -2933 366 -2567 -5791 730 -5061
Other operating
expenses -12911 -13 -12924 -23287 -23287
Operating profit
(loss) 4126 353 4479 4006 730 4735
Financial income
and expenses -1063 698 -365 -1642 1242 -400
Profit before
taxes 3063 1051 4114 2364 1971 4335
Income taxes -541 -541 -781 -781
Minority
interest 26 26 148 148
Profit (loss)
for the period 2548 1051 3599 1730 1971 3701
FAS IFRS
1-6,2004 1-6,2004
Earnings per share -0.35 0.75
APPENDIX 6
RECONCILIATION OF CONSOLIDATED BALANCE SHEET
2.1. Consolidated balance sheet 30 June 2004
(1000 euro) FAS IFRS IFRS
adjust-
ments
ASSETS
Non-current assets
Intangible assets 3112 3112
Goodwill 8005 701 8706
Tangible assets 71616 -806 70811
Other investments 257 257
Non-current assets
available for sale 93 93
Receivables 108 108
Total non-current assets 83098 -11 83087
Current assets
Inventories 25870 -225 25645
Receivables 29635 29635
Liquid assets 4366 4366
Total current assets 59871 -225 59646
TOTAL ASSETS 142970 -237 142733
SHAREHOLDERS’ EQUITY AND LIABILITIES
Shareholders’ equity held by
parent company shareholders
Share capital 9879 9879
Reserves 10383 10383
Accrued earnings 35930 -3159 32770
Net profit for
the period 1730 +1971 3701
Total 57922 -1188 56733
Minority interest 337 337
Total shareholders’
equity 58259 -1188 57070
Long-term liabilities
Interest-bearing
liabilities 38509 38509
Deferred tax liabilities 1790 42 1833
Short-term liabilities
Interest-bearing
liabilities 13379 13379
Interest-free liabilities 31033 909 31942
Total liabilities 84711 952 85663
TOTAL SHAREHOLDERS’ EQUITY
AND LIABILITIES 142970 -237 142733
APPENDIX 7
3. RECONCILIATION OF SHAREHOLDERS’ EQUITY
(1000 euro 1.1.04 30.6.04 31.12.04
Shareholders' equity
under FAS 60260 58259 59970
IAS 2 -797 -797 -891
IAS 19 -600 -600 -600
IAS 21 -1707 -465 -
IAS 12 114 114 114
IFRS 1 -243 -243 -243
IFRS 1 73 102 115
IFRS 3 701 1402
Shareholders' equity
under IFRS 57101 57070 59867
Company Address: Olvi plc, Olvitie I-IV, 74100 IISALMI, FINLAND
Website URL: http://www.olvi.fi