OLVI PLC PRESS RELEASE 07 AUG 2003 at 09.00 am 1 of 4
OLVI GROUP'S INTERIM REPORT, 1 JANUARY TO 30 JUNE 2003 (6 MONTHS)
At 53.60 million euro, the Olvi Group's net sales were 1.2% lower
than the previous year (54.27 million euro). The Group's operating
profit for the period amounted to 3.82 million euro (3.92 million
euro). The operating profit of the parent company Olvi plc
remained unchanged. The Group's Estonian subsidiary posted a good
result, whereas the Latvian and Lithuanian subsidiaries made a
loss. The Group's gross capital expenditure amounted to 5.90
million euro (9.12 million euro). Earnings per share stood at 0.58
(0.53) euro, with an equity to total assets ratio of 42.9 (41.4)
percent.
Net sales and earnings
The Group's net sales from January to June totalled 53.60 million
euro (54.27 million euro). The parent company Olvi plc accounted
for 64.5 percent of the total (64.3%).
Net sales by Group company (million euro)
1-6/2003 1-6/2002
Parent company Olvi plc 34.56 35.15
Subsidiaries:
AS Tartu Ölletehas 12.52 13.01
A/S Cesu Alus 3.36 2.78
AB Ragutis 4.82 5.27
Total eliminations -1.66 -1.94
Olvi Group 53.60 54.27
The Group's operating profit amounted to 3.82 million euro (3.92
million euro), and the net profit for the period under review was
2.00 (1.82) million euro.
Breakdown of operating profit (million euro)
1-6/2003 1-6/2002
Parent company Olvi plc 2.68 2.71
Subsidiaries in
Baltic states 1.65 1.79
Total eliminations -0.51 -0.58
Olvi Group 3.82 3.92
Total sales of the parent company Olvi plc amounted to 47.5
million litres, 5.4 percent less than a year earlier. Olvi’s
domestic sales decreased by 7.4 percent to 41.3 (44.5) million
litres. The decrease in sales was attributable to cool and rainy
weather in May and June, as well as the company’s choice of not
engaging in price competition in various segments. Olvi’s tax free
and export sales from January to June totalled 6.2 million litres,
representing an increase of 10.4 percent.
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During the period under review, the market share of Olvi plc's
beers rose by 0.4 percentage points to 12.8 percent. The market
share of Olvi's mineral waters was 25.6 (25.5) percent, and the
market share of Olvi's ciders was 11.0 (11.9) percent. The parent
company Olvi plc's operating profit in the period under review
amounted to 2.68 (2.71) million euro. The earnings of the parent
company were burdened by costs on the scrapping of beverage
packages which stood at 0.98 million euro, representing an
increase of 0.22 million euro compared to the previous year.
The total sales of the Estonian subsidiary AS Tartu Ölletehas
amounted to 28.0 (28.0) million litres. Due to the cool and rainy
months of May and June, the company’s domestic sales declined by
6.0 percent. The company was the largest seller of beverages in
Estonia. The market share of its beers in the period under review
was 36.5 (37.8) percent. The Estonian beer market diminished by
approximately 10.0 percent during the period. AS Tartu Ölletehas
recorded a good operating profit in the period but fell slightly
short of the previous year.
From January to June, the sales of A/S Cesu Alus operating in
Latvia totalled 8.6 (5.6) million litres. The market share of the
company’s beers in the period under review was 10.9 (8.0) percent.
The company was the second largest seller of beer in Latvia. The
company’s operating profit for the period under review improved on
the previous year but remained in the red. The operating profit is
burdened by depreciation of investments in the new brewery, the
level of which is fairly high with respect to the volume of sales.
During the period, the Latvian aggregate beer market increased by
11.0 percent due to intense price competition.
In the period under review, the domestic sales of AB Ragutis
operating in Lithuania totalled 10.6 (10.5) million litres. Unlike
last year, there were no exports to A/S Cesu Alus in Latvia. The
market share of the company’s beers in the period under review was
8.9 (8.3) percent. The Lithuanian beer market diminished by 7.0
percent during the period. The beer prices in the Lithuanian
market were still persistently low. The company posted an
operating loss in the period under review. The operating result is
burdened by depreciation of investments in production equipment,
the level of which is fairly high with respect to the volume of
sales. The company was the fourth largest in the Lithuanian
brewing industry.
Investments
During the period under review, the Olvi Group's gross capital
expenditure amounted to 5.90 million euro (9.12 million euro). The
parent company Olvi plc accounted for 1.83 million euro and the
subsidiaries in the Baltic states for 4.07 million euro of the
total.
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Personnel
The Group's average number of personnel during the period under
review was 914 (872), 338 (342) of them in Finland, 277 (234) in
Estonia, 118 (97) in Latvia and 181 (199) in Lithuania.
The Olvi plc share and warrants
Olvi plc's registered share capital was 9.7 million euro on 30
June 2003. The share capital is divided into 933,064 K shares and
3,901,040 A shares. The share's nominal value is 2 euro.
The Olvi plc A share is quoted on the Main List maintained by the
Helsinki Exchanges. A total of 428,832 Olvi plc shares changed
hands from January to June, totalling 4.60 million euro in trading
volume. The traded shares represented 11.0 percent of the total
number of A shares. The average share price was 10.73 euro, with a
low of 10.00 euro quoted in April and a high of 11.55 euro also
quoted in April.
On 9 April 2003, Olvi plc’s Annual General Meeting decided to
execute a bonus issue, which doubled the number of shares. The
bonus issue comprised 466,532 new K shares and 1,950,520 new A
shares. The increase in share capital, 4,834,104 euro, was
recorded in the Trade Register on 14 April 2003.
Information associated with share trading has been converted to
correspond with the new number of shares since the beginning of
2003.
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 16,641 Olvi plc share warrants issued to the personnel
and the parent company’s Board of Directors in 1999 changed hands
from January to June, totalling 0.08 million euro in trading
volume. The average price of the warrants was 5.01 euro, with a
low of 4.00 euro quoted in June and a high of 5.30 euro quoted in
May.
Shareholders
At the end of the period under review, Finnish shareholders
accounted for 97.4 percent and non-Finnish shareholders for the
remaining 2.6 percent of Olvi plc's ownership. On 16 July 2003,
Olvi plc had 4,128 shareholders in the book-entry system of
securities.
Outlook for the rest of the year
Owing to the seasonal character of the beverage industry, the
majority of the company's result is made during the summer season,
that is, the second and third quarters of the year.
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Sales in the third quarter are estimated to outperform the second
quarter, thanks to the long period of hot weather in July.
The parent company’s result for the rest of the year is going to
improve as depreciation of a brand name associated with Fizz cider
will be completed in August 2003. On the other hand, the result
for the rest of the year is burdened by an increase of costs on
the scrapping of beverage packages in the parent company, which is
in the same order of magnitude.
The Group’s full-year result is estimated to remain at the level
of 2002.
The information in this interim report is unaudited.
OLVI PLC
Board of Directors
Markku Rönkkö
Managing Director
Phone +358 17 8385200
APPENDICES
- Income statement
- Balance sheet
- Key financial ratios
DISTRIBUTION
Hex Plc
Key media
http://www.olvi.fi
APPENDIX 1
OLVI GROUP
INTERIM REPORT, JANUARY-JUNE 2003
OLVI GROUP
Actual Previous year Previous year
1.1.-30.6.03 1.1.-30.6.02 1.1.-31.12.02
EUR 1000 % EUR 1000 % EUR 1000 %
INCOME STATEMENT
Net sales 53598 100 54273 100 110184 100
Other income from
operations 164 0.3 295 0.5 359 0.3
Operating expenses -43947 -82.0 -44769 -82.5 -91102 -82.7
Depreciation
according to plan -5990 -11.2 -5878 -10.8 -11798 -10.7
Operating profit 3825 7.1 3921 7.2 7643 6.9
Financial income
and expenses -930 -1.7 -999 -1.8 -1635 -1.5
Profit before
extraordinary items,
provisions and taxes 2895 5.4 2922 5.4 6008
5.5
Extraordinary income 0 0.0 0 0.0 0
0.0
Extraordinary expenses 0 0.0 0 0.0 0 0.0
Profit before
provisions and taxes 2895 5.4 2922 5.4 6008
5.5
Taxes -1044 -1.9 -1177 -2.2 -2357 -2.1
Minority interest 149 0.3 78 0.1 306 0.3
Profit for the period 2000 3.7 1823 3.4 3957 3.6
OLVI GROUP Actual Previous year Previous year
30.6.03 30.6.02 31.12.02
EUR 1000 EUR 1000 EUR 1000
BALANCE SHEET
Total fixed assets 78039 82826 78437
Current assets:
Inventories 22161 24098 19288
Receivables 31642 28940 19273
Cash in hand and at bank 1589 1155 2427
Total shareholders' equity 56640 55745 57179
Minority interest 641 1017 791
Debt:
Deferred tax liability 2397 2987 2860
Total long-term debt 25232 31780 27545
Total short-term debt 48521 45490 31050
Total debt 76150 80257 61455
Balance sheet total 133431 137019 119425
Gross capital expenditure 5898 9120 16284
APPENDIX 2
CASH FLOW STATEMENT, 1,000 euro
1.1.-30.6.03 1.1.-30.6.02 1.1.-31.12.02
Cash flow from operations
before extraordinary items 2895 2922 6008
Depreciation according to
plan and other adjustments 6919 6851 13446
Change in net
working capital -9664 -6746 1057
Net financial expenses
and taxes paid -2071 -2239 -3882
Cash flow
from operations(A) –1921 788 16629
Investments -5680 -8923 -12653
Disposals of
fixed assets 63 18 1055
Cash flow
from investments(B) -5617 -8905 -11599
Change in debt capital
and other financial items 9722 8796 -3138
Dividends paid -3021 -2175 -2175
Cash flow
from financing(C) 6701 6621 -5313
Increase (+)/decrease (-)
in liquid assets (A+B+C) -837 -1496 -283
Liquid assets 1 January 2427 2650 2709
Liquid assets 30 Jun/31 Dec 1590 1154 2427
Change in liquid assets -837 -1496 -283
OLVI GROUP Actual Previous year Previous year
1.1.-30.6.03 1.1.-30.6.02 1.1.-31.12.02
*)Earnings per share, EUR 0.58 0.53 1.15
*)Earnings per share
adjusted for dilution
from warrants, EUR 0.57 0.52 1.13
*)Equity per share, EUR 16.44 16.18 16.60
Equity to total assets, % 42.9 41.4 48.5
*) The comparison data for these ratios has been converted to
comparable format due to the bonus issue.
APPENDIX 3
Actual Previous year Previous year
1.1.-30.6.03 1.1.-30.6.02 1.1.-31.12.02
Number of shares
- average 3445301 2417052 2417052
- at end of period 4834104 2417052 2417052
- average number of shares
adjusted for dilution
from warrants 3511164 2448585 2447256
NUMBER OF PERSONNEL, OLVI PLC
Full-time 279 297 302
Part-time 59 45 48
Total 338 342 350
NUMBER OF PERSONNEL, AS A.LE COQ
AS Tartu Ölletehas
+ AS Saare Ölu 277 234 239
A/S Cesu Alus 118 97 107
AB Ragutis 181 199 181
Total 576 530 527
OLVI Group total 914 872 877
CONTINGENT LIABILITIES, 1,000 euro
30.6.03 30.6.02 31.12.02
Pledges and
contingent liabilities
For own commitments:
Mortgages on land
and buildings 1942 2151 1942
Leasing liabilities:
due next year 1259 1240 1358
due later 2539 2137 2003
Total leasing liabilities 3798 3377 3361
Debts for which assets have
been pledged as collateral:
Loans from
financial institutions 6923 9031 11007
DERIVATIVES CONTRACTS, 1,000 euro
30.6.2003 Nominal value Market value Book value
Derivatives 17727 17606 0
The information in this interim report is unaudited.
Company Address: Olvi plc, Olvitie I-IV, 74100 IISALMI, FINLAND
Website URL: http://www.olvi.fi