OLVI PLC PRESS RELEASE 08 MAY 2003 at 08.30 am 1 of 5
OLVI GROUP'S INTERIM REPORT, 1 JANUARY TO 31 MARCH 2003 (3 MONTHS)
At 21.74 million euro, the Olvi Group's net sales were 2.0% higher
than in the previous year (21.32 million euro). The Group's
operating profit for the period amounted to -0.14 million euro
(0.04 million euro). Comparison to the previous year is
complicated because Easter, which is an important event for
beverage sales in the spring, was in April this year. The Group's
gross capital expenditure amounted to 2.74 (4.34) million euro,
and its equity to total assets ratio stood at 48.1 percent
(44.9%).
Net sales and earnings
The Group's net sales from January to March totalled 21.74 (21.32)
million euro. The parent company Olvi plc accounted for 66.8
percent of the total (65.9%).
Net sales by Group company (million euro)
1-3/2003 1-3/2002
Parent company Olvi plc 14.53 14.05
Subsidiaries:
AS Tartu Ölletehas 4.73 4.89
A/S Cesu Alus 1.04 0.86
AB Ragutis 1.86 2.18
Eliminations -0.42 -0.66
Olvi Group total 21.74 21.32
Owing to the seasonal character of the brewing industry, the sales
volumes for the first quarter of the year are typically lower than
those for the other quarters. In addition, comparison to the
previous year is complicated because Easter, which is an important
event for beverage sales in the spring, was in April this year.
The Group's operating profit amounted to -0.14 (0.04) million
euro, and the net result for the period under review showed a loss
of 0.68 million euro (a loss of 0.65 million euro).
Breakdown of operating profit (million euro)
1-3/2003 1-3/2002
Parent company Olvi plc 0.20 0.53
Subsidiaries in
Baltic states -0.09 -0.21
Total eliminations -0.25 -0.28
Olvi Group total -0.14 0.04
Total sales of the parent company Olvi plc amounted to 20.0
million litres, 2.9 percent less than a year earlier. Olvi’s
domestic sales decreased by 8.3 percent to 17.3 (18.8) million
litres. During the same period, the Finnish brewing industry's
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aggregate sales were down 3.9 percent. Olvi’s tax free and export
sales from January to March totalled 2.8 million litres, which was
1.0 million litres or 52.7 percent more than a year earlier.
During the period under review, the market share of Olvi's beers
rose by 0.5 percentage points to 12.7 percent. The market share of
Olvi's mineral waters was 24.5 (26.3) percent, and the market
share of Olvi's ciders was 11.7 (12.2) percent. The parent company
Olvi plc's operating profit in the period under review amounted to
0.20 (0.53) million euro.
The total sales of the Estonian subsidiary AS Tartu Ölletehas
amounted to 10.3 (10.7) million litres, 3.5 percent less than a
year earlier. The market share of the company’s beers in the
period under review was 38.1 (39.7) percent. AS Tartu Ölletehas
recorded a good operating profit in the period but fell slightly
short of the previous year. The Estonian beer market diminished by
5.0 percent during the period.
From January to March, the sales of A/S Cesu Alus operating in
Latvia totalled 2.5 (1.8) million litres. The company's beers
increased their market share to 9.0 (7.1) percent. A/S Cesu Alus
was the third largest brewery in Latvia in the period under
review. The company’s operating profit for the period under review
improved on the previous year but remained in the red. During the
period, the Latvian aggregate beer market increased by 17.6
percent due to intense price competition.
From January to March, the sales of AB Ragutis operating in Latvia
totalled 4.2 (4.7) million litres. Domestic sales during the
period amounted to 4.2 (4.1) million litres, and contrary to the
previous year, the company did not export any products to A/S Cesu
Alus in Latvia this year. The company's beers increased their
market share to 9.1 (8.2) percent. The Lithuanian beer market
diminished by 7.1 percent during the period. Beer prices are still
persistently low in the Lithuanian market, which is why AB
Ragutis's operating result showed a loss.
Investments
During the period under review, the Olvi Group's gross capital
expenditure amounted to 2.74 million euro (4.34 million euro). The
parent company Olvi plc accounted for 0.77 million euro and the
subsidiaries in the Baltic states for 1.97 million euro of the
total. The investments have been financed from cash flow.
Personnel
The Group's average number of personnel during the period under
review was 849 (824), 324 (324) of them in Finland, 234 (213) in
Estonia, 110 (91) in Latvia and 181 (196) in Lithuania.
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Annual General Meeting of 9 April 2003
At their Annual General Meeting held on 9 April 2003, the
shareholders of Olvi plc adopted the closing of the accounts for
the year 2002 and decided that a dividend of 1.25 euro shall be
paid on each K and A share. The dividend includes Olvi plc’s 125th
anniversary dividend of 0.35 euro per share. The meeting granted
discharge from liability to the members of the Board of Directors
and the Managing Director.
Kari Asp, Heikki Hortling, Esa Lager, Hannele Ranta-Lassila and
Lauri Ratia were re-elected to the company's Board of Directors.
At its organising meeting held on 9 April 2003, the Board re-
elected Mr. Heikki Hortling as the Chairman of the Board and Dr.
Hannele Ranta-Lassila as the Vice Chairman of the Board.
Mr. Pekka Loikkanen, Authorised Public Accountant, Kuopio, was
appointed as the company’s auditor. PricewaterhouseCoopers Ltd,
Authorised Public Accountants, Helsinki, were appointed as deputy
auditors, with Mr. Pekka Nikula, Authorised Public Accountant, as
the responsible auditor.
The meeting authorised the Board of Directors to decide on the
transfer of a maximum of 110,000 own A shares whose repurchase was
decided at the Annual General Meeting on 13 April 2000. The
authorisation granted to the Board for the sale of own shares is
valid for one year, or up to 9 April 2004.
The Annual General Meeting decided to increase the company’s share
capital by means of a bonus issue in which all shareholders will
receive one (1) new A share per each one (1) existing A share and
one (1) new K share per each one (1) existing K share free of
charge. The bonus issue comprises 2,417,052 new shares with a
nominal value of two (2) euro each. The bonus issue will be
executed by transferring 4,834,104 euro from the share premium
account to the share capital. The bonus issue will increase the
share capital of Olvi plc from 4,834,104 euro to 9,668,208 euro.
The Olvi plc share and warrants
Olvi plc's registered share capital was 4.8 million euro on 31
March 2003. The share capital is divided into 466,532 K shares and
1,950,520 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 95,891 Olvi plc shares changed
hands from January to March, totalling 2.02 million euro in
trading volume. The traded shares represented 4.9 percent of the
total number of A shares. The average share price was 21.06 euro,
with a low of 20.00 euro quoted in March and a high of 22.75 euro
also quoted in March.
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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 1,000 Olvi plc share warrants issued to the personnel
and the parent company’s Board of Directors in 1999 changed hands
from January to March, totalling 4,800 euro in trading volume. The
average price of the warrants was 4.75 euro, with a low of 4.50
euro quoted in March and a high of 5.00 euro also quoted in March.
The increase of share capital by means of a bonus issue, approved
by the Annual General Meeting on 9 April 2003 and amounting to
4,834,104 euro, was entered in the Trade Register on 14 April
2003. The new shares have been traded together with the old shares
since 15 April 2003.
The new shares entitle to full dividend for the financial period
that started on 1 January 2003, and to all other rights associated
with the share since 14 April 2003.
In accordance with the terms and conditions of the Olvi plc
warrants and options issued in 1999 and 2002 and due to the bonus
issue, the subscription ratio was changed so that the proportion
of share capital represented by shares to be subscribed using the
warrants and options remains unchanged.
Owing to the bonus issue decided on 9 April 2003, the Board of
Directors of Olvi plc decided to amend the terms and conditions of
the Olvi plc warrants and options issued in 1999 and 2002 so that
one warrant or option entitles to the subscription of two shares,
not one as previously prescribed. Should the new number of shares
available for subscription with a single warrant or option be a
fractional number, the fractional part will be accounted for by
lowering the share subscription price.
The subscription prices for shares using the warrants or options
will be cut in half. The subscription price for a single share
using a 1999 share warrant decreases from 16.54 euro to 7.65 euro,
taking into account the 2002 dividend adjustment of 1.25 euro, and
the subscription price for a single share using a 2002 stock
option decreases from 20.83 euro to 9,79 euro, taking into account
the 2002 dividend adjustment of 1.25 euro.
Shareholders
At the end of the period under review, Finnish shareholders
accounted for about 97.5 percent and non-Finnish shareholders for
the remaining 2.5 percent of Olvi plc's ownership. On 23 April
2003, Olvi plc had 4,072 shareholders in the book-entry system of
securities.
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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.
The Olvi Group's earnings development depends to a large extent on
the volume and price developments in the overall market. The
Group's investments to increase capacity and efficiency will be
completed as planned before the summer season. Sales in the second
quarter are expected to increase in comparison with the previous
year, owing to Easter being in April.
The information in this interim report is unaudited.
OLVI PLC
Board of Directors
Markku Rönkkö
Managing Director
Phone +358 50 65 851
APPENDICES
- Income statement
- Balance sheet
- Key financial ratios
- Cash flow statement
DISTRIBUTION
Hex Plc
Key media
http://www.olvi.fi
APPENDIX 1
OLVI GROUP
INTERIM REPORT, JANUARY-MARCH 2003
OLVI GROUP
1.1.-31.3.03 1.1.-31.3.02 1.1.-31.12.02
EUR 1000 % EUR 1000 % EUR 1000 %
INCOME STATEMENT
Net sales 21745 100 21318 100 110184 100
Other income from
operations 79 0.4 68 0.3 359 0.3
Operating expenses -18970 87.2 -18429 -86.4 -91102 –82.7
Depreciation
according to plan -2990 -13.7 -2918 -13.7 -11798 -10.7
Operating profit -136 -0.6 39 0.2 7643 6.9
Financial income
and expenses -452 -2.1 -429 -2.0 -1635 -1.5
Profit before
extraordinary items,
provisions and taxes -588 -2.7 -390 -1.8 6008
5.4
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 -588 -2.7 -390 -1.8 6008
5.4
Taxes -191 -0.9 -351 -1.6 -2357 -2.1
Minority interest 103 0.5 96 0.5 306 0.3
Profit/loss
for the period -676 -3.1 -645 -3.0 3957 3.6
APPENDIX 2
OLVI GROUP
31.3.03 31.3.02 31.12.02
EUR 1000 EUR 1000 EUR 1000
BALANCE SHEET
Total fixed assets 78735 81516 78437
Current assets:
Inventories 20846 23296 19288
Receivables 18465 19609 19273
Cash in hand and at bank 1571 967 2427
Total shareholders' equity 56821 55282 57179
Minority interest 687 999 791
Debt:
Deferred tax liability 2606 3004 2860
Total long-term debt 25075 34097 27545
Total short-term debt 34428 32097 31050
Total debt 62109 69107 61455
Balance sheet total 119617 125388 119425
Gross capital expenditure 2736 4340 19700
OLVI GROUP
1.1.-31.3.03 1.1.-31.3.02 1.1.-31.12.02
Earnings per share, EUR -0.28 -0.27 1.64
Equity per share, EUR 23.51 22.87 23.66
Equity to total assets, % 48.1 44.9 48.5
APPENDIX 3
OLVI GROUP
1.1.-31.3.03 1.1.-31.3.02 1.1.-31.12.02
Number of shares
- average 2417052 2417052 2417052
- at end of period 2417052 2417052 2417052
NUMBER OF PERSONNEL, OLVI PLC
Full-time 270 283 302
Part-time 54 41 48
Total 324 324 350
NUMBER OF PERSONNEL, AS A.LE COQ
AS Tartu Ölletehas
+ AS Saare Ölu 234 213 239
A/S Cesu Alus 110 91 107
AB Ragutis 181 196 181
Total 525 500 527
OLVI Group total 849 824 877
CONTINGENT LIABILITIES, 1,000 euro
31.3.03 31.3.02 31.12.02
Pledges and
contingent liabilities
For own commitments:
Mortgages on land
and buildings 1942 2151 1942
Leasing liabilities:
due next year 1516 1231 1358
due later 2272 2096 2003
Total leasing liabilities 3788 3327 3361
Debts for which assets have
been pledged as collateral:
Loans from financial
institutions 11960 9031 11007
DERIVATIVES CONTRACTS, 1,000 euro
31.3.2003
Nominal value Market value Book value
Derivatives 17,727 17,609 0
The business significance of the derivatives is minor. Some of the
derivatives contracts will expire in 2007, some in 2008.
APPENDIX 4
CASH FLOW STATEMENT, 1,000 euro
1.1.-31.3.03 1.1.-31.3.02 1.1.-31.12.02
Cash flow from operations
before extraordinary items -588 -390 6008
Depreciation according to
plan and other adjustments 3442 3329 13446
Change in net
working capital -2295 -3495 1057
Net financial expenses
and taxes paid -991 -860 -3882
Cash flow
from operations(A) -432 -1416 16629
Investments -2715 -4583 -12653
Disposals of fixed assets 13 10 1055
Cash flow
from investments(B) -2702 -4573 -11599
Change in debt capital
and other financial items 2278 4306 -3138
Dividends paid -2175
Cash flow
from financing(C) 2278 4306 -5313
Increase (+)/decrease (-)
in liquid assets (A+B+C) -856 -1683 -283
Liquid assets 1 January 2427 2650 2709
Liquid assets 31 Mar/31 Dec 1571 967 2427
Change in liquid assets -856 -1683 -283
Company Address: Olvi plc, Olvitie I-IV, 74100 IISALMI, FINLAND
Website URL: http://www.olvi.fi