OLVI PLC FINANCIAL STATEMENTS RELEASE 27 FEB 2003 AT 9.00 1(7)
OLVI GROUP'S NET SALES ROSE TO 110.2 MILLION EURO IN 2002
The Group’s operating profit amounted to 7.6 (7.2) million euro or
6.9 (7.2) percent of net sales. The parent company’s operating
profit was 6.0 (5.7) million euro, and the aggregate operating
profit of the subsidiaries in the Baltic states was 1.6 (1.4)
million euro. The Group’s net investments totalled 15.2 (17.8)
million euro and the equity to total assets ratio was 48.5 (45.7)
percent. Earnings per share amounted to 1.64 (1.53) euro. The
Board of Directors’ dividend proposal is 1.25 (0.90) euro,
including 0.35 euro of 125th anniversary dividend.
The parent company Olvi plc retained its market position in the
main product groups in 2002
Olvi plc’s total sales amounted to 102 (103.8) million litres,
which was 1.7% less than a year earlier. Finnish sales accounted
for 90.3 (93.7) million litres of the total, followed by 11.7
(10.1) million litres of tax free and export sales. In its three
main product groups, Olvi was able to retain its market position,
with the market share in beers at 12.5% (12.4%), mineral waters
25.0% (26.4%) and ciders 11.8% (12.3%). Olvi’s sales are focused
on the retail trade sector, which is the most important
distribution channel for beers, mineral waters and ciders. Olvi’s
market share of beers sold in retail outlets was 13.3% (13.1%) and
in state-owned Alko alcohol outlets 21.6% (21.7%). The retail
market share in ciders was 13.2% (13.9%). In mineral waters, Olvi
has a strong grip of the second place in the retail market with an
approximate market share of 30 percent.
Subsidiaries in the Baltic states increased their market shares
The Estonian Tartu Ölletehas increased its total sales by 11.1
percent in 2002, from 50.3 million litres to 55.9 million litres.
Tartu Ölletehas is the largest producer of beverages in Estonia if
all the product groups are taken into account; this includes
beers, long drinks, ciders, soft drinks and mineral waters. Tartu
Ölletehas's beer sales grew by 14.4 percent, from 31.2 million
litres to 35.7 million litres. The favourable growth in sales
increased the company’s beer market share in 2002 by 3.5
percentage points to 39.0 percent. During the summer season, Tartu
Ölletehas’s beer production capacity was fully utilised. Tartu
Ölletehas’s exports amounted to 1.7 million litres. Latvia and
Lithuania accounted for the majority of the company's exports,
some of which were directed to Finland as well.
The sales of the Latvian A/S Cesu Alus company totalled 11.4 (5.3)
million litres in 2002. This represents a 113.2 percent increase
on the previous year. The average market share of the company’s
beers was 7.8 (4.0) percent in 2002; at its highest, the market
share stood at 9.5 percent in June 2002. Cesu Alus’s market share
in Premium beers sold in glass bottles increased from the previous
year’s 5.0 percent to 14.2 percent in 2002.
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During the summer months, the brewery’s beer production capacity
was fully utilised. A/S Cesu Alus also produces and sells soft
drinks, Fizz ciders and long drink products, which amounted for
10.5% of total sales.
The sales of the Lithuanian AB Ragutis company totalled 23.6
(17.2) million litres in 2002. This represents a 37.2 percent
increase on the previous year. The market share of the company’s
beers was 8.0 (7.7) percent in 2002. During the summer months, the
brewery’s beer production capacity was fully utilised. The company
started selling Fizz ciders in Lithuania in May 2001 and is the
market leader with a 47.7 (51.7) percent market share. The
company’s ciders, long drinks and mineral waters amounted to 3.9
percent of total sales, with exports to Latvia accounting for 8.0
percent.
The Group’s net sales increased to 110.2 million euro
The Olvi Group's net sales for 2002 totalled 110.2 million euro.
This was 9.5 million euro, or 9.4 percent, more than a year
earlier. The parent company Olvi plc's net sales were up 2.6
percent at 71.2 million euro. The aggregate net sales of the
subsidiaries in the Baltic states amounted to 42.6 million euro in
2002. This represents an increase of 8.1 million euro or 23.4
percent. AS Tartu Ölletehas's net sales were up 12.8 percent at
26.0 million euro. A/S Cesu Alus's net sales totalled 5.5 million
euro, which was 2.8 million euro, or 101 percent, more than in
2001. At 11.2 million euro, AB Ragutis's net sales in 2002 were
2.4 million euro, or 27.5 percent, higher than in 2001.
Net sales by Group company (million euro)
2002 2001
Parent company Olvi plc 71.2 69.4
Subsidiaries:
AS Tartu Ölletehas 26.0 23.0
A/S Cesu Alus 5.5 2.7
AB Ragutis 11.2 8.8
Eliminations -3.6 -3.2
Olvi Group total 110.2 100.7
Olvi plc's exports grew by 17.5 percent to 7.4 million euro in
2002. The Group’s internal exports accounted for 2.4 million euro
of the total. The net sales generated by the exports of the Olvi
Group as a whole totalled 5.1 million euro in 2002. Exports of the
parent company Olvi plc accounted for 98.0 percent of the total.
Exports accounted for 4.6 percent of Group net sales.
The Group's operating profit improved slightly on the previous
year
The Olvi Group's operating profit for 2002 stood at 7.6 million
euro, or 6.9 percent of net sales. Compared to the previous year,
the operating profit was up 0.4 million euro, or 6.1 percent.
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Breakdown of operating profit (million euro)
2002 2001
Parent company Olvi plc 6.0 5.7
Subsidiaries in Baltic states 2.4 2.8
Total eliminations -0.8 -1.3
Olvi Group total 7.6 7.2
Operating profit as
Percentage of net sales 6.9 7.2
Compared to the previous year, the parent company Olvi plc's
operating profit was up 0.3 million euro at 6.0 million euro. The
profit represented 8.4 percent of net sales, compared to 8.2
percent of net sales a year earlier. The improvement in operating
profit was a result of changes in sales structure, price increases
and decreased scrapping of beverage packages compared to the
previous year.
The parent company's result for 2002 includes 0.8 million euro of
expenses on the scrapping of beverage packages. The corresponding
figure booked for 2001 was 1.3 million euro.
Planned depreciation in the Olvi Group increased by 0.6 million
euro to 11.8 million euro in 2002.
The aggregate operating profit of the subsidiaries operating in
the Baltic states, adjusted by eliminations, increased by 0.2
million euro compared to the year 2001, amounting to 1.6 million
euro. AS Tartu Ölletehas posted a good result in 2002. On the
other hand, both A/S Cesu Alus and AB Ragutis posted a loss in
2002, caused by the additional depreciation in relation to actual
sales profits due to the companies’ investment programmes
completed in 2002, as well as intensified price competition in
both Latvia and Lithuania.
The parent company's depreciation was booked in full for the
maximum and additional amounts as permitted under business tax
legislation. Depreciation according to plan was 1.0 million euro
higher than the depreciation applied in taxation.
The Olvi Group's net financial expenses amounted to 1.6 million
euro in 2002. This was 0.3 million euro less than a year earlier.
The Olvi Group's direct taxes amounted to 2.7 million euro. The
parent company Olvi plc's direct taxes account for nearly all of
the total.
The Olvi Group's net profit for the fiscal year was 4.0 million
euro, or 3.6 percent of net sales. The profit was 0.3 million euro
higher than a year earlier.
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The parent company Olvi plc's net profit for fiscal 2002 was 6.4
million euro. This was 9.0 percent of net sales and almost the
same as a year earlier. The Olvi Group’s earnings per share
improved from 1.53 euro to 1.64 euro compared to the previous
year.
Gross capital expenditure 16.3 million euro
The Olvi Group's gross capital expenditure amounted to 16.3
million euro and disposals of fixed assets to 1.1 million euro.
The gross capital expenditure includes 3.7 million euro paid for
the shares in AS Cesu Alus acquired by AS A. Le Coq in July 2002
through an increase of share capital.
The parent company Olvi plc's gross capital expenditure amounted
to 7.0 million euro and disposals of fixed assets to 0.1 million
euro. The parent company's largest investments included machinery
and equipment purchases for beverage packaging lines, building
investments associated with the warehouse expansion commissioned
in the previous year, and investments related to the Enterprise
Resource Planning system to be implemented in 2003.
AS Tartu Ölletehas’s gross capital expenditure in 2002 amounted to
2.7 million euro. AS Tartu Ölletehas’s largest investments
included an expansion of warehouse space and increased tank
capacity at the beer fermentation cellar department.
A/S Cesu Alus's gross capital expenditure in 2002 amounted to 1.6
million euro. A/S Cesu Alus's largest investments were machinery
and equipment purchases for the new brewery introduced in the
autumn of 2001.
AB Ragutis’s gross capital expenditure in 2002 amounted to 1.3
million euro. The largest investments of AB Ragutis included a new
steam centre and refrigeration equipment for the brewery, as well
as cider production equipment.
Financing
The Olvi Group's free cash flow totalled 15.1 million euro in
2002. This was 13.8 percent of net sales. The amount of free cash
flow was 1.3 million euro higher than a year earlier. The Group’s
net liabilities decreased by 5.8 million euro.
The Group's financial position remained good. The equity to total
assets ratio stood at 48.5 percent at the end of 2002, which was
2.8 percentage points higher than a year earlier.
Personnel
The number of personnel employed by the Group was 877, or 83 more
than a year earlier. The parent company Olvi plc employed 350
people on average in 2002, representing an increase of 22 on the
previous year. AS Tartu Ölletehas’s personnel increased by 38
employees to 239 during 2002.
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A/S Cesu Alus's average number of personnel during 2002 was 107,
or 25 more than a year earlier. AB Ragutis's average number of
personnel during 2002 was 181, or 2 less than a year earlier.
Own shares
Olvi plc did not own any of the company's own shares during the
fiscal year.
In accordance with the Board of Directors' proposal, Olvi plc's
Annual General Meeting of shareholders decided on 13 April 2000 to
authorise the Board to acquire up to 110,000 of the company's own
A shares. The company has not acquired any of its own shares on
the basis of this decision. On 10 April 2001 Olvi plc's Annual
General Meeting of shareholders authorised the Board of Directors
to decide on the transfer of any A shares acquired on the
company’s own account. The transfer authorisation is valid for one
year, or up to 4 April 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.
Shares and shareholders
Olvi plc's registered share capital was 4.8 million euro on 31
December 2002. 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 526,414 Olvi plc shares changed
hands from January to December 2002, totalling 11.5 million euro
in trading volume. The traded shares represented 27.0 percent of
the total number of A shares. The average share price was 21.81
euro, with a low of 19.65 euro quoted in January and a high of
24.00 euro quoted in May and June. The last trading price of the
year 2002 was 21.00 euro.
Quoting of the share warrants issued by Olvi plc in 1999 to the
company's personnel and to the members of the parent company's
Board of Directors began on 10 May 2001 on the Main List
maintained by the Helsinki Exchanges. The issue comprises a total
of 250,000 warrants, and the 125,000 A warrants entitle the
holders to subscribe for Olvi plc A shares between 1 April 2001
and 30 April 2005 under the terms and conditions of the issue. The
subscription period for the 125,000 B warrants will start on 1
April 2003 and end on 30 April 2005.
A total of 9,800 of these warrants changed hands from January to
December 2002, totalling 0.05 million euro in trading volume. The
average price of the warrants from January to December was 5.47
euro, with a low of 4.50 euro quoted in January and November and a
high of 6.35 euro quoted in July. The year's last trading price
was 4.11 euro. No share subscriptions were made against the
warrants from 1 January to 31 December 2002.
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According to the Finnish Central Securities Depository Ltd, the
company had 4,002 shareholders on 13 February 2002. Non-Finnish
shareholding accounted for 2.5 percent of the shares and 2.1
percent of the votes.
Research and development
Olvi's research and development efforts range from product design
and development within the framework of ordinary quality control
to extensive product development projects. The R&D costs are
treated as annual expenses.
Introduction of International Accounting Standards (IAS)
Olvi plc will prepare its consolidated financial statements in
accordance with the International Accounting Standards starting
from the year 2005.
Board of Directors' proposal for the distribution of profit
Olvi plc continues to pursue an active and earnings-based dividend
policy. The aim is to distribute at least 40 percent of the annual
earnings as dividend to the shareholders.
The parent company's distributable shareholders' equity is 35.2
million euro. Profit for the year represents 6.4 million euro of
this total. The Group's distributable shareholders' equity amounts
to 27.4 million euro.
The company's Board of Directors will propose to the Annual
General Meeting of shareholders that a dividend of 1.25 euro shall
be paid for 2002 on each K and A share, representing 76.2 percent
of the Olvi Group's earnings per share. The dividend includes Olvi
plc’s 125th anniversary dividend of 0.35 euro per share. The
proposed dividend payment totals 3.0 million euro. For the
previous year the company paid a dividend of 0.90 euro on each K
and A share, representing 58.8 percent of the Group's earnings per
share.
Outlook for the year 2003
The Olvi Group's earnings development depends on the volume and
price developments of the overall markets in Finland as well as in
the Baltic states. The Group’s investments will decrease somewhat
on the previous year and will be focused on production and
logistics operations in Finland and Estonia. The new Enterprise
Resource Planning system to be implemented in Finland and Estonia
will improve the efficiency of functions all over the order,
delivery, invoicing and administration processes.
The information in this report is unaudited.
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The Olvi Group's annual report for the year 2002 will be released
during the week beginning on 24 March 2003. The Annual General
Meeting of the shareholders of Olvi Plc will be held in Iisalmi,
Finland, on 9 April 2003.
OLVI PLC
Board of Directors
Markku Rönkkö
Managing Director
For further information, please contact:
Markku Rönkkö, Managing Director
Phone +358 50 65 851
DISTRIBUTION
Hex Plc
Key media
http://www.olvi.fi
APPENDICES
Income statement
Balance sheet
Tables 1 to 4
OLVI GROUP TABLES APPENDIX 1
PROPOSAL OF OLVI PLC'S BOARD OF DIRECTORS FOR THE DISTRIBUTION OF
PROFIT
Olvi plc's profit for the fiscal year from 1 January to 31
December 2002 was 6.4 million euro. The Group's distributable
shareholders' equity as of 31 December 2002 was 27.4 million euro.
Olvi plc’s Board of Directors will propose to the Annual General
Meeting of shareholders that a dividend of 1.25 euro shall be paid
for 2002 on each K and A share, representing 76.2 percent of the
Olvi Group's earnings per share. The dividend includes Olvi plc’s
125th anniversary dividend of 0.35 euro per each K and A share.
The proposed dividend payment totals 3.0 million euro.
The proposal calls for the payment of dividends in April 2003.
OLVI GROUP TABLES APPENDIX 2
INCOME STATEMENT
1 Jan to 1 Jan to
31 Dec 2002 31 Dec 2001
1,000 euro % 1,000 euro %
NET SALES 110.184 100.0 100.730 100.0
Increase (+)/decrease(-)
in inventories of
finished and unfinished
products -667 0.6 214 0.2
Manufacture for own use 19 0.0 24 0,0
Other operating income 359 0.3 1 169 1.2
Materials and services 34 873 31.6 33 552 33,3
Personnel expenses 16 737 15.2 14 870 14,8
Depreciation and write-offs 11 798 10.7 11 118 11.1
Other operating expenses 38 844 35.3 35 324 35.1
OPERATING PROFIT 7 643 6,9 7 203 7,2
Financial income
and expenses -1 635 -1,5 - 1 943 -1,9
PROFIT BEFORE
EXTRAORDINARY ITEMS 6 008 5,4 5 260 5,2
PROFIT BEFORE
APPROPRIATIONS AND TAXES 6 008 5,4 5 260 5,2
Taxes for the year -2 357 - 2.1 - 2 181 - 2.2
Minority interest 306 0,3 627 0.6
NET PROFIT FOR THE YEAR 3 957 3.6 3 706 3.7
OLVI GROUP TABLES APPENDIX 3
BALANCE SHEET
ASSETS 31 Dec 2002 31 Dec 2001
1.000 euro 1.000 euro
FIXED ASSETS
Intangible assets 2 147 4 316
Group consolidation goodwill 4 629 5 442
Tangible assets 71 404 69 206
Other investments 257 253
TOTAL FIXED ASSETS 78 437 79 217
CURRENT ASSETS
Inventories 19 288 21 091
Long-term receivables 20 44
Short-term receivables 19 253 20 731
Financial assets 0 59
Cash in hand and at bank 2 427 2 650
TOTAL CURRENT ASSETS 40 988 44 575
TOTAL ASSETS 119 425 123 792
LIABILITIES 31 Dec 2002 31 Dec 2001
SHAREHOLDERS' EQUITY
Share capital 4 834 4 834
Share premium account 14 353 14 353
Capital reserve 127 127
Other reserves 143 155
Retained profit 33 765 32 661
Net profit for the year 3 957 3 706
TOTAL SHAREHOLDERS' EQUITY 57 179 55 836
MINORITY INTEREST 791 687
DEBT
Deferred tax liability 2 860 3 158
Long-term debt 27 545 35 973
Short-term debt 31 050 28 138
TOTAL DEBT 61 455 67 269
TOTAL LIABILITIES 119 425 123 792
OLVI GROUP TABLES APPENDIX 4
KEY FINANCIAL RATIOS
2002 2001
Gross capital expenditure
in fixed assets, million euro 16.3 17.4
Average number of personnel:
Olvi plc, Finland 350 328
AS Tartu Ölletehas and
AS Saare Ölu, Estonia 239 201
A/S Cesu Alus, Latvia 107 82
AB Ragutis, Lithuania 181 183
Total 877 794
Earnings per share (EPS), euro 1.64 1.53
Earnings per share
adjusted for dilutation
from warrants, euro 1.62 1.53
Equity per share, euro 23.66 23.10
Equity to total assets, % 48.50 45.70
CONTINGENT LIABILITIES, 1,000 euro
2002 2001
Pledges and contingent liabilities
For own commitments:
Mortgages on land and buildings 1 942 2 124
Leasing liabilities:
due next year 1 548 1 118
due later 2 264 2 181
Total leasing liabilities 3 812 3 299
Debts for which mortgages
have been given as collateral:
Loans from financial institutions 7 687 9 768
Company Address: Olvi plc, Olvitie I-IV, 74100 IISALMI, FINLAND
Website URL: http://www.olvi.fi