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OLVAS - Olvi Oyj News Story

€42.9 0.5  1.2%

Last Trade - 07/08/20

Sector
Consumer Defensives
Size
Mid Cap
Market Cap £802.4m
Enterprise Value £797.0m
Revenue £375.9m
Position in Universe 318th / 1782

Olvi Group’s Interim Report, 1 January to 30 September 2019 (9 Months)

Wed 30th October, 2019 7:00am
Olvi Group’s Interim Report, 1 January to 30 September 2019 (9 Months)

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/ 20197-9/ 2018Change
% / pp
1-9/ 20191-9/ 2018Change
% / pp
1-12/ 2018
Sales volume, Mltr194.1200.3-3.1559.1551.01.5701.3
Net sales, MEUR113.6110.72.6315.1298.15.7384.3
Gross margin, MEUR25.024.33.362.459.64.870.8
% of net sales22.121.9 19.820.0 18.4
Operating profit, MEUR19.118.91.244.944.41.150.1
% of net sales16.817.1 14.314.9 13.0
Net profit for the period, MEUR17.116.06.935.336.1-2.041.1
% of net sales15.014.4 11.212.1 10.7
Earnings per share, EUR0.820.776.51.691.72-1.71.97
Gross capital expenditure, MEUR5.98.3-28.024.124.2-0.534.2
Equity per share, EUR   12.3811.1011.511.31
Equity to total assets, %   66.263.92.364.9
Gearing, %   -9.9-5.54.4-6.0

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 litres7-9/ 20197-9/ 2018Change %1-9/ 20191-9/ 2018Change %
Finland59.456.74.7165.9161.82.5
Estonia31.831.60.786.287.4-1.3
Latvia19.322.2-13.056.060.4-7.2
Lithuania29.828.73.782.375.09.7
Belarus60.668.5-11.5186.0184.31.0
Eliminations-6.8-7.5 -17.5-17.9 
Total194.1200.3-3.1559.1551.01.5

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 euro7-9/ 20197-9/ 2018Change %1-9/ 20191-9/ 2018Change %
Finland46.144.53.6127.9119.86.8
Estonia21.320.25.556.155.60.9
Latvia10.811.9-9.430.731.7-3.3
Lithuania13.813.15.637.733.711.8
Belarus24.724.02.771.064.99.4
Eliminations-3.1-3.0 -8.3-7.7 
Total113.6110.72.6315.1298.15.7

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 euro7-9/ 20197-9/ 2018Change %1-9/ 20191-9/ 2018Change %
Finland7.37.30.416.215.35.9
Estonia5.65.010.811.912.2-2.8
Latvia1.51.9-19.33.74.1-9.2
Lithuania1.61.51.63.13.4-10.6
Belarus3.43.5-0.810.99.613.5
Eliminations-0.3-0.3 -0.8-0.2 
Total19.118.91.244.944.41.1

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/ 20197-9/ 2018Change %1-9/ 20191-9/ 2018Change %
Finland4114061.23943725.9
Estonia3263134.23133043.0
Latvia2021963.11981970.5
Lithuania2222153.32222134.2
Belarus676745-9.3678719-5.7
Total1,8371,875-2.01,8051,8050.0

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 sales113,587110,661315,127298,085384,302
Other operating income3245021,2511,1812,144
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 profit19,11618,89744,93644,44750,150
      
Financial income509501,111331432
Financial expenses-99-932-366-1,245-1,429
Share of profit in associates000023
      
Earnings before tax19,52618,01545,68143,53349,176
Income taxes *)-2,442-2,036-10,333-7,482-8,039
NET PROFIT FOR THE PERIOD17,08415,97935,34836,05141,137
      
Other comprehensive income items that
may be subsequently reclassified to profit and loss:
    
    
Translation differences related to foreign subsidiaries1,456-3,2855,661-2,260-2,713
Income taxes related to these items-250-19700
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD18,51512,69440,81233,79138,424
      
Distribution of profit:    
- parent company shareholders16,95315,86634,94435,67740,809
- non-controlling interests131113404374328
      
Distribution of comprehensive income:   
 - parent company shareholders18,33512,67040,26233,47838,169
 - non-controlling interests18024550313255
      
Earnings per share calculated from the profit belonging   
to parent company shareholders, EUR     
-  undiluted0.820.771.691.721.97
-  diluted0.820.771.691.721.97
      

*) Income taxes calculated from the profit for the review period.

 OLVI GROUP  TABLE 2 
     
BALANCE SHEET    
EUR 1,00030 Sep 201930 Sep 201831 Dec 2018 
ASSETS    
Non-current assets    
Tangible assets207,852193,065195,599 
Goodwill26,53726,16926,134 
Other intangible assets10,79010,44911,481 
Shares in associates9531,1131,016 
Investments542543543 
Loans receivable and other non-current receivables253264235 
Deferred tax receivables416706558 
Total non-current assets247,343232,309235,566 
     
Current assets    
Inventories48,16441,76239,882 
Accounts receivable and other receivables68,17571,21071,038 
Income tax receivable280440 
Liquid assets29,15819,73118,520 
Total current assets145,525132,703129,880 
TOTAL ASSETS392,868365,012365,446 
     
SHAREHOLDERS’ EQUITY AND LIABILITIES    
Shareholders’ equity held by parent company shareholders   
Share capital20,75920,75920,759 
Other reserves1,0921,0921,092 
Treasury shares-503-1,332-956 
Translation differences-41,428-46,305-46,746 
Retained earnings276,523255,737259,864 
 256,443229,951234,013 
Share belonging to non-controlling interests3,6643,3873,165 
Total shareholders’ equity260,107233,338237,178 
     
Non-current liabilities    
Financial liabilities2,9531,6031,167 
Other liabilities4,7474,8514,765 
Deferred tax liabilities7,4797,8768,085 
     
Current liabilities    
Financial liabilities7565,9143,554 
Accounts payable and other liabilities114,162109,565110,222 
Income tax liability2,6641,865475 
Total liabilities132,761131,674128,268 
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES392,868365,012365,446 
 

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
20,7591,092-228-44,106238,2421,228216,987
Comprehensive income:       
  Net profit for the period   35,67737436,051
  Other comprehensive income items:      
  Translation differences   -2,199 -61-2,260
Total comprehensive income for the period -2,19935,67731333,791
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 01,8801,880
Total changes in holdings in subsidiaries  -1,9991,880-119
Shareholders’ equity
30 Sep 2018
20,7591,092-1,332-46,305255,7373,387233,338
        
 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
20,7591,092-956-46,746259,8643,165237,178
Comprehensive income:       
  Net profit for the period   34,94440435,348
  Other comprehensive income items:      
  Translation differences   5,318 1465,464
Total comprehensive income for the period 5,31834,94455040,812
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 shareholders453 -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 16-160
Total changes in holdings in subsidiaries  -37-16-53
Shareholders’ equity
30 Sep 2019
20,7591,092-503-41,428276,5233,664260,107

Other reserves include the share premium account, legal reserve and other reserves.

OLVI GROUP TABLE 4
 
CASH FLOW STATEMENT   
EUR 1,000   
 1-9/20191-9/20181-12/2018
    
Net profit for the period35,34836,05141,137
Adjustments to profit for the period27,42125,14631,061
Change in net working capital-3,049-4,3341,409
Interest paid-193-370-603
Interest received29299440
Dividends received33123
Taxes paid-8,061-6,665-10,525
Cash flow from operations (A)51,49850,13063,042
    
Investments in tangible and intangible 
assets-21,504-21,609-32,315
Sales gains from tangible and intangible 
assets1,3701,5911,796
Acquisition of shares from non-controlling interests-5300
Shares purchased in subsidiaries-355-16,059-16,059
Dividends received6300
Cash flow from investments (B)-20,479-36,077-46,578
    
Withdrawals of loans2,44913,64813,543
Repayments of loans-6,027-18,602-21,641
Acquisition of treasury shares-726-1,104-1,770
Sales of treasury shares to employees1,17900
Dividends paid-17,664-16,587-16,587
Increase (-) / decrease (+) in current interest- 
bearing business receivables-2119316
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 January18,52028,62528,625
Effect of exchange rate changes410-421-430
Liquid assets 30 Sep/31 Dec29,15819,73118,520

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 sales126,73552,89329,25235,38270,8650315,127
  Beverage sales125,49352,89329,25235,38270,8650313,885
  Equipment services1,242000001,242
Internal sales1,1973,2431,4152,276164-8,2950
Total net sales 

127,932
 

56,136
30,66737,65871,029-8,295315,127
 

NET SALES BY SEGMENT 1-9/2018
   
EUR 1,000 

Finland
 

Estonia
 

Latvia
 

Lithuania
 

Belarus
Elimi-
nations
 

Group
        
INCOME       
External sales119,31351,76829,91832,16664,9200298,085
  Beverage sales118,01751,76829,91832,16664,9200296,789
  Equipment services1,296000001,296
Internal sales4953,8731,7931,5260-7,6870
Total net sales 

119,808
 

55,641
31,71133,69264,920-7,687298,085


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 Director680738823 
Chairman of the Board535171 
 

Other members of the Board
126117164 
Total8599061,058 


3. SHARES AND SHARE CAPITAL  
 30 Sep 2019  %
   
Number of A shares16,989,97682.0
Number of K shares3,732,25618.0
Total20,722,232100.0
   
Total votes carried by A shares16,989,97618.5
Total votes carried by K shares74,645,12081.5
Total number of votes91,635,096100.0
   
Votes per Series A share1 
Votes per Series K share20 

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
  - average20,707,36820,710,49620,711,397
  - at end of period20,710,68320,717,23320,696,504
*) 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 shares1,064,2901,164,9651,741,051
Total trading volume, EUR 1,00035,92235,06752,140
Traded shares in proportion to   
all Series A shares, %6.36.910.2
    
Average share price, EUR33.8030.1029.95
Price on the closing date, EUR38.1528.6031.50
Highest quote, EUR38.8534.0034.00
Lowest quote, EUR31.2027.0027.00

                                                                                                    

8. FOREIGN AND NOMINEE-REGISTERED HOLDINGS ON 30 SEPTEMBER 2019
 Book entriesVotesShareholders
 qty%qty%qty%
Finnish total15,488,75874.7486,401,62294.2811,99599.54
Foreign total279,7281.35279,7280.31460.38
Nominee-registered (foreign) total135,4050.65135,4050.1540.03
Nominee-registered (Finnish) total4,818,34123.264,818,3415.2660.05
Total20,722,232100.0091,635,096100.0012,051100.00

9. LARGEST SHAREHOLDERS ON 30 SEPTEMBER 2019
    
 Series KSeries ATotal%Votes%
1. Olvi Foundation 2,363,904890,6133,254,51715.7148,168,69352.57
2. The Estate of Hortling Heikki *) 903,488103,2801,006,7684.8618,173,04019.83
3. Hortling Timo Einari212,60049,257261,8571.264,301,2574.69
4. Hortling-Rinne Marit 149,06414,699163,7630.792,995,9793.27
5. OP Corporate Bank plc, nominee reg.2,318,7872,318,78711.192,318,7872.53
6. Nordea Bank Abp, nominee register 1,836,3801,836,3808.861,836,3802.00
7. Varma Mutual Pension Insurance Company828,075828,0754.00828,0750.90
8. Ilmarinen Mutual Pension Insurance Company771,401771,4013.72771,4010.84
9. Skandinaviska Enskilda Banken AB (publ),
 Helsinki branch, nominee register
575,220575,2202.78575,2200.63
10. Hortling Pia Johanna23,38823,56646,9540.23491,3260.54
Others79,8129,578,6989,658,51046.6011,174,93812.20
 Total3,732,25616,989,97620,722,232100.0091,635,096100.00
*) 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 balance195,599188,155188,155
Effect of IFRS 1694100
Additions25,25324,35432,833
Deductions and transfers-1,973-3,725-4,395
Depreciation-15,884-14,007-18,922
Exchange rate differences3,916-1,712-2,072
Total207,852193,065195,599


11. CONTINGENT LIABILITIES   
EUR 1,000   
 30 Sep 201930 Sep 201831 Dec 2018
Pledges and contingent liabilities  
  For own commitments2,1141,9162,114
    
Leasing and rental liabilities:  
  Due within one year7541,0461,129
  Due within 1 to 5 years221976805
  Due in more than 5 years1302
Leasing and rental liabilities total9762,0521,936
    
Other liabilities602,00057

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).    

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