FINLAND: Poor weather fails to halt Olvi H1 rises
Olvi has posted a strong set of figures for the first six months of this year.
The Finnish brewer said today (16 August) that operating profit for the six months to the end of June leapt by 42.8% year-on-year, hitting EUR11.4m (US$15.3m). The rise came on the back of increased sales, up 24.8% to EUR100.2m.
In volume terms, total sales rose by 15.8% to 168.5m litres.
Turning to Olvi's parent company, which also operates in the soft drinks sector, net sales for the six-month period rose 18.5% to EUR26.2m. Operating profit was up by an impressive 38.3% to EUR4.2m. Olvi Group owns Cesu Alus and AB Ragutis in Lativia and AS A. Le Coq in Estonia.
Speaking to just-drinks today, a spokesperson for Olvi said: "We have performed very well in all four countries we operate in - namely, Finland, Estonia, Latvia and Lithuania."
The one dark spot on the horizon, however, was the company's performance in the Finnish bottled water market. "The price level for mineral waters in Finland is coming down," the spokesperson said. "We have the most expensive water brand in Finland at the moment."
The poor weather across Europe during the summer could impact Q3 earnings, Olvi noted.
The company also warned that the introduction of recycled plastic deposit bottles into the Finnish market "will bring great changes to production and logistics processes". At the same time, the move towards cans in the Finnish beer, cider and long drink categories will result in rising production, raw material and packaging costs going forward.
Cesu Alus has posted a record year for sales in 2007....
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