Olvi (OLVAS) Q1 2025 earnings summary

Executive summary

• Q1 results were broadly in line with expectations, with net sales rising 1.9% year-over-year to EUR 132.8 million despite soft demand and a 2.9% decline in sales volume.

• Adjusted operating result improved by 10.9% to EUR 12.4 million, with profitability gains in Finland and Belarus offsetting declines in the Baltic Sea region.

• Sustainability efforts included a new statement and recognition by Time Magazine for sustainable growth.

• 90 new products were launched, supporting growth in non-alcoholics and HoReCa channels.

• Market shares held steady in main categories, with non-alcoholic product sales growing.

Financial highlights

• Gross profit increased 8.2% to EUR 54.3 million, representing 40.9% of net sales.

• Profitability in Finland improved by almost 20% year-over-year, driven by production efficiency and higher average sales prices.

• Group volumes decreased, with Finland down 5.7% and Denmark seeing the largest decline in both volumes and profits.

• Investments totaled EUR 11 million in Q1, mainly in Finland and the Baltic Sea region, with EUR 8 million allocated to Finland.

• Operating cash flow was negative due to seasonal inventory build-up.

Outlook and guidance

• Full-year profit guidance remains unchanged at EUR 82–90 million.

• Management remains optimistic for 2025, expecting improvement in consumer purchasing power.

• Major investments in Finland will continue, with most of the EUR 45 million spend occurring in 2025.