Olvi (OLVAS) Q2 2024 earnings summary

Executive summary

• Profitability improved as planned in H1 2024, with adjusted operating result up 8.8% year-over-year to EUR 42.2 million, and Q2 and half-year performance met expectations despite a challenging consumer environment and soft demand.

• Net sales remained stable at EUR 325.1 million, with intentional volume declines and a 1.1% decrease in sales volume.

• Strategic focus on profitable growth, product range optimization, local consumer needs, and resilience in core offerings maintained or increased market shares.

• Investments in production efficiency and capacity, including CO2 recovery and warehouse expansion, are progressing on schedule and within budget.

• Sustainability initiatives advanced, with emissions and water use per litre produced declining.

Financial highlights

• Q2 2024 net sales: EUR 194.7 million (-0.4% year-over-year); adjusted operating result: EUR 31.0 million (+7.6%).

• H1 2024 net sales: EUR 325.1 million (+0.1% year-over-year); adjusted operating result: EUR 42.2 million (+8.8%).

• EBIT increased nearly 60% for the half-year, with last year's result impacted by a fine in Belarus.

• Earnings per share H1 2024: EUR 1.51 (EUR 0.74 in H1 2023), returning to a normal level after the Belarus fine.

• Cash flow from operating activities: EUR 26.0 million (H1 2023: EUR -0.1 million).

Outlook and guidance

• Adjusted operating result for 2024 expected at EUR 74–80 million.

• Investment levels will rise to about 9% of net sales in 2024–2025, then return to the historical average of 6%.

• Focus remains on profitability improvements, organizational resilience, and sustainability.