Olvi (OLVAS) Q3 2024 earnings summary

Executive summary

• Profitability improved in line with targets, with adjusted operating result up 21.5% for Jan–Sep and EBIT rising 53% year-over-year, supported by operational efficiency, price and portfolio optimization, and favorable weather.

• Net sales rose 2.8% for Jan–Sep, with market share maintained or grown in key segments, especially non-alcoholic products.

• Strategy focused on people, data, and process improvements, aiming to restore profitability to pre-COVID levels.

Financial highlights

• Jan–Sep net sales: €510.0m (+2.8% y/y); Q3 net sales: €184.9m (+8.1% y/y).

• Adjusted EBIT grew nearly 22% for Jan–Sep, and EBIT rose 53% year-over-year, with last year's EBIT impacted by a €12.2m fine in Belarus.

• Earnings per share returned to a more normal level at €2.62 (+70.1% y/y), up from a fine-impacted prior year.

• Cash flow from operating activities increased to €64.8m (vs. €10.6m y/y), driven by higher operating results and working capital changes.

Outlook and guidance

• Adjusted operating result for 2024 expected at €78–84m, raised from previous €74–80m.

• Profitability improvements are visible, but further steps are needed to reach pre-COVID levels.

• Economic outlook for the Baltic region and Finland is expected to improve slightly next year.