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 €42.2 million, and strategy implementation progressing as expected.

• Net sales remained stable at €325.1 million despite intentional volume declines and softer consumer demand.

• Strategic focus on product range optimization, price increases, and growth in non-alcoholic beverages supported results and maintained strong 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 were €194.7 million (-0.4% year-over-year); adjusted EBIT rose 7.6% to €31.0 million.

• H1 2024 net sales: €325.1 million (+0.1% year-over-year); adjusted EBIT increased 8.8% to €42.2 million.

• Earnings per share H1 2024: €1.51 (up from €0.74 in H1 2023).

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

• Gross margin H1 2024: 40.0% (H1 2023: 37.1%).

Outlook and guidance

• Adjusted operating result for 2024 is expected to be €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.