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• Revenue Growth: Net sales growth exceeded sales volume growth due to an increase in average price.

• Profitability Improvement: 66% improvement in profitability compared to last year, driven by changes across categories and sales channels.

• Adjusted EBIT: Decrease in the Baltic Sea region due to volume declines in Denmark and intensified price competition in Latvia.

• Belarus Performance: Increased volumes and net sales supported by market growth and strong consumer demand, though profitability slightly lower due to higher costs.

• Operating Margin: Improved above 12%, achieving strategic target.

• Equity Ratio: Over 60%.

• Earnings Per Share: Almost 3, with previous year comparison affected by a penalty in Belarus.

• Operating Cash Flow: Increased by 58 million compared to last year.

• Investments: Total of almost 44 million, with significant investments in Finland.

• Dividend Proposal: 1.3 per share, 0.10 more than the previous year.

• Warning! GuruFocus has detected 4 Warning Signs with FRA:OVI.

Release Date: February 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Olvi Oyj (FRA:OVI) achieved recognition as one of the top 500 most sustainable growth companies globally by Time magazine and as one of the top 5 best performing sustainable companies by Ecobodies.

• The company reported a 66% improvement in profitability in Finland, driven by positive volume growth in non-alcoholic categories and increased average prices.

• Olvi Oyj (FRA:OVI) delivered its ninth consecutive year of growth, with significant contributions from strategic investments in data, analytics, and process improvements.

• The company successfully increased its operating margin above 12%, achieving its strategic target and returning profitability closer to pre-crisis levels.

• Olvi Oyj (FRA:OVI) proposed a dividend of 1.3 per share, reflecting improved profitability and a strong financial position with an equity ratio over 60%.

Negative Points

• The Baltic Sea region experienced flat volume growth, with declines in Denmark due to portfolio changes and intensified price competition in Latvia.

• In Belarus, despite higher EBIT, profitability was slightly lower due to increased costs of goods sold and higher fixed costs in sales and logistics.

• The Danish market remains challenging, with Olvi Oyj (FRA:OVI) losing unhealthy volume and facing difficulties in increasing sales.

• The company faces risks related to exchange rate fluctuations, particularly in Belarus, where currency positions are difficult to secure.

• Olvi Oyj (FRA:OVI) is navigating a competitive market environment in Denmark, requiring a focus on promoting local propositions and leveraging production for broader group benefits.