Group Interim Report 2026 - Q1

Olvi plc Interim report 23 April 2026 at 9:00 am

• Sales volume increased by 3.1%, supported by acquisitions, and amounted to 205.4 (199.2) million litres.

• Net sales increased by 11.4% and were EUR 147.9 (132.8) million.

• The operating result decreased by 14.5% to EUR 10.6 (12.4) million. Gross profit improved by 15.2%. Operating result was decreased by the weakening of the operating result in Denmark and increased depreciation related to the allocation of the acquisition costs of new subsidiaries, totalling EUR 1.8 million.

Olvi Group's operating result for the 2026 financial year is expected to be EUR 84-92 million.

The acquisitions completed in the first quarter have been consolidated into the Baltic Sea segment as of the beginning of January 2026, with the segment's name changed to Rest of Europe.

During the first quarter, the beverage industry prepares for the upcoming summer season. In March, we launched approximately 228 new products for the spring and summer at the group level. In addition, we increased our inventories with products required for the summer season, which helps to ensure smooth delivery capacity. The new brew house in Iisalmi was commissioned in March, and it will support the delivery accuracy of beer during the summer season in Finland.

Commercially, we started the year again with uncertainty. Geopolitical and economic uncertainties are weighing on consumer demand. Despite the prevailing uncertainty in the market, our expectations for the rest of the year are cautiously positive. Despite the challenging market situation, we have continued to hold our market shares and are

starting the season from a good position. We are actively monitoring the impact of the war in Iran on the development of packaging materials, raw materials and transport costs as well as the impact of the general economy on consumer demand and will take the necessary measures to maintain profitability and material availability.

Our acquisitions completed in the first quarter have already increased the Group's sales volume. We expect that, after the development of the businesses and the realisation of synergy benefits, these will generate an increasingly significant part of the business of our Group. We see opportunities to grow in several product categories in these new markets. The integration work started as planned in the first quarter and will continue throughout 2026. The most significant synergy benefits are expected to be realised from 2027 onwards.

Our vision is to be the most wanted multi-local beverage house. In 2026, we will continue to systematically implement our strategy, both at Group level and locally, guided by our values and through strong partnerships -positively and together. Development measures in line with our strategy, new products for the season, clear commercial priorities and committed employees contribute to creating confidence in the future.

January-March 202C

The sales volume increased by 3.1% to 205.4 (199.2) million litres. The sales volume increased by 4.1% year-on-year due to acquisitions. Sales volumes in Denmark declined significantly, and excluding Denmark, sales volumes grew by 7.7%.

January and February were quiet sales-wise, but the market picked up in March. The comparability of the previous year is affected by Easter being in April in 2025, while this year's Easter sales were divided between March and April. The uncertainty of the global economic situation continues to be reflected in consumer behaviour. In Belarus, the sales volume has increased through overall market growth.

Thanks to our strong local brands and new launches, market shares in the main product categories have remained at the previous year's level. Net sales increased by 11.4% and were EUR 147.9 (132.8) million.

The operating result decreased by 14.5% from the comparison period and was EUR 10.6 (12.4) million. The decrease was particularly due to the weakening of the operating result in Denmark. In addition, compared to the previous year, depreciation due to the allocation of acquisition prices burdened the operating result. The operating result of the new subsidiaries as a whole remained negative due to factors such as takeover costs and high costs considering the low sales figures in the quarter. The operating result is traditionally lower in the quiet first quarter than the full-year level. Historically, January-March accounts for around 15% of the full-year result. Profitability improved in terms of gross profit. Gross profit increased to 42.3% of net sales, supported in particular by the development of the Finland and Rest of Europe segments.

Segment-specific business development: January-March 202C

Finland: investments in the launch of new products

The sales volume of business operations in Finland increased by 2.6 per cent to 56.0 (54.6) million litres and net sales increased by 3.4 per cent to 51.6 (49.9) million euros. Olvi's sales grew in both non-alcoholic and alcoholic products, especially hard seltzers and energy drinks. The overall market in alcoholic products remained at the previous year's level, and consumption of non-alcoholic products continued to grow. Olvi invested heavily in new products and launched the completely new Olvi Juju brand for soft drinks in March and revised the long drinks range. The market share of beer, the largest product category, remained strong at over 50%. In addition, we significantly strengthened our exports by launching the Sandels beer in the Sweden's Systembolaget chain.

The operating result of the business operations in Finland remained at the previous year's level, totalling EUR 4.2 (4.2) million. We invested significantly more in launching new products than in the previous year, which is why the growth in net sales is not directly reflected in a growing operating result. We will continue measures in line with our

strategy targets to improve profitability by developing the product range and improving cost-effectiveness, among other means.

Rest of Europe: start of takeover and integration of new businesses

The Rest of Europe segment's sales volume declined by 1.3% to 74.0 (75.1) million litres. The sales volume was boosted by new domestic markets and decreased by the discontinued production of private label products in Denmark, which had still been included in the comparison period. New business operations in Latvia, Norway, Sweden, Bosnia and Herzegovina, and Serbia increased the segment's sales volume by 10.8% compared to the previous year. Organically, sales volume decreased by 15.5%, mainly due to Denmark. Excluding the impact of Denmark, the organic sales volume decreased by only 1.1%. However, Olvi's market shares have mainly remained at the previous year's level. The segment's net sales increased by 13.9 % to EUR 58.4 (51.3) million, although organic net sales decreased by 6.3%.

Operating result decreased by EUR 1.6 million to EUR 0.1 (1.7) million. The decline was mainly due to the loss in Denmark, where business development measures are continuing. The impact of new businesses on the segment's result was EUR -0.6 million. The takeovers and integrations incurred one-off expenses. Organically, Estonia, Latvia and Lithuania improved the operating result. In the quiet first quarter, profitability is generally weaker due to low sales and production volumes and high fixed costs. Although the segment's operating result for the first quarter declined significantly percentage-wise, the difference in euros is not significant from the point of view of achieving the full-year result targets.

Belarus: sales volume growth driven by non-alcoholic products

In Belarus, consumer demand and overall market development remained at a good level. The segment's sales volume increased by 8.5% to 76.4 (70.4) million litres. Sales volumes increased particularly in non-alcoholic product categories, such as water and soft drinks.

Net sales increased by 19.6% and were EUR 38.8 (32.4) million. In the local currency, net sales grew by 17.0%. The operating result increased by 6.0% from the comparison period and was EUR 7.1 (6.7) million. In the local currency, the operating result improved by 3.7%. The Belarusian business is reported as part of Olvi Group, but it operates by means of its own cash flow financing. There are temporary restrictions on the distribution of profits to the parent company, described under "Business risks and their management".

Olvi Group's first-quarter sales volume increased by 3.1%, totalling 205.4 (199.2) million litres. The organic sales volume decreased by 2.2% to 194.8 million litres.

*) For the comparison period, the Rest of Europe segment does not include the new companies acquired in January 2026.

The Group's net sales for the first quarter increased by 11.4% and were EUR 147.9 (132.8) million. The Group's organic net sales increased by 3.6% to EUR 137.6 million.

*) For the comparison period, the Rest of Europe segment does not include the new companies acquired in January 2026.

The Group's operating result for the first quarter was EUR 10.6 (12.4) million, or 7.2% (9.4%) of net sales. The Group's organic operating result decreased by 3.9% to EUR 12.0 million. In addition to the growing loss in Denmark, corporate acquisitions affected the operating result for the Rest of Europe segment by EUR -0.6 million.

*) For the comparison period, the Rest of Europe segment does not include the new companies acquired in January 2026.

**) Additional depreciation of EUR 0.7 million resulting from the allocation of the acquisition costs of confirmed acquisitions is included in the eliminations.

The Group's profit after taxes for the first quarter was EUR 5.9 (9.8) million.

In the first quarter, earnings per share calculated from the profit belonging to parent company shareholders were EUR 0.28 (0.46).

Olvi Group's balance sheet total was EUR 702.1 (548.6) million on 31 March 2026. The increase in the balance sheet mainly resulted from the impact of corporate acquisitions and an increase in non-current assets following investments. Equity per share was EUR 17.99 (16.30). The equity ratio was 53.2% (61.8%), and gearing was 10.1% (-3.2%). The Group's liquidity indicator, the current ratio, weakened to 1.2 (1.5). The return on capital employed (ROCE) was 16.8% (22.8%). Interest-bearing liabilities amounted to EUR 102.6 (23.9) million at the end of March. The long-term green loan for financing the brew house investment amounted to EUR 22 million, and short-term debt instruments were used for funding the corporate acquisitions. Of the interest-bearing liabilities, current liabilities accounted for EUR 65.3 (4.2) million.

Olvi Group's balance sheet and financial position are strong. Cash and cash equivalents stood at EUR 64.8 (34.7) million at the end of the review period. The Group aims to secure the availability and flexibility of funding with an account overdraft facility, a commercial paper programme and credit limits. Cash flow from operating activities was EUR -10.2 (-19.7) million. The development of cash flow early in the year is particularly affected by preparing for the summer season, including increasing inventories. Cash flow from investing activities was EUR -45.3 (-10.7) million, and cash flow from financing activities was EUR 63.8 (13.1) million. Cash flow from investments was increased by

acquisitions of subsidiaries. Cash flow from financing activities is improved by the use of short-term financial instruments.

Olvi Group's extension and replacement investments were EUR 12.2 (11.0) million in January-March. Of the investments, EUR 6.7 million was related to Finland, and EUR 5.1 million to subsidiaries in the Rest of Europe segment. The brew house investment at the Iisalmi plant was completed on schedule and on budget in March. In addition, the completion of the warehouse investment with regard to in-house logistics was continued. For the Rest of Europe segment, construction of a new warehouse began in Lithuania, which is the largest individual investment of the segment in 2026. In addition, investments were made in the procurement of sales equipment such as refrigeration equipment and the improvement of production conditions. Replacement investments necessary for the continuity of production were made in Belarus through the subsidiary's cash flow financing, totalling EUR 0.4 million.

In its investments, Olvi Group focuses on environmental friendliness, cost-effective operations and capacity development to meet business requirements.

The nature of the Group's business operations involves seasonal fluctuation. The net sales and operating result of the geographical reporting segments are not accumulated steadily. Instead, they fluctuate in accordance with the special characteristics of the seasons of the year and product seasons.

The Olvi Group's average number of personnel in the first quarter was 2,811 (2,404) employees. Growth was 16.9% year-on-year. The growth was attributable to corporate acquisitions in the Rest of Europe segment.

Olvi Group's average number of personnel by segment:

*) For the comparison period, the Rest of Europe segment does not include the new companies acquired in January 2026.

Environmental sustainability

Olvi's short-term and FLAG (forest, land and agriculture) climate targets have been approved under the Science Based Targets initiative (SBTi). The approval confirms that the company's emission reduction targets are aligned with the 1.5°C target of the Paris Agreement.

Olvi achieved the Gold level in the EcoVadis rating for the second time. The evaluation measures companies' environmental, social and ethical operating practices as well as the sustainability of the supply chain.