07.11.2019 - 08:30

Altia Plc’s January-September 2019: Solid net sales growth of spirits in core markets, profitability improved in Q3

Altia Plc Stock Exchange Release 7 November 2019 at 8:30 am EET

Altia Plc’s Business Review January-September 2019: Solid net sales growth of spirits in core markets, profitability improved in Q3

This release is a summary of Altia Plc's Business Review January-September 2019. The complete report is attached to this release and is also available on the company website at www.altiagroup.com/investors.

January–September 2019 compared to January–September 2018

  • Reported net sales grew by 1.3% to EUR 249.5 (246.4) million

  • In constant currencies, net sales grew by 2.1% in comparison to previous year

  • Net sales of the Finland & Exports segment declined to EUR 90.9 (94.3) million

  • The Scandinavia segment’s net sales grew to EUR 76.3 (74.9) million; in constant currencies net sales grew by 4.6%

  • Altia Industrial’s net sales grew to EUR 82.4 (77.2) million

  • Comparable EBITDA was EUR 25.1 (24.1) million, 10.1% (9.8%) of net sales

  • Comparable EBITDA without the impact from the IFRS 16 standard was EUR 22.2 million, 8.9% of net sales

  • Reported EBITDA was EUR 23.3 (19.6) million, 9.3% (8.0%) of net sales

  • Net debt / comparable EBITDA (rolling 12 months) was 2.0 (1.9), excluding the IFRS 16 impact, the ratio was 1.8

July–September 2019 compared to July–September 2018

  • Reported net sales were EUR 84.5 (85.7) million

  • In constant currencies, net sales were at last year’s level, -0.4%

  • Comparable EBITDA was EUR 11.4 (10.3) million, 13.5% (12.0%) of net sales

  • Comparable EBITDA without the impact from the IFRS 16 standard was EUR 10.5 million, 12.4% of net sales

  • Reported EBITDA was EUR 9.8 (10.3) million, 11.6% (12.0%) of net sales

  • Guidance remains unchanged

Key figures

Q3 19Q3 18Q1-Q3 19Q1-Q3 182018
Net sales, EUR million84.585.7249.5246.4357.3
Comparable EBITDA, EUR million11.410.325.124.140.0
% of net sales13.512.010.19.811.2
Reported EBITDA, EUR million9.810.323.319.634.0
Comparable operating result, EUR million6.96.611.613.425.6
% of net sales8.
Operating result, EUR million5.
Result for the period, EUR million4.
Earnings per share, EUR0.
Net debt / comparable EBITDA, rolling 12 months2.
Average number of personnel677725693724718
Comparable EBITDA without IFRS 16 impact, EUR million10.5-22.2--
Net debt/comparable EBITDA, rolling 12 months without IFRS 16 impact--1.8--

This is not an interim report as specified in the IAS 34 standard. The company complies with half-yearly reporting, in accordance with the Finnish Securities Markets Act and discloses business reviews for the first three- (Q1) and nine-month (Q3) periods of the year. The figures in the review are unaudited. Reconciliation of alternative key ratios to IFRS figures is presented in the appendix on page 12.

CEO Pekka Tennilä:

“We are happy to see net sales of beverages growing in constant currencies in the third quarter, driven by strong performance in Sweden. This year our raw material costs have been higher than last year due to the increased barley price. Following the normal harvest, the barley price has reached a normal level during the third quarter. With the important fourth quarter ahead of us, we are pleased to see the previously announced initiatives taking effect and our profitability improving from last year’s level in the third quarter.

In January–September, reported net sales grew by 1.3% to EUR 249.5 (246.4) million, and in constant currencies, net sales grew by 2.1%. We are delighted to see the positive development of our spirits sales in our core markets. In Sweden and Norway, our spirits sales increased in growing markets. In Finland, spirits market volumes are still in decline, but this has flattened out, while our sales in value terms have grown. In January–September, comparable EBITDA was EUR 25.1 (24.1) million and EUR 11.4 (10.3) million in the third quarter.

In September, we announced the investment in the Von Elk Company whereby Altia became a minority shareholder in the company and the exclusive distributor in the Nordic and Baltic region of the innovative and award-winning sparkling glögg, Glöet. Glöet is an excellent addition to Altia’s portfolio.

We have extended the Blossa glögg brand with novelties both for the monopoly and grocery trade channels. The novelties include non- and low-alcoholic and low-sugar versions, as well as new flavours and a sparkling Blossa. In addition to glöggs, Christmas is traditionally a season for gift-packs, premium wine brands and higher consumption of spirits such as aquavit and Cognac. This makes the last quarter the most important one for Altia both in terms of net sales and profitability.

Sustainability is a strategic priority and a key success factor for us. We were chosen as the Green Company of the Year 2018 thanks to our Koskenkorva distillery, which operates in accordance with the principles of circular economy. This exemplifies our long-standing commitment to sustainability. As an important input for our future sustainability work, we have finalised the calculation of our first full environmental life-cycle analysis for our key brand, Koskenkorva Vodka. The study shows that most of the carbon footprint during the life-cycle of Koskenkorva Vodka derives from the product’s packaging and the cultivation of the barley used as an ingredient in the vodka. We continue to work on better farming practices with our partners and to develop sustainable packaging. With our biggest customers, the state retail monopolies, we are working for a higher use of sustainable packaging solutions such as PET bottles and bag-in-boxes.

During our annual strategy process, we are reviewing our long-term strategic focus areas and growth ambitions. We expect to communicate more on this during the first half of next year.

Our guidance for 2019 remains unchanged, and we expect the comparable EBITDA to improve from the 2018 level. The guidance assumes a normal barley harvest, a flattened out market development in Finland, and growing markets in Sweden and Norway. In addition, the impact from the implementation of the IFRS 16 standard is expected to improve comparable EBITDA by EUR 3–4 million.”

Outlook for 2019

Market outlook

The development of the Group’s business operations and profitability are affected by the competitive environment, the overall economic outlook, imports by consumers and changes in alcohol taxation. Uncertainty related to changes in consumer buying behaviour and consumer demand continues.


There are substantial seasonal fluctuations in the consumption of alcoholic beverages impacting the net sales and cash flow of Altia. The company typically generates large amounts of its revenue and cash flow during the fourth quarter of the year, whereas the first quarter of the year is significantly lower. In addition, excise taxes related to the high season at the end of the year are paid in January, resulting in large cash outflows at the beginning of the year.


Guidance as published on 7 February 2019 remains unchanged: The comparable EBITDA is expected to improve from the 2018 level.

The positive trend of Altia’s Nordic core brand portfolio is expected to continue. Market development in Finland is expected to flatten out in comparison to 2018 and the markets in Sweden and Norway are expected to grow. The negative impact of the increased barley cost will be reflected in high raw material costs especially in the first quarters of the year. The guidance assumes a normal harvest in 2019.

In addition, the impact from the implementation of the new IFRS 16 standard is expected to improve comparable EBITDA by 3-4 million.

Additional information:

Pekka Tennilä, CEO

Niklas Nylander, CFO


Analysts and investors: Tua Stenius-Örnhjelm, Investor Relations, tel. +358 40 7488864

Media: Petra Gräsbeck, Corporate Communications, tel. +358 40 767 0867

Conference call and audio webcast:

Altia will host a conference call and audio webcast for analysts and investors in English today at 11 am EET. CEO Pekka Tennilä and CFO Niklas Nylander will present the Q3 Business Review. To join the conference call, please dial in and register 5–10 minutes earlier on the following numbers:

Finland: +358 981 710 310

Sweden: +46 856 642 651

United Kingdom: +44 333 300 08 04

US: +1 855 857 06 86

Pin: 69235054#

To access the audio webcast go to: https://altia.videosync.fi/2019-q3-teleconference

Presentation material can be found at: www.altiagroup.com/investors


Nasdaq Helsinki Ltd

Principal media


Altia Plc’s January-September 2019: Solid net sales growth of spirits in core markets, profitability improved in Q3