Olvi future outlook thread

[Rauli_Juva]

@JuhaR

@Rauli_Juva, since you are a man who likes his liquor – heh heh, I mean, the Anora analyst – do you know anything more about the situation? Is Pernod Ricard shutting down its Finnish office entirely, and is Olvi taking responsibility for the distribution of all “global brands” here? They already offloaded their domestic brands to Hartwall some time ago, right?

In short: as far as I understand, yes. They are also cutting back operations in other Nordic countries; I believe they pulled out of Norway as well, but at least they remained in Sweden. Of course, on their scale, this is just fine-tuning.

@JuhaR

And what kind of range could the financial benefit of such a deal be in, now that Olvi (Servaali) gets to utilize its existing machinery for distribution? In terms of the bottom line, is this more background noise or something economically relevant to the Finnish business?

I don’t really know anything about this. However, the Trade Register shows that Pernod Ricard Finland’s most recently reported revenue is just over 3 MEUR; I don’t know if that represents the true value of the distribution, as it has been within the same group. The distribution margin is only a few percent at the EBIT level, so there wouldn’t be much profit left from that.

It seems the latest figures for Servaali are from 2024, and as a whole, it has only generated 1–1.5 MEUR in EBIT. So, based on this, I would say that this Pernod Ricard deal is not significant for Olvi’s total or even its Finnish earnings, but that’s just my guess. A nice addition to their portfolio on the distribution side, though.