Why buy small breweries? Few of them are very profitable, especially when looking for growth. Olvi has made quite a few acquisitions recently. Olvi has also invested a considerable sum in the Iisalmi factory and its subsidiaries. You’ve probably noticed it in the share value.
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Buying a microbrewery could certainly bring some nice, good, and high-quality specialty beers. In a business sense, it would probably be insane. The tax breaks important for the profitability of microbreweries would disappear, and as a result, even a very profitable microbrewery would likely become unprofitable.
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Olvi has experience with successful M&A deals, and I believe they will be active when a suitable acquisition target is found. Who knows, perhaps the share buyback program was initiated to support M&A activities, for example.
I personally don’t believe Olvi is after small breweries, though. Good arguments have already been made, e.g., regarding the removal of tax benefits.
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Don’t whine about nothing! We Olvi shareholders have, in fact, given authorization for much larger buybacks than what is currently underway. A private investor should not own a company if they don’t trust the operational management’s capabilities. You can get a pretty good price for Olvi now if you sell and invest your money in, say, Sonnisaari Brewery, if you think that it or some other small brewery will yield better returns.
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Has anyone found information on Olvi’s own long-term financial goals? I’ve searched through reports high and low, but the horizon always seems to be 12 months.
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OP - Olvi Q4 Results 23.2.2021
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The conquest of the Baltics continues. Now I’ve reeled in a quality Latvian microbrewery 
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Pretty good idea, a microbrewery that now has the resources of a large brewery at its disposal. Production can currently be doubled without new investments in the facility, and beer can be distributed through Cesu’s channels.
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I’ve noticed that Olvi reports very little market-related information in its annual reports and interim reports. What kind of information have you used for analyzing the market and, for example, reviewing market shares in different operating countries for Olvi?
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Does anyone know how much of a beer crate’s price goes to Olvi? How much goes to the state? To the store? And other expenses. The price is about 29-33 euros (Lidl, Tokmanni, Citymarket).
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{“content”:“Assuming the price is 29€:\n- Deposits 24x0,15 = 3,6€\n- Excise duty* = 38,05e/l of alcohol x 24pcs x 0,33l x 0,045 =13,56€\n- VAT = 25,4-(25,4/1,24) = 4,91€ (Assumed that a smart consumer returns the deposits)\n= Share of the store and Olvi 6,93€\nI can’t say more about how that is distributed.\n\n\n(*) https://www.vero.fi/yritykset-ja-yhteisot/verot-ja-maksut/valmisteverotus/alkoholijuomavero/alkoholi-ja-alkoholijuomaverotauluk/",“target_locale”:"en”}
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Alcohol taxation is brutal. On the other hand, I understand the taxation of products like alcohol, tobacco, sweets, etc., which incur costs for society due to health problems.
I wouldn’t see an issue from a business perspective as long as customers accept the tax being passed directly into the final price. I would assume this has been the case for Olvi, at least, because the operating profit is quite consistently at 14% year after year. The graph is taken from Olvi’s website.
Below is an image from the Ministry of Finance’s website showing the development of the tax; the pain thresholds from 2003 have been exceeded, and the trend is upwards. It remains to be seen at what point the limit will be reached.
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Today, behind a paywall in Kauppalehti, there is a short article about Olvi:
- It’s hard to associate major risks with Olvi, as there is demand for its products despite economic fluctuations
- beverages have been produced for over 140 years, and soft drinks since 1906
- Olvi’s risks are primarily related to Belarus, which accounted for €83.3 million of its revenue in 2020
There was also an article about Olvi’s CEO in Arvopaperi this week (paywall): Kadetti, poliisi ja valtiotieteilijä – Näiden pörssiyhtiöiden toimitusjohtajat ovat kulkeneet omaa polkuaan hyvällä menestyksellä | Arvopaperi
- Olvi’s CEO, Lasse Aho, holds a Master of Social Sciences degree with a focus on political science
- Tax policy and legislation significantly impact the company’s business
- Aho has served as Olvi’s CEO since 2004 (one of the longest-serving CEOs in the Helsinki Stock Exchange)
Olvi’s Annual General Meeting 2021 will be held next Wednesday, March 31st => Yhtiökokous 2021 - Olvi Group
Adding the CEO’s review, which was already published on March 8th, to this thread.
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Then you really are a small investor if you can’t even find fifty euros in your pocket.
There’s really no reason for that. And that’s why Olvi is unlikely to mess around.
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Yes, indeed, in Finland, it seems that around 60 euros is the level at which people start thinking about a stock split. Kesko was over 60 euros and was split. One of the reasons given was that it was too expensive.
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Olvih was split in 2011, with one new share for each existing share. As I recall, the share price was then just under €30. I don’t know what the motivation was at the time.
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It has been statistically proven that splits generally support a rise in share prices, especially in cases like Olvi, where liquidity is quite weak.
In my opinion, Olvi would have a good opportunity for a split now, given the excellent growth of the 2010s is behind us and the coming decade awaits. At this share price, the stock could also technically be conveniently split into three parts.
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It would be great if you could choose whether to buy one stock or a six-pack of Olvi Sandels
Should these be flagged?
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For loyal customers, there could be a system where if you collect the barcode from ten portfolios, you get x number of shares. 
The Ministry of Social Affairs and Health (STM) would approve.
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