Olvi cuts 2026 profit outlook to 80–85 million euros; shares fall

Key Facts

Olvi cut its operating profit forecast for fiscal 2026 to between 80 and 85 million euros in a profit warning issued on October 13. According to the company's disclosure published via Cision, the new range replaces its previous forecast of operating profit between 84 and 90 million euros. The revision lowered both ends of the annual forecast range, with the lower bound cut to 80 million euros and the upper bound to 85 million euros. The company's shares fell 7.6% during the session on the day of the warning, according to Investing, in response to the lower profit estimates. The share price stood at 28.45 euros during trading that session, according to the website, while the warning followed growth in the group's revenue and operating profit in the first half.

The first-half report published on Nasdaq had shown Olvi's revenue rising to 372.4 million euros, from 327.9 million euros in the same period of 2025. Group operating profit in the first half of 2026 was about 42.5 million euros, compared with 38.7 million euros a year earlier. In the second quarter alone, the company recorded revenue of 224.4 million euros, against 195.1 million euros in the second quarter of the previous year. Operating profit for the same quarter rose to 31.8 million euros, compared with 26.3 million euros, according to figures in the report. On an organic basis, excluding the impact of acquisitions, first-half revenue increased 5.8% to 346.9 million euros, reflecting business growth even without contributions from acquired companies.

However, performance in the Rest of Europe segment was weaker than expected, the operational reason Olvi cited in its disclosure cutting its outlook for the current fiscal year. The segment's results had already declined in the first half, in contrast to the growth in operating profit recorded at group level over the same period. According to the half-year report, the segment's operating profit fell 10.0% from the corresponding period a year earlier to 7.4 million euros. The segment had generated operating profit of 8.3 million euros in the first half of 2025, according to the comparison provided by the company. When announcing its first-half results, Olvi also said losses at its Danish operations were weighing on profitability, with these regional pressures preceding the latest annual profit warning.

Olvi's initial profit forecast for the current year dates back to its annual results disclosure published in February, when it set a range of between 84 and 92 million euros. That range was above the group's operating profit of 81.8 million euros in fiscal 2025, according to the annual disclosure published via Cision. The company compared that year's result with operating profit of 81.4 million euros in 2024, showing a modest increase between the fiscal years. The forecast range preceding the latest warning subsequently became 84 to 90 million euros, with the lower bound remaining at its initial level and the upper bound declining. The range announced in October now spans levels below and above the previous year's result, after the initial forecast had exceeded it at both ends.

Alongside performance in the Rest of Europe segment, Olvi attributed the cut in its annual estimates to cost pressures linked to what it described in its disclosure as the "geopolitical situation". Management had addressed this issue in the first-half report, saying it was monitoring the impact of the war in Iran on several aspects of its operations. The areas management identified included packaging materials and raw materials, both cost items it placed under review in that report. It added transport costs to the list of effects it was monitoring, alongside the war's impact on consumer demand, according to the report published on Nasdaq. Management's monitoring of the potential repercussions thus covered both costs and demand before the company cited pressures linked to the geopolitical situation among the reasons for its latest warning.

Olvi said in its profit warning disclosure that it was continuing cost-containment measures while working to improve "operational profitability" and support growth in new markets. These measures come as the company had set a later timetable for realising most of the integration benefits from the businesses it acquired. In its annual results disclosure, management expected those benefits to materialise mainly from 2027, according to its estimate at the time regarding the integration of acquired businesses. The next financial milestone the company identified for commenting on its performance was the release of its third-quarter report, following the warning that revised its annual profit range. Olvi set October 22, 2026 as the date for publishing that report and providing its next commentary on the group's financial developments.