|
Management report
Field of activity
The enterprise was founded in 1900, but the actual name it has got in 1970. Today, LB is a leading producer of alcoholic beverages in the Baltics. Totally, AS “Latvijas balzams” produces more than 130 different kinds of alcoholic beverages. AS “Latvijas balzams” major shareholder is “S.P.I. Distilleries. B. V.” which owns 89.52% shares of the company’s equity capital.
The activity of enterprise year 2008
AS “Latvijas balzams” is the biggest producer of alcoholic beverages in Latvia, as well as one of the largest taxpayers in Latvia. During year 2008 LB paid 45.5 millions lats to the state budget, including excise tax amounting to 35 million lats.
The unaudited turnover of the company in the year 2008 was 103.6 million lats, which is by 1.4% less than during 2007. The decrease in turnover at local market was 12% as compared to the year 2007. In comparison with 2007, the export market sales increased by 19%, or 1 545 thousands lats. During the year 2008, the sales to the EU counties increased by 15% and sales to Lithuania increased by 22% in comparison with the same period in 2007. The top sales focus markets are Baltic States, Poland and Scandinavia, meanwhile new export markets are being acquired. Three most sold “Latvijas balzams” products in year 2008 in Latvia where Rīgas Šampanietis, 3 Graudu degvīns and Lucky Dog cider, accordingly in 2nd, 3rd and 4th position in Latvia most sold alcoholic beverages list.
Company pays large attention to its business efficiency increase as a result comparing to the year 2007 profit has increased noticeably. The profit for the reporting period was 5 576 thousands lats, that’s 68% more than in the first nine months in 2007 (3 321 thousands lats).
Future perspectives of activity
In year 2009 AS “Latvijas balzams” priorities will be control of production expenses and limitation of cost increase as well as continuation of export business development.
AS Latvijas balzams
Chairman of the Board Karlis Andersons
Riga, 27 February, 2009 |