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Management
report
Field
of activity
The
enterprise was founded in 1900, but the actual name it has got
since 1970. Today, AS “Latvijas balzams” is a leading producer of
alcoholic beverages. Totally, company 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 2009 first nine
months
AS
“Latvijas balzams” is the biggest producer of alcoholic beverages
in Latvia, as well as one of the largest taxpayers in Latvia.
During first nine months of 2009 AS “Latvijas
balzams” paid 34.2 millions
lats to the state budget, including excise tax amounting to 26.3
million lats.
The
unaudited turnover of the company in the first nine months of year
2009 was 60.1 million lats, which is by 23.8% less than during
first nine months of 2008. The decrease in turnover at local market
was 27.6% as compared to the same period in 2008. In comparison
with 2008, the export market sales decreased by 18%, or 5 787
thousands lats. During the first nine months of year 2009, the
sales to the EU countries decreased by 14.6% in comparison with the
same period in 2008. Between them, sales to Lithuania decreased by
23.3% and to Estonia increased by 7.1% as compared to the same
period in 2008. Decrease of sales is
related to the increase of excise tax, illegal alcohol trade and
decrease of economical activity in the region. The top focus sales
markets are Baltic States, Poland and Scandinavia; meanwhile new
export markets are being acquired.
The
unaudited profit for the reporting period was 2 444 thousands lats,
that is 22.8% less than in the first nine months of 2008 (3 165
thousands lats).
Future
perspectives of activity
Despite
of hard economic situation in country and low consumption power
company aims to hold existing market share as well as to continue
with export development by improving its product portfolio.
In the
last quarter of 2009 AS “Latvijas balzams”
priorities will be control of production
cost and increase of
production effectiveness.
AS Latvijas
balzams
Chairman of the
Board
Karlis Andersons
Riga,
27 November, 2009
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