The enterprise was founded in 1900, but the actual name it has got in 1970. AS “Latvijas balzams” is a leading producer of alcoholic beverages in the Baltic States that produces more than 130different kinds of alcoholic drinks. AS “Latvijas balzams” major shareholder is “SPI Regional Business Unit BV” which owns 89.53% of the company’s equity capital.

 

AS “Latvijas balzams” is the biggest producer of alcoholic beverages in Latvia, as well as one of the largest taxpayers in Latvia. During first quarter of 2010 AS “Latvijas balzams” paid 8.1 millions lats to the state budget, including excise tax amounting to 6.0 millions lats. 

 

The unaudited turnover of the company in the first quarter of year 2010 was 16.0 million lats, which is by 9% less than during first quarter in 2009. The decrease in turnover at local market is 16.5% as compared to the same period in 2009. In comparison with first quarter of year 2009, the export market sales decreased for 3.5%, or else for 41 thousands lats. During the first quarter of year 2010, sales to the EU countries decreased by 11%, sales to Estonia decreased by 17%, but sales to Lithuania increased by 8% in comparison with the same period in 2009. Decrease of sales is related to the increase of excise tax, illegal alcohol trade and decrease of economical activity in the main markets. During the first quarter of year 2010 the top focus sales markets were Baltic States, Russia, Germany and Scandinavia; meanwhile new export markets are being acquired. 

 

The unaudited profit for the reporting period was 388 thousands lats, that is 36% less than in the first quarter of 2009.

 

 

Despite of hard economic situation and low consumption power in Latvia, company aims to hold existing market share as well as to continue with export development by improving its product portfolio. In the second quarter of 2010 AS “Latvijas balzams” priorities will be control of production and logistics costs, optimization and increase of production effectiveness, rise of company’s competitiveness.