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 producing more than 130different kinds of alcoholic drinks. AS “Latvijas balzams” major shareholder is “SPI Regional Business Unit BV”, having 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 nine months of 2010 AS “Latvijas balzams” paid 24.7 millions lats to the state budget, including excise tax amounting to 18.2 million lats. 

 

The unaudited turnover of the company in the first nine months of year 2010 was 52.5 million lats, or by 12.6% less than during first nine months of 2009. The decrease in turnover at local market was 20.6% or 7 013 thousands lats compared to the same period in 2009. In comparison with 2009, the export market sales have decreased by 23.7% or 1 193thousands latswhile export related to S.P.I. Group orders increased by 3.0%. During the first nine months of year 2010 sales to the EU countries decreased by 18.8% in comparison with the same period in 2009 - sales to Lithuania decreased by 23.2%, sales to Estonia decreased by 11.5% . Decrease of sales is related to the increase of excise tax, decline in consumption on the domestic market while economy is growing only because of export, increase of illegal alcohol trade and uncertain economical situation in the main markets. During first nine months of year 2010 the top sales markets were Baltic States, Russia, Scandinavia and Poland meanwhile new export markets such as Bulgaria, China, Australia and Kazakhstan were being acquired. 

 

The Company has paid great attention to production cost control and improvement of productivity, thus maintaining the positive profit. Despite the fact that company’s unaudited turnover has decreased by 12.6%, the profit for the reporting period was 2 147 thousands lats, that is 12.2% less than during the first nine months of year 2009 (2 444 thousands lats).

 

 

The economic situation in country has started to stabilize, however, purchasing power of consumers is still very low, therefore company aims to hold existing market share as well as to continue export business development by improving existing products portfolio. In the last quarter of year 2010 AS “Latvijas balzams” priorities will be control of production and logistics costs, optimization and increase of production effectiveness, enhancement of company’s competitiveness.

 

 

 

AS Latvijas balzams

Chairman of the Board                                                              Karlis Andersons