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 100 different 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 2011 AS “Latvijas balzams” paid 8.5 millions lats to the state budget, including excise tax amounting to 6.1 millions lats. 

 

The unaudited turnover of the company in the first quarter of year 2011 was 13.3 million lats, which is by 17% less than in the first quarter of 2010. Turnover in the domestic market has fallen by 17%, in the export market by 9%, while export orders of "S.P.I. Group" has decreased by 18%. During the first quarter of year 2011, sales to the EU countries decreased by 9%, sales to Estonia decreased by 29%, but sales to Lithuania increased by 4%. Decrease in sales was affected by the increase in illegal alcohol trade and decrease of economical activity in the main markets.  During the first quarter of year 2011 the top focus sales markets were Baltic States, Russia, Poland, Ukraine and Scandinavia. Meanwhile new export markets were actively acquired, for example, Bulgaria, China, Australia and Kazakhstan. 

 

The unaudited profit for the reporting period was 324 thousands lats, that is 21% less than in the first quarter of 2010.

 

 

Economical situation in Latvia has started to stabilise and, even though customer purchasing power is very low, the objectives of the Company is to maintain the existing market share and to continue new market acquirement by improving product portfolio. In 2010 the priorities of AS Latvijas balzams will be further control of production and logistics costs, optimization and improvement of production efficiency, rise of Company's competitiveness.

 

AS Latvijas balzams will continue to support nature friendly solutions, persistently improving activities that decrease Company's negative impact on the environment, establishing high requirements for itself and Company's partners.

 

AS Latvijas balzams

Per procura                                                                                                                            Ronalds Žarinovs

 

 

Riga, May 31, 2011