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 100different 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 half of 2011 AS “Latvijas balzams” paid 17.6 millions lats to the state budget, including excise tax amounting to 12.6 millions lats.

 

The unaudited turnover of the company in the first half of year 2011 was 29.4 million lats, which is by 17% less than in the first half of 2010. Turnover in the domestic market has fallen by 10%, in the export market by 7%, while export orders of "S.P.I. Group" has decreased by 26%. During the first half of year 2011, sales to the EU countries decreased by 13%, sales to Estonia decreased by 14%, sales to Lithuania decreased by 8%. 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 half of year 2011 the top focus sales markets were Baltic States, Russia, Norway, Poland, Ukraine and Turkey. Meanwhile new export markets were actively acquired, for example, Bulgaria, China, Australia and Kazakhstan. 

 

The Company has paid great attention to production cost control and improvement of productivity, as a result reaching 1.15 million lats unaudited profit, that is 4% less than in the first half of 2010, despite the 17% decrease in turnover.

 

 

 

 

AS Latvijas balzams

Per procura                                                                                            Ronalds Žarinovs

 

Riga, August 31, 2011