The enterprise was founded in 1900, but the actual name it has got in 1970. AS “Latvijas balsams” is the leading producer of alcoholic beverages in the Baltic States that produces more than 100 different kinds of alcoholic drinks. Our products can be found in more than 30 countries as the direct export of „Latvijas balzams” and in more then 160 countries via the export of the SPI group. Themajor shareholder of AS “ Latvijas balsams” is SPI Regional Business Unit BV which owns 89.53% of the company’s equity capital.

 

AS Latvijas balzams is the leading producer of alcoholic beverages in Latvia, as well as one of the largest taxpayers in Latvia. During first half of 2012 AS Latvijas balzams paid 16.1 millions lats to the state budget, including excise tax amounting to 11.2 millions lats.

 

The unaudited turnover of the company in the first half of 2012 was 31.7 million lats, which is by 8% more than in the first half of 2011. Turnover in the domestic market has risen by 10%, in the export market by 10.6%, and export orders of S.P.I. Group has increased by 6%. During the first half of 2012, sales to the EU countries were in the same level as last year, sales to Ukraine increased by 53%, to Russia by 45% , to Latvia`s tax free zone increased by 38% and significantly sales increased to Germany. Increase in sales was affected by strengthening targeted market relations with partners in the main markets. During the first half of 2012 the top focus sales markets were the Baltic States, Russia, Ukraine and Scandinavia. Meanwhile, new export markets were actively acquired, for example, Croatia and Georgia.

 

The unaudited profit for the reporting period was 1,1 million lats, that is 3% less than in the first half of 2011. Decrease in profit comparing to the first half of 2011 were caused by the increase in raw material costs and by difference of total sales distribution between product categories.

 

 

The company has thus improving product portfolio and since the beginning of the year “Latvijas balzams” has successfully introduced more then 10 new products.

 Increased attention will be put on development of new competitive products, extension of the existing market share, as well growth in export market. AS Latvijas balzams 2012 priorities will be further control of production and logistics costs, optimization and improvement of production efficiency, increase of company's competitiveness, analysis of potential export markets.

 

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 and following the principles of sustainable business.

 

AS Latvijas balzams

Chairman of the Board                                                                                                            Guntis Āboltiņš - Āboliņš

 

Riga, August 10, 2012