Management report
Field of activity
The enterprise was founded in 1900, but the actual name it has got since 1970.
Today, LB is a leading producer of alcoholic beverages. Totally, AS “Latvijas
balzams” produces more than 130 different kinds of alcoholic beverages. AS
“Latvijas balzams” major shareholder is “S.P.I. Distilleries. B.V.” which owns
6,595,745 shares or 88.05% of the company equity capital.
The activity of enterprise in year 2008 first quarter
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 2008
LB paid 11.4 millions lats to the state budget, including excise tax amounting
to 7.7 millions lats.
The unaudited turnover of the company in the first quarter of year 2008 was
22.3 million lats, which is by 1.06% more than during first quarter in 2007.
The increase in turnover at local market is 1.4% as compared to the same period
in 2007. In comparison with 2007, the export market sales increased for 0.6%,
or else for 49 thousands lats. During the first quarter in 2008, in comparison
with the same period in 2007, sales to non European Union countries, increased
for 6.4%, but to Lithuania increased by 20%. The top sales focus markets are
Baltic States and Scandinavia, meanwhile new export markets are being acquired.
The loss for the reporting period was 503 thousands lats, because of expensive
raw materials and production resources in all over the world and high inflation
rate in country.
Future perspectives of activity
For the second quarter of year 2008 AS “Latvijas balzams” priorities are
control of production expenses and limitation of costs increase as well as
continue of export market development. Special emphasize is set to Scandinavian
countries.
AS Latvijas balzams
Chairman of the Board Karlis Andersons
Riga, 28. May, 2008
