The Company was established in 1900 and operates under the current name since 1970. Due to SPI Group internal reorganization the major shareholder of Latvijas balzams AS from October 2014 is Amber Beverage Group SIA, which owns 89.99% of the Company’s equity capital.
Latvijas balzams AS is the largest producer of alcoholic beverages in the Baltic States with a range of more than 100 different products. Our production is exported to more than 170 export markets as mediated by Stoli Group, and to 42 markets via the Company`s direct export route.
The Company`s Activity
The unaudited turnover of the Company reached 75.7 million Euros in Year 2016 that represents 2.6% growth versus the Year 2015. The positive results are rooted mainly into increased level of provided 3-rd party services.
Based on new services the company managed to increase unaudited profit for the reporting period to 7.45 million euro that represents 5.3% increase in comparison to Year 2015.
Although the Company has expanded its export geography this year, the turnover from sales of alcoholic drinks dropped by 1.7%. To compensate production and sales volume drop, Latvijas balzams AS has started providing an additional services – using employee competence and warehouse resources. From beginning of 2016 Company is providing a number of warehousing and logistics services, mostly to beverage companies – like transit assurance service, bonded warehouse services, 3-rd party logistic services, value added services, picking, etc. Actions taken, has allowed to increase the profit due to more efficient use of available resources and assets. Latvijas balzams AS has been performing as European hub for group distributed brands in Europe, including Scandinavia and Russia (KAH, Bayou, Arinzano, Achaval Ferrer).
Latvijas balzams AS is the leading producer of alcoholic beverages in Latvia, as well as one of the largest local taxpayers. During the reporting period, Company paid 52.3 million euro to the state budget, including excise tax, amounting to 40.1 million euro.
Future prospects
In 2017 Company will keep focusing on investment opportunities in existing and new export markets with strong growth potential and accelerating sales. We’ll keep the strong focus on our core brands - Riga Black Balsam and Cosmopolitan Diva - investing into international recognition, brand equity and increasing market share.
The Company will also continue to improve the efficiency of production with focus on purchasing, planning and infrastructure improvements to support our goal - to deliver quality products with a competitive cost advantage.
Latvijas balsams AS is an active member of Latvian Alcohol Industry Association and cooperates with core non-governmental organizations, representing the interests of industry in any dialogue with legislators and law enforcement institutions. Company supports development of well - considered industry policy in Latvia and promotes responsible consumption and public education on these issues, as well as continues to combat the illegal production and distribution of non-commercial alcohol.
AS “Latvijas balzams”
Chairman of the Board Intars Geidāns
Riga, February 28, 2017
Additional information:
Jekaterina Stuģe
AS “Latvijas balzams” valdes locekle
Tālr.nr. +371 67081213
e-pasts: office@lb.lv
