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 87.98% of the company equity capital.
The activity of enterprise in first nine months 2007
AS “Latvijas balzams” is the biggest producer of alcoholic beverages in Baltic
States, as well as one of the largest taxpayers in Latvia. During first nine
month of 2007 LB paid 31.4 millions lats to the state budget, including excise
tax amounting to 26.5 millions lats.
The unaudited turnover of the company in the first nine months of year 2007 was
73.8 million lats, which is by 22.6% more than during first nine months in
2006. The increase in turnover at local market is 26.3% as compared to the same
period in 2006.
The production of AS “Latvijas balzams” takes leader position in local market
keeping market share above 40% in category of strong and low alcoholic
beverages. In accordance with State Revenue Service, in first nine months of
this year, mainly sold alcoholic beverages were AS “Latvijas balzams” products
(cider Lucky Dog, sparkling wine Rīgas šampanietis and vodka 3 graudu)
In comparison with 2006, the export market sales increased for 16.4%, or else
for 3 600 thousands lats. Sales to Lithuania increased by 14% as compared to
the same period in 2006. The top sales focus markets are Baltic States and
Scandinavia; meanwhile new export markets are being acquired. In third quarter
of year 2007, we have begun to sell AS “Latvijas balzams” products in new
export markets such as Portugal and Armenia.
The unaudited net profit from main business activities for the reporting period
was 1 714 thousands lats, that's 56.2% more than in the first six months in
2006 (1 097 thousands lats).
Future perspectives of activity
Until the end of year 2007 one of the AS “Latvijas balzams” priorities is
export expansion. Special emphasis is set to Scandinavian countries.
AS Latvijas balzams
Chairman of the Board Rolands Gulbis
Riga, 30 November, 2007
