Management report
Field of activity
The enterprise was founded in 1900, but the actual name it has got in 1970.
Today, LB is a leading producer of alcoholic beverages in the Baltics. 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's equity capital.
The activity of enterprise in 1st half year of 2008
AS “Latvijas balzams” is the biggest producer of alcoholic beverages in Latvia,
as well as one of the largest taxpayers in Latvia. During first six months of
2008 LB paid 22.9 millions lats to the state budget, including excise tax
amounting to 17.5 million lats.
The unaudited turnover of the company in the first six months of year 2008 was
50.9 million lats, which is by 2% more than during first six months of 2007.
The decrease in turnover at local market was 4.8% as compared to the same
period in 2007. In comparison with 2007, the export market sales increased by
14.5%, or 2 529 thousands lats. During the first six months of year 2008, the
sales to the EU counties increased by 16.2% in comparison with the same period
in 2007. Sales to Lithuania increased by 19.4% and to Estonia by 10.8% as
compared to the same period in 2007. The top sales focus markets are Baltic
States, Poland and Scandinavia, meanwhile new export markets are being
acquired.
After losses in 1st quarter of 2008 the company, having proceeded with steps to
increase its business efficiency and amend price policy, has returned to
profitability. The profit for the reporting period was 1 418 thousands lats,
that's 5% less than in the first six months in 2007 (1 495 thousands lats).
Future perspectives of activity
For the second half year of 2008 AS “Latvijas balzams” priorities will be
control of production expenses and limitation of cost increase as well as
continuation of export business development.
AS Latvijas balzams
Chairman of the Board Karlis Andersons
Riga, 26 August, 2008
