About unaudited financial statements of AS "Latvijas balzams" for year 2008

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 89.52% shares of the company's equity capital. 

The activity of enterprise year 2008 

AS “Latvijas balzams” is the biggest producer of alcoholic beverages in Latvia,
as well as one of the largest taxpayers in Latvia. During year 2008 LB paid
45.5 millions lats to the state budget, including excise tax amounting to 35
million lats. 

The unaudited turnover of the company in the year 2008 was 103.6 million lats,
which is by 1.4% less than during 2007. The decrease in turnover at local
market was 12% as compared to the year 2007. In comparison with 2007, the
export market sales increased by 19%, or 1 545 thousands lats. During the year
2008, the sales to the EU counties increased by 15% and sales to Lithuania
increased by 22% in comparison with the same period in 2007. The top sales
focus markets are Baltic States, Poland and Scandinavia, meanwhile new export
markets are being acquired. Three most sold “Latvijas balzams” products in year
2008 in Latvia where Rīgas Šampanietis, 3 Graudu degvīns and Lucky Dog cider,
accordingly in 2nd, 3rd and 4th position in Latvia most sold alcoholic
beverages list. 

Company pays large attention to its business efficiency increase as a result
comparing to the year 2007 profit has increased noticeably. The profit for the
reporting period was 5 576 thousands lats, that's 68% more than in the first
nine months in 2007 (3 321 thousands lats). 

Future perspectives of activity 

In year 2009 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, 27 February, 2009