Management report
Field of activity
The enterprise was founded in 1900, but the actual name it has got since 1970.
Today, AS “Latvijas balzams” is a leading producer of alcoholic beverages.
Totally, company 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 in year 2009 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
AS “Latvijas balzams” paid 10.02 millions lats to the state budget, including
excise tax amounting to 7.6 millions lats.
The unaudited turnover of the company in the first quarter of year 2009 was
17.5 million lats, which is by 21% less than during first quarter in 2008. The
decrease in turnover at local market is 27.5% as compared to the same period in
2008. In comparison with first quarter of year 2008, the export market sales
decreased for 11%, or else for 899 thousands lats. During the first quarter of
year 2009, sales to the EU countries decreased by 12% and sales to Lithuania
decreased by 36%, but sales to Estonia increased by 6% in comparison with the
same period in 2008. Fall of sales is connected with rise of excise tax,
illegal alcohol trade and decrease of economical activity in the world. The top
sales focus markets are Baltic States, Poland and Scandinavia; meanwhile new
export markets are being acquired.
Company pays large attention to its business efficiency increase as a result
comparing to the first quarter of year 2008 profit has increased noticeably.
The profit for the reporting period was 607 thousands lats, that's 1 110
thousands lats more than in the first three months in 2008 ( -503 thousands
lats).
Future perspectives of activity
Despite of critical economic situation in country and low citizen purchasing
capacity, companies aim is to hold existing market share as well as
continuation of export business development by improving existing products
portfolio. In second quarter of year 2009 AS “Latvijas balzams” priorities will
be control of production expenses, limitation of cost increase and rise of
production effectiveness.
AS Latvijas balzams
Chairman of the Board Karlis Andersons
Riga, 29. May, 2009
