Management report
Field of activity
The enterprise was founded in 1900, but the actual name it has got in 1970. AS
“Latvijas balzams” is a leading producer of alcoholic beverages in the Baltic
States that produces more than 130 different kinds of alcoholic drinks. AS
“Latvijas balzams” major shareholder is “SPI Regional Business Unit BV” which
owns 89.53% of the company's equity capital.
The activity of enterprise in year 2010 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 2010
AS “Latvijas balzams” paid 8.1 millions lats to the state budget, including
excise tax amounting to 6.0 millions lats.
The unaudited turnover of the company in the first quarter of year 2010 was
16.0 million lats, which is by 9% less than during first quarter in 2009. The
decrease in turnover at local market is 16.5% as compared to the same period in
2009. In comparison with first quarter of year 2009, the export market sales
decreased for 3.5%, or else for 41 thousands lats. During the first quarter of
year 2010, sales to the EU countries decreased by 11%, sales to Estonia
decreased by 17%, but sales to Lithuania increased by 8% in comparison with the
same period in 2009. Decrease of sales is related to the increase of excise
tax, illegal alcohol trade and decrease of economical activity in the main
markets. During the first quarter of year 2010 the top focus sales markets were
Baltic States, Russia, Germany and Scandinavia; meanwhile new export markets
are being acquired.
The unaudited profit for the reporting period was 388 thousands lats, that is
36% less than in the first quarter of 2009.
Future perspectives of activity
Despite of hard economic situation and low consumption power in Latvia, company
aims to hold existing market share as well as to continue with export
development by improving its product portfolio. In the second quarter of 2010
AS “Latvijas balzams” priorities will be control of production and logistics
costs, optimization and increase of production effectiveness, rise of company's
competitiveness.
AS Latvijas balzams
Chairman of the Board Karlis Andersons
Riga, 28 May, 2010
