The Company was established in 1900 and operates under the current name since 1970. Due to SPI Group internal reorganization the major shareholder of JSC Latvijas balzams from October 2014 is AMBER BEVERAGE GROUP LLC which owns 89.53% of the Company’s equity capital.
JSC Latvijas balzams is the largest producer of alcoholic beverages in the Baltic States with a range of more than 100 different products. 73% of our production is exported to more than 160 export markets, as mediated by SPI Group, and an additional 30 markets via the Company`s direct export route.
The Company`s Activity in 2014
The unaudited turnover of the Company in 2014 was 73.7 million Euros, which is 4.8% more than in 2013. The growth of turnover influenced by significant increase in sales in export markets, for example, orders of SPI Group has increased by 6.4%. The most significant increase in sales was achieved in the Baltic countries (+22%) and Norway (+5%), and also in Travel Retail and Duty free market (+8%). Continuing purposeful growth in strategically significant markets, the Company has successfully expanded assortment and developed in China`s market, and also led the foundation for future growth in the USA and UK markets.
The unaudited profit for the reporting period reached 7.1 million Euros, which represents 14% growth versus 2013. The result was achieved through focused development of the beverage portfolio, volume growth in strategically significant export markets and production process efficiency.
During 2014, JSC Latvijas balzams paid 53.5 million Euros into the state budget, including excise tax, amounting to 39.2 million Euros.
Outlook of Future Activities
The Company will continue purposeful focus on achieve of settled objectives in both domestic and export markets. Our priorities still will be beverage portfolio consummate with the focus on exportable beverages and internationally acknowledged brands, as well as focus on implementation of effective production strategy to increase the Company`s competitiveness.
In cooperation with subsidiary company Daugavgrivas 7 LLC, the Company is planning in the future to set up the museum and show rooms to promote the dialogue with consumers and give the opportunity to present the JSC Latvijas balzams produced brands and their history.
By active participation in the Industry Association and cooperating with non-governmental organizations, the Company will represent the interests of industry in the dialogue with legislators and law enforcement institutions, and promote advised policy development in the alcohol market. The Company will continue to focus on activities of combating non-commercial alcoholic beverages and to focus on the public education on these issues.
JSC „Latvijas balzams”
Chairman of the Board Guntis Āboltiņš - Āboliņš
Riga, February 27th, 2015
Further information:
Income statement for the period ended December 31, 2014
| 01.01.2014 - 31.12.2014 | 01.01.2013 - 31.12.2013 | ||
| EUR | EUR | ||
| Revenue | 1 | 73 745 723 | 70 368 874 |
| Cost of sales | 2 | (57 582 564) | (56 221 488) |
| Gross profit | 16 163 159 | 14 147 386 | |
| Distribution expenses | 3 | (4 962 416) | (4 126 709) |
| Administrative expenses | 4 | (3 705 767) | (3 438 379) |
| Other income | 776 914 | 260 117 | |
| Other expenses | (172 685) | (168 474) | |
| Finance income | 1 433 979 | 1 342 334 | |
| Finance costs | (765 746) | (758 152) | |
| Profit before tax | 8 767 439 | 7 258 123 | |
| Corporate income tax | (1 665 813) | (1 029 364) | |
| Net profit | 7 101 625 | 6 228 759 |
Balance sheet as at December 31, 2014
| 2014.12.31 | 2013.12.31 | |
| ASSETS | EUR | EUR |
| Non-current assets | ||
| Intangible assets | 399 301 | 209 956 |
| Property, plant and equipment | 18 875 280 | 18 888 414 |
| Loans to group companies | 43 566 129 | 37 051 670 |
| Other non-current assets | 34 149 | 34 149 |
| Total non-current assets: | 62 874 858 | 56 184 189 |
| Current assets | ||
| Inventories | 22 839 335 | 21 361 814 |
| Trade receivables | 1 472 185 | 930 195 |
| Receivables from group companies | 44 667 753 | 52 018 765 |
| Other current assets | 738 508 | 550 816 |
| Corporate income tax | - | 220 199 |
| Cash and cash equivalents | 392 182 | 25 740 |
| Total current assets: | 70 109 963 | 75 107 529 |
| Total assets | 132 984 822 | 131 291 718 |
| EQUITY AND LIABILITIES | ||
| Equity | ||
| Share capital | 10 667 128 | 10 667 128 |
| Share premium | 87 887 | 87 887 |
| Revaluation reserves of non-current assets | 12 600 197 | 12 600 197 |
| Retained earnings | 63 856 692 | 56 755 065 |
| Total equity: | 87 211 903 | 80 110 276 |
| Liabilities: | ||
| Non-current liabilities: | ||
| Borrowings | 6 871 863 | 3 037 518 |
| Deferred income tax liabilities | 1 863 986 | 1 863 986 |
| Total non-current liabilities: | 8 735 849 | 4 901 504 |
| Current liabilities: | ||
| Borrowings | 15 669 753 | 22 301 560 |
| Other borrowings | 73 128 | - |
| Trade payables | 2 256 882 | 5 666 743 |
| Payables to group companies | 1 547 117 | 3 051 045 |
| Current corporate income tax payables | 438 346 | - |
| Other liabilities | 17 051 844 | 15 260 590 |
| Total current liabilities: | 37 037 070 | 46 279 938 |
| Total liabilities: | 45 772 919 | 51 181 442 |
| Total equity and liabilities: | 132 984 822 | 131 291 718 |
Inta Belova
Finance Manager
Tel.nr.67011715
e-mail Inta.belova@lb.lv
