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 (previous major shareholder - S.P.I. Regional Business Unit B.V.).
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 the First Quarter of 2015
The unaudited turnover of the Company in the first quarter of 2015 was 15.5 million Euros, which is 2% more than in the first quarter of 2014. The growth of turnover influenced by significant increase in sales in export markets, for example, orders of SPI Group has increased by 10.4%. The most significant increase in sales was achieved in Estonia (+52%) and Norway (+4%), and also in Travel Retail and Duty free market (+32%). 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 1.37 million Euros that is by 0.173 million Euros less than in the first quarter of 2014. Decrease in profit comparing to the first quarter of 2014 were mainly caused by the difference of sales distribution between product categories and exchange rate fluctuations due to geopolitical factors.
During the first quarter of 2015, JSC Latvijas balzams paid 13.3 million Euros into the state budget, including excise tax, amounting to 9.6 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.
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, May 29th, 2015
