The audited net turnover of the Company for the year 2017 reached EUR 78.3 million, up 3.4% against 2016. The increase was achieved owing to the growth of orders from our biggest private label customer SPI Cyprus and the significant increase in sales of AS Latvijas Balzams brands on the local market through SIA Amber Distribution Latvia. An additional positive effect on turnover came from warehouse and logistics services provided to both external customers and related companies.
The audited net profit for the year 2017 is EUR 8.6 million, which represents 11% of turnover, up 15% from 2016. The growth of profit was considerably affected by changes in the corporate income tax system stipulated by the Law on Corporate Income Tax of the Republic of Latvia, which entered into force on 1 January 2018. As a result of these changes, the Company has reversed deferred tax liabilities and recognized a gain from reversal through the income tax expense caption of the income statement.
AS Latvijas balzams is one of the largest local taxpayers. During the reporting period, the Company paid taxes of EUR 59.7 million to the state budget, including excise duty amounting to EUR 47.5 million.