The leading producer of alcoholic beverages in the Baltic States, JSC Latvijas balzams, last year reached EUR 10.05 million net profit, which is 7% more than in 2018. Changes of the net profit indicator were mainly driven by the improvement of sales and profitability, active efforts undertaken to cut fixed costs and a positive impact of investments made in production processes. The profit was also largely affected by the supply of logistics services to other enterprises of the alcohol industry, chiefly the handling of consignments in transit to Russia and Ukraine.
The audited net revenue of the Company for the year 2019 reached EUR 78.6 million, 4.6% up against 2018, which is predominantly owing to increased order and sales volumes from key customers and markets, including Latvian customers, and Bennet Distributors UAB.
In 2019, the Company continued investing in production, specifically focusing on the improvement of efficiency and adaptability and the preservation of the low cost base. Total investments made by the Company in the acquisition of property, plant and equipment and intangible assets in 2019 were EUR 3.1 million.
AS Latvijas balzams is one of the largest local taxpayers. During the reporting period, the Company paid taxes of EUR 72.3 million into the state budget, including excise duty amounting to EUR 57.1 million.
During 2019, the Company continued introducing new products and proceeded with packaging renewal projects. Following global market tendencies, AS Latvijas balzams started the production of a premium pink gin – Cross Keys Gin® Black Currant. Meanwhile, one of Latvia’s most legendary brands – Riga Black Balsam® – successfully responded to increasing global coffee trends. The fifth version of this old drink brand – Riga Black Balsam®Espresso – was offered to the market at the beginning of last summer. Supported by a new global campaign spanning more than 65 countries across the world, popular Moskovskaya® Vodka brand with a renewed packaging design came up with a special response to the pink gin trend – Moskovskaya® Pink Vodka. The sparkling Cosmopolitan Diva® line saw its design refreshed by premiumizing the product using a new design for the bottle, cork and beverage overall. The production of a new product Cosmopolitan Diva® Passion Fruit Fusion with tempting tropical flavour and sweet-and-sour taste was started.
To read more about the Audited results of the year 2019, click here.