The unaudited net revenue of the leading producer of alcoholic beverages in the Baltic States, AS Amber Latvijas balzams (also – the Company), for the first nine months of the year 2022 grew by 27.4% reaching EUR 67.5 million euros. The growth in turnover is related to the increase in sales volumes in the existing markets, as well as to the significant development of business opportunities in new export markets, such as Germany and Sweden. At the same time, AS Amber Latvijas balzams as a manufacturing company has been significantly affected by the increase in the cost of raw materials and materials, causing a significant impact on financial results.
AS Amber Latvijas balzams gross profit for the reporting period is EUR 10.0 million, facing a decrease of EUR 1.9 million or 16.1% to the comparative period. The variance of gross profit has been impacted the volume increase, however more significant impact has been caused by the increase in the price of key raw materials, the shortage of glass in Europe and the increase of its cost due to energy-intensive production process, increase in the energy costs, and the price increase under the influence of rapidly growing general inflation.
The Company will continue improving the efficiency of production, with a focus on purchase, planning and infrastructure improvements to support its goal: to deliver quality products with a competitive cost advantage. Also, investments in infrastructure facilities will be continued in 2022.
AS Amber Latvijas balzams is one of the largest local taxpayers. During the reporting period, the Company paid taxes of EUR 56.6 million to the state budget, including excise tax amounting to EUR 45.3 million.
More information can be found in section Latest Financial Indicators.
JSC Amber Latvijas balzams
Chairman of the Board
Intars Geidāns