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Amber Latvijas balzams announces unaudited 9-month operating results for 2023

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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 2023 reached 69.9 million euros, which is 1.3% more than in the corresponding period in 2022. The increase in turnover is related to the sales price changes introduced in the second half of 2022 as well as the initiatives implemented to open new markets for the main brands produced by the Company.

The gross profit in the reporting period was 9.7 million euros, which is a decrease of 1.8 million euros compared to the corresponding period in 2022. The gross profit indicator was affected both by the drop in sales volume and also by a significant increase in raw material price costs and production-related costs. The main sources of influence of the increase in production-related costs are energy costs, as well as energy price crisis bonuses granted to employees in the heating season of 2022/2023.

The Company’s unaudited net profit for the reporting period is 1.2 million euros, which is a significant decrease compared to the corresponding period in 2022. However, the Company’s management believes that the financial situation will slightly improve in the following reporting year, taking into account the fixed price contracts for the purchase of energy resources switched at the end of the second quarter, which provide for significantly lower resource prices, positive trends in sales volume dynamics in export markets, as well as the main raw materials (ethyl alcohol, glass bottles, cardboard packaging, etc.) and a gradual decrease in costs, which started in the middle of the second quarter. The Company’s management believes that the prices of raw materials will remain unchanged or continue a moderate decline in the last quarter of 2023 as well.

The Company will continue to increase production efficiency, focusing on reducing production costs and increasing production efficiency. At the same time, it is clear that the total production volumes will be significantly lower than last year, and the overall results will be significantly lower than the results of 2022.

AS Amber Latvijas balzams is one of the largest taxpayers in Latvia. During the reporting period, the Company paid taxes of EUR 58.9 million to the state budget, including excise tax amounting to EUR 47.3 million.

More information can be found in Company’s website section Latest Financial Indicators.

JSC Amber Latvijas balzams
Chairman of the Board
Intars Geidāns