The net revenue of the leading producer of alcoholic beverages in the Baltic States, AS Amber Latvijas balzams (hereinafter also – the Company), for the year 2022 reached EUR 108.1 million, an increase of 37.7% against the year 2021. The gross profit for the reporting year is 19.3 million euros (an increase of 1.4 million euros or 7.6% vs 2021).
The increase in turnover is due to the improvement of the economic situation and the release of the restrictions imposed by the national governments on the Covid-19 pandemic situation, which positively affects the increase in the volume of production. The sales price review activities carried out also had a positive impact. Also, the Company continue to develop cooperation with clients in Sweden and Germany by significant increase of sales volumes into respective markets.
The change in gross profit compared to 2021 was impacted by the increase in production volume (+15.4%), however, the increase in the price of the main raw materials, the shortage of glass in Europe and the increase in its cost due to the energy-intensive production process, the increase in cost prices under the influence of rapidly growing general inflation, an increase in the cost of purchased energy resources as a result of changes in the market price, an increase in salary costs, which was affected by both the review of compensation in 2022 and an increase in costs due to the lack of labour had a much more significant impact on gross profit.
The operating profit for the year 2022 amounts to EUR 6.4 million, which is lower compared to 2021 (EUR 7.4 million). The operating margin for the reporting period in the year 2022 is 5.9% (2021: 9.4 %) which was impacted negatively by the rapid increase in production costs. The net profit of the reporting year is EUR 6.3 million (a decrease by EUR 2.4 million or 27.5% vs 2021), which was affected by above-mentioned factors.
In 2022, the Company continued installation and implementation of efficiency and adaptability equipment/projects and the preservation of a low-cost base. The main implemented projects were:
- Reconstruction of heating system at a distillery producing strong alcoholic beverages, providing significant energy and overhead savings;
- Installation of automated apple wine fermentation unit;
- Implementation of depository system as per LR regulations;
- Upgrade of existing ultra-premium segment production line to increase performance by 350%;
- Automated palletization project for next three lines;
- Implementation of e-label across the range of products.
AS Amber Latvijas balzams is one of the largest local taxpayers. During the reporting period, the Company paid taxes of EUR 74.9 million to the state budget, including excise tax amounting to EUR 60.9 million.
Joint stock company Amber Latvijas balzams is the leading producer of alcoholic beverages in the Baltics with a rich history since 1900. The company owns two alcoholic beverage plants in Riga – a strong alcoholic beverage plant and a sparkling wine and light alcoholic beverage plant. Amber Latvijas balzams is one of Latvia’s leading exporters, as well as the company is one of the largest taxpayers in Latvia. The company has been part of the Amber Beverage Group since 2015.
More information can be found in section ‘Latest Financial Indicators’.
JSC Amber Latvijas balzams
Chairman of the Board