The Company’s unaudited net turnover in 2024 reached 78.2 million euros, which is 20.1% less than in the corresponding period in 2023. Total sales volumes (in 9Lcs terms) in 2024 were 19.1% less than in the corresponding period in 2023. As the largest customer of the Company with its share of 40% of the total volumes, the strategic decisions made by Stoli Group regarding the development of the Stoli brand affected the Company’s order volumes in 2024.
Gross profit in the reporting period is 16.3 million euros, which has increased by 1.9 million euros (+13.0%) compared to the corresponding period in 2023. The gross profit indicator was negatively affected by sales, but it was fully offset by a decrease in the cost of the most important raw materials and materials used in the production process (compared to the corresponding period in 2023, decreased by 25.8%), which was mainly facilitated by more favourable purchases of raw materials.
The operating results for 2024 are a profit of 3.6 million euros, which has decreased compared to the corresponding indicator in 2023 (4.2 million euros). The operating profit to turnover ratio for the 2024 reporting period is 4.6% (in 2023: 4.3%). In general, sales, administrative and other operating income and expenses have not changed significantly compared to the previous period. The main impact on the deviations in operating profit was the factors described above, related to changes in total profit.
During the reporting period, the Company’s unaudited net profit is EUR 5.0 million, which has decreased compared to the corresponding period in 2023.
It is objectively expected that the planned sales volumes will improve significantly, which, combined with the stability of raw material purchase prices and continuous work on optimizing production costs, will allow a return to positive financial performance indicators.
The Company is one of the largest taxpayers in the country. During the reporting period, the Company paid taxes to the state budget in the amount of EUR 73.9 million, including excise duty in the amount of EUR 57.4 million. More information can be found on the Company’s website in the Latest financial indicators section.
The Company will continue to increase production efficiency, emphasizing the reduction of its production costs and increasing production efficiency, as well as continue to work on increasing sales volumes and prices, thus improving the Company’s profitability.
JSC “Amber Latvijas balzams”
Chairman of the Board
Andrejs Višņausks