The company’s unaudited net turnover in the first three months of 2025 reached EUR 15.8 million, which is 14.5% lower compared to the same period in 2024. Total sales volumes (expressed in 9L cases) in the first three months of 2025 were 11.5% lower than in the corresponding period of 2024. The decline in turnover is related to the global trends of wholesalers’ and importers’ working capital reduction under conditions of increased inflation, as well as strategic decisions made by Stoli Group regarding the development of the Stoli brand and supply chain optimization, which have had a short-term impact on order volumes.
Gross profit for the reporting period was EUR 3.6 million, an increase of EUR 0.6 million (+21%) compared to the same period in 2024. The gross profit indicator was negatively affected by the decline in sales volume and average price but was fully offset by the reduction in costs of key raw materials and supplies used in the production process, as well as cost savings related to production introduced through cost optimization programs.
Profit before tax for the first three months of 2025 amounted to EUR 858 thousand, a significant improvement (by EUR 0.99 million) compared to the corresponding figure in 2024 (a loss of EUR 136 thousand). The profit before tax to turnover ratio for the reporting period in 2025 was 5.4% (2024: -0.7%). Overall, the first quarter ended with a profit, and results are in line with the plan. It is expected that sales volumes will further improve in the coming quarters, which, combined with stability in raw material purchase prices and continuous work on production cost optimization, will allow maintaining positive profit indicators.
To remain competitive and simultaneously improve financial results in challenging economic and geopolitical conditions, the company continuously implements a range of measures to enhance production process efficiency and reduce costs.
The company will continue to increase production efficiency, focusing on reducing production costs and improving production performance, as well as working on increasing sales volumes and prices, thereby improving the company’s profitability.
More information can be found in the “Financial reports” section of the company’s website.
JSC “Amber Latvijas balzams”
Chairman of the Management Board
Andrejs Višņausks