The net profit of the leading alcoholic beverage producer in the Baltic States, JSC Latvijas balzams, in the first three months of 2021 is 1.1 million euros, which is higher than in the respective period in 2020. The increase in net profit was positively influenced by the Company’s process efficiency measures since the beginning of the Covid-19 pandemic, as well as the implemented cost reduction activities, as well as the received state support to minimize the pandemic consequences.
Unaudited net revenue of the Company for the first three months of 2021 reached EUR 13.3 million euros, a decrease by 16.3% against the respective period in 2020, mainly affected by the Covid-19 pandemic situation. It has led to major changes in the daily operations of JSC Latvijas balzams: orders from European countries that are most hit by the spread of the virus still have plunged; orders from the biggest customer, Stoli Group, have decreased; a large number of customers have frozen or deferred their orders; customers are delaying their payments or requesting extensions of payment deadlines.
JSC Latvijas balzams is one of the largest taxpayers in Latvia. During the reporting period, the Company paid taxes of EUR 11.96 million to the state budget, including excise tax amounting to EUR 9.9 million.
In 2021, 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.
Joint stock company 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. Latvijas balzams is one of Latvia’s leading exporters – its products are available in 180 countries around the world, as well as the company is one of the largest taxpayers in Latvia. Since 2015, the company has been part of the Amber Beverage Group.
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JSC Latvijas balzams
Chairman of the Board