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Amber Latvijas balzams announces results of the half of the year of 2023

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The unaudited net turnover of the leading producer of alcoholic beverages in the Baltic states, AS Amber Latvijas balzams (hereinafter also – the Company), for the first six months of 2023 reached 45.7 million euros, which is 10.4% 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 the new markets for the main brands produced by the Company.

While the net turnover of the Company grew, the total sales volumes in the six months of 2023 were 13.7% lower than in the corresponding period in 2022. The decline in volumes was mainly due to reductions in Stoli Group’s orders related to a change in the client’s pricing strategy.

The gross profit in the reporting period was 5.0 million euros, which is a decrease of 3.0 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 production-related costs and an increase in personnel costs. The main sources of influence of the increase in production-related costs are energy costs, additional salary costs due to both the revised wages and the energy price crisis bonuses granted to employees.

The Company’s unaudited net loss for the reporting period is 0.2 million euros, which is a decrease compared to the corresponding period in 2022. The Company’s management believes that the financial situation will 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 management of the Company believes that the prices of raw materials will remain unchanged or will continue a moderate decline in the second half of 2023 as well.

Amber Latvijas balzams is one of the largest taxpayers in Latvia. During the reporting period, the Company paid taxes of EUR 38.5 million to the state budget, including excise tax amounting to EUR 31.6 million.

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

AS Amber Latvijas balzams
Chairman of the Board
Intars Geidāns