The unaudited net revenue for the first quarter of 2020 of the leading producer of alcoholic beverages in the Baltic states, JSC Latvijas balzams, reached EUR 15.9 million, 0.3% up against first quarter 2019, which is predominantly owing to changes in sold product mix.
The unaudited net profit for the reporting period is EUR 0.64 million, which is 37% less than in the first quarter of 2019. Changes of the net profit indicator were mainly driven by price changes in several categories of key raw materials, sold product mix, salary changes and one-off personnel costs related to the restructuring of business due to COVID-19 impact.
With a view to minimizing the impact of the pandemic, the management team of AS Latvijas balzams has rapidly curtailed costs, revised the terms of cooperation with suppliers and adapted the supply chain to the new situation.
The impact of the pandemic cannot yet be quantified at the date of publication of this annual report because it will depend on the duration of restrictions introduced in various countries; however, it is evident that the effect on annual performance will be substantial. Most probably, the pandemic will affect also the results for 2021.
In 2020, AS Latvijas balzams will continue improving the efficiency of production, with a focus on purchase, planning and infrastructure improvements to support its goal, which is to deliver quality products with a competitive cost advantage.
JSC Latvijas balzams is one of the largest local taxpayers. During the reporting period, the Company paid taxes of EUR 17.0 million to the state budget, including excise duty amounting to EUR 14.0 million.
More information can be found in the Company’s website section Latest Financial Indicators.
JSC Latvijas balzams
Chairman of the Board