Not audited financial Statements of the first 3 mo
Post# of 301275
The Company was established in 1900 and operates under the current name since 1970. The major shareholder of JSC Latvijas balzams is SPI Regional Business Unit BV which owns 89.53% of the Company’s equity capital.
JSC Latvijas balzams is the largest producer of alcoholic beverages in the Baltic States with a range of more than 100 different products. 73% of our production is exported to more than 160 export markets, as mediated by SPI group, and an additional 30 markets via the Company`s direct export route.
The Company`s Activity in the First Quarter of 2014
JSC Latvijas balzams is the leading producer of alcoholic beverages in Latvia, as well as one of the largest local taxpayers. During the first quarter of 2014, JSC Latvijas balzams paid 11.8 million Euros into the state budget, including excise tax, amounting to 7.7 million Euros.
The unaudited turnover of the Company in the first quarter of 2014 was 21.8 million Euros, which is 0.8% more than in the first quarter of 2013. The growth of the turnover was achieved by a sales increase in the Baltic countries and other strategic export markets.
The most significant increase in sales was achieved in such important markets as Germany (+54%) and Retail Travel and Duty-free market (+34%). The main focus markets in the first quarter of 2014 were the Baltic countries, Russia, Germany and Scandinavia. Meanwhile, new export markets, such as Romania, were actively acquired.
Due to competent export management, the Company has been able to provide continuity in trade in force majeure conditions in Ukraine, and also successfully trade in Russia.
Also the export by the orders of SPI Group has increased by 1.5%. The turnover in the domestic market, meanwhile, decreased insignificantly due to changes in the beverage portfolio.
The unaudited profit for the reporting period reached 1.3 million euro, which is twice as high as the profit in the first quarter of 2013. The result was achieved through focused development of the beverage portfolio and production process efficiency.
The Company has successfully participated in China`s largest and most prestigious international beverage contest China Wine & Spirits Awards Best Value 2014, where it received 8 medals, which will facilitate a more successful implementation of export plans to Asian markets.
The Company realizes long-term “Talents and New Heads Development” programs to facilitate staff training, and has implemented a “Competency Model” as the base for the development of individual employees.
Outlook of Future Activities
The main objectives for this year for the Company has been to focus on the new and competitive products for both domestic and export markets, ongoing implementation of sustainable export strategy and development of strong international brands.
By active participation in the Industry Association, the Company will represent the interests of industry in the dialogue with legislators and law enforcement institutions, and promote advised policy development in the alcohol market. The Company, as a member of the Latvian Alcoholic Beverage Industry Association, will continue to focus on combat distribution of non-commercial alcoholic beverages in Latvia.
As the industry leader and one of the largest employers JSC Latvijas balzams will focus on internal projects to facilitate the development of internal competencies in project management, production efficiency and sales areas.
To ensure sustainable development of the Company, production efficiency, cost control and process optimization in logistics, implementation of innovative and environmentally friendly solutions will remain the key focus areas to increase the Company’s competitiveness.
JSC Latvijas balzams
Chairman of the Board Guntis Āboltiņš - Āboliņš
Riga, May 31st, 2014
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