AS Amber Latvijas balzams announces the financial results for 2023
The net revenue of the leading producer of alcoholic beverages in the Baltic States, AS Amber Latvijas balzams (hereinafter also – the Company), for the year 2023 reached 97.9 million euros, which is 9.4% less than in the corresponding period in 2022. A decrease in turnover is related to global trends in the reduction of working capital of wholesalers and importers in the context of rising inflation, as well as strategic decisions made by Company’s largest clients regarding the rebranding of their products, affecting order volume.
The gross profit in the reporting period was 14.4 million euros, which is a decrease of 4.9 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 the costs of raw materials as well as costs related to production, which had a direct impact on the Company's results.
The operating profit for the year 2023 is 4.1 million euros (2022: profit of 6.4 million euros). The ratio of operating profit to turnover in the reporting period of 2023 is 4.3% (2022: 5.9%), which was directly influenced by both the above-mentioned factors with an impact on gross profit and the proportion of fixed costs in the total amount of costs.
The Company's net profit for the reporting period is 5.2 million euros, which is a decrease compared to the corresponding period in 2022. The Company's management believes that the financial situation and profitability will improve in the future, taking into account the fixed price contracts for the purchase of energy resources switched in 2023, 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.) gradual reduction of costs.
AS Amber Latvijas balzams is one of the largest local taxpayers. During the reporting period, the Company paid taxes of EUR 69.3 million to the state budget, including excise tax amounting to EUR 56.4 million.
The company will continue to increase production efficiency, emphasizing procurement, planning and infrastructure improvements to ensure its goal: to deliver quality products at a competitive price.
Joint stock company Amber 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. Amber Latvijas balzams is one of Latvia’s leading exporters, as well as the company is one of the largest taxpayers in Latvia. The company has been part of the Amber Beverage Group since 2015.
More information can be found in section ‘Latest Financial Indicators’.
JSC Amber Latvijas balzams
Chairman of the Board
Intars Geidāns
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