For the global producer and distributor of alcoholic beverages, Amber Beverage Group (ABG, or the Group), 2024 was a year marked by strategic decisions, concentrating on core business and a steady progress in the challenging global market. Last year’s financial results were largely driven by a set of challenges faced across the beverage industry: ongoing inflation, fluctuating energy prices, supply chain disruptions, lower production volumes, and economic slowdowns in key markets. As global markets continued to adjust to new economic and geopolitical realities, ABG adapted by streamlining its operations, becoming a more efficient and profitable business. In its latest Annual Report, the Group shows revenue at the level of EUR 237 million.
Arturs Evarts, Chairman of the Board of Amber Beverage Group, said: “In 2024, the Group`s focus has been enhancing profitability and stabilizing cash flow. In May, the company revised its budget to reflect new pricing strategies and updated margin expectations. As part of this process, cash flow indicators—such as capital turnover—were integrated into performance targets across the organization. A comprehensive review of brand profitability was carried out, leading to price adjustments where margins were found to be insufficient. Another important focus area was the practical management of stock. At the beginning of the year, an overstock of certain products was identified, which negatively impacted on working capital”.
“Reflecting on the past year and the results we have achieved, I would like to extend my sincere appreciation to the entire ABG team. Team resilience, dedication, and tireless efforts have been the cornerstone of our success. I am confident that, together, we will continue to move forward with determination to reach our strategic goals. I would also like to thank our customers, partners, shareholders, and investors for their continued support and trust throughout our journey. Despite the challenges in the market, we have emerged as a stronger, more agile, and resilient organization—well-positioned for the future,” said Arturs Evarts.
During 2024 ABG implemented transformational initiative “Back to the Basics” in response to the rapidly changing global alcoholic drinks market and challenging economic conditions by concentrating on core business and divestment of non-core assets, leading to improved profitability and operational agility.
ABG has demonstrated strong performance in its biggest market – the Baltics, the company has maintained leading market shares in key categories despite facing challenges from excise burdens. In Latvia, the beverage market remained stable, with ABG focusing on sustaining market share and implementing price increases to preserve margins. Lithuania saw a decline in market volume, but ABG aims to drive growth in market share through strategic initiatives and e-commerce development.
2024 is also the year for which the Group published its ESG Report, which accompanies this Annual Report. This year’s ESG Report underscores our resolve to keep sustainability at the forefront of our business, even during periods of a dynamic economic situation globally and regionally. By maintaining our focus on long-term sustainability goals, we lay the groundwork for future progress and align our efforts with the evolving expectations of our stakeholders.
Looking ahead to 2025, our strategic priorities remain centered on stabilizing profitability in key activities, optimizing operational efficiencies, and fortifying our financial position. We are actively exploring opportunities for refinancing and strategic partnerships to support our growth ambitions and unlock new avenues for value creation. By stabilizing our base and fostering strategic collaborations, we are confident in our ability to navigate uncertainties and chart a course towards sustained growth and prosperity.
In accordance with the rules of Nasdaq Riga, Amber Beverage Group Holding provides the following explanation on the published Annual Report 2024: the consolidated Profit for the year differs from the previously published unaudited condensed consolidated financial statements for 2024 by 25% to EUR 2.8 Mio due to recognized expected credit losses for Related party receivables, value which have been calculated and confirmed during the audit of Annual Report for 2024.