The Company’s unaudited net turnover in 2025 reached EUR 74.5 million, which is 4.8% lower than in 2024. Total sales volumes (expressed in 9Lcs) in 2025 were 0.62% higher than in 2024. The increase in sales volumes is related to strategic decisions adopted by Stoli Group regarding the development of the Stoli brand and supply chain optimization, which in the short term affected order volumes.
Gross profit for the reporting period amounted to EUR 13.3 million, representing a decrease of EUR 2.9 million (-18.2%) compared to 2024. The gross profit was adversely affected by changes in sales volumes and pricing methodology, which were partially offset by a reduction in the costs of key raw materials and supplies used in production, as well as a decrease in production-related costs within the framework of implemented cost optimization programs.
Profit before tax in 2025 amounted to EUR 2.5 million, a decrease of EUR 1.5 million compared to the corresponding figure for 2024 (profit of EUR 4.1 million). The profit before tax margin in the 2025 reporting period was 1.7% (2024: 3.4%). In 2025, the Company operated at a profit; however, at the same time, JSC “Amber Latvijas balzams”, by engaging new accounting and finance specialists, is conducting additional analysis of provisions made for receivables in 2025 and in prior reporting periods.
It is expected that sales volumes will decrease in the next half-year due to insolvency proceedings affecting one of the most important distributors of JSC “Amber Latvijas balzams” products in the United States.
Despite JSC “Amber Latvijas balzams” efforts and ongoing dialogue with the State Revenue Service (SRS) regarding the schedule for settling overdue excise tax liabilities, in January 2026 the tax authority adopted a decision to seize the Company’s settlement bank accounts. This decision created insurmountable obstacles to the continuation of day-to-day business operations under standard conditions.
In order to ensure business continuity and protect creditors’ interests, on 30 January 2026 JSC “Amber Latvijas balzams” filed an application with the Riga City Court for the initiation of a legal protection proceeding (LPP). The Court approved the application on 5 February 2026, thereby commencing the legal protection proceeding, within the framework of which the Company continues to work on the restructuring of its liabilities and the stabilization of its operations.
Notwithstanding the legal protection proceeding, the Company continues to work on maintaining its competitiveness, and a range of measures are being implemented on an ongoing basis to improve the efficiency of production processes and reduce costs.