RIGA - Narvesen Baltija, the largest press retail chain in Latvia, increased sales by 10 percent to 35 million lats (50 million euros) last year, while suffering net losses of about 200,000 lats - two times less than in 2003 - the company's finance director Girts Didrihsons said.
"Several wholesalers raised prices, and the price of sweets and beverages also increased," Didrihsons added, explaining that the increase in sales was driven mainly by growing inflation.
Last year, Narvesen Baltija earned 372,000 lats in profits before paying taxes. In addition, the finance director said, the company's administrative costs shrunk considerably in 2004 and all unprofitable outlets were closed.
"After accession to the EU, the value-added tax for periodicals was cut from 9 to 5 percent, which allowed us to boost revenues," Didrihsons explained.
Narvesen spent approximately 500,000 lats on investments in 2004, mainly to open new shops and reconstruct existing ones. What's more, the size of the company's investments has grown to 7.4 million lats over the last three years. Narvesen is planning to invest at least 500,000 lats this year, with hopes to open 20 new shops and reconstruct 20 outlets.
The company is also planning to further increase turnover by at least 10 percent in 2005. "We want our sales to increase at a more rapid rate than inflation in the country," Narvesen board chairwoman Katrina Judovica said, noting that the company hopes to complete the year without net losses.
Narvesen finished 2003 401,000 lats in the red on a turnover of 31.2 million lats.
Narvesen Baltija is the largest distributor of press editions in Latvia, with 426 sales outlets and 60 percent market share. The first Narvesen outlet was opened in the Baltic state in December 1997. In 2001, Narvesen took over Preses Apvieniba, another Latvian press retailer.
Norway's Narvesen ASA owns a 50 percent stake in Narvesen Baltija, and Finland's Rautakirja OY owns the remaining 50 percent.
