RIGA – Latvia's largest producer of alcoholic beverages, Latvijas Balzams achieved EUR 50.452 million in revenue in the first nine months of this year, which is 9.2 percent less than in the first nine months of 2017, as the company's unaudited net profit rose 14.3 percent to EUR 5.247 million, according to Latvijas Balzams' financial report submitted to Nasdaq Riga stock exchange.
The company explained that the main reason for the turnover drop is decreasing orders and sales volumes from key customers and markets – Lithuania, the US, Spain, and the Stoli Group.
Latvijas Balzams management also said in its report that Lithuania suffers from increased excise tax in 2017 and ban on marketing activities, and the beverage market is stagnating and shrinking.
The main reason for an increased profit is good inventory management when material part of slow moving inventory was realized through other channels, as well as the procurement department managed to get more favorable deals for price of core raw materials.
The company reported that the projects completed during the first nine months of 2018 included a new shape bottle introduced for signature brand Rigas Sampanietis. Also, three production lines were equipped with automated packaging equipment according to the modernization and reconstruction plan, and specialized small-volume line has been upgraded and productivity increased by 50 percent.
The company continues significant investments in promotions of its core brands – Riga Black Balsam, Cosmopolitan Diva, and newcomer – Cross Keys Gin – crafted own distilled premium class gin.
In the first nine months of 2017, Latvijas Balzams generated EUR 55.54 million in sales and earned EUR 5.402 million in profit.
Latvijas Balzams shares are quoted on the second list of the Nasdaq Riga stock exchange.