Aldaris posted 1.95 million lats ($3.05 million) in profits last year, a decrease of 300,000 lats on 2000 figures.
The brewery sold 75.84 million liters of beverages last year, including 45.15 million liters of beer, according to company President Vitalijs Gavrilovs.
Gavrilovs said falling profits were due to investments the company made in production and management processes to meet European Union quality standards.
Beer consumption in Latvia increased last year from 40 liters in 2000 to 42 liters, but the figure remained lower than consumption in Estonia or Lithuania.
Beer imports increased 2 percent last year to 5 percent of total sales.
Aldaris held a 45 percent share of the beer market at the end of 2001, Gavrilovs said.
Latvia's soft drinks market grew 12 percent last year to total sales of 67 million liters, which equated to a per capita increase from 24.7 liters to 27 liters.
Aldaris' main competitor on the Latvian soft drinks market, Coca-Cola, also posted increased sales last year.
Coke saw a 19 percent jump in sales in Latvia, 24 percent in Estonia and 29 percent in Lithuania.
The Baltic soft drinks market showed overall growth of 9 percent last year. In Estonia it grew 5 percent and in Lithuania 21 percent. But it dropped 5 percent in Latvia, according to the data firm ACNielsen.