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Management report
Field of activity
The enterprise was founded in 1900, but the actual name it has got in 1970. Today, LB is a leading producer of alcoholic beverages in the Baltics. Totally, AS “Latvijas balzams” produces more than 130 different kinds of alcoholic beverages. AS “Latvijas balzams” major shareholder is “S.P.I. Distilleries. B. V.” which owns 88% shares of the company’s equity capital.
The activity of enterprise in 9 month of year 2008
AS “Latvijas balzams” is the biggest producer of alcoholic beverages in Latvia, as well as one of the largest taxpayers in Latvia. During first nine months of 2008 LB paid 33.5 millions lats to the state budget, including excise tax amounting to 25.8 million lats.
The unaudited turnover of the company in the first nine months of year 2008 was 78.9 million lats, which is by 5.9% more than during first nine months of 2007. The decrease in turnover at local market was 5.5% as compared to the same period in 2007. In comparison with 2007, the export market sales increased by 25%, or 1 1194 thousands lats. During the first nine months of year 2008, the sales to the EU counties increased by 17.5% in comparison with the same period in 2007. Sales to Lithuania increased by 17.7% and to Estonia by 14% as compared to the same period in 2007. The top sales focus markets are Baltic States, Poland and Scandinavia, meanwhile new export markets are being acquired.
Company pays large attention to its business efficiency increase as a result comparing to the same period of year 2007 profit has increased noticeably. The profit for the reporting period was 3 165 thousands lats, that’s 85% more than in the first nine months in 2007 (1 714 thousands lats).
Future perspectives of activity
For the 4th quarter of year 2008 AS “Latvijas balzams” priorities will be control of production expenses and limitation of cost increase as well as continuation of export business development.
AS Latvijas balzams
Chairman of the Board Karlis Andersons
Riga, 28 November, 2008 |