The unaudited net revenue for the first quarter of 2020 of the leading producer of alcoholic beverages in the Baltic states, JSC Latvijas balzams, reached EUR 15.9 million, 0.3% up against first quarter 2019, which is predominantly owing to changes in sold product mix.
The leading producer of alcoholic beverages in the Baltic States, JSC Latvijas balzams, last year reached EUR 10.05 million net profit, which is 7% more than in 2018. Changes of the net profit indicator were mainly driven by the improvement of sales and profitability, active efforts undertaken to cut fixed costs and a positive impact of investments made in production processes. The profit was also largely affected by the supply of logistics services to other enterprises of the alcohol industry, chiefly the handling of consignments in transit to Russia and Ukraine.
Many have expressed interest in purchasing the hand and surface disinfectant Virudes manufactured by JSC Latvijas balzams: governmental institution, health institutions, food manufacturers, sanitary distributors and companies that are ensuring premises disinfection, also retail chains. Although Latvijas balzams initially planned production capacity of up to 6 tons per day, due to high demand, production capacity of Latvijas balzams was increased up to 20 tons per day.
We would like to inform you that due to the spread of COVID-19 virus, tours are not organized at the moment in order to ensure the operation of the Latvijas balzams factory.
Admittedly, the rapid spread of Coronavirus throughout the world has affected the work of several companies in our country. Although we face a number of challenges, we do our best to ensure continuity of business and services for our clients.
To deal with the lack of availability of disinfectants in the country, Latvijas balzams will begin producing a hand and surface disinfectant based on the World Health Organization’s recommended formula. The sanitiser is alcohol-based and will be available in 4 litre volumes, which can then be transferred into smaller containers.
The unaudited net turnover of the Company in the year 2019 reached EUR 78.6 million, 4.6% up against 2018, due to higher orders and sales volumes from key customers and markets. The unaudited profit has reached EUR 10.05 million, which is 7% more than in 2018 as the result of increased sales volumes and high level of other Income from additional services.