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Latvijas balzams announces unaudited 9-month operating results

The unaudited net revenue of the leading producer of the alcoholic beverages in the Baltic States, AS Latvijas balzams, for the first nine months of year 2020 reached EUR 47.3 million, a decrease by 10.6% against first nine months of year 2019, mainly affected by the Covid-19 pandemic situation in many parts of the world and the restrictions implemented by national governments.

The net profit for the reporting period is EUR 4.5 million, which is 20.6% less as in respective period on year 2019 due to decrease of sales volumes. The operating profit for the first nine months of year 2020 amounts to EUR 3.1 million, which is less than as in respective period on year 2019 (EUR 4.2 million). The operating profit/turnover for the first nine months of year 2020 is 6.6 % (2019: 7.9%).

The Covid-19 pandemic has led to major changes in the daily operations of Latvijas balzams:

  • orders from European countries that are most hit by the spread of the virus and have the strictest restrictions introduced, such as Spain, Italy, the UK, etc., have plunged;
  • orders from Stoli Group, which is the major customer of Latvijas balzams, have decreased;
  • a large number of customers have frozen or deferred their orders;
  • customers are delaying their payments or requesting extension of payment deadlines.

AS Latvijas balzams is one of the largest local taxpayers. During the reporting period, the Company paid taxes of EUR 53.3 million to the state budget, including excise tax amounting to EUR 42.7 million.

More information can be found in section Latest Financial Indicators.