Latvijas Balzams Announced 9M Results Maintain Increasing Dynamics
OREANDA-NEWS. Nine-month results of the Baltic's largest producer of alcoholic beverages JSC “Latvijas balzams” have maintained an increasing dynamics - unaudited profit of the Company for the period reached 2.6 million lats, which is an increase of 2.7%, compared to the same period in 2012. Unaudited turnover of the Company amounted to 50.4 million lats, showing an increase of 0.1%, compared with the nine-month turnover of the previous year.
During the nine months, “Latvijas balzams” as one of the largest taxpayers in the country has transferred 30.2 million lats, including 21.9 million lats as excise tax, in the state budget as taxes.
Company's management associated the growth with the implementation of new strategic approach in export operations and enhancement of the LB product portfolio.
“The Company continues development path that was started last year and is based on development of “Latvijas balzams” beverage portfolio, as well as focuses attention on its main export markets. This year we have activated a number of our strong brands by expanding product lines and creating new flavours, which is important to consumers. During this period five new “Latvijas balzams” beverage brands have been introduced, because one of our main tools to reach the customers is the ability to produce high-quality, innovative, as well as demand-related beverages”, tells the LB Chairman of the Board Guntis Aboltins - Abolins.
Chairman of the Company's board emphasizes that in the challenging competitive environment that remains in Latvia, predictability of the business environment in the domestic market, including predictable tax policy, is very important to entrepreneurs. “The state has a lot to do in the reduction of the shadow economy, especially eradication of illicit traffic of alcoholic beverages”, says the CEO of JSC “Latvijas balzams”.
By continuing implementation of the Company's export program, JSC “Latvijas balzams” has speeded up the turnover in strategic markets such as Russia, Germany, Turkey, the Scandinavian countries, and duty free zone. Its sales amount increase within the nine months amounted to +7.3% in Russia, +15.5% in Latvian tax-free zone, but in Turkey increased by 28.6%. The company informs that within the nine months reporting period after the SPI Group orders, the export also has increased by 2.4%.
Despite the reduction in export turnover in the Baltic States, Lithuania and Estonia still maintain an important market role in the “Latvijas balzams” export policy. For example, this year such products as liquor “Moka” with hazelnut flavour, brandy “Grand Cavalier Honey” and others were specifically created for Lithuanian market.
Company's Chairman of the Board G. Aboltins - Abolins notes that “Latvijas balzams” beverages from the “Riga Black Balsam” line, “Riga Black Vodka” and liqueur “Moka” have received this year a number of medals at prestigious industry competitions in the UK and the USA, which has a positive impact on the company's reputation, as well as promote acquisition of new markets.