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Friday, 19.04.2024, 21:45
Latvijas Balzams distillery posts EUR 8.584 mln in preliminary 2017 profit
The company' s management said that increase in turnover was
achieved by increase of orders from its biggest Private Label customer SPI
Cyprus, as well as due to significant growth in sales of Latvijas Balzams brands within local market through Amber Distribution Latvia. Additional
positive effect on turnover come from increased level of warehouse and
logistics services provided to both third part and Group companies.
Profit result is materially affected by changes in taxation
principles as stipulated by the Law on Corporate Income Tax of Republic of
Latvia effective from January 1, 2018. As a result of those changes the Company
in these condensed financial statements has fully reversed the deferred tax liability
and recognized the gain from reversal through income tax expense position in
Income Statement.
"Profit from operational activities are in line with
last year, even last year results include income from one–off transactions like
compensation received from insurance company for fire case in 2014 in amount of
EUR 280,000 and profit from sale of real estate in amount of EUR 594,000 It is
mainly achieved through higher sales volumes and more effective business
operations," the company said.
In 2018 the Company will keep focusing on investment
opportunities in existing and new export markets with strong growth potential
and accelerating sales. The company will keep the strong focus on its core
brands - Riga Black Balsam and Cosmopolitan Diva - investing into international
recognition, brand equity and increasing market share.
The Company will also continue to improve the efficiency of
production with focus on purchasing, planning and infrastructure improvements
to support its goal - to deliver quality products with a competitive cost
advantage.
Also, the Company has developed large-scale plant
modernization and reconstruction project with aim to merge both production
plants into one territory. Project will allow to improve company`s competitive
positions among the region producers by decreasing labour, logistics and
production costs. Total costs of project estimated at amount of EUR 23 mln.
Latvian government supported project by granting CIT discount after fulfillment
of the project. At this moment Company finalizing technical project works and
is going to present project to shareholders to obtain their final approval on
investment during regular shareholder meeting.
In 2016 Latvijas
Balzams generated EUR 75.72 mln in sales and earned EUR 7.509 mln in
profit.
Latvijas Balzams
shares are quoted on the Secondary List of the Nasdaq Riga stock exchange.