Financial Services, Latvia, Legislation, Markets and Companies

He said that in line with the company’s plans, Dzintars net turnover this year will increase by 15% compared to 2016.

Gercikovs underscored that the company’s management is confident about its strategy. The company continues to work in line with the Legal Protection Process Plan approved early this year.

The company’s sales were stable in the first half of this year. Also, turnover of Dzintars online store that was established early this year is growing. In the first quarter of 2018 Dzintars plans to launch a new cosmetics product line.

As reported, Riga City Zemgale District Court on January 18 this year approved the measures that Dzintars is planning to take as part of its legal protection process. The court accepted the plan for the legal protection process submitted by the company and gave it two years for the plan's implementation.

Dzintars hopes to make a breakthrough with new premium class products and will have to sell some of its non-core assets in line with the legal protection process plan.

The court launched a legal protection proceeding for Dzintars on October 17, 2016. The cosmetics company explained it had run into financial trouble but wanted to stay in business, and two successive economic crises - in 2008 and in 2014 - had caused a decline on its traditional markets, leading to shrinking sales, shortage of working capital and debts.

Dzintars posted EUR 5.807 million in sales for 2016, while the company's loss was EUR 1.729 million.

Dzintars is a manufacturer of perfumery and biocosmetics, making more than 1,000 various products. The company was registered in 1991, and has a share capital of EUR 2.817 million. Dzintars has 46 retail stores in Latvia and exports its products to more than 30 countries.