AS Amber Latvijas balzams (BAL1R) Q3 2024 earnings summary

Executive summary

• Net turnover for the nine months of 2024 was €57.0 million, down 18.4% year-over-year, mainly due to lower order volumes from the largest customer, Stoli Group, which accounted for 44% of total volumes.

• Gross profit increased by 26.0% to €12.0 million, driven by a 27.7% reduction in raw material costs despite lower sales volumes.

• Net profit reached €3.6 million, up from €1.2 million in the same period last year, reflecting improved cost management and production efficiency.

• The company implemented measures such as renegotiating energy contracts and optimizing workforce (-25% year-over-year) to enhance efficiency.

Financial highlights

• Revenue: €57.0 million for 9M 2024, down from €69.9 million in 9M 2023.

• Gross profit: €12.0 million, up from €9.5 million year-over-year.

• Operating profit: €2.9 million, up from €0.5 million in 9M 2023; operating margin rose to 5.1% from 0.8%.

• Net profit: €3.6 million, up from €1.2 million year-over-year.

• EBITDA (LTM): €9.2 million; EBIT (LTM): €6.3 million.

Outlook and guidance

• Focus remains on increasing production efficiency, reducing costs, and improving profitability through higher sales volumes and prices.