AS Amber Latvijas balzams (BAL1R) Q4 2023 earnings summary

Executive summary

• 2023 revenue was €97.9m, down 9.4% YoY, while sales volume fell 18.4%; net profit was €5.2m versus €6.3m in 2022.

• Lower volume, higher raw-material and production costs, and the mix of fixed costs pressured gross profit and operating profit.

Financial highlights

• Revenue €97.9m vs. €108.1m YoY; gross profit €14.4m vs. €19.3m, down €4.9m.

• Operating profit €4.2m vs. €6.4m; net profit €5.2m vs. €6.3m; net finance income €1.0m vs. net finance costs of €0.05m.

• Sales volume was 4.56m 9-liter cases, down 18.4% YoY from 5.59m cases.

Outlook and guidance

• Profitability is expected to improve with lower energy-resource prices under fixed-price contracts, improving export sales volumes, and gradual reductions in key raw-material costs.

• Priorities include increasing production efficiency, reducing production costs, and raising sales prices to support profitability.