AS Amber Latvijas balzams (BAL1R) Q4 2024 earnings summary

Executive summary

• Net turnover for 2024 was €78.2 million, down 20.1% year-over-year, mainly due to lower order volumes from the largest customer, Stoli Group, which accounted for 40% of total volumes.

• Gross profit increased by 13% to €16.3 million, driven by a 25.8% reduction in raw material costs despite lower sales volumes.

• Operating profit was €3.6 million, down from €4.2 million in 2023, but the operating margin improved to 4.6% from 4.3%.

• Net profit for 2024 was €5.0 million, a slight decrease from €5.16 million in 2023.

• Production efficiency measures included renegotiated energy contracts, workforce optimization, and improved equipment effectiveness.

Financial highlights

• Revenue: €78.2 million in 2024 vs €97.9 million in 2023 (−20.1% year-over-year).

• Gross profit: €16.3 million in 2024 vs €14.4 million in 2023 (+13% year-over-year).

• Operating profit: €3.58 million in 2024 vs €4.16 million in 2023.

• Net profit: €5.02 million in 2024 vs €5.16 million in 2023.

• Earnings per share: €0.67 in 2024 vs €0.69 in 2023.

Outlook and guidance

• Focus remains on increasing production efficiency, reducing costs, and improving profitability.

• Plans to increase sales volumes and prices to further enhance profitability.