AS Amber Latvijas balzams (BAL1R) Q1 2026 earnings summary

Executive summary

• Leading alcoholic beverage producer in the Baltics, operating two production facilities in Riga and exporting globally through group channels.

• Faced severe external shocks in early 2026, including loss of control over a major US affiliate and aggressive actions by Russian authorities, leading to significant operational and financial disruptions.

• Entered legal protection proceedings (LPP) in February 2026 to restructure liabilities and stabilize operations.

Financial highlights

• Net turnover for Q1 2026 was EUR 11.1 million, down 29.6% year-over-year due to lower sales volumes and a high comparison base.

• Gross profit fell 66.5% to EUR 1.2 million, mainly due to product mix changes and pricing adjustments.

• Operating loss of EUR 1.6 million, compared to a profit of EUR 0.6 million in Q1 2025; net loss of EUR 1.4 million versus a profit of EUR 0.9 million year-over-year.

• Sales volume dropped 36.1% to 517,600 9-liter cases.

• Paid EUR 8.4 million in taxes, including EUR 6.4 million in excise tax.

Outlook and guidance

• Management is reviewing operations for sustainable development and profitability, focusing on governance, audits, and operational efficiency.

• Measures to increase production efficiency, optimize costs, and improve commercial performance are ongoing.