The Company's unaudited net revenue for the first six months of 2026 amounted to EUR 24.6 million, representing a decrease of 30.4% compared to the corresponding period of 2025. Total sales volumes (expressed in 9-litre cases (9Lcs)) in the first six months of 2026 were 38.2% lower than in the corresponding period of 2025.
The decrease was mainly attributable to lower export orders from Stoli Group companies, particularly in the U.S. market, declining consumption and purchasing power in the Baltic States and other markets, increases in excise duty rates, as well as a decline in contract manufacturing orders. As a result, sales volumes of the Stoli and Elit brands decreased by 35%, sales volumes in the Baltic markets decreased by 34%, and contract manufacturing volumes decreased by 28%.
Gross profit for the reporting period amounted to EUR 2.9 million, representing a decrease of EUR 3.7 million, or 56.5%, compared to the corresponding period of 2025. Gross profit was negatively affected by the decline in sales volumes and changes in the pricing methodology. This impact was partially offset by lower costs of key raw materials and materials used in the production process, as well as a reduction in production-related costs resulting from the implementation of cost optimisation programmes.
In the first six months of 2026, the Company incurred a loss of EUR 0.95 million, compared to a profit of EUR 1.2 million in the corresponding period of 2025. The profit before tax margin for the first six months of 2026 was -5.6% (2025: 2.0%).
In order to ensure business continuity and protect the interests of creditors, on 30 January 2026 AS "Amber Latvijas balzams" filed an application with the Riga City Court for the initiation of legal protection proceedings (LPP). The Court approved the application on 5 February 2026, thereby commencing the legal protection proceedings, within which the Company continues to work on restructuring its liabilities and stabilising its operations.
The decision to file the application for legal protection proceedings was taken following several external challenges that had a significant impact on the Company's cash flows.
Over the past year, the global spirits market has experienced a significant downturn. Major producers worldwide have reported declining sales volumes, particularly in export markets. Industry analysts have pointed to changes in consumer behaviour, economic pressure on discretionary spending and inventory adjustments across distribution chains.
The combination of these factors resulted in significant cash flow difficulties, leading to delays in excise duty payments. Following prolonged discussions with the State Revenue Service (SRS) regarding overdue excise duty liabilities, the SRS froze the Company's bank accounts. This made it impossible to continue normal business operations without legal protection. The legal protection proceedings provide a structured framework for restructuring all liabilities, including tax debts, based on a plan to be approved by the creditors and the Court.
The Court initially set 5 June 2026 as the deadline for preparing and agreeing the legal protection proceedings measures plan. This deadline was subsequently extended until 5 October 2026, with the plan to be submitted to the Court for approval no later than the day following the expiry of the specified agreement period.
AS "Amber Latvijas balzams" continues to implement its previously launched initiatives and development plans, while improving its internal processes, control mechanisms and financial management, as well as implementing measures to increase production efficiency and optimise costs, including the restructuring of its production facilities and logistics operations, thereby reducing the excise duty burden.
JSC Amber Latvijas balzamsChairman of the Management Board
Andrejs Višnausks
Investor relations contact:
Phone: +371 67081213
Email: forinvestors@amberbev.com; office.LB@amberbev.com
www.amberbev.com
