Amber Latvijas Balzams stayed in the red in the first half of its financial year as lower sales volumes continued to weigh on its business.
In its unaudited results for the first six months of 2026, the company, which is central to financial issues at the wider Amber Beverage Group, booked a loss of €0.95m ($1m).
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That compared with a €1.2m profit in the same period of last year, a financial statement from the business said yesterday (30 September).
The group moved into the red in its first quarter results, which were shared in June.
Amber Latvijas Balzams’ net revenue declined 30.4% in the period to €24.6m. Total sales volumes, measured in 9-litre cases, fell 38.2% year on year.
The company attributed the contraction “mainly” to “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.”
Volumes in the Baltic markets declined 34% in the period, while contract manufacturing volumes dropped 28%.
The business also cited “lower export orders” from Stoli Group companies, mainly in the US. Sales of the Stoli and Elit brands fell 35% in the first half, the release said.
Stoli is owned by SPI Group Holding, a “major” shareholder in Amber Beverage Group.
Amber Latvijas Balzams generated gross profit of €2.9m during the period, down 56.5%, driven by lower volumes and changes to its pricing methodology.
In February, a Riga court approved “legal protection proceedings” for Amber Latvijas Balzams to restructure its liabilities due to intense cash-flow pressures.
It stemmed from “external challenges”, including disruptions at Stoli’s US business, Amber Latvijas Balzams’ largest customer, which left the Latvian manufacturer unable to meet creditor payments.
The court has since extended the deadline for the company to secure approval for its restructuring “action plan” from June 5 to October 5.
Meanwhile, Amber Beverage Group, which owns just under 90% of Amber Latvijas Balzams, entered its own “judicial reorganisation proceedings” in April.
The move followed a formal event of default in February when the group failed to repay bondholders within a 20-business-day window.
In April, the Moskovskaya vodka owner secured a moratorium on its debt obligations, which in August was extended to 24 December.
The proceedings look to help Amber Beverage reach an “amicable” agreement with creditors or get approval for a formal regorganisation plan.
Amber Latvijas Balzams says it is “the largest producer” of alcohlic drinks in the Baltics. It operates two production sites in Riga, where is makes strong alcoholic spirits, sparkling wine brands and “lighter” alcoholic drinks.
Brands produced by the business include Riga Black and Amber Gold vodka.
