Riga, Latvia – Amber Latvijas balzams, a leading Latvian producer of alcoholic beverages, is navigating a period of financial difficulty, marked by declining profits and a recent move to initiate legal protection proceedings. The company reported unaudited results for 2025 revealing a 4.8% decrease in net turnover compared to the previous year, reaching €74.5 million. While sales volume saw a slight increase of 0.62%, the company’s gross profit fell by 18.2% to €13.3 million, impacted by changes in sales volume and pricing strategies.
The challenges facing Amber Latvijas balzams are multifaceted, stemming from both internal factors and external pressures. The company attributes the sales volume increase to strategic decisions made by Stoli Group regarding the development of the Stoli brand and optimization of the supply chain. However, these gains were not enough to offset the decline in profitability. A key factor contributing to the financial strain is a dispute with Latvian tax authorities, culminating in a January 2026 decision to freeze the company’s bank accounts, effectively halting normal operations. This action prompted Amber Latvijas balzams to seek legal protection through the Riga City Court on January 30, 2026, a request that was approved on February 5, 2026.
Financial Performance in 2025: A Closer Look
The 2025 financial results paint a picture of a company grappling with shifting market dynamics and external headwinds. While the company managed to maintain profitability, with a profit before taxes of €2.5 million, this represents a significant decrease from the €4.1 million reported in 2024. The profit margin before taxes also declined, from 3.4% in 2024 to 1.7% in 2025. Amber Latvijas balzams is currently conducting additional analysis of accruals for debtor liabilities in both 2025 and prior periods, having recently brought on novel accounting and finance specialists.
The company’s struggles are further compounded by anticipated declines in sales volumes in the coming months, directly linked to the bankruptcy proceedings of a major distributor in the United States. This development underscores the interconnectedness of Amber Latvijas balzams’s operations with the financial health of its international partners. The company is actively working to mitigate these challenges through cost optimization programs and efforts to improve production efficiency.
External Factors and the Stoli Connection
The difficulties experienced by Amber Latvijas balzams are not isolated. The company’s parent group, Amber Beverage Group (ABG), is facing broader challenges linked to its shareholder, SPI Group Holding, which owns Stoli. According to a report by Yahoo Finance, Stoli announced plans to liquidate two US units – Stoli Group USA and Kentucky Owl Bourbon – after previously initiating Chapter 11 bankruptcy proceedings in November 2024. Stoli cited the confiscation of its distillery in Russia following the invasion of Ukraine and a “large-scale, sophisticated cyberattack” as contributing factors to its financial woes.
Amber Beverage Group itself has also been impacted by the geopolitical situation in Russia, with associated entities being designated as “extremist” by Russian authorities after publicly supporting Ukraine and European peace. This designation has further complicated the group’s operations and financial stability. The interconnectedness of these events highlights the complex challenges facing companies with ties to Russia and the broader geopolitical landscape.
Legal Protection and Future Outlook
The decision to pursue legal protection in Latvia is a strategic move aimed at safeguarding the company’s operations and protecting the interests of its creditors. The legal protection process allows Amber Latvijas balzams to restructure its debts and work towards a sustainable financial future. The company emphasizes that it continues to operate normally during this period, focusing on maintaining competitiveness and implementing measures to enhance production efficiency and reduce costs.
Despite the current challenges, Amber Latvijas balzams remains committed to its long-term viability. The company is actively engaged in dialogue with the State Revenue Service (VID) regarding a payment schedule for excise duty liabilities, though these efforts were unsuccessful in preventing the account freeze. The company’s future hinges on its ability to navigate the legal protection process effectively, restructure its debts, and adapt to the evolving market conditions. The next key step will be the ongoing work within the legal protection framework to restructure liabilities and stabilize operations.
Readers seeking support during times of financial uncertainty can find resources at the National Foundation for Credit Counseling: https://www.nfcc.org/.
The situation at Amber Latvijas balzams underscores the fragility of businesses operating in a complex global environment. As the company moves forward with its restructuring efforts, stakeholders will be closely watching its progress and the impact of external factors on its long-term prospects. We invite readers to share their thoughts and perspectives on this developing story in the comments below.
