AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 1
Annual Report 2023
AMBER BEVERAGE GROUP | ANNUAL REPORT 20232
Directors' Report
2 AMBER BEVERAGE GROUP | ANNUAL REPORT 2023
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 3
Contents
Directors' Report 2
The Group at a Glance 4
2023 in Spotlight 6
ABG Milestones
Statement of the Chairman of the Supervisory Board 11
The Supervisory Board of Amber Beverage Group 12
Statement of the Acting Chief Executive Officer 15
Our Team 18
Our Performance 20
Our Corporate Governance 28
Our Brands in Global Markets 34
Global Sales 36
Rooster Rojo® Tequila 39
KAH® Tequila 43
Writers’ Tears® 47
The Irishman® 51
Moskovskaya® Vodka 55
Riga Black Balsam® 59
Our Production and Logistics Capabilities 62
Latvia 63
Mexico 65
Our Distribution Excellence 66
Baltics 67
United Kingdom 70
Australia 72
Austria and Germany 73
Leading Third Party Brands 74
Consolidated Financial Statements 76
Independent Auditor’s Report 140
AMBER BEVERAGE GROUP | ANNUAL REPORT 20234
The Group at a Glance
Amber Beverage Group (hereinafter also - the Group or ABG)
is a global spirits company, whose products are found in
millions of households and venues across the globe. ABG
is a leading producer, distributor, logistic service provider
and retailer of beverages. It operates internationally from its
head office in Luxembourg and through its production and
distribution companies all over the world.
The Group was established in 2014, and through organic
growth and acquisitions, it has become a global spirits
industry player that unites more than 1 500 employees in
more than 20 companies in the Baltic States, its historical
home, Austria, Australia, Ireland, Mexico, and the United
Kingdom. The Group owns three production companies,
eight distribution companies, and three retail chains.
ABG produces, bottles, markets, distributes, exports, and
retails a comprehensive range of beverages, of which it owns
more than 100 brands, and is responsible for marketing and
distributing 1 400 own- and third-party brands in all spirit
categories, including Tequila, Whiskey, Vodka, as well as
Wine, RTDs, and others.
ABG values are Tenacity, Entrepreneurship, Fun, Excellence,
Speed, and Teamwork. These are at the core of the Group’s
organizational spirit and overall business approach.
4 AMBER BEVERAGE GROUP | ANNUAL REPORT 2023
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 5
Net revenue 2023
€ 329 million
Production
26%
Distribution and
Brand Management
74%
Our strategic choices
• Deliver quality and value to our consumers, customers
and suppliers
• Strengthen our market positions in all key sectors by
building and acquiring brands and companies
• Achieve operational effectiveness and efficiency by
applying rigor to everything we do
• Build a truly effective international team with an
ambitious, high performance culture
• Generate superior business value through relentless
focus on performance
ess focus on performance
AMBER BEVERAGE GROUP | ANNUAL REPORT 20236
Volume
Volume, k9Lcs
Reported movement
Organic movement
13 107
-25%
-29%
Net revenue
Net revenue, m
Reported movement
Organic movement
€ 329.1
-10%
-14%
EBITDA
EBITDA*, m
Reported movement
Organic movement
€ 31.98
-25%
-28%
EBITDA per head
EBITDA* per head, k
Reported movement
€ 21.01
3%
Amber Beverage Group
Revenue change -10%
Volume change -25%
Net revenue, mEUR Volume, k9Lcs Headcount
13 107 1 522329
Production 26% Production 57% Production 50%, Other 5%
Distribution 74% Distribution 43% Distribution 45%
Net revenue
by markets, mEUR
Value split
by categories, mEUR
Volume by type
of products, k9Lcs
* Normalized for one-off items* Normalized for one-off items
17 400
13 107
2022
2023
17 824
2021
307.4
2021
365.8
329.1
2022
2023
42.9
31.98
36.2
2022
2023
2021
20.46
21.01
18.17
2022
2023
2021
Other 14%
Nordics 1%
Australia 4%
Mediterranean 4%
DACH 4%
North America 10%
Baltics 49%
UK & Ireland 14%
Other 21%
Beer 2%
Balsam,
Bitters 4%
Gin, Rum,
Tequila 13%
Wine, Sparkling,
Cider 14%
Vodka 27%
Whiskey,
Brandy,
Cognac 19%
Stoli production
16%
3rd
party
brands
27%
ABG brands 26%
Raw
material 31%
2023 in Spotlight
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 7
Balsam, Bitters
Liquer 7%
RTD 8%
Gin, Rum, Tequila 3%
Sparkling, Cider 10%
Whiskey, Brandy, 6%
Vodka
65%
Rest of World
41%
Baltics
59%
Other 22%
Balsam
Bitters 5%
Beer 3%
Gin, Rum,
Tequila 11%
Wine,
Sparkling, Cider 19%
Whiskey,
Brandy,
Cognac 25%
Vodka 15%
Production
Distribution and
Brand Management
Net revenue,
mEUR
Volume,
k9Lcs
Headcount
Admin &
Support 8%
Logistics
30%
Production
62%
Volume produced per head,
k9Lcs
Revenue per head,
kEUR
84.2 244.8
4 658
764
Stoli 3%
Other
41%
ABG
brands
56%
4 128
Logistics
25%
Marketing 10%
Admin & Support 9%
Retail
26%
Commercial
30%
677
14.4
11.0
2023
2022
361.6
298.1
2023
2022
AMBER BEVERAGE GROUP | ANNUAL REPORT 20238
ABG Milestones: the Origins
ABG Milestones: Building for the Future
1752
Pharmacist Abraham
Kunze creates his
unique formula for the
beverage which forms
the base of Riga Black
Balsam®
1894
The production
of Moskovskaya®
Vodka begins laying
foundations for further
brand growth
2014 - 2016
Amber Beverage Group is registered on 24
October 2014
ABG acquires the Moskovskaya® Vodka brand
and releases it to 68 markets globally
ABG steps into the Tequila business by
acquiring a tequila distillery in Tequila, Mexico,
and launches Rooster Rojo® Tequila brand
2017– 2019
ABG acquires spirits distribution companies in the UK,
Australia, and Austria, as well as a distillery in Estonia,
kickstarting expansion in these markets
Several ABG core brands have been launched in one of the
biggest spirits markets in the world – the USA
ABG updates its strategy with the ambition to become one of
the Top 10 spirits industry leaders globally
1900
Riga State Spirits
Warehouse No.1
(nowadays – Amber
Latvijas balzams)
begins operations
1847
Albert Wolfschmidt
establishes the factory
that produces Kunzen’s
Riga Black Herbal
balsam
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 9
1948
The production of
Stolichnaya (nowadays –
Stoli) vodka has begun
2007
Paying particular
attention to the
distribution of products
manufactured by
the Group, active
expansion of Amber
Latvijas balzams export
markets takes place
2020-2022
ABG names KAH® Tequila as a core brand and invests in
tequila production by acquiring two agave fields in Mexico
ABG announces the construction of a fully automated
high-bay warehouse, which will be one of the most
advanced, high-tech warehouses in Europe
ABG enters the rapidly growing Irish Whiskey category by
acquiring highly acclaimed brands Writers’ Tears® Whiskey
and The Irishman® Whiskey
ABG finalizes the renaming of its distribution and
production companies under the ABG corporate identity
The Group acquires the trademark rights to Riga Black
Balsam® in Germany, completing the brand’s ownership
by ABG across all territories
2023
ABG issues senior secured 4-year EUR 30m bonds to fund
its automated, high-bay warehouse development. The
construction agreement on high-bay warehouse is started
ABG launches the ultra-premium Rooster Rojo® Mezcal, taking
the brand to the next level. KAH® Tequila becomes No. 1 ultra-
premium tequila in the UK multiple grocery sector
ABG strengthens global recognition of its core brands by
establishing new partnerships in EMEIA and Asia
2003
Moskovskaya® Vodka and
Stoli vodka are now bottled
for the global market
AMBER BEVERAGE GROUP | ANNUAL REPORT 20231010 AMBER BEVERAGE GROUP | ANNUAL REPORT 2023
Sir Geoffrey John Mulgan
Chairman of the Supervisory Board
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 1111AMBER BEVERAGE GROUP | ANNUAL REPORT 2023
Statement of the Chairman of
the Supervisory Board
Dear Reader,
As Chairman of the ABG Supervisory Board, I am happy to
share the achievements of the Group over the last year.
This was a difficult period for many companies, marked by
the impacts of the war, unpredictable fluctuations in energy
costs, higher interest rates, disruptions in the supply chain,
and workforce shortages.
We were fortunate that our diversified portfolio, boasting
premium spirits, wines, and beverages, has helped the
Group to be resilient. In particular, ABG has benefited from
the strength of its core brands, including Rooster Rojo®
Tequila, KAH® Tequila, Writers’ Tears® Whiskey, The Irishman®
Whiskey, Moskovskaya® Vodka, and Riga Black Balsam®,
which have continued to expand, particularly across the
EMEIA and Asian markets.
Despite the challenging environment, the Group has taken
on ambitious initiatives, including the construction of
an Irish whiskey distillery in Ireland and a cutting-edge,
fully-automated warehouse in Latvia, which will serve as
our global logistics hub. A first Sustainability Report sets
out how the Group is meeting its Environmental, Social,
and Governance (ESG) duties, looking at every aspect of
production and distribution, and building development from
an environmental perspective.
At the beginning of 2024, a significant change in
management occurred when Jekaterina Stuģe, who had led
the company through a period of growth and positioning
among the global industry leaders, moved on to new roles.
The position of Acting CEO was assumed by Arturs Evarts,
who has proven himself a strong manager with deep
knowledge of the business and the agility needed to help the
company navigate complex challenges.
I’m grateful to the ABG Management team, employees,
partners, and Board members, who have handled a volatile
international context with impressive determination. Their
work continues to lay the foundations for longer-term growth
in markets all over the world that can benefit all of ABG’s
many stakeholders.
Sir Geoffrey John Mulgan
Chairman of the Supervisory Board
27 May 2024
AMBER BEVERAGE GROUP | ANNUAL REPORT 202312
The Supervisory Board of
Amber Beverage Group
Sabina Fatkullina,
Board member
(Since June 2023)
Experienced and dedicated global HR
leader with a vast experience of two
decades
Sir Geoffrey John Mulgan,
Chairman, Non-executive director
(Since November 2022)
Professor in University College London
Arturs Evarts,
Board member, Secretary
(Since February 2018)
Experienced Board member with a
demonstrable history of working in the
beverage industry
Simon Charles Rowe,
Non-executive director
(Since November 2022)
Founder and Managing Partner of
Monsar Capital
Douglas Brougham Cunningham,
Non-executive director
(Since January 2023)
Experienced beverage industry
professional, Founder of Indie Brands
13AMBER BEVERAGE GROUP | ANNUAL REPORT 2023
Arturs Evarts
Acting CEO, Group Chief Legal and Sustainability Officer
14 AMBER BEVERAGE GROUP | ANNUAL REPORT 2023
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 15
Statement of the
Acting Chief Executive
Officer
Dear Reader,
I am honoured to present you the Annual Report of Amber
Beverage Group for the year ending 31 December 2023, a year
marked by strategic manoeuvring and steadfast progress in a
challenging global landscape. The trends that have previously
shaped the global spirits industry were transformed as the
world emerged from the disruptions caused by the Covid-19
pandemic into a period of growing economic instability. The
year has been turbulent, impacting both – the individuals and
businesses internationally.
In retrospection of the lessons learned from the trials of 2023,
two primary insights surfaced. First, in a world characterized
by constant change, we have gained a deeper understanding
of the critical importance of flexibility, recognizing that every
plan must remain adaptable in response to external forces.
Second, during challenging times, it is more important than
ever to keep moving in the right direction. As these two
lessons seemingly stand in contradiction, it was even more
crucial to strike a balance between the need for flexibility and
the imperative to maintain a consistent trajectory. Navigating
this delicate equilibrium demanded wise leadership and
tactical intelligence. This is the reason why we follow our
predefined strategic choices with our key focus being set on
fortifying our core brands, strengthening our market positions,
and delivering quality and value to our consumers, customers,
shareholders, and investors.
Furthermore, the commitment to upholding the company's
core principles was evident in actions such as maintaining
transparency in business operations, prioritizing ethical
practices in all dealings, and fostering a culture of
collaboration within the organization. This Annual Report
serves as a testament to our achievements throughout the
challenging yet transformative year of 2023.
AMBER BEVERAGE GROUP | ANNUAL REPORT 202316
2023 – a year of resilience and notable victories
The resilience of ABG and the steadfast commitment to
our company's guiding principles proved being invaluable
assets. While the fiscal year brought about a modest
adjustment in our revenue, a 10% decrease to EUR 329
million, we remain confident in our capacity to leverage
our strengths and capitalize on emerging opportunities.
This resilience was palpable in various instances, such as
weathering shifts in consumer preferences, adapting swiftly
to economic downturns, and demonstrating unwavering
resolve amidst competitive pressures. ABG exhibited resilience
by implementing cost-saving measures while maintaining
product quality. This allowed the company to weather the
challenges posed by reduced consumer spending without
compromising its market position.
Throughout the year, we have executed a series of strategic
initiatives aimed at fortifying our market presence, enhancing
operational efficiency, and fostering innovation across our
business ecosystem. We celebrated notable victories,
including a commendable 7% increase in the volume of
our core brands, a remarkable 27% improvement in the
effectiveness ratio of our flagship distillery, Amber Latvijas
balzams, and the successful entry into the stock exchange,
which supported the commencement of construction for our
state-of-the-art warehouse.
We were delighted to introduce our company to the capital
markets. The Amber Beverage Group bond issue saw an
exceptionally high level of demand from both private and
institutional investors. This demonstrates the potential for the
company to raise financing for its development plans.
Our investors have appreciated our decision to embrace
innovative technologies and maximize automation
in operations to enhance efficiency and improve cost
effectiveness. The commitment to develop a fully automated
warehouse that will become our logistics hub for global
operations demonstrates our dedication to long-term
development and profitability.
ABG has demonstrated strong performance across multiple
markets in 2023. In the Baltics, the company has maintained
leading market shares in key categories despite facing
challenges from excise burdens. In Latvia, the beverage market
remained stable, with ABG focusing on sustaining market
share and implementing price increases to preserve margins.
Lithuania saw a decline in market volume, but ABG aims to
drive growth in market share through strategic initiatives and
e-commerce development. In Estonia, despite increased
excise duties, ABG is investing in HoReCa teams and targeted
brands to outpace market growth and increase market share.
In the UK, ABG is pursuing growth through improved
relationships with wholesalers and new product prospects.
Austria and Germany are focusing on further developing
core customer relations and expanding market presence,
respectively. Overall, ABG’s positions in core markets have
strengthened in 2023, and we have successfully forged new
partnerships for ABG core brands across 25 countries spanning
diverse regions, including the Asia-Pacific, Middle East, and
Europe. The performance reflects strategic adaptation to
market challenges, investment in growth opportunities, and
commitment to long-term profitability.
A strategic approach to brand management
Innovative spirit and business approach continues to be one
of the ABG cornerstones. During the reporting period, we have
introduced several new products that are currently on the
rise, especially in the Tequila category: the keenly anticipated
Rooster Rojo® Mezcal and the one-of-the-kind KAH® Tequila
Huichol – a collection of extraordinary, hand-decorated,
beaded bottles.
In the rapidly-growing Irish whiskey category, the Group
released three new products: The Irishman® Legacy Whiskey,
The Irishman® 22-Year-Old Single Malt, and the Writers’ Tears®
Tequila Cask Finish Whiskey. Due to the high quality of the
liquid and the exceptional packaging, the brands are already
bringing home industry awards and positive feedback from
beverage experts.
Third-party brand management is an essential aspect of ABG's
business, which is growing year after year. ABG continuously
strives to improve sales standards and proposing similar
quality of services for all ABG-owned distribution companies.
In 2023, the Group has maintained fruitful partnerships with
world-renowned producers and vintners of distilled spirits
and wines, promoting their brands in the markets served by
trusted ABG distribution companies.
As elucidated in this report, our approach to ABG's brand
development in domestic and international markets,
outstanding management of third-party brands, and excellence
in production processes is steering Amber Beverage Group
towards sustained innovation, market leadership, and enduring
success during the currents of change.
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 17
With a focus on efficiency and sustainability
Every ABG investment is meticulously evaluated through the
lenses of efficiency, effectiveness, and sustainability. ABG's
production companies Amber Latvijas balzams and Amber
Production Tequila have dedicated the year to driving continuous
improvements across the supply chain, people management,
equipment maintenance, and operational processes. This
marks just the beginning of our strategic sustainability journey,
charting our course for the period spanning from 2024 to 2035.
Looking ahead, we are poised to expand our utilization of green
energy within our production facilities, alongside the implementation
of a fully automated warehouse construction project designed to
meet BREEAM certification standards for sustainable construction
practices.
Embracing a comprehensive range of sustainability initiatives
with the aim of introducing the same practices throughout
all ABG companies, our aim remains steadfast: to maintain
competitive pricing for ABG brands while advancing
our environmental stewardship. Looking ahead, we are
poised to expand our utilization of green energy within our
production facilities, alongside the implementation of a fully
automated warehouse construction project designed to meet
BREEAM certification standards for sustainable construction
practices. We announce the development of ABG’s first-ever
Sustainability Strategy and ESG Report, which accompanies
this Annual Report.
Outlook for 2024
Looking ahead to 2024, our strategic priorities remain
centred on stabilizing profitability in key activities, optimizing
operational efficiencies, and fortifying our financial position.
We are actively exploring opportunities for refinancing and
strategic partnerships to support our growth ambitions and
unlock new avenues for value creation. By stabilizing our base
and fostering strategic collaborations, we are confident in our
ability to navigate uncertainties and chart a course towards
sustained growth and prosperity.
Looking at the past year and the results achieved, on behalf of
the ABG management, I would like to express my gratitude to
the entire ABG team for the tenacity, unwavering commitment,
and hard work that have been the driving force behind our
success. I believe that together, we will advance, confident in
our ability to overcome any obstacle and achieve even greater
success in the future.
I would like to thank our customers, partners, shareholders,
and investors for their contributions during our journey so far.
Arturs Evarts
Acting CEO, Group Chief Legal and Sustainability Officer
27 May 2024
AMBER BEVERAGE GROUP | ANNUAL REPORT 202318
Our Team
Arturs Evarts,
Group Acting CEO, Group Chief
Legal and Sustainability Officer
Ruslan Romanenko,
Group Chief Financial Officer
Vangelis Smyrlis,
Group Chief Global Sales Officer
Pepijn Janssens,
Group Chief Marketing Officer
Ewan MacLean,
Group Chief Operations Officer
Pāvels Fiļipovs,
Managing Director,
Latvia
Marek Kuklis,
Managing Director,
Lithuania
Mindaugas Pilkauskas,
General Manager,
Estonia
Romāns Komars,
Managing Director,
Interbaltija Amber
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 19
Patrick Borg,
Managing Director,
Australia
Sam Thackeray,
Managing Director,
UK
Markus Panzl,
Managing Director,
Austria
Intars Geidāns,
Managing Director,
Amber Latvijas balzams
David Tenorio,
Managing Director,
Amber Production Tequila
John Griffin,
Managing Director,
Walsh Whiskey
AMBER BEVERAGE GROUP | ANNUAL REPORT 20232020 AMBER BEVERAGE GROUP | ANNUAL REPORT 2023
Our Performance
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 2121AMBER BEVERAGE GROUP | ANNUAL REPORT 2023
AMBER BEVERAGE GROUP | ANNUAL REPORT 202322
Our Performance
In 2023, the world continued to adapt to the new economical
and geopolitical circumstances. So had ABG. Continuous
impact from inflation, instability in energy costs, the supply
chain, and soaring interest rates has requested that we
adjust our operations and continue serving our customers
in markets where ABG is present via our distribution network
and our brands.
The Group's net revenue in 2023 decreased by EUR 36.7
million (-10%) compared to 2022, primarily due to a decrease
in production volume for private label customers and an
economic slowdown in some major markets, which led to
stock reductions with distributors. Further impact arises from
foreign exchange fluctuations and the imposed restriction on
the production of ethanol in Russia in late 2023.
Group’s operating profit in 2023 amounts to EUR 15.8 million,
which is 55.3% lower (by EUR 18.2 million) than in the
respective period of 2022. If the operating profit is adjusted by
the net loss from the disposal of subsidiaries and a fair value
adjustment on biological assets, the operating profit would
reach EUR 27.1 million, which is 14.7% lower compared to the
respective period in 2022. The financial performance of 2023
has been affected by the rapid increase in production costs that
were observed starting in the second part of 2022, including
higher costs of energy, resources, and salaries, which have a
full-year impact in 2023 only.
Meanwhile, the Group has continued and will continue to work
on efficiency improvements - revenue management, sales
promotion, and demand planning - by applying the newly
implemented promotional activity planning tool FuturMaster
in the Baltics, improvements in customer relationship
management via SalesForce implementation in the UK
and Austria, as well as non-stop process improvements in
production and logistics using Lean methodology. As a Group,
we carefully monitor market development and will take the
necessary steps to protect profitability without losing market
share.
The net profit for the reporting period is EUR 5.4 million, which
is a reduction of EUR 18 million vs 2022. In addition to the
performance drivers mentioned before, the net profit for the
reporting period is also impacted by the recognized net loss
of EUR 1.4 million arising from the disposal of a subsidiary, the
fair value adjustment to biological assets of EUR 9.9 million, the
negative impact of interest expense increases due to changes
in variable rates, and an additional interest expense from bond
liability servicing obligations in total of EUR 2.7 million.
260 000
280 000
300 000
320 000
340 000
360 000
380 000
400 000
Net
revenue
2022
Organic
growth
Stoli
volume
impact
Divestment
of Amber
Permalko
Foreign
exchange
effect
Net
revenue
2023
365 776
10 551
(14 192)
(21 786)
(11 291)
329 058
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 23
The Group has maintained cautious but still healthy main financial ratios for the reporting period:
Ratio 31.12.2023 31.12.2022
ROA 2.1% 6.2%
ROE 5.2% 15.3%
Debt/Equity 67% 57%
Debt/EBITDA 4.15x 2.69x
Net Debt/EBITDA 3.21x 2.50x
Equity Ratio 39% 41%
Liquidity Ratio 1.13 1.04
ABG production entities were mostly impacted by
unprecedented growth in both energy and commodity costs
in the last two years, while in the second part of 2023, the
situation showed significant improvements: companies
managed to re-sign new energy supply contracts with way
lower prices, and tender results of raw materials supplies for
2024 indicated a significant decrease in prices of core raw
materials such as ethanol, glass bottles, aluminium closures,
etc. It allows for a positive view of the expected financial
performance in 2024.
As an answer to global economic turbulence, ABG entities
have invested significant resources in the improvement of
internal processes – e.g., the largest producer of ABG, Amber
Latvijas balzams, has, thanks to implementation of a number
of continuous improvement initiatives, managed to increase
the OEE (Overall Equipment Effectiveness) ratio by 27% in
2023, which is an outstanding achievement and will help to
ensure competitive production capacities and cost per case
in the following years. ABG as a Group has a strong culture of
innovation and the courage to challenge yesterday by setting
new standards for tomorrow.
Non-financial performance and activities for the reporting period
ABG brands contributed 3.4m 9Lcs, or 26.0% of the total
volume of 13.1 million 9Lcs sold in 2023. While the ABG core
brand portfolio has shown an increase of 7%, the decrease in
Stoli brand volumes by 32%, caused mainly by Stoli rebranding
and the reduction of stock levels in key markets, as well as
the reduction of 3rd party volume by 40%, has impacted the
financial performance of the Group. A decrease in third-party
brand volume has been impacted by structural changes in
brand portfolios among beverage categories and brands, with
the UK and Australia being the largest contributors.
Stoli brands
17%
Spirit
31%
ABG brands
26%
3rd party brands
26%
total volume
13 107 k9Lcs
Volume composition 2022-2023*, k9lcs
3rd party brand
Stoli brands
ABG core brands
Other ABG brands
0
2000
4000
6000
8000
10000
12000
2 171
3 398
1 474
1 151
1 072
1 569
5 650
3 182
2023 2022
10 402
* The volume composition is presented, excluding the spirit volume and
brands produced by Amber Permalko AO.
AMBER BEVERAGE GROUP | ANNUAL REPORT 202324
From a category perspective, Vodka has continued to be the
leading category, contributing EUR 88 million, or 27%, of net
revenue, followed by Whiskey, Brandy and Cognac (19%) and
Wine, Sparkling and Cider category (14%).
Main investment projects
In 2023, the Group has moved into the next stage of
construction of the fully automated warehouse in Riga, Latvia.
The construction agreement with Aimasa SIA was concluded,
and in August 2023, the construction works on laying the
foundations of the warehouse building started. As of now, the
construction work is going slightly ahead of schedule.
After careful consideration and in line with the long-term
business goals of the Group, in June 2023, ABG sold the
investment in Amber Permalko AO, one of the leading alcohol
producers in the Urals.
Funding profile
The Group keeps a well-leveraged capital structure to support
the growth of the business. The borrowings comprise loans
from the Luminor Bank AS Latvian branch, Credit Suisse AG,
and Rietumu Banka AS supporting the long-term investments,
as well as overdrafts and credit lines provided by the Luminor
Bank AS Latvian branch, BluOr Bank AS, Westpac, and Ultimate
Finance to support the net-working capital needs and long-
term unsecured loan facilities from related parties. As of the
31 December 2023, the composition of the debt by partners is
as follows:
Whiskey, Brandy, Cognac
Vodka
Gin, Rum, Tequila
Balsam, Bitters
Beer
Other
Wine, Sparkling, Cider
Vodka
27%
Whiskey, Brandy, Cognac
19%
Wine, Sparkling, Cider
14%
Gin, Rum, Tequila
13%
Balsam, Bitters
4%
Beer
2%
Other
21%
IC Loans
Leases
Other BAnks
Rietumu Banka S
BluOr Bank AS
Bonds
Credit Suisse AGG
Luminor Bank AS
24 105
Credit Suisse AG
24 905
Bonds
30 000
EUR 000
BluOr Bank AS
14 808
Rietumu Banka AS
9 454
Other banks
7 6494
Leases
8 3784
IC loans
4 604
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 25
2021 2022
2.85
2.50
2023
3.21
2021 2022
16.09%
14.94%
2023
5.22%
2021 2022
6.54%
5.82%
2023
2.07%
2021 2022
18.17
20.46
2023
21.01
2021 2022
11.68%
11.73%
2023
9.72%
Net DEBT to EBITDA
ROE, %
EBITDA (adj) per head, kEUR
ROA, %
EBITDA (adj) margin,%
On 21 April 2023, Amber Beverage Group Holding S.à r.l., with
the intention of acquiring financing for the construction of a
high-bay automated warehouse in Riga, Latvia, issued EUR
30 million in 4-year bonds (ISIN: LV0000870137), which are
listed on the Frankfurt Stock Exchange (WKN: A3LE0T). As of 16
October 2023, the bonds are listed on the Nasdaq Riga Stock
Exchange (AMBEFLOT27A).
As part of the terms and conditions of the Offering
Memorandum, the proceeds from the bond issue can be
used to fund the construction of the project and to serve the
respective debt. Funds obtained from the bond issue have
been put on short-term deposits with Signet Bank AS with
different maturities following the estimated utilisation profile
for the project.
On 15 May 2023, Indie Brands Ltd. refinanced the invoice
discounting facility with a maximum amount of GBP 2 million
(EUR 2.3 million) from Royal Bank of Scotland to Ultimate
Finance.
On 19 May 2023, Amber Beverage Group Holding S.à r.l.
refinanced its short-term borrowing from Signet Bank AS of EUR
10 million with a 5-year loan facility with Rietumu Banka AS.
In 2023, the Parent Company started to work on the refinancing
process of the Credit Suisse AG loan facility with an original
maturity date 3 December 2023. During the process and to
facilitate the refinancing process, in December 2023, a further
extension of the final repayment date until 29 February 2024
was agreed upon, subject to a partial decrease of the debt by
EUR 3.5 million by the end of January 2024. The condition has
been successfully satisfied. Subsequently, as a result of further
discussions with the lender, the parties agreed on an extension
of the final repayment date to 20 December 2024.
Along with the decline of normalized EBITDA, the financial
covenants, closely monitored both internally and by external
partners, have increased. The Net Debt/EBITDA ratio has
increased by 0.71 to 3.21x as of 31 December 2023, mainly due
to an increase in debt position as a result of bond issue and a
decrease in EBITDA. As a reflection of implemented cost-saving
activities, the normalized EBITDA per head ratio has increased
by 0.5 thousand euros. However, the normalized EBITDA
margin has decreased to 9.72% as a result of a decrease in net
revenue and cost-increase implications.
The ratios describing the profitability of the Group have been
negatively impacted, i.e., ROE (return on equity) has decreased
to 5.22% due to the negative impact of turbulence in foreign
exchange markets, and ROA (return on assets) has decreased
as the result of long-term investments made by the Group in
previous years that are expected to deliver returns over a longer
period of time.
AMBER BEVERAGE GROUP | ANNUAL REPORT 202326
ESG reporting
Environmental, social, and governance concerns are
acquiring traction in both business and society. In recent
years, contemporary societies have been confronted with a
multitude of challenges, including but not limited to climate
change, resource scarcity, social inequalities, discrimination,
and numerous crises and geopolitical conflicts. Furthermore, it
is imperative that the accomplishments and performance of a
corporation be evaluated in relation to sustainability, wherein
performance metrics are scrutinized alongside environmental,
social, and corporate governance concerns. This promotes
transparency and offers a considerably more comprehensive
understanding of the Company's operations.
The Group has prepared its first non-financial report on the
implementation of environmental, social responsibility, and
corporate governance principles in 2023, as part of an effort
to enhance its reporting practice. The report was compiled
to acquaint the general public, clients, employees, and other
stakeholders with ESG indicators and forthcoming initiatives of
ABG. In accordance with European Commission Regulation (EC)
No. 2020/852 and No. 2021/2178, the Group presents qualitative
and quantitative information for economic activities related to
taxonomy and non-related to the taxonomy for each of the three
indicators: turnover, capital expenditures, operating expenses.
According to the classification included in the taxonomy
compass (EU Taxonomy Compass), the economic activity of
the Group is fully considered to be as non-related to taxonomy
economic activity. Accompanying this Annual Report is the ABG
ESG Report, which can be accessed via the 'ESG REPORTING'
section of the ABG website.
Financial risk management
In the ordinary course of business, the Group is exposed to a
variety of financial risks, including credit risk, liquidity risk, and
interest rate risk. The Group’s management oversees financial
risks on an ongoing basis to minimize their potential adverse
effects on the financial performance of the Group.
Most of the borrowings have variable interest rates. The Group’s
management is considering the use of hedging instruments to
minimize the effect of variable interest rates.
Financial assets that potentially expose the Group to a
certain degree of credit risk concentration are primarily trade
receivables, receivables from related companies, and loans.
The Group has introduced and pursues a credit policy whereby
goods are sold on credit only to customers with sound credit
histories. The Group also complies with sanctions regimes
imposed by the EU, United Nations, and US, as well as internal
procedures.
The Group pursues a prudent liquidity risk management policy,
according to which adequate credit resources are ensured to
settle liabilities when they fall due. The Group’s management
manages liquidity and cash flow risks by maintaining adequate
cash reserves and securing sufficient financing by means of
loans, credit lines, and finance leases, by monitoring forecasted
and actual cash flows, and by matching the maturities of
financial assets and liabilities on an ongoing basis.
Subsequent events
In January 2024, the Parent Company completed the acquisition
process of Amber Beverage Austria GmbH and obtained 100%
control over the share capital of Amber Beverage Austria GmbH.
In January, the renaming process of Interbaltija AG AS was
completed, and the new company name of Interbaltija Amber
SIA was registered with the Commerce Register of Latvia.
As part of the refinancing process in January 2024, the Parent
Company made partial repayment of outstanding facility towards
Credit Suisse AG by EUR 3.5 million and towards Luminor Bank
AS Latvian Branch by EUR 1.5 million. The overdraft facility
provided by Luminor Bank AS was extended until 30 June
2024, with further extension subject to the development of the
refinancing process of Credit Suisse AG facility.
In February 2024, Credit Suisse AG and the Group agreed on a
further extension of the loan facility with a set final repayment
date of 20 December 2024.
Future prospects
In 2024, the key attention items for the Group will be to support
the improvement of ABG brand share in the total brand portfolio,
to increase profitability while not cannibalising existing market
share (value before volume), to maintain a constant cost control
system, and to make improvements to internal processes.
With the strategic target to focus on profitability improvements
and investments in core business assets, the Group will continue
the process on evaluation of opportunity to divest its non-core
assets and business lines.
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 27
AMBER BEVERAGE GROUP | ANNUAL REPORT 20232828 AMBER BEVERAGE GROUP | ANNUAL REPORT 2023
Our Corporate
Governance
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 2929AMBER BEVERAGE GROUP | ANNUAL REPORT 2023
AMBER BEVERAGE GROUP | ANNUAL REPORT 202330
Corporate Governance Report 2023
Corporate Governance
Our solid corporate governance underpins our endurance
and plays an important role in maintaining corporate
integrity, managing the risk of corporate fraud, and combating
management misconduct and corruption.
The inclusion of Amber Beverage Group bonds on the stock
exchange has heightened its significance. Companies issuing
bonds must adhere to stringent governance standards,
including disclosure requirements, board independence, and
operational transparency. With more investors participating
in bonds, there's an amplified need for transparent and
accountable corporate practices to ensure investor trust
and protect their interests. Strong corporate governance not
only enhances investor confidence but also fosters long-
term sustainability and resilience, ultimately benefiting both
investors and the broader economy.
We are building our business by placing the highest priority
on compliance. Our aim is to fulfil our responsibilities in the
best way possible and meet the expectations of our clients
and society. We are constantly following the conformity of the
activities of the companies as well as their employees with
the requirements of international, national, industry-specific,
and applicable foreign laws, as well as internal policies and
procedures, and with the decisions of relevant managerial
bodies.
To evaluate ourselves from a compliance perspective, we
perform risk assessments. Risk assessment is a systematic
process of evaluating the potential risks that may be involved
in our activities. It is applicable to all functions and types of
affiliates (production, distribution, and retail companies) in all
countries where we operate. Risk assessment management
drives better commercial decisions, creating a growing and
sustainable business model. Since 2017, we have used risk
assessment management to evaluate risks and then remove or
reduce their severity using control and preventive measures.
Strategic decision approval process
We follow the principles applied in obtaining the necessary
approvals for strategic decisions. These principles are
stipulated in internal procedures as well as implemented in
the corporate regulatory documents of the companies. For
the purpose of approval of strategic decisions, the General
meeting of shareholders has formed the Supervisory Board
of the Company. The Supervisory Board of ABG comprises of
its Chairman, Board members, Independent Non-Executive
members, and a Secretary. The main functions of the
Supervisory Board are:
• To ensure a corporate governance framework.
• To provide strategic direction for the Group’s development.
• To provide expertise and guidance in relation to the Group’s
international operations.
• To supervise key areas of the Group’s operations,
performance, and compliance.
The strategic resolutions to be taken by the Board of Managers
will require the prior approval of Supervisory Board of the
Company.
It is important to note that while we do not have a
formal diversity policy in place, our management and
supervisory bodies are comprised of professionals with
diverse backgrounds and expertise. Each member brings
a unique set of skills, experiences, and perspectives to the
table, contributing to the richness and effectiveness of our
governance practices.
Our commitment to excellence extends to ensuring that
our leadership teams are composed of individuals who are
highly qualified and capable in their respective areas. As such,
our focus has been on recruiting and retaining top talents,
irrespective of demographic characteristics such as age,
gender, or educational background.
In 2023, the team consisted of six business professionals
representing different industries and areas of knowledge.
With their vast experience and expertise, these entrepreneurs
not only strengthened ABG with their creative contributions
but also were a source of valued independent advice and
governance.
From the members of the Supervisory Board a member who
will preside at the Supervisory Board meetings (Chairman) and
a secretary are appointed.
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 31
Chairman
We thoughtfully leverage the wisdom of our Supervisory
Board directors with the perspectives of our independent
directors, both of whom remain steadfast in their support of
our independence. In 2023, Sir Geoffrey Mulgan continued
performing his role as the Chairman of the Supervisory Board
and sharing his perspective and expertise with the Supervisory
Board of Directors.
The duties of the Chairman of the Supervisory Board at ABG
comprise the following matters related to the Group:
• To lead and manage the ABG’s activities.
• To develop a long-term strategy for ABG.
• To determine and lead the expansion of the Group in the
industry, enter new markets, and make effective use of
synergies.
• To manage Board activities, plan its work, and chair
meetings of the Board.
• To lead the development plan implementation i.e.,
evaluation of potential M&A alliances.
• To lead M&A processes, participate in negotiations with
financial institutions and strategic partners to ensure the
sustainable development of the Company.
• To provide entrepreneurial leadership.
• To represent ABG externally.
• To set requirements according to the best world standards
of corporate governance.
• To protect the interests of ABG by working with other Board
members to manage risk, liability, and financial exposure.
The Chairman’s responsibilities cover the territories of all
countries where the companies belonging to the Group
conduct or plan to conduct business.
AMBER BEVERAGE GROUP | ANNUAL REPORT 202332
Secretary
The Secretary is a member of the Supervisory Board, with all
respective powers with the exception of voting rights at the
meetings of the Supervisory Board. Secretary’s vote shall not
be counted at quorum determination at the Supervisory Board
meetings. The functions of Secretary of the Supervisory Board
are:
• To organize all Supervisory Board meetings.
• To attend and record minutes of Supervisory Board
meetings.
• To facilitate Supervisory Board’s communications.
• To advise the Supervisory Board on its roles and
responsibilities.
• To facilitate the orientation of new Supervisory Board
members and assist in their training and development.
• To maintain key corporate documents and records.
Secretary is responsible for corporate disclosure and
compliance with the country corporation’s laws and standards,
reporting and compliance, monitoring corporate governance
developments, assisting the Supervisory Board in tailoring
governance practices to meet the Supervisory Board’s needs
and shareholder expectations, serving as a focal point for
communication and engagement on corporate governance
issues, and performing other tasks.
Non-Executive Directors
The Non-Executive Directors, all of whom the Board has
determined are independent, experienced, and influential
individuals from a diverse range of industries, backgrounds,
and countries.
The Non-Executive Directors lead the Board, keeping the
members focused on the objectives, shaping the strategic
agenda, and leading discussions as follows:
• Provide strategic leadership and guidance to the Board and
to the CEO.
• Determine the quality, quantity, and timeliness of
information from management.
• Improve and maximize the governance of the process, but
not manage the company.
• Focus the Board’s attention on critical issues and help to
set a positive tone.
• Contribute to the evaluation of the CEO, Directors, and the
Board.
• Ensure effective shareholder communication.
• Serve as a representative of the Board with management
and the public.
While diversity is undoubtedly a critical aspect of modern
governance practices, it is important to recognize that
implementing a meaningful diversity policy requires careful
planning, resources, and cultural shifts within the organization.
We are happy to announce the new members of the
Supervisory Board: Douglas Brougham Cunningham, Non-
Executive Director, who joined the team in January 2023. He is
an experienced beverage industry professional and the Founder
of a UK-based spirits distribution company, Indie Brands.
As well, in June 2023, Sabina Fatkullina joined the ABG
Supervisory Board as a Supervisory Board member. She is
an experienced and dedicated global HR leader who has
successfully managed human resources on a worldwide scale
for over two decades, contributing to the continuous growth
and success of the company.
Committees
The Supervisory Board may decide to create committees; the
composition, duties and the scope of them shall be determined
by the Supervisory Board as well as which shall report to the
Supervisory Board. The Supervisory Board nominates the
chairperson of each committee, who further determines the
targets and tasks of the committee and performs control in
regard to its fulfilment through regular reports. The Chairperson
of each respective committee is responsible for organizing the
work of the committee.
Board attendance and Decision-making in 2023
According to internal regulations, the Board holds meetings at
least once per quarter to discuss the business strategy of the
Group and to review the financial results. This year, the annual
financial results of the Group for the previous year as well as the
budget for the current year were reviewed and approved by the
Board until May 2023. The intermediate financial results and
possible adjustment of the budget for the current year are to be
reviewed and approved by the Supervisory Board in November.
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 33
From 2020 on, all the members may participate in the
Supervisory Board meeting by any suitable telecommunication
means. Written resolutions, drafts of resolutions, decisions
and minutes, as well as any and all documents related to the
meeting, may be transmitted by ordinary mail, electronic
means, or any other suitable telecommunication means. In
such cases, written resolutions can either be documented in a
single document or in several separate documents having the
same content.
The Supervisory Board met virtually, using audio-video
conferencing, to enable Board members located in different
locations and time zones to participate in meetings.
Throughout the year 2023, the Supervisory Board of Amber
Beverage Group convened several meetings to deliberate upon
crucial matters pertinent to the company's operations, financial
strategies, and contractual obligations.
The decisions of financial management and agreements
primarily focus on the financial aspects of the company's
operations. The Supervisory Board deliberated and approved
various agreements and arrangements aimed at managing the
company's financial obligations effectively, reflecting strategic
financial planning and the company's efforts to optimize
its borrowing arrangements, mitigating financial risks, and
demonstrating confidence in the company's financial stability.
The decisions for business expansion and development revolve
around strategic initiatives aimed at expanding the company's
operations and infrastructure. The decisions regarding
corporate governance and reporting pertain to corporate
governance practices, financial reporting, and subsidiary
management. Each decision made was characterized by
meticulous consideration, underscoring the Supervisory
Board's dedication to upholding sound corporate governance
principles and fostering strategic decision-making.
The Audit Committee
The Audit Committee is, inter alia, established based on
the following criteria: the Audit Committee is a stand-alone
committee and it shall be composed of at least three members;
one member shall be elected from the ABG Supervisory
Board; the majority of Audit Committee members must be
independent from the company; at least one member of the
Audit Committee shall have competence in accounting and/
or auditing; the Audit Committee members as a whole shall
have competence relevant to the sector in which the Group is
operating.
The Company has conducted a research, reviews, and
interviews with potential candidates, and the Shareholders
have reviewed and evaluated those to choose Audit Committee
members. The Audit Committee is elected for a three-year
term. After careful consideration, the Shareholders appointed
the following individuals as Audit Committee members of the
Company:
• Simon Charles Rowe has been elected as the Audit
Committee member from the ABG Supervisory Board. He
brings with him over 30 years of experience in the financial
industry, with a 21-year tenure in the private financial
services industry, holding the position of Managing Director
of Swicorp. Currently, Simon Charles Rowe is the Founder
and Managing Partner of Monsar Capital - an independent
international financial advisory and investment company.
• Olivier Cagioulis has been elected as the Audit Committee
member as an independent member. He brings with
him 20+ years of experience in auditing from such audit
companies as PricewaterhouseCoopers Luxembourg, Ernst
& Young Luxembourg, and BDO Compagnie Fiduciaire.
Since 2010, he has been managing the audit company,
Audit & Consulting Services S.à r.l., and consulting various
clients operating in such areas as trading, beverage
manufacturing, real estate, banking, and insurance.
• Michele Perez has been elected as the Audit Committee
member as an independent member. She has over 25
years of experience in auditing in such audit companies
as KPMG Luxembourg and Audit & Compliance S.à r.l., as
well as being a partner in Moore Stephens Audit Sàrl and
Fidewa-Clar. Since 2013, she has been managing the audit
company Aumea Partner S.à r.l. and consulting various
clients operating in trading and manufacturing.
Main features of internal control and risk management systems in relation to the process
of consolidated financial statements
The employees involved in the accounting process meet
qualitative standards and receive regular training. Duties
and responsibilities are clearly assigned to different roles.
Complex evaluations are assigned to specialized service
providers who involve qualified in-house staff. Separating
administrative, executive, treasury, and report preparation
functions reduces the possibility of fraud. Internal processes
also ensure that changes in the Group’s economic or legal
environment are mapped and that new or amended legal
provisions are applied in the Group’s accounting. The Group’s
accounting rules also govern specific formal requirements
placed on consolidated financial statements. These include
the mandatory use of a standardized and complete reporting
package. The Group’s Central Accounting Team assists the
Regional units in resolving complex accounting issues.
Additional data for the presentation of external information
in the notes and the Group’s management report is also
prepared and aggregated at the Group level. Reporting
packages containing errors are identified and corrected at
the Regional or Group level. Impairment tests are conducted
centrally for the specific cash-generating units, known as
CGUs, from the Group’s perspective to ensure that consistent,
standardized evaluation criteria are applied.
AMBER BEVERAGE GROUP | ANNUAL REPORT 20233434 AMBER BEVERAGE GROUP | ANNUAL REPORT 2023
ABG manages over 1 400 brands, including more than 100
brands (over 1 000 SKUs) that we own and produce.
Our Brands
in Global Markets
35AMBER BEVERAGE GROUP | ANNUAL REPORT 2023
AMBER BEVERAGE GROUP | ANNUAL REPORT 202336
Global Sales
Strong performance and double-digit value growth in EMEIA and
Asia achieved in a very contrasted year. In 2023, the adverse post-
Covid impact on the spirits industry was still evident, geopolitical
tension continued due to the war in Ukraine and Israel, negatively
impacting a number of markets. Despite challenges, we reached
EUR 29.7 million in revenue, driven by continued media investments
in key markets, geographic expansion, an improved route to market
in numerous countries, and a focus on growth categories.
EMEIA and Global Travel Retail
In 2023, Europe, the Middle East, India, Africa (EMEIA), and
Global Travel Retail (GTR) faced a number of challenges, such
as geopolitical tension in the region (continuous war in Ukraine
and war in Israel), overstock due to post-Covid overoptimism
at the end of 2022, and supply issues for a number of brands.
However, despite a volatile environment in the region, volumes
of ABG core brands reached 443k 9Lcs, further building on last
year’s milestone of 433k 9Lcs, and value grew by +16% vs 2022.
Continuous process improvements and brand-building
initiatives with digital media, consumer influencers, and
global brand ambassadors were carried out, building ABG’s
core brand awareness globally. As a result, strong double-
digit growth in net sales value was achieved by a favourable
brand mix, offsetting a modest rise in volumes. Moskovskaya®
Vodka sales value reached EUR 6.3 million (+16% vs 2022) with
performance largely driven by Spain and Italy. An exceptional
performance of the Irish whiskeys portfolio was observed: The
Irishman® Whiskey rose by 22% in volume, delivering EUR 3.9
million (+49%) in revenue, and Writers’ Tears® Whiskey grew
by 22% in volume, reaching EUR 2.5 million (+22%) in revenue.
Furthermore, the Tequila portfolio enjoyed 18% revenue
growth, resulting in EUR 4.8 million in revenue.
In 2023, new partnerships were established in India,
Kazakhstan, Turkey, Iraq, Lebanon, Turkmenistan, Slovenia,
Nigeria, Oman, Morocco, and other markets, expanding further
the reach of the ABG branded portfolio in EMEIA and GTR.
Overall, all subregions demonstrated strong performance,
with six out of seven regions surpassing the 2022 sales value
performance benchmark. Southern Europe and Ireland are the
largest contributors to the EMEIA and GTR results, constituting
223k 9Lcs (53%) of total volumes and EUR 8.2 million (38%) of
total sales value.
Southern Europe and Ireland
2023 was a mixed year when it came to individual brand
performance, but overall, it was a positive one, growing by
+14% in volumes and by +18% in value vs last year.
The key driver of the performance in Southern Europe
was Moskovskaya® Vodka, with a strong year-on-year
volume increase of 16%, mainly derived from increased
distribution, consumer awareness, and pouring deals in
Spain. This volume performance, combined with A&P
optimization in Italy due to underperformance, resulted in a
year-on-year increase in brand contribution of EUR 0.4m.
Rooster Rojo® Tequila declined in shipments by -9% vs last
year, mainly derived from Greece and Spain, which are the best
performing countries in the region, with Rooster Rojo® Blanco
being the No. 1 Premium tequila expression in Greece and No.
2 Premium tequila in Spain. Competitor intensity increased
drastically, with all core competitors securing continuous
supply, reducing prices, and increasing advertising and
promotion support.
On-trade distribution increased in Spain and Italy, with the help
of the newly appointed Southern Europe Brand Ambassador,
who managed to host 92 events and 88 master classes and
visualise our brand globally by reaching +20k new Instagram
accounts each month.
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 37
ABG Irish whiskeys Writers’ Tears® and The Irishman®
underperformed across the region, declining by -5% in volume
vs last year, mainly due to the significant price increase we had
to pass to protect the gross margin.
KAH® Tequila grew in the region by +81% vs last year, driven by
a revised distributor focus and the launch of KAH® Blanco and
Reposado in France through our existing distributor. The brand
went on to secure a listing in the country's best tequila bar,
located in Paris. Growth of +148% in Spain and +41% in Italy,
derived predominately from new on-trade listings secured and
now listed on Amazon. Key listings include the Four Seasons
hotel in Madrid. Growth of +86% in Greece is a result of a liquor
store drive, the launch of KAH® Extra Anejo, and listings in
Premium+ accounts.
Americas
2023 was a difficult year for the Americas, largely due to lower
consumer confidence and high stock across all brands and
distributors in the country. Shipments to Canada and the US
were adversely affected, resulting in a 17% volume and 27% net
sales value loss vs 2022. America’s net sales came in at EUR 6.5
million in 2023.
Canada
Despite challenges, Canada managed to grow overall shipment
volume by 3% (46k 9Lcs) vs 2022. Our new agent, Dandurand
Group, did a particularly incredible job growing Moskovskaya®
Vodka, resulting in a 17% growth in volume. The Irish whiskey
portfolio struggled, however, due to LCBO destocking, causing
a loss of nearly 50% in volume for Writers’ Tears® shipments.
Writers’ Tears® Copper Pot is still recognized as the No. 1 Irish
whiskey in the deluxe category. We expect to recover our
whiskey volume loss in 2024. Additional 2023 wins include
achieving a monopoly listing for Rooster Rojo® Tequila in SAQ
and LCBO.
LATAM
Compared to 2022, LATAM shrank in volume by 38% but increased
net sales value by 23% due to a product mix shift towards a more
profitable tequila range. The end-of- year shipment delay caused
30% of the planned volume shift to Q1 2024.
USA
Overall, the Tequila business in the US was hit the hardest.
Depletions were down by 15%. This, in combination with an
overstock situation from 2022, led to an overall volume loss of
50% on shipments, resulting in a EUR 2 million revenue loss
vs last year. Despite a challenging industry landscape, the ABG
Irish whiskeys were able to maintain volume in 2023, whereas
many other key competitors lost volume in 2023. Although the
overall vodka category lost market share, Moskovskaya® Vodka
outpaced volume projections, which aided in closing some of
the volume gap.
ASIA
2023 was a year of slow recovery in Asia as tourism remained
lower than pre-Covid levels in major markets such as China,
Taiwan, and South Korea. It was also a year of restructuring
across the region as the Group switched gears to focus on
long-term strategic portfolio route-to-market partnerships.
This was achieved by appointing a full-time Regional Director
who improved the RTM in nine countries and set growth
plans with sufficient marketing investment behind high-
potential brands.
Overall, Asia reached 41k 9Lcs in volume, and due to a
major improvement in product mix, it has achieved 65%
growth in net sales value vs last year. Key growth markets
include Thailand with 10k 9Lcs (+34%), delivering +52% in
revenue vs 2022, and China with 15k 9Lcs and 73% growth in
revenue. The opening of new markets with promising growth
potential, such as Indonesia, has helped to deliver a strong
performance for ABG in Asia. This momentum will continue
with brilliant brand planning and execution in the trade, with
volumes primarily led by Moskovskaya® Vodka (16k 9Lcs),
Cosmopolitan Diva® (15k 9Lcs), and value generation led by
the ABG Tequila and Irish whiskey brands.
AMBER BEVERAGE GROUP | ANNUAL REPORT 20233838 AMBER BEVERAGE GROUP | ANNUAL REPORT 2023
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 39
Rooster Rojo® Tequila
Straight from the UNESCO-protected tequila-producing
region, Rooster Rojo® Tequila is a great example of
outstanding craftsmanship and the spirit of Mexican design.
The red rooster, a well-known symbol of Mexico, is a natural
choice for creating a strong and memorable brand name and
testifies to the brand’s ambition to become one of the world’s
leading premium tequila brands.
Rooster Rojo® is an extra smooth tequila, produced using
only the best ingredients and production techniques which
result in preserving the superb natural flavours of its top-
quality agave. Born in the agave fields of Jalisco, Mexico, it is
carefully crafted by using only 100% agave juices, to ensure
exceptional taste and quality to please tequila connoisseurs.
The multi-award-winning Rooster Rojo® range includes five
variants: Blanco, Reposado, Añejo, Smoked Pineapple, and
Ahumado Tequila.
Superb 100% agave tequila
Received 29 international awards for its exceptional taste.
Straight from the UNESCO-protected tequila producing
region
Made in the heart of the Tequila region, Mexico – at the foot
of Tequila Hill.
Exceptional packaging
A tall craft bottle with traditional cork stopper.
Strong, memorable brand name
The rooster is the unofficial symbol of Mexico.
Unique brand experience
For discerning consumers who recognize the difference.
Brand positioning = vivid revelation
Discovery, escape, transformation, independence. For
sipping not slamming.
Kosher certified
Impressive expansion opportunities in the fast-growing
global Kosher market.
GLOBAL
TEQUILA
& MEZCAL
MASTERS
MASTER 2024
AMBER BEVERAGE GROUP | ANNUAL REPORT 202340
– 54k 9Lcs of Rooster Rojo® Tequila sold
– More than EUR 6.6m revenue from brand sales
– Sold in 55 markets worldwide
Rooster Rojo® Tequila
Volume
5%
Value
12%
Rooster Rojo® Tequila had a slight growth (+8%) vs the
previous year. The growth could have been much bigger,
but we did not have good RTM solutions in the three biggest
tequila markets in the world: the USA, Mexico, and Canada.
Also, the German market underperformed noticeably
compared to the budget, despite strong sales and marketing
efforts in this market. The biggest growth in 2023 was
registered in the UK, Australia, and Lithuania.
In terms of innovations, 2023 was a year when we presented
Rooster Rojo® Mezcal to the world at the ProWein show
in March, and then to the global bartender’s audience in
October in Berlin at the BCB exhibition. This novelty is a tool
for brand premiumization and expansion into the trending
Mezcal category.
We also switched from Añejo to Reposado liquid with our
signature Smoked Pineapple Rooster Rojo® Tequila. This
will make the product more accessible for consumers due
to the lower shelf price, and we hope it will be even more
successful than its predecessor.
A new social media agency from Madrid has been taking
over brand communication since the beginning of 2023
and has achieved impressive results and one of the highest
engagement rates in the category.
An incentive for bartenders with the main prize – trip to
Cancun for two, played very well, helping ensure excellent
On-trade sales across the EMEIA region. This contributed
noticeably to brand depletion and helped build consumer
awareness amongst consumers.
We continued the expansion of the Brand Ambassadors
team. A Brand Ambassador for Australia was hired at the end
of 2023, which immediately improved our situation in the
Australian On-trade. Further hires are planned for 2024 in the
USA and the UK, potentially. The Southern European Brand
Ambassador did a tremendous job making his region the
biggest region in terms of sales for Rooster Rojo® Tequila in
the world.
2024 is budgeted at 80k 9Lcs, so this will be a pivotal growth
year for the brand. The tools to achieve this goal are:
influencers, lighthouse account programmes and sales, plus
bartenders’ motivational programmes in all core markets for
the brand. Also, we will have to achieve a breakthrough in the
three biggest Tequila markets in the world: the USA, Mexico,
and Canada.
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KAH® Tequila
KAH® is a super-premium tequila made from 100% hand-
selected blue agave. Over the years, the quality of this tequila
has been recognized by industry experts and reflected by
numerous international awards.
While what is inside the bottle speaks for itself, what also stands
out about KAH® is the packaging, rooted in a Mayan heritage
ritual that is over 3000 years old. We know it today as Dia de
los Muertos - the Day of the Dead – a colourful Mexican holiday
which celebrates the lives of the departed, seeing death as a
natural part of life. KAH® (which translates as ’life’ in the ancient
Mayan language) honours Mexico and its people, channelling
the spirit of this joyful holiday and its famous imagery.
The product range features five expressions: Blanco, Reposado,
Añejo, Extra Añejo and the recently launched Huichol Extra
Añejo Limited Edition. Each tells a story of different Dia de los
Muertos traditions.
KAH® Blanco is inspired by the macabre Bolivian tradition
where the actual skulls of their loved ones are kept and brought
out on November 8th of each year.
KAH® Reposado is in a yellow bottle inspired by a Peruvian
tradition of a dance performed to appease the Devil by pouring
tequila onto the ground as an offering.
The design of the KAH® Añejo black bottle is based on the
Nicaraguan tradition of Día de los Muertos whereby people
stay and sleep in the graveyard to reinforce the emotional
connection between the living and the deceased.
KAH® Extra Añejo, in its royal green enamel bottle, celebrates
friendship and symbolizes eternity and fruitfulness as a
reminder of the things that matter. Phosphoric finishing allows
the bottle to glow in the dark.
KAH® Huichol Extra Añejo is an exceptional, luxurious, limited
edition pack. Each collectible, numbered bottle is a unique
work of art, handmade, and decorated with tiny beads by the
Huichol – a native Mexican tribe.
The finest art of tequila craft
Produced from had selected 100% Blue Agave by masters of
the craft and respect for the tequila making tradition.
One-of-a-kind packaging and brand story
Designed to pay tribute to and to honour Mexican and South
American culture and traditions.
Award-winning proposition
Recognized by experts in numerous global competitions as well
as by bartenders and consumers across the globe.
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KAH® Tequila
– More than 16k 9Lcs sold in 2023
– In March 2023, KAH® became the No. 1
ultra-premium tequila in the UK grocery
channel over a rolling six-month period,
following the listing with the UK’s biggest
supermarket chain, Tesco, in 2022
Volume
1%
Value
8%
2023 was a challenging year for KAH®, which reflected
in a decline in global sales with -28% in volume vs 2022.
Despite category tailwinds, where the super-premium
segment continues to fuel global Tequila category growth,
supply chain challenges continued to persist in 2023,
which, in combination with subpar USA market conditions,
tempered the brand’s global performance following years of
exponential growth.
We did, however, see much stronger performance across our
own distribution companies. By the end of the first quarter,
KAH® Blanco became the best-selling super-premium
tequila brand in the UK grocers through its listing in Tesco,
illustrating traction in the market as well as the aspiration
around the brand and its multi-awarded liquid.
2023 also saw the second round of release of KAH® Huichol
Extra Añejo, following the success in 2022. KAH® always
respects the brand’s origins, and this launch was no different.
Each bottle is adorned with 22,000 tiny beads, each applied
by hand. It takes the Huichol craftspeople around 35 hours
to complete the decoration of each bottle with designs
based on symbols that reflect the deeply rooted cultural
traditions of the Huichol tribe. The Huichol people live in
the Sierra Madre Occidental Mountain range, in the North of
Jalisco State, near our distillery. But it is not only about the
packaging: we are complementing the design with a liquid
that is rarely available – Extra Añejo Tequila, aged for more
than 10 years in American oak barrels with a special toasting
to produce a spirit of exceptional quality.
In 2024, the focus will be on stabilising USA performance
and regaining growth momentum through our owned
distribution companies as well as new market opportunities.
We will continue to support our major grocery listings and
seed KAH® via trend-leading accounts, as well as continue to
invest in outreach and advocacy programmes to drive brand
aspiration and liquid desire.
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Writers’ Tears®
Writers’ Tears® is a pot still-inspired range of super-premium
Irish Whiskeys. A marriage of inspiration and art, Writers’ Tears®
is inspired by the golden era of Irish Whiskey and its deep,
lasting bond with creative thinkers and artists that define Irish
culture.
19th and early 20th century Ireland was a golden era both
for Irish Whiskey and for some of the greatest Irish novelists,
poets, and playwrights. Ireland was then the leading whiskey
producing nation in the world and the birthplace of literary
giants including writers such as George Bernard Shaw, Oscar
Wilde, W. B. Yeats, Lady Gregory, James Joyce, Samuel Beckett,
and Bram Stoker.
Launched in 2009, today the Writers’ Tears® brand range
includes four core products - Writers’ Tears® Copper Pot,
Writers’ Tears® Double Oak, Writers’ Tears® Red Head, and
Writers’ Tears® Single Pot Still. In addition, there is the huge
depth and diversity of limited and annual releases, including:
Writers’ Tears® Cask Strength, Writers’ Tears® Mizunara Cask
Finish, Writers’ Tears® Marsala Cask Finish, and Writers’ Tears®
Icewine Cask Finish.
‘Champagne of Irish Whiskey’
Unique marriage of single pot still and single malt Irish Whiskey.
Rooted in Irish literary history
Creative brand synonymous with Ireland’s literary greats of the
19th and early 20th Centuries.
One-of-a-kind packaging and brand story
Stand-out packaging which connects with creative audiences,
the packaging was refreshed in late 2020 and rolled out globally
throughout 2021.
Exceptional liquid
Distilled entirely in copper pot stills to create a truly
flavoursome whiskey.
Super-premium range to explore
Writers’ Tears® is a range of four core and several limited super-
premium expressions featuring rare finishes including Cognac,
Icewine, Marsala, Mizunara and Tequila Cask.
Global distribution
Sold in 50 markets, including the USA, Canada, Australia,
Europe, the UK, Asia, and Australasia.
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Writers’ Tears®
– 31k 9Lcs sold in 2023
– 10% decline (volume) vs 2022, driven by
weakened performance in competitive
home market
– Category disrupting limited edition
release exclusively launched in Q4 at
Dublin Airport in the lead up to 2024
Volume
3%
Value
11%
2023 was a mixed year for Writers’ Tears® as we saw a
slowdown in annual growth due to economic challenges in
more advanced markets such as the US, Canada, and Ireland.
On the other hand, the brand also enjoyed a resurgence in
the creativity that is at the heart of the brand credentials with
the launch of the limited edition Tequila Cask Finish (utilising
the cross-portfolio expertise from Amber Production Tequila
and ex-KAH® Tequila Anejo barrels), as well as a sponsorship
of the Waterford Walls graffiti festival. This sponsorship has
added a new, more modern dimension to the culture of
artistry that the brand was initially inspired by and opens the
brand up to a younger, more engaged target audience.
Moving past the artists of the 19th and 20th centuries into a
wider arena of celebrating ‘what it means to be creative’ has
a dual purpose in showcasing a more dynamic brand image
as well as highlighting the flavour profile of the whiskey with
a new ‘Explosion of Flavour’ messaging, all with the aim of
revitalising performance in its key markets through impactful
communications and a visual identity that makes Writers’
Tears® stand out from the crowd.
The new Writers’ Tears® Tequila Cask Finish had an exclusive
pre-release in Dublin Airport Duty Free in line with the Day
of the Dead festival. It has been the strongest launch of any
new product from our whiskey range within ARI to date (753
bottles sold in the launch period) and has strengthened our
relationship with the customer.
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The Irishman®
The Irishman® Irish Whiskey is single malt focused - whether
championed in blends or pure single malt expressions - always
enriching the flavour, lengthening the depth, and refining the
smoothness. We are proud of our brand: every expression is a
true original, triple distilled to leave a lasting impression.
The Irishman® is a tip of the hat to Ireland’s golden era of
Irish Whiskey, a time when Ireland was the leading whiskey
producing nation in the world and single malt was the
dominant style. Learning from the past to create the future, at
The Irishman® we are rediscovering Irish single malts.
The character of our whiskey is a single authentic voice cutting
through the chatter of the category. We assume the mantle of
rediscovering Irish single malt with bell-like clarity and focus.
Today, The Irishman® brand range includes two core products –
The Irishman® The Harvest and The Irishman® Single Malt.
There are two aged malt expressions: 12-year-old Single Malt
and 17-year-old Single Malt; and an annual vintage release: The
Irishman® Cask Strength. In addition, there are several limited
edition, super-premium expressions which explore a wide
range of rare finishes.
Created to honour Irish distilling heritage and history
Inspired by traditional recipes for Irish single malts, from a time
when these were the dominant style of whiskey globally.
Recognized for award-winning taste
One of Irish Whiskey’s most awarded brands.
Spirit of Ireland
Irish passion and determination captured in premium liquids
and an authentic brand story.
Superior liquid
100% Irish barley, triple distilled to leave a lasting impression.
Aged to perfection
A range of internationally recognised aged single malts are
among the portfolio.
Super-premium range to explore
The Irishman® is a range of two core and several limited super-
premium expressions featuring rare finishes, including Florio
Marsala, Oloroso, Rum, and Peated Red Ale.
Global distribution
Sold in 50 markets, including the USA, Canada, Europe, the UK,
Asia, and Australasia.
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The Irishman®
– 23.5k 9Lcs sold in 2023
– 8% growth (volume) vs 2022, driven by
international markets
– Renewed focus on single malt messaging,
delivering strong global growth
– Launch of The Irishman® Legacy in
December 2023 in honour of 700 years of
whiskey-distilling history
Volume
2%
Value
9%
2023 was another strong year for The Irishman®. Launched
in 2022, the new branding has elevated the brand into a
more premium and contemporary space, befitting its single
malt credentials. Growth is largely due to expansion into
new markets, and while additional growth is still available
through distribution, we now need to build brand awareness
in existing markets and support the rate of sale to ensure
sustainable, profitable brand growth for years to come.
Key moments to celebrate in 2023 were the expansion of
the brand into prestige whiskey markets within Asia, such
as China, Taiwan, and South Korea, as well as the Middle
East. In terms of NPD, The Irishman® was the first brand
to acknowledge 700 years of Irish distilling heritage with
their launch of The Irishman Legacy Edition with a trade
and whiskey influencer event in Kilkenny, Ireland, and an
exclusive pre-release in Dublin Airport Duty Free. The full roll-
out of Legacy is due to take place in June 2024 to align with
Father’s Day.
Wide acclaim greeted the summer release of the Irishman®
Cask Strength 2023. This series has become a staple for
whiskey collectors around the world, often selling at a highly
inflated price on auction sites. For 2024, we have reduced
the volume available slightly to ensure that we sell out and
create a stronger future demand.
Looking ahead to 2024, we are now doubling down on the
single malt messaging to reposition The Irishman® as the
whiskey of choice for those seeking an alternative to high-
end Scotch. Our Single Malt, 12 and 17-year-olds continued
to win awards in 2023, further reinforcing the brand’s quality
credentials, and we want to leverage these cues to build
an ultra-premium platform for The Irishman® to succeed in
priority accounts in APAC, the Middle East, and Duty Free.
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Moskovskaya® Vodka
Moskovskaya® Vodka is one of the oldest vodka brands in the
world. With over 100 years of vodka making expertise and
made to the original recipe dating back to 1938, it is one of
the most authentic brands in the category.
Moskovskaya® Vodka is proudly produced in Latvia, by the
leading producer of alcoholic beverages in the Baltic States –
Amber Latvijas balzams – a company with a history steeped
in tradition since 1900.
Today Moskovskaya® is a brand imbued with grounded
confidence and contemporary vibrancy. Building on its roots
of being distinctive through the brand’s colour and its vibrant
character, Moskovskaya® inspires Gen Z and Millennial
consumers to embrace self-expression and individuality, just
as the brand has consistently done since its inception.
Moskovskaya® stands for premium quality. It is made with the
highest quality ingredients, triple distilled, and slow filtered
through quartz and charcoal to deliver a vodka as pure as
it is smooth. The result is a vibrant tasting, versatile vodka
that lends itself perfectly for mixing as well as to be enjoyed
chilled and served over ice.
Smooth taste with vibrant character
Multi-awarded, endorsed by both experts and consumers for
its exceptional quality and taste.
Over 100 years of vodka making expertise
Made by Amber Latvijas balzams, to the authentic, original
recipe dating back to 1938.
100% European
Proudly produced in Riga, Latvia, with all ingredients and
materials sourced from within the European Union.
Moskovskaya® Vodka
– 551.3k 9Lcs sold in 2023 (+12.4% vs 2022)
– Over EUR 14.7m net revenue generated
from brand sales
– Top 3 standard vodka brand (by volume)
across strategic markets in 2023
Volume
48%
Value
27%
In line with our ambition to gain greater presence globally,
2023 was another milestone year for Moskovskaya® Vodka,
where the brand experienced further growth across its
strategic markets, with continued impressive performance
across Southern Europe as well as significant growth across
our owned distribution markets – in the UK and Australia.
In Italy, now the second largest market for the brand at over
one hundred thousand nine-litre cases, Moskovskaya® Vodka
managed to secure its place as the No. 2 standard vodka,
despite a small decline in volume (-2% vs 2022), mainly
driven by the On-premise sector as we saw lower rate of sale
in key direct customers due to reduced footfall. In the Off-
trade, we grew our volume market share in standard vodka
by +1.7% (+1.9% in value), outperforming the market leader,
which indicates continued improvement in brand equity.
Similarly, in the wholesale and cash and carry channels,
we managed to outperform our key competitors, growing
our volume share by 0.2%. The second half of 2023 saw the
largest digital-first media campaign to date for the brand,
reaching 84% of our target consumers with highly relevant
localized content, including a seamless path to purchase.
In Spain, Moskovskaya® grew exponentially to +38% overall,
securing its number-three positions in standard vodka.
Depletions grew by +31% vs 2022, and significant distribution
gains across both the On- and Off-trade were achieved,
reaching 60% and 31.5% weighted distribution, respectively.
On Amazon, Moskovskaya® still maintained its podium
position as one of the bestselling vodkas, which further
signifies the traction in the market. Like in Italy, the second
part of the year saw the launch of a new localised, influencer-
led digital campaign targeting Gen Z, reaching 2.83 million
consumers with cut-through delivered via excess share of
voice, frequency, as well as engagement rates.
Moskovskaya® has also experienced powerful performance
in other markets, including achieving the number-four
position in standard vodka in Portugal. In the UK, the brand
continues to gather traction in Scotland, where a long-term
pouring listing was secured with the prestigious hospitality
organisation Scotsman Hospitality Group, with a wide range
of managed estates including bars, restaurants, nightclubs,
hotels, and cinemas, where Moskovskaya® is featured across
cocktail menus and further amplified as a tribute to the
excellent liquid quality.
From a marketing standpoint, 2023 saw the continued
implementation of our digital-first strategy, enriched with
content curated via local influencers to rejuvenate the brand
whilst step-changing towards a distinct brand personality
and a contemporary brand positioning, which allowed us
to connect with our target consumers in more meaningful
ways. We partnered closely with our strategic markets in
building the campaigns to ensure cut-through via local
relevance, focus, and investment sufficiency, which resulted
in improved media effectiveness.
Looking ahead to 2024, we will further dedicate our
marketing initiatives to support our ambitious growth targets
and enable the brand to recruit at scale. We will continue to
establish our liquid quality credentials and win the hearts
and minds of our target consumers by inspiring them with
new ways to enjoy vodka and introducing them to the
vibrant world of Moskovskaya® through immersive liquid-
on-lips experiences. 2024 will be the year in which we ‘paint
the world green’, where our distinctive brand colour will
permeate socializing occasions, injecting the vodka category
with new vibrancy.
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Riga Black Balsam®
The legendary herbal bitter, Riga Black Balsam®, is probably
the oldest existing bitter brand in the world, with a history of
craftsmanship dating back more than 270 years.
First recorded in 1752, it has been loved and admired by
generations. Only natural ingredients are used to craft this
unique herbal bitter.
Riga Black Balsam®, with its distinguished, award-winning
natural clay bottle, is a well-known brand and is sold to
customers in 30 international markets, with over 4 million
bottles produced every year.
Riga Black Balsam® is beloved by industry experts and many
of the world’s best bartenders and other experts, having
received more than 100 awards at international fairs and
competitions.
The authentic and versatile taste of this legendary herbal
bitter makes it an indispensable component for modern
mixology and even cuisine.
Today, this brand line is built around six bitters – the original
Riga Black Balsam® and contemporary flavoured variations
whereby the original recipe is enriched with juices and other
flavour notes: Riga Black Balsam® Black Currant, Riga Black
Balsam® Cherry, Riga Black Balsam® Espresso (enhanced
with coffee bean extract and cinnamon), Riga Black Balsam®
Chocolate & Mint, and Riga Black Balsam® XO (blended with
French brandy and cask matured).
Probably the oldest bitter brand available
Crafted with passion since 1752.
Distinctive, authentic taste
An exquisite balance of sweet and bitter flavours.
Complex flavour profile
An exciting ingredient for modern mixology and cuisine.
All-natural ingredients
No colourants or artificial flavours added.
Secrets of master craftsmanship
Handcrafted using single-barrel infusion technology.
Unique bottle
True to the original centuries-old natural clay design.
Recognition of quality
Over 100 top international awards.
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Riga Black Balsam®
– Over 156k 9Lcs sold in 2023
– Latvia remains the largest market by
volume
– The brand continued to grow steadily
at +4% vs 2022, driven by the Baltics,
international markets, the UK, and
Australia
Volume
14%
Value
21%
2023 was another successful year for the legendary herbal
bitter Riga Black Balsam®, growing at +4% vs 2022, where the
brand also started to gather momentum outside the Baltics.
Results were driven by continued robust performance in
the Baltics, alongside positive development across both
international markets as well as our own distribution
companies in the UK and Australia.
Volume increases were driven by the expansion of the
brand portfolio in export markets, On-trade traction for
the herbal bitter as a key ingredient in cocktails, as well as
promotional activities. Riga Airport in Latvia also continued
to play a significant role as a key contributor to the brand’s
performance, thanks to the impactful permanent displays
across high-footfall areas.
In 2024, we will continue to capitalise on the existing
Riga Black Balsam portfolio® as well as introduce a new
flavour addition that catapults the brand into new drinking
occasions via refreshing long-drinks. Our presence at Riga
Airport will be amplified through a refreshed, impactful
permanent installation that will stop and engage travellers
passing by and further improve the rate of sale.
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Our Production and
Logistics Capabilities
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Latvia
Taking measures to promote
efficiency and to reduce costs
Amber Latvijas balzams AS (ALB) is the leading producer of
alcoholic beverages in the Baltic States. It was established in
1900 as Riga’s 1st state alcohol warehouse. Nowadays, ALB
produces over 700 SKUs under more than 100 different brands
owned by ABG and third-party brand owners.
ALB operates two production facilities in Riga, Latvia: a distillery
producing strong alcoholic beverages and a factory producing
sparkling wines and light alcoholic beverages. These facilities
produce most types of alcoholic beverages, such as vodka,
liqueurs, brandy, bitters, gin, sparkling wines, fortified wines,
ciders, and RTDs (ready-to-drink cocktails).
ALB cooperates with the largest suppliers of raw materials
and consumables in the European Union. Ethyl spirt for the
production of most of the products is supplied by producers
working in the European Union. One of the key resources –
water – is derived from artesian wells located within our
premises.
Logistics services represent a small, but still significant, part
of the ALB business. Logistic services are mainly rendered to
related companies; however, the volume of services, such as
transit assurance, bonded warehouse services, value-added
services, picking, and other logistic services provided to other
partners in the spirits industry, is growing. These activities allow
us to improve the utilisation of resources.
Due to the drop in production volumes and the overall
decrease in profitability caused by worldwide tendencies in
economics and geopolitical situation, ALB has taken a series
of measures to promote the efficiency of production processes
and reduce costs in 2023.
By the end of the year, a 27% improvement in the utilization
efficiency (OEE) of the finished product filling equipment had
been achieved.
Completed several investment projects (such as an automated
line for filling Stoli Elit vodka and additional palletizing
equipment), which allows not only to increase production
capacity but also to reduce labour costs per unit produced.
Renewed energy purchase contracts at significantly lower
prices.
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ALB continued adaptation of workforce resources and other
costs to current production volumes while maintaining the
outstanding quality of the products and the ability to serve
customers in a timely manner.
In addition, plenty of new products were developed in 2023,
including: Lucky Dog® Passionfruit cider, Black® Limoncello
Spritz RTD, LB Black Currant RTD, Rīgas® Prestige Cuvee Semi
Seco sparkling wine, Cosmopolitan Diva® Berry Limited Edition,
Kazna vodka for Austrian market, Moka Caramel & Cream
liquor, Hektors Hex on the Beach spirit drink, and the start of
implementing a new design of Moskovskaya® Vodka for ABG
global markets.
In the private label production segment, despite strategic
decisions made by Stoli Group regarding the rebranding of Stoli
products that led to a decrease in volumes, ALB continued to
serve Stoli Group and reached 1.9 million 9Lcs produced and
sold in 2023.
By complementing to Speed – one of ABG Core values, the
ALB team qualified for and received certificate on the Food
Safety Management Systems (FSSC certification). The entire
food supply chain can use this certification model to ensure
adherence to food safety standards and processes. Within this
process, ALB carried out an extensive number of upgrades,
learning processes, and various internal audits that resulted in
a positive conclusion by FSSC representatives.
In 2023, the ALB re-opened the Factory Tour Centre by offering
for the public to visit the factory and see the behind-the-
scenes of the largest alcoholic beverage production facility
in the Baltics. The ALB Factory Tour Centre was established
with the aim of providing insight into the history of the
factory, its development, and production processes, as well as
raising public awareness of the beverage industry and Amber
Beverage Group.
In 2023, the Group successfully continued the largest logistics
project in Group’s history: the construction of a high-bay
warehouse in Riga, Latvia. In April 2023, the Parent Company
issued 4-year bonds of EUR 30 million to secure the financing
of the project. Then in August, the construction agreement was
signed with Aimasa SIA, and first-phase construction works
were started (the zero-phase works were finished already
in previous years). In late 2023, the Group along with its key
cooperation partners on project, Aimasa and Jungheinrich,
cemented the time capsule, confirming the importance and
mutual good will in a symbolic way. The main purpose of
the high-bay warehouse project is to centralize the logistic
capabilities and resources of the Group, improve process
efficiency and logistics capacity and contribute to the strategic
growth targets of the Group both in Baltic and global markets.
Estonia
An efficient production facility to meet specific customer needs in
small and mid-size batches
After Estonia regained its independence in 1991, Remedia
was the first private equity company to secure the right to
create alcoholic beverages. Since then, Remedia has become
the third-largest producer of spirits in Estonia. During 2022,
Remedia underwent a total image change: the company was
renamed Amber Production Remedia (APR), and a new logo
was adopted within global Group’s guidelines. The company
managed to secure a smooth and swift transition.
APR’s portfolio includes vodkas, flavoured vodkas, organic
vodkas, gins, premium rums, natural berry and fruit liqueurs,
herbal liqueurs, and bitters. The company also makes cream
liqueur and natural egg liqueur.
Since 2019, small batch production for the Group has been
located at APR. This allowed production of well-known brands
such as Pshenichnaya Vodka and Barbuda® Rum for pan-
Baltic distribution with the same product design, maintaining
consistently high-quality standards. The Group has re-routed
the third-party products imported by Amber Distribution
Estonia OU (ADEE) through the warehouse in Kiiu, Estonia,
thus bringing synergies to logistics costs. Moreover, providing
logistic services to ADEE has contributed to further synergies
and cost reductions at the Group level, in turn making the
utilisation of resources at APR more efficient.
In 2023, APR products produced under the private label
segment reached new heights. With a steady growth
volume every year, APR is proving that their experience has
strengthened their skills and expertise, preparing APR to
continue to take on new and challenging projects.
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 65
Mexico
Organic growth and sustainability
Established in 1999, Amber Production Tequila S.A. de
C.V. (APT) began producing premium tequilas in 2000. The
company is located in the heart of Tequila, Jalisco, in Mexico,
surrounded by an agave landscape that has been declared an
international heritage site by UNESCO. APT has a certified quality
management system (NSF), and several products have been
certified as Kosher and organic.
Throughout the years, APT has successfully developed and
introduced in production several outstanding tequila brands like
Tenoch® Tequila, Stallion®, Tonala®, Don Camilo®, Zapopan®,
Santos®.
Since its launch in 2017, Rooster Rojo® Tequila has become
one of ABG's core brands, gaining immediate international
recognition. Despite the slowdown in tequila worldwide
demand, the company managed to keep Rooster Rojo® Tequila’s
volume stable By continuing to expand the Rooster Rojo® brand
portfolio, in mid-2023, an ultra-premium Rooster Rojo® Mezcal
was introduced. Despite being a novelty, Rooster Rojo® Mezcal
gained large market attention, which resulted in receiving its first
medal – a coveted Masters Award in The Spirits Business Tequila
and Mezcal Masters in early 2024.
Iconic KAH® Tequila managed to continue volume growth by
reaching +36% versus 2022. KAH® continued to get stronger
in the UK market, in Travel Retail, and by exploring new
opportunities in the LATAM region.
In close cooperation with the Stoli Group, APT is producing
premium-quality Cenote Tequila and Villa One Tequila. Villa One
was introduced in July 2019 and developed in a cooperative
arrangement between Stoli Group and the American singer-
songwriter Nick Jonas and the menswear designer John
Varvatos.
In 2023, for the second consecutive year in a row, APT achieved
the highest production volume on external and internal sales,
while Amber Agave achieved the first successful plantation with a
new growth method to secure a profitable future on field and on
bottling, allowing APT to unblock an extra capacity on filling lines
to support further growth.
The distillery is certified by the government of Mexico, which
has approved the extensive care shown for the environment.
APT has its own wastewater treatment plant, and the majority
of the factory's main electricity consumption is provided from
renewable sources via the use of solar panels. According to the
development plans, within the next few years, 100% of electricity
consumption will be supported by solar energy resources,
allowing APT to become completely independent from fossil
energy, thus reducing its carbon footprint.
AMBER BEVERAGE GROUP | ANNUAL REPORT 20236666 AMBER BEVERAGE GROUP | ANNUAL REPORT 2023
Our Distribution
Excellence
Experience in distribution leadership allows us to focus on
consumer preferences, driving the business at the Group level
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 67
Baltics
Amber Beverage Group’s Baltic distribution segment comprises
distribution companies Amber Distribution Latvia SIA (ADLV),
Amber Distribution Lithuania UAB (ADLT), Amber Distribution
Estonia OU (ADEE), Interbaltija AG AS (in 2024, renamed to
Interbaltija Amber SIA) (IB), as well as 65 retail stores: 45
Latvijas balzams stores in Latvia within the structure of ADLV, 17
Bravo Alco stores in Lithuania within ADLT, and 3 exclusive wine
stores Vinothek Gourmet within IB – in Latvia.
ADLV is the No. 1 distribution company in Latvia in terms of
volume and revenue, serving more than 3 500 customers in
all trade segments, from international key accounts to alco
specialists, traditional trade, the HoReCa segment, and border
trade. IB is a specialist premium wine and spirits distributor
that focuses on the HoReCa segment.
ADLT is the No. 1 alcohol importer in Lithuania with the most
prestigious and diversified portfolio in all categories, serving
over 5 300 customers in its key accounts, the HoReCa segment,
and traditional trade channels. ADLT has a well-developed
distribution network throughout Lithuania, with sales of more
than 1.8m 9Lcs annually.
ADEE is a mid-sized but competitive and dynamically
developing player in the Estonian beverage market, providing
customers with a wide range of international spirits and wine
brands. Being the fastest-growing distributor of international
spirits and wine brands in Estonia, ADEE in 2023 achieved
another record year. The company serves more than 1 100
outlets across the country with a portfolio of over 210 brands.
In 2023, the estimated total volume market share was 15.5%
(ADLV 26.3%, IB 1.1%, ADLT 14.0%, ADEE 4.0%). There were
significant and notable volume shares in the Brandy and
Cognac category (49.0%) and the Whiskey category (31.5%) in
Latvia (Sources: AC Nielsen, State Revenue Service (SRS)). In
Lithuania, the company leads the Brandy and Cognac category
(35.7%), the Whiskey category (37.5%), and the Wine category
(14.6%) (source: AC Nielsen; SOM Value 2023). In Estonia, the
company has a good share of the Whiskey category (23.5%) and
the Cognac category (8.7%) (sources: AC Nielsen, IWSR, internal
data). In the Baltic distribution segment, the top performing
volume categories in 2023 were Whiskey reaching 260k 9Lcs
(+3% vs 2022); Balsam standing at 124k 9Lcs (+3% vs 2022);
Ciders standing at 81k 9Lcs (+18% vs 2022); Bitters standing
at 46k 9Lcs (+14% vs 2022); and improved positions in Rum at
29k 9Lcs (+14% vs 2022) and Tequila at 10k 9Lcs (+11% vs 2022)
with a focus on the premium segments in these categories.
The beverage market in 2023 has been affected by a +6.8%
increase in excise tax for strong alcohol, +10% for still and
sparkling wines, and +10% for beer in Lithuania. In Latvia, 2023
was a challenging year with high inflation, especially in energy
and utility costs at Q1, followed by mortgage inflation due to
AMBER BEVERAGE GROUP | ANNUAL REPORT 202368
EURIBOR, which affected disposable income for consumers.
As a result, we saw a -4.7% decline in the total alcohol market
(-6.2% beer, -0.5% strong spirits, -6.7% fermented beverages,
-0.7% wine, and RTD with -2.4%) as per SRS. Estonia also
benefited from the lifting of Covid-19 restrictions and the return
of consumers from Finland. As a result, the total alcohol market
(excluding beer) grew by 9%.
As a result of good cooperation with brand owners, a more
important part of the brand portfolio is taken by the Energy
drink category at 205k 9Lcs (+3% vs 2022), Water at 673k 9Lcs
(+3% vs 2022), and Soft drinks at 216k 9Lcs (+8% vs 2022).
The key brands within these categories have continued to
outperform: Red Bull has reached a volume of 187k 9Lcs (+5%
vs 2022), S.Pellegrino Water reached 513k 9Lcs (+12% vs 2022),
and Sanpellegrino soft drinks of 106k 9Lcs (+40% vs 2022). This
has been achieved by continuing expansion in key retail chains
in the Baltics and gaining attraction in the On-trade segment.
Major Brands
Moskovskaya® Vodka: the brand has shown significant
growth, with volume and value both increasing by 15%
compared to 2022. However, in Lithuania, there has been a
stark decline in volume, plummeting by 30% compared to
2022. The decline can be attributed to the ban on products
associated with Russia, including Moskovskaya® Vodka, due
to public and political pressure following the war in Ukraine.
Despite being produced in Latvia, the brand continues to be
perceived as Russian, causing it to suffer alongside similar
brands. Conversely, in Latvia, Moskovskaya® Vodka has
strengthened its position as the No.1 vodka in its category,
experiencing a remarkable volume growth of +40% and value
growth of 43%, thus becoming the largest strong spirits brand
by volume in the country. The growth primarily stemmed from
regional chains, specialised alcohol stores, and Maxima. In
Estonia, we witnessed a volume growth of +18% and value
growth of 20%, successfully expanding in modern trade and
alcohol specialist chains.
Riga Black Balsam®: the brand experienced a 3% increase
in volume and a 7% increase in value compared to 2022. In
Lithuania, the brand's performance was notably positive, with
volume reaching +8% compared to 2022. Our efforts were
concentrated on further developing the Riga Black Balsam®
Black Currant and Cherry flavours, as well as strengthening
brand distribution and visibility in key retailers. We also focused
on building value through a review of trade discounts. In Latvia,
Riga Black Balsam® demonstrated strong growth driven by
domestic consumption, with volume and value both rising
by 3% and 7% respectively compared to 2022. Despite facing
limited bottle availability in Q1 due to supply disruptions
from Ukraine, the potential remains high. In Estonia, after the
rapid growth of the brand by 15% in 2021, there has been a
slowdown, with volume and value both slightly decreasing
by 3% and 2% respectively compared to 2022. Our focus now
shifts to optimizing margins by 11% and ensuring that the right
distribution and activation strategies are in place.
Cosmopolitan Diva®: the brand has demonstrated notable
growth, with volume increasing by 6% and value by 13%
compared to 2022. In Lithuania, the brand experienced a 9%
volume growth, attributed to enhanced on-shelf rotation
in both modern and traditional trade outlets, as well as
incremental gains from the non-alcoholic expression. The
brand remains active in influencer communication, digital
campaigns, and Off-trade activations. Despite being a mature
brand in Latvia, where volume remained stable, but value
didn't change compared to 2022, we encountered setbacks
due to the product formula being included in the deposit
system, impacting its performance in the sparkling category.
Conversely, in the Estonian markets, we witnessed a volume
growth of 8% and value growth of 13% compared to 2022,
driven by strong development across modern trade and border
sales channels.
Bumbu Rum: volume enjoyed +35% growth and value +36%
growth vs 2022. Key market Latvia delivered 29% growth in
volume, strengthening its No. 1 position in the premium Rum
category. At the same time, we observed successful distribution
buildup in the Lithuanian market with +53% volume growth
and in the Estonian market with +41% volume growth.
Jim Beam: volume in the Baltics grew by +9% and in value
by +11% vs 2022. In all three markets, we executed price
increases and faced fierce competition from Johnny Walker,
Ballantine’s, and Jack Daniel. Latvia’s volume and value growth
of +19% vs 2022 was secured by returning with the listing in
the Maxima chain. The market remained highly promo-driven
on 1l and 0.7l SKUs. Estonian volume and value grew by 18%;
the key focus was behind activation on 0.7l and 1l SKUs to
limit historical dependency on 0.5l. In Lithuania, Jim Beam
brand performance was negative in 2023 with -9% volume and
flat in value vs 2022. Adjusted price positioning was the main
influencing factor in Jim Beam sales.
Jack Daniel’s: volume grew by 4%, value grew by 10% vs 2022.
Positive development was achieved due to the strong focus
on competitive pricing, new line extension launches, branded
Off-trade activations, and capitalizing on high brand awareness
and established brand image. Jack Daniel’s brand kept and
strengthened its No. 1 whiskey brand position by value and No.
2 whiskey brand position by volume in the Lithuanian market.
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 69
Online Sales Platforms
Covid-19 has changed online shopping worldwide, and ABG
Baltic distribution units are no exception. During the pandemic,
online consumption changed significantly, with a greater
proportion of consumers buying essential products, such
as food and beverages, online. Therefore, ADLT continued
the development and further promotion of its online sales
platform, www.amberdrinks.lt. The platform offers a wide range
of alcoholic beverages, outstanding wine collections and more.
Latvijas balzams stores continued online sales at the
e-commerce platform www.lbveikali.lv. In addition, the
opportunity to sell ABG assortments via the external delivery
online platform Bolt was also utilized. Along with e-commerce
platform development, Latvijas balzams stores promoted and
advertised core brands on social media, which undoubtedly
increased the visibility and distribution of our core brands
throughout Latvia.
Portfolio Development
During 2023, the portfolio was further strengthened in Lithuania by:
1. New third-party supplier products from big brand families
that were successfully launched in the market: Jack
Daniel’s Tennessee Rye and Jack Daniel’s Bonded whiskey,
Gin Mare, Hendrick’s Flora Adora gin, and new
San Pellegrino lemonade flavours.
2. Wine portfolio strengthening with world-known wine
brands: Fantini, Villa Maria, Yalumba, Henschke, and line
extensions - Diablo Golden Chardonnay.
3. Sparkling wine and champagne category expansion with
Masia and Hola Cava brands and Vilmart Champagne
brand.
The key focus for 2023 in Latvia was portfolio optimisation,
including delisting of unprofitable ABG and third-party brands
and SKUs and upgrading portfolio with more premium and
profitable brands such as. We introduced and carried out:
1. New line extensions for Moka, Hektors, and Lucky dog.
2. New wines from South Africa, Australia, USA, Italy, and France.
3. Mainstream/premium prosecco variety.
4. Continuous portfolio development at RTD segment.
5. Seasonal in-out (summer and winter) introduction for
sparkling’s.
The Pan Baltic portfolio's further development foresees:
1. Sign up of pan-Balticcontract for alco mixers Franklin & Sons.
2. Laurent Perrier expansion to Estonia becoming a pan-Baltic
partner.
AMBER BEVERAGE GROUP | ANNUAL REPORT 202370
United Kingdom
The UK saw a difficult confluence of macroeconomic factors in
2023, generating challenging market conditions for the drinks
industry. Foremost among these factors were the following:
• Volatile consumer confidence: largely in reaction to
the cocktail of recession, sky-rocketing interest rates
and mortgages, and the energy crisis, UK consumer
confidence in 2023 was incredibly volatile. Consumers
were also wary of short-term, headline-grabbing price
reductions and “skrinkflation”, resulting in cautious
spend in grocery outside of essential items.
• Escalating labour costs and shortages: this contributed
to constricted non-essential spend, and also increased
labour costs for hospitality operators.
• Alcohol duty hike: on 1 August 2023, a new duty regime
came into effect in the UK, the single biggest alcohol duty
increase in almost 50 years. Alcohol specialist retailers
reported dampened Christmas spend with a 10.4% drop
in volume on prior year.
• On-trade operators squeezed: On-trade operators
struggled in the face of restricted disposable income,
and ongoing train strikes (disrupting both guests’ and
staff ability to travel), resulting in shorter operating hours
across the board. Wholesalers supplying these operators
reported squeezed credit lines as trade debtors fell
behind on payments, and a dramatic drop in order
volumes.
Against this challenging backdrop of economic and political
inconsistency, Amber Beverage UK Ltd. (ABUK) has striven to
provide strategic clarity around its purpose and portfolio to the
market. In early 2023, a new leadership team was appointed
with the aim of integrating Amber Beverage UK with Indie
Brands. A multitude of integration projects were initiated and
realised throughout the year, including portfolio rationalisation
by removing the complicated tail of low-performance brands
and improving cash position, consolidating all stock and
distribution through a single warehouse provider, marketing,
sales, finance, and operations team restructures, opening
the new London office and closing two regional offices, and
articulating the UK sustainability pledge and roadmap (now
a compulsory prerequisite for tender success). Although
these actions delivered integration synergies and commercial
benefits, 2023 performance was plagued by third-party brand
departures.
Portfolio changes
Significant competitor brand owner acquisition has meant that
some key third-party brands exited the ABUK portfolio, with
future potential risk in 2024-2025. This further compounded the
portfolio rationalisation project, as several brand acquisitions
had a material impact on margin contribution (approximately
£3 million) and ultimately EBITDA. These include Sovereign
Brands (including Bumbu Rum) - acquired by Pernod-Ricard,
Silent Pool Gin – acquired by William Grant, Don Papa Rum
– acquired by Diageo (although it will remain in the ABUK’s
portfolio until at least April 2025), and Vantguard (including Gin
Mare) – acquired by Brown Forman.
ABUK sought to remove low-margin, high-volume categories
such as beer and soft drinks from the portfolio, as increased
warehousing and distribution costs have made these
categories non-profitable (including Super Bock beer and Fritz-
Kola).
Major brands
A cleaner portfolio strategy derived positive results for our other
major brands through clarity of market position, sales and
marketing priorities, and increased focus.
Rooster Rojo® Tequila: the brand achieved remarkable
volume sales, reaching 4.7k 9Lcs, representing a staggering
70% increase compared to 2022. This surge was predominantly
fuelled by heightened On-trade distribution facilitated by major
regional and national wholesalers, such as Speciality Drinks,
Hammonds of Knutsford, LWC, Matthew Clark, and Venus.
Moskovskaya® Vodka: the brand experienced a significant
boost in volume sales following a pivotal listing with Scotland’s
largest bars operator, The Scotsman Group. This strategic
move had a comprehensive effect on sales throughout the
Scottish region and is expected to sustain momentum into
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 71
2024. Surpassing 10k 9Lcs, the volume exceeded twice the sales
recorded in 2022, marking a remarkable achievement for the
brand.
Stoli Premium: volume sales remained relatively consistent
despite substantial investment from the competitive set,
particularly in the retail environment (71k 9Lcs in 2023 vs 73k
9Lcs in 2022).
Luxardo: volumes increased in the emerging categories
(Aperitivo, Limoncello, Liqueurs, and Cherries) except its
traditional heartland of Sambuca, which is a rapidly declining
category in the UK as “shot culture” becomes ever less
fashionable in an era of conscious consumption (47k 9Lcs in
2023 vs 53k 9Lcs in 2022).
Faustino: volume sales of Faustino reached 193k 9Lcs,
representing +13% growth vs 2022. Consumers’ retreat to safety
in retail saw strong performance for recognised brands. As the
world’s number one Rioja market and the number two Rioja
brand within it, Faustino was a beneficiary of this phenomenon.
Don Papa: acquired by Diageo but remaining with ABUK in
the mid-term, Don Papa benefited from a significant uptick in
brand investment from its new parent company, which helped
drive volumes to 16k 9Lcs, representing +27% growth vs 2022.
Finest Call and Real: volumes reached 60k 9Lcs in 2023, up
by 17% vs 2022. Despite sustainability challenges around
packaging, Finest Call offers a compelling cocktail solution
through superior-quality ingredients, ambient storage, and
extended shelf life relative to a competitive set.
AMBER BEVERAGE GROUP | ANNUAL REPORT 202372
Australia
2023 proved to be both a successful and a challenging for the
team at Amber Beverage Australia (ABAU). We achieved strong
growth in volumes (+8.3% vs 2022) and revenue (+17.2% vs
2022) by expanding our core brands and attracting exceptional
new brands to the portfolio. Overall, the business achieved
AUD 869k EBITDA, but fell of delivering on our full-year EBITDA
budget due to a gap in volumes compared to the budget and
growing investment needs in brand building.
At ABAU, we have partnered with some of the world’s finest
international spirits businesses, such as Whyte & Mackay,
Heaven Hill, Fratelli Branca, and Crystal Head Vodka. These
partnerships, developed over many years, ensure that we
work closely together to achieve our shared objectives. We
also released several exciting brands onto the market and
achieved positive initial sales volumes for brands that include
818 Tequila, Shanky’s Whip and Curatif, as well as reintroduced
Kentucky Owl.
Our brands are ranged and distributed by Australia’s largest
liquor retailers, Endeavour Drinks Group and Coles Liquor.
We also utilise the Australia-wide wholesalers’ networks, such
as Australian Liquor Marketers, Paramount, and Liquid Mix,
which serve On- and Off-premise customers. In addition, we
have our Amber Rewards loyalty programme, which sees us
communicating, training, and rewarding nearly 3 000 On-
premise bar staff and managers who serve our quality brands
to consumers every day.
Major brands
Rooster Rojo® Tequila: 2023 was another record year for
the brand, with volumes up by 25% on the previous year,
surpassing the 8k 9Lcs benchmark. This is despite industry-
wide supply and logistics issues that hampered our ability
to supply the market for extended periods. Distribution
was gained across both On-trade and Off-trade channels as
consumers flocked to the brand.
Moskovskaya® Vodka: Annual volumes standing at 6.3k
9Lcs, with growth of 115% vs last year, meant that 2023 was
continued success after 2022, when Moskovskaya® Vodka
established itself in the Australian market. Consumers have
quickly realised that Moskovskaya® Vodka represents good
value for money, is highly awarded, and is affordable.
Stoli Premium: Brand has established a solid place in the
portfolio, with volumes at a similar level to 2022 but +7%
growth in value. Growth was achieved by activation of duty-free
channels and +152% growth in Coles.
New brands
In 2023, ABAU’s portfolio was expanded by three strong
brands: 818 Tequila, Shanky’s Whip, and a new category in
the portfolio with Curatif RTDs. Both 818 Tequila and Shanky’s
Whip were introduced to the market in August. 818 Tequila
had a successful launch, and while only launched in August,
the sales had reached 2.9k 9Lcs, positioning itself amongst
the top-selling brands in our portfolio. Shanky’s Whip was also
launched in August, adding to ABAU’s liqueur category and
reaching 637 9Lcs in its first five months. Curatif was the last
launch of the year in October, reaching 2k 9Lcs till the end of
the year.
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 73
Austria and Germany
In 2023, Amber Beverage Austria GmbH (ABAT) faced
unprecedented challenges, significantly impacting our
traditional business model. The primary factor was the
decision to discontinue our direct HoReCa delivery business
line operated under the Barexpress name. This strategic
shift resulted in a substantial reduction in our operational
scope from a volume perspective; however, this decision
was important to build for future business development and
allowing to focus on distribution as the key function.
The highest inflation rate in modern Austria, in combination
with a consumption decline, has negatively impacted the
business and resulted in a volume drop of 3%. Despite that,
ABAT generated net revenue of EUR 10.3m, an increase of 8%
compared to 2022, underlining the effectiveness of a realigned
business strategy and strong market positioning.
After its first full year of operations in 2022, Amber Beverage
Germany GmbH (ABGE) experienced significant business
growth in 2023. Total volume increased by 105% in 2023, and
total gross margin increased by 123%, indicating the positive
results of the long-term plan of business development in
Germany, the largest beverage market in Europe.
Strategic Partnerships and Market Successes
2023 was marked by significant listings that enhanced our
market presence. Notably, we achieved the listing of an own
brand at REWE, one of the two largest retailers in the Off-
trade sector in Austria, and successfully placed Kazna Vodka
with Hofer (Aldi), the leading discount retailer in Austria, with
already nearly 6k 9Lcs. These accomplishments underscore our
capacity to forge strong partnerships and expand our presence
in key markets.
In 2023, ABGE kept working with one of the top 5 largest
distributors in Germany, which resulted in Amber Beverage
Germany's products getting listed in some of the largest
retailers in the Off-trade sector in Germany, finishing the year
with significantly improved brand awareness for Tambovskaya®
Vodka in Germany.
Optimized Portfolio for Market Agility
In response to 2023’s challenges, ABAT significantly streamlined
its brand portfolio, focusing intensely on our main brands
and reducing inventory to enhance our market agility and
efficiency. This strategic consolidation aimed at concentrating
our efforts and resources on the core brands that drive our
business. Among these, Terme di Crodo with 25k 9Lcs, König
Ludwig with 14k 9Lcs, and Badel 1862 with 12k 9Lcs continued
to be strong performers, showcasing our portfolio's resilience
and capability to serve a diverse customer base.
Moreover, we achieved a significant milestone with Three Sixty
Vodka being listed nationally across the entire off-trade sector,
demonstrating strong strategic focus and success in elevating
the availability and appeal of the brand.
In 2023, ABGE remained on the same course, mainly focusing
on the distribution of ABG brands. A strategy to keep focusing
on vodka category was also used resulting in sale of 42k 9Lcs of
Tambovskaya® Vodka.
New Brands
In 2023, ABAT made strategic adjustments to its brand portfolio,
including the introduction of Coppa Cocktails RTD to the
portfolio. Furthermore, we focused on streamlining our brand
portfolio by minimizing our engagement with many small-
scale, low-return brands. This move allowed us to concentrate
our efforts and resources on strategic brand development.
Additionally, our portfolio was enriched by the inclusion of
the private labels: Clever for REWE and Kazna Vodka for Hofer,
demonstrating our ability to adapt and thrive amidst market
shifts.
AMBER BEVERAGE GROUP | ANNUAL REPORT 202374
Leading Third Party Brands
As one of the foremost importers and distributors in the
beverage industry, we take pride in our extensive portfolio,
boasting approximately 1 300 esteemed international wine and
spirits brands. From luxurious vodkas to exquisite sparkling
wines, our selection caters to diverse tastes and preferences.
Amber Beverage Group stands as a beacon of excellence,
serving as the go-to brand management and distribution
partner for a prestigious roster of international brand owners
and producers. Among our esteemed partners are industry
titans such as Askaneli Brothers, Badel 1862, Beam Suntory,
Bodegas Faustino, Brown-Forman, Casillero del Diablo, De
Kuyper, Diageo, Heaven Hill, Jägermeister, Luxardo, Pernod
Ricard, Red Bull, Torres, and many more.
As the world emerged from the disruptions caused by the
Covid-19 pandemic into a period of growing economic
instability, 2023 has been a time of challenges and
opportunities for ABG distribution companies worldwide.
As societies began to navigate towards a semblance of
normalcy, with the resurgence of social and nightlife activities
in On-trade channels, coupled with the gradual reopening of
international travel, our sales teams across Australia, Austria,
Estonia, Latvia, Lithuania, and the UK observed encouraging
sales trends across all segments and categories. Concurrently,
the significance of e-commerce channels continued to
amplify, underscoring the importance of a dual focus on both
traditional commercial endeavors and online marketplaces.
Furthermore, in 2023, we undertook a comprehensive review,
overhaul, and relaunch of our Excellent Distribution Standards,
serving as the bedrock for maintaining ABG's commitment to
excellence across all our distribution entities. This initiative
encompassed refining guidelines to delineate performance
targets for our sales personnel, elevating merchandising
standards to enhance brand visibility, and implementing
enhancements to our performance recording platform,
thereby streamlining the capture of distribution team outputs.
Our steadfast adherence to these standards on a global
scale fortifies our collaborative efforts with customers and
consumers alike, regardless of our operational footprint.
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 75
AMBER BEVERAGE GROUP | ANNUAL REPORT 202376
Consolidated
Financial Statements
76 AMBER BEVERAGE GROUP | ANNUAL REPORT 2023
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 77
Consolidated
Financial Statements
77AMBER BEVERAGE GROUP | ANNUAL REPORT 2023
AMBER BEVERAGE GROUP | ANNUAL REPORT 202378
Contents
Primary Statements 79
Consolidated Statement of Profit or loss and
Other Comprehensive Income 79
Consolidated Statement of Financial Position 80
Consolidated Statement of Changes in Equity 82
Consolidated Statement of Cash Flows 84
Notes to the Consolidated Financial Statements 86
Accounting information and policies 86
1. General Information 86
2. Basis of Preparation 87
3. Changes in accounting policies and disclosures 88
4. Critical Assumptions and Estimates 89
Results for the Year 90
5. Segment Reporting 90
6. Operating Profit 93
7. Auditor’s Remuneration 95
8. Staff Costs 96
9. Finance Income and Costs 96
10. Corporate Income Tax 97
Operating Assets and Liabilities 99
11. Business Combinations and Assets Held for Sale 99
12. Intangible Assets 103
13. Property, Plant and Equipment 108
14. Right–of–use Assets 110
15. Biological Assets 111
16. Working Capital 111
Risk Management and Capital Structure 114
17. Risk Management 114
18. Net Borrowings 121
19. Leases 123
20. Cash and Cash Equivalents 124
21. Capital Management 125
22. Share Capital and Share Premium 126
23. Pooling Reserve 126
24. Non–controlling Interest 126
Other Financial Information 127
25. Commitments and Contingencies 127
26. Related Party Transactions 130
27. Investment Properties 132
28. Group Information 133
29. Other Accounting Policies 134
30. Impact from Changes in Accounting Policy 137
31. Events After the Balance Sheet Date 137
Statement of the Board of Managers’
Responsibilities for the Preparation and
Approval of the Consolidated Financial Statements 138
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 79
Primary Statements
Consolidated Statement of Profit or Loss and
Other Comprehensive Income
Notes | 2023 EUR 000 | 2022 (restated) EUR 000 | |
| Revenue | | | |
| Excise tax and duties | ( | ( | |
| Net revenue | 5 | | |
Cost of goods sold | 6.1 | ( | ( |
| Gross profit | | | |
Selling expenses | 6.2 | ( | ( |
General and administrative expenses | 6.3 | ( | ( |
| Net impairment losses on financial assets | ( | | |
Fair value adjustment on biological assets | 16 | ( | |
Other operational income | 6.4 | | |
| Other operational expenses | ( | ( | |
| Merger and acquisition related costs | ( | ( | |
| Operating profit | | | |
Net finance income / (costs) | 9 | ( | ( |
| Profit before tax | | | |
Income tax expense | 10 | ( | ( |
| Profit for the year | | | |
Attributable to: | |||
| Owners of the parent | | | |
| Non-controlling interest | | | |
| | | ||
Other comprehensive (losses)/ income (cannot be subsequently reclassified to profit or loss) | ( | | |
| Total comprehensive income for the year | | | |
Attributable to: | |||
| Owners of the parent | | | |
| Non-controlling interest | | | |
| | |
Arturs Evarts
Chairman of the Board of Managers
These consolidated financial statements on pages 78 to 137 were approved
by the Board of Managers on 27 May 2024 and signed on its behalf by:
AMBER BEVERAGE GROUP | ANNUAL REPORT 202380
Consolidated Statement of Financial Position
Assets
Notes
31/12/2023
EUR 000
31/12/2022
(restated)
EUR 000
31/12/2021
(restated)
EUR 000
Non-current assets
Intangible assets
12
Property, plant and equipment
13
Rights-of-use assets
14
Investment properties
27
Biological assets
15
Loans to related parties
26.2
Other non-current financial assets 3 400 3 183 2 204
Non-current financial investments 2 214 2 184 2 810
Deferred tax asset
10.3
Total non-current assets 200 262 197 307 185 524
Current assets
Inventories
16.1
Trade and other receivables
16.2
Loans to related parties
26.2
Current income tax receivable 1 578 146 812
Short term deposits
18
Cash and cash equivalents
20
Total current assets 268 386 237 391 237 697
Assets held for sale – 23 327 –
Total assets 468 648 458 025 423 221
Arturs Evarts
Chairman of the Board of Managers
These consolidated financial statements on pages 78 to 137 were approved by
the Board of Managers on 27 May 2024 2024 and signed on its behalf by:
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 81
Consolidated Statement of Financial Position
Equity and liabilities
Notes
31/12/2023
EUR 000
31/12/2022
(restated)
EUR 000
31/12/2021
(restated)
EUR 000
Capital and Reserves
Share capital
22
Share premium
22
Foreign exchange revaluation reserve (2 683 ) (627 ) 366
Other reserves 1 1 1
Asset revaluation reserve
13
Pooling reserve
23
(21 268 ) (18 041 ) (18 041)
Revaluation reserve of derivative financial instruments 8 98 (68)
Retained earnings 60 573 63 041 53 517
Total equity attributable to owners of the parent 169 720 177 038 168 341
Non controlling interest 24 15 114 15 445 12 008
Total equity 184 834 192 483 180 349
Liabilities
Non-current liabilities
Borrowings
18
Trade and other payables
16.4
Deferred tax liability
10.3
Derivative financial instruments (8 ) (98 ) 68
Total non-current liabilities 16 710 23 895 51 622
Current liabilities
Borrowings and bank overdrafts
18
Trade and other payables
16.4
Taxes payable
16.3
Current income tax liabilities
16.3
Total 267 104 227 945 191 250
Liabilities directly associated with the assets held for sale – 13 702 –
Total current liabilities 267 104 241 647 191 250
Total liabilities 283 814 265 542 242 872
Total equity and liabilities 468 648 458 025 423 221
Arturs Evarts
Chairman of the Board of Managers
These consolidated financial statements on pages 78 to 137 were approved by
the Board of Managers on 27 May 2024 and signed on its behalf by:
AMBER BEVERAGE GROUP | ANNUAL REPORT 202382
Consolidated Statement of Changes in Equity
Attributable to the owners of the parent
Notes
Share
capital
EUR 000
Share
premium
EUR 000
Foreign
exchange
revaluation
reserve
EUR 000
Pooling
reserve
EUR 000
Revaluation
reserve of
derivative
financial
instruments
EUR 000
Asset revalua-
tion reserve
EUR 000
Other
reserves
EUR 000
Retained
earnings
EUR 000
Total
EUR 000
Non–control-
ing interest
EUR 000
Total
equity
EUR 000
As at 1 January 2022 (reported) 13 132 553 243 (18 041 ) (68 ) – 1 51 279 165 980 12 008 177 988
Effect of changes in accounting
policy
30
As at 1 January 2022 (restated) 13 132 553 366 (18 041 ) (68 ) – 1 53 517 168 341 12 008 180 349
Dividends
26.4
Profit for the year – – – – – – – 20 524 20 524 3 022 23 546
Other comprehensive income – – (993 ) – 166 – – – (827 ) 899 72
Total comprehensive income – – (993 ) – 166 – – 20 524 19 697 3 921 23 618
As at 31 December 2022 13 132 553 (627 ) (18 041 ) 98 – 1 63 041 177 038 15 445 192 483
Dividends
26.4
Profit for the year – – – – – – – 4 305 4 305 1 073 5 378
Other comprehensive income – – (2 056 ) – (90 ) 523 – – (1 623 ) (421 ) (2 044 )
Total comprehensive income – – (2 056 ) – (90 ) 523 – 4 305 2 682 652 3 334
Reclassification of reserve due to
reorganisation of the Group
23
Derecognition due to disposal of
subsidiary
23
As at 31 December 2023 13 132 553 (2 683 ) (21 268 ) 8 523 1 60 573 169 720 15 114 184 834
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 83
Attributable to the owners of the parent
Notes
Share
capital
EUR 000
Share
premium
EUR 000
Foreign
exchange
revaluation
reserve
EUR 000
Pooling
reserve
EUR 000
Revaluation
reserve of
derivative
financial
instruments
EUR 000
Asset revalua-
tion reserve
EUR 000
Other
reserves
EUR 000
Retained
earnings
EUR 000
Total
EUR 000
Non–control-
ing interest
EUR 000
Total
equity
EUR 000
As at 1 January 2022 (reported) 13 132 553 243 (18 041) (68 ) – 1 51 279 165 980 12 008 177 988
Effect of changes in accounting
policy
30
– – 123 – – – – 2 238 2 361 – 2 361
As at 1 January 2022 (restated) 13 132 553 366 (18 041) (68 ) – 1 53 517 168 341 12 008 180 349
Dividends
26.4
– – – – – – – (11 000 ) (11 000 ) (484 ) (11 484 )
Profit for the year – – – – – – – 20 524 20 524 3 022 23 546
Other comprehensive income – – (993) – 166 – – – (827 ) 899 72
Total comprehensive income – – (993) – 166 – – 20 524 19 697 3 921 23 618
As at 31 December 2022 13 132 553 (627) (18 041) 98 – 1 63 041 177 038 15 445 192 483
Dividends
26.4
– – – – – – – (10 000 ) (10 000 ) (469 ) (10 469 )
Profit for the year – – – – – – – 4 305 4 305 1 073 5 378
Other comprehensive income – – (2 056) – (90 ) 523 – – (1 623 ) (421 ) (2 044 )
Total comprehensive income – – (2 056) – (90 ) 523 – 4 305 2 682 652 3 334
Reclassification of reserve due to
reorganisation of the Group
23
– – – 63 – – – (63 ) – – –
Derecognition due to disposal of
subsidiary
23
– – – (3 290) – – – 3 290 – (514 ) (514 )
As at 31 December 2023 13 132 553 (2 683) (21 268) 8 523 1 60 573 169 720 15 114 184 834
AMBER BEVERAGE GROUP | ANNUAL REPORT 202384
Consolidated Statement of Cash Flows
Notes | 2023 EUR 000 | 2022 (restated) EUR 000 | |
Cash flows from operating activities | |||
| Profit before tax | | | |
Adjustments for: | |||
Depreciation and amortisation charge | 6 | | |
Reversal of impairment loss | 6 | ( | |
Net gain on disposal of property, plant and equipment, investment properties and intangible assets | 6.4 | ( | ( |
Net loss from disposal of subsidiaries | 11.1 | | |
Interest income | 9 | ( | ( |
Interest expense | 9 | | |
| Other adjustments | ( | | |
Fair value adjustment on biological assets | 15 | | ( |
| Cash generated from operations before changes in working capital | | | |
Working capital changes: | |||
| (Increase)/ decrease in inventories | | ( | |
| (Increase)/ decrease in trade and other receivables | ( | ( | |
| Increase/ (decrease) in trade and other payables | | | |
| Cash generated from operations | | | |
| Corporate income tax paid | ( | ( | |
| Interest received | | | |
| Net cash generated from operating activities | |
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 85
Notes | 2023 EUR 000 | 2022 (restated) EUR 000 | |
Cash flows used in investing activities | |||
Payments to acquire property, plant and equipment and right to use assets | ( | ( | |
Payments to acquire investment properties | ( | ||
Payments to acquire intangible assets | ( | ( | |
Payments to acquire biological assets | ( | ( | |
Proceeds from disposal of property, plant and equipment | |||
Proceeds from disposal of subsidiary, net of cash disposed | |||
| Payments for acquisition of subsidiaries | 16.4 | ( | |
Short term deposits placed | ( | ||
Net cash used in investing activities | ( | ( | |
Cash flows used in financing activities | |||
Interest paid | ( | ( | |
| Change in overdraft | 18.2 | ||
Proceeds from issue of bonds | |||
Borrowings received | |||
Borrowings from related parties | |||
Repayment of borrowings | ( | ( | |
Lease payments | ( | ( | |
| Dividends paid to Parent Company's shareholders | 26.4 | ( | ( |
Dividends paid to non-controlling interests in subsidiaries | ( | ( | |
Net cash used in financing activities | ( | ||
Net change in cash and cash equivalents | |||
Cash and cash equivalents at the beginning of the period | |||
Effects of exchange rate changes on cash and cash equivalents | ( | ||
| Cash and cash equivalents at the end of the period | 20 |
AMBER BEVERAGE GROUP | ANNUAL REPORT 202386
1. General Information
These consolidated financial statements were approved
and authorised for issue by the Board of Managers of Amber
Beverage Group Holding S.à r.l. (the Parent Company) on
27 May 2024.
The Parent Company was incorporated on 26 September
2017 under the laws of the Grand Duchy of Luxembourg
with the registered number B218246 as Amber Beverage
is at 44 Rue de la Vallée, L-2661, Luxembourg. The main
shareholder of the Group, which owns 94% of shares of the
Parent Company, is SPI Group Holding Limited
in Cyprus, the ultimate beneficial owner of the Group is Mr.
Yuri Schefler.
As of 31 December 2023, Amber Beverage Group (further on –
the Group or ABG) consists of the Parent Company and its
subsidiaries (see also Note 28).
The Parent Company, together with its subsidiaries (the
Group), is involved in production and distribution of branded
The approval of the consolidated financial statements of
the Group at a meeting of shareholders shall be postponed
if, disputing the correctness of separate positions in the
consolidated financial statements, the postponement is
requested by shareholders who represent at least one tenth
of the equity capital.
Notes to the Consolidated
Financial Statements
Accounting information and policies
This section describes the basis of preparation of the consolidated financial
statements and the Group’s accounting policies that are applicable to the financial
statements as a whole. Accounting policies, critical accounting estimates, and
judgements that are specific to a note are included in the note to which they
relate. This section also explains new accounting standards, amendments, and
interpretations that the Group has adopted in the current financial year or will
adopt in subsequent years.
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 87
2. Basis of Preparation
The consolidated financial statements of the Group have been
prepared in accordance with International Financial Reporting
Standards as issued by the International Accounting Standards
The consolidated financial statements have been prepared using
the measurement, recognition, presentation and disclosure basis
specified by IFRS for each type of asset, liability, income and
expense.
The cash flows from operating activities in the consolidated
statement of cash flows is prepared according to indirect method.
Expenses in the consolidated statement of comprehensive
income are classified by function.
Going Concern
These consolidated financial statements have been prepared
on a going concern basis. In determining that the business is
a going concern, the Management has considered, among the
other factors, the following: the net result for 2023 is a profit
of EUR 5 378 thousand, Normalized EBITDA ratio (earnings
before interest, taxes, depreciation and amortisation adjusted
by merger and acquisition related costs and fair value change
of biological assets) has reached EUR 31 980 thousand, as at
the 31 December 2023 the Group has positive equity of EUR
184 834 thousand, the current assets exceed current liabilities.
In 2023, the Group has started a refinancing process of its loan
portfolio, which is expected to be finalized by mid-2024 and will
improve the leverage position of the Group. The Management
believes there are no material uncertainties that lead to
significant doubt about the Group's ability to continue as a
going concern in the foreseeable future.
Basis for Measurement
The consolidated financial statements have been prepared on a
historical cost basis, except for derivative financial instruments,
land used in agricultural activity and biological assets that are
recognised at fair value and assets held for sale measured at the
These consolidated financial statements cover the period from
Basis of Consolidation
The consolidated financial statements incorporate the financial
statements of the Parent Company and entities controlled by
the Parent Company (its subsidiaries). Control is achieved when
the Group is exposed, or has rights, to variable returns from
its involvement with the investee and can affect those returns
through its power over the investee. Specifically, the Group
controls an investee if, and only if, the Group has:
• Power over the investee (i.e. existing rights that give it the
current ability to direct the relevant activities of the investee);
• Exposure, or rights, to variable returns from its involvement
with the investee;
• The ability to use its power over the investee to affect its
returns.
Generally, there is a presumption that the majority of voting
rights result in control. To support this presumption and
when the Group has less than a majority the voting or similar
rights of an investee, the Group considers all relevant facts
and circumstances in assessing whether it has power over an
investee, including:
• The contractual arrangement with the other vote holders of
the investee;
• Rights arising from other contractual arrangements;
• The Group’s voting rights and potential voting rights.
The Group re–assesses whether it controls an investee if facts and
circumstances indicate that there are changes to one or more
of the three elements of control. Consolidation of a subsidiary
begins when the Group obtains control over the subsidiary and
ceases when the Group loses control of the subsidiary. Assets,
liabilities, income and expenses of a subsidiary acquired or
disposed of during the year are included in the consolidated
financial statements from the date the Group gains control until
the date the Group ceases to control the subsidiary.
Subsidiaries
Subsidiaries are part of the Group from the date of their
acquisition, being the date on which the Group obtains control,
and continue to be part of the Group until the date that such
control ceases. Control comprises the power to govern the
financial and operating policies of the investee to obtain benefit
from its activities and is achieved through direct or indirect
ownership of voting rights currently exercisable or convertible
potential voting rights or by way of contractual agreement. The
financial statements of subsidiaries are prepared for the same
reporting year as the parent company and are based on consistent
accounting policies. All intra–group balances and transactions
including unrealized profit arising from them are eliminated in full.
A change in the ownership interest of a subsidiary, without
loss of control, is accounted for as an equity transaction. If
the Group loses control of a subsidiary it: (i) derecognises the
assets (including goodwill) and liabilities of the subsidiary; (ii) de
recognises the carrying amount of any non–controlling interest;
(iii) derecognises the cumulative translation differences recorded
in equity; (iv) recognises the fair value of the consideration
received; (v) recognises the fair value of any investment retained;
(vi) recognises any surplus or deficit in profit or loss; (vii)
recognises the parent’s share of any components previously
recognised in other comprehensive income to profit or loss or
retained earnings, as appropriate.
AMBER BEVERAGE GROUP | ANNUAL REPORT 202388
Functional and presentation currency
The functional and presentation currency of the main Group
entities is the euro (EUR) as the European Union is the primary
economic environment in which the Group’s subsidiaries operate.
These consolidated financial statements are presented in
thousand euros (unless stated differently).
In preparing the financial statements of each individual group
entity, transactions in currencies other than the entity’s functional
currency (foreign currencies) are recognised at the rates of
exchange prevailing at the dates of the transactions. At the end of
each reporting period, monetary items denominated in foreign
currencies are retranslated at the rates prevailing at that date.
During the consolidation process for entities with functional
currency other than the functional currency of the Parent
Company, the positions of statement of financial position are
revalued at year–end exchange rate, the positions of statement of
comprehensive income, cash–flow statement and statement of
changes in equity are revalued at annual average exchange rate
(or the average exchange rate for the period the Group has obtain
the control set by the European Central Bank or Central bank of
respective location).
The following foreign currency exchanges rates have been
applied:
3. Changes in accounting policies and disclosures
Accounting of land used for agriculture activity
The Group re-assessed its accounting for property, plant and
equipment with respect to measurement of a certain class
of property, plant and equipment after initial recognition.
The Group had previously measured all property, plant
and equipment using the cost model whereby, after initial
recognition of the asset classified as property, plant and
equipment, the asset was carried at cost less accumulated
depreciation and accumulated impairment losses.
On 1 January 2023, the Group elected to change the method
of accounting for land used in agricultural activity classified as
property, plant and equipment, as the Group believes that the
revaluation model provides more relevant information to the
users of its financial statements as it is more aligned to practices
adopted by its competitors. In addition, available valuation
techniques provide reliable estimates of land’s fair value. The
Group applied the revaluation model retrospectively. For impact
of change in accounting policy on valuation of land used for
agricultural activity see in Note 30.
After initial recognition, land used in agricultural activity is
measured at fair value at the date of the revaluation less any
31/12/2023 2023 average 31/12/2022 2022 average 31/12/2021
USD/EUR 1.1050 1.0813 1.0666 1.0530 1.1326
AUD/EUR 1.6263 1.6288 1.5693 1.5167 1.5615
GBP/EUR 0.8691 0.8698 0.8869 0.8528 0.8403
RUB/EUR 99.1919 92.8741 75.6530 66.8916 85.3004
MXN/EUR 18.7231 19.1830 20.8560 21.1869 23.1438
CHF/EUR 0.9260 0.9718 0.9847 1.0047 1.0331
CAD/EUR 1.4642 1.4595 1.4440 1.3695 1.4393
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 89
Standards or interpretations effective for the first time for the
annual periods beginning 1 January 2023:
• IFRS 17 Insurance Contracts (effective for annual
periods beginning on or after 1 January 2023).
• Amendments to IFRS 17 and an amendment to IFRS 4
(effective for annual periods beginning on or after 1
January 2023).
• Transition option to insurers applying IFRS 17 –
Amendments to IFRS 17 (effective for annual periods
beginning on or after 1 January 2023).
• Amendments to IAS 1 and IFRS Practice Statement 2:
Disclosure of Accounting policies (effective for annual
periods beginning on or after 1 January 2023).
• Amendments to IAS 8: Definition of Accounting
Estimates (effective for annual periods beginning on or
after 1 January 2023).
• Deferred tax related to assets and liabilities arising
from a single transaction – Amendments to IAS 12
(effective for annual periods beginning on or after 1
January 2023).
• Amendments to IAS 12 Income taxes: International
Tax Reform - Pillar Two Model Rules (effective for
annual periods beginning on or after 1 January 2023).
The Group considers that aforementioned amendments to
standards have no material impact on these consolidated
financial statements.
Standards or interpretations effective for the first time for
the annual periods beginning after 1 January 2024 or not
yet endorsed by the EU:
• Amendments to IFRS 16 Leases: Lease Liability in
a Sale and Leaseback (effective for annual periods
beginning on or after 1 January 2024).
• Classification of liabilities as current or non-current –
Amendments to IAS 1 (effective for annual periods
beginning on or after 1 January 2024).
• Amendments to IAS 7 Statement of Cash Flows and
IFRS 7 Financial Instruments: Disclosures: Supplier
Finance Arrangements (effective for annual periods
beginning on or after 1 January 2024, not yet endorsed
by the EU).
• Amendments to IAS 21 Lack of Exchangeability
(effective for annual periods beginning on or after 1
January 2024, not yet endorsed by the EU).
The Group is currently assessing the impact of these
amendments on its consolidated financial statements.
4. Critical Assumptions and Estimates
The key assumptions concerning the future and other key
sources of estimation uncertainty at the reporting date that
have a significant risk of causing a material adjustment to the
carrying amount of assets and liabilities within the next financial
year are described below. The Group based its assumptions
and estimates on parameters available when the consolidated
financial statements were prepared. However, estimates and
underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period
in which the estimate is revised, if the revision affects only that
period, or in the period of the revision and future periods, if the
revision affects both current and future periods.
Revaluation of land used in agricultural activity
The Group measures the land used in agricultural activity at
revalued amounts, with changes in fair value being recognised
in OCI. The land used in agricultural activity was valued by
reference to transactions involving properties of a similar
nature, location and condition. The Group engaged an
independent valuation specialist to assess fair values as at 31
December 2023 for the land used in agricultural activity.
Impairment of goodwill and trademarks with indefinite
useful life
The Group’s impairment test for goodwill and trademarks with
indefinite useful life is based on a value–in–use calculations
using a discounted cash flow model. The cash flows are derived
from the Group’s five–year plans for goodwill impairment
testing purposes and three–year plans for trademark
impairment testing purposes. The recoverable amount is
most sensitive to the discount rate used for the discounted
cash flow model as well as the expected future cash inflows
and the growth rate used for extrapolation purposes. The key
assumptions used to determine the recoverable amount for the
different cash generating units, including a sensitivity analysis,
further explained in Note 12. The Group tests annually whether
goodwill and trademarks with indefinite useful life has suffered
any impairment.
AMBER BEVERAGE GROUP | ANNUAL REPORT 202390
Results for the Year
This section explains the results and performance of the Group for the year ending
31 December 2023. Disclosures are provided for divisional information, operating
profit, finance income and costs, and taxation.
5. Segment Reporting
In identifying its segments, management follows the
Group’s business specifications. The Group is considered
to have two main operating and reportable segments: the
Production segment, comprising production activities of
alcoholic beverages and raw materials (ethyl spirit), and
Distribution and Brand Management segment, comprising
activities on the distribution of own and third-party brands
within the local markets and via export.
No operating segments have been aggregated to form the
above reportable operating segments.
Each of these segments is managed separately as each of
business areas require different approaches. The Executive
Committee (consisting of chief functional managers of the
Group) is the Chief Operating Decision Maker (CODM) and
monitors the operating results of segments separately for
the purpose of making decisions about resource allocation
and performance assessment. Segment performance is
evaluated based on operating profit. Also, the Group’s net
finance costs (including finance costs, finance income) and
income taxes are managed on a Group basis and are not
allocated to operating segments.
Transfer prices between operating segments are on an
arm’s-length basis in a manner similar to transactions with
third parties. Inter-segment revenues are eliminated upon
consolidation and reflected in the ‘Other/ Eliminations’
column.
Revenue comprises the fair value of the consideration
received or receivable for the sale of goods and services
in the ordinary course of the Group’s activities. Revenue is
reduced for estimated customer returns, discounts, rebates,
and other similar allowances. For production segment, the
Group acts as an agent in collecting the excise duty from
customers and transferring it to responsible tax collection
authorities. Thus, the revenue is recognized net of excise
tax levied on the customers. In other cases excise tax is
borne by the Group as expense and included in the cost
of goods sold. Revenue is shown net of value–added tax
and duties or other sales taxes. Revenue is recognised to
the extent that it is probable that future economic benefits
will flow to the Group and these can be measured reliably.
Production
Distribution and
Brand Management Other/ Eliminations Consolidated
2023
EUR 000
2022
EUR 000
2023
EUR 000
2022
EUR 000
2023
EUR 000
2022
EUR 000
2023
EUR 000
2022
EUR 000
Revenue
Third party revenue 88 800 136 965 408 809 393 163 – – 497 609 530 128
Intersegment revenue 57 358 61 968 24 840 16 719 (82 198) (78 687) – –
Operating profit 1 920 25 279 11 962 13 938 1 939 (5 193) 15 821 34 024
Finance income 3 399 1 197
Finance costs (9 503) (6 680)
Income tax (4 339) (4 995)
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 91
Production
Distribution and
Brand Management
Other/ Eliminations Consolidated
31/12/2023
EUR 000
31/12/2022
EUR 000
31/12/2023
EUR 000
31/12/2022
EUR 000
31/12/2023
EUR 000
31/12/2022
EUR 000
31/12/2023
EUR 000
31/12/2022
EUR 000
Assets
Non-current segment
assets
75 081 83 814 66 057 65 587 23 606 15 809 164 744 165 210
Current segment assets 98 600 87 906 134 482 138 512 5 542 7 224 238 624 233 642
Segment assets 173 681 171 720 200 539 204 099 29 148 23 033 403 368 398 852
Deferred tax assets 223 –
Current tax receivable 1 578 146
Loans to related parties 35 701 30 334
Other non-current assets 3 400 3 182
Non-current financial
investments
2 214 2 184
Short term deposits 22 164 –
Assets held for sale – 23 327
Total assets 468 648 458 025
Liabilities
Non-current segment
liabilities
(1 957) (904) (4 830) (4 287) (207) – (6 994) (5 191)
Current segment liabil-
ities
(104 320) (67 071) (202 015) (212 749) 151 673 137 057 (154 662) (142 763)
Segment liabilities (106 277) (67 975) (206 845) (217 036) 151 466 137 057 (161 656) (147 954)
Deferred tax liabilities (5 116) (3 392)
Current tax payable (1 237) (264)
Interest-bearing loans
and borrowings
(115 813) (100 328)
Derivatives 8 98
Liabilities associated
with assets held for sale
– (13 702)
Total liabilities (283 814) (265 542)
Other disclosures
Capital expenditure 11 452 10 799 2 630 1 446 1 061 1 323
15 143 13 568
Depreciation, amortisa-
tion
4 709 5 113 2 441 2 715 1 671 1 164
8 821 8 992
Reversal of impairment
loss
– – – – (4 614) –
AMBER BEVERAGE GROUP | ANNUAL REPORT 202392
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
400 000
162 206
47 538
33 214
44 963
2023
North America
Australia
Baltics
DACH
Nordics
UK & Ireland
Mediterranean
Other
2022
157 251
50 492
47 365
69 015
Other
26 082
Australia
6 324
UK
11 263
Ireland
23 339
Mexico
31 144
Baltics
62 224
Latvia
29%
Lithuania
25%
UK & Ireland
13%
North America 2%
DACH3%
Mediterranean 11%
Australia 5%
Other 11%
Other
28 584
Australia
6 000
UK
11 601
Ireland
23 620
Mexico
28 230
Baltics
66 710
The Group is domiciled in Luxembourg, with the primary activities carried out through its own route-to-market network in the
Baltics (Latvia, Lithuania, Estonia), the UK, Australia, the DACH region (Austria and Germany combined), and the global market
through operations in Cyprus. The amount of revenue from external customers, broken down by location of the customers, is
shown in the following graph:
The total non–current assets other than financial instruments and deferred tax assets, broken down by location of assets, is shown
in the following graphs:
2023 2022
Net revenue by location of deliveryRevenue from customers
by location of customers
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 93
The Group uses Alternative Performance Measures ("APMs") to provide additional information to investors and to enhance their
understanding of its results. The APMs should be viewed as complementary to, rather than a substitute for, the figures determined
according to IFRS. Moreover, these metrics may be defined or calculated differently by other companies, and, as a result, they may
not be comparable to similar metrics calculated by the Group's peers. The EBITDA ratio (earnings before interest, tax, depreciation,
amortisation and impairment of non–financial assets) is calculated as following:
6. Operating Profit
Operating profit for the period has been arrived at after charging (classifying expenses by nature):
2023
EUR 000
2022
EUR 000
Revenue 497 609 530 128
Excise tax and duties (168 551) (164 352)
Net revenue 329 058 365 776
Cost of inventories (214 779) (226 939)
Advertising, marketing and promotional costs (6 728) (9 578)
Logistic costs (10 322) (11 628)
Staff costs (49 226) (51 140)
Other indirect costs (25 798) (30 463)
Other income 10 042 7 492
Net impairment loss on financial assets (267) 63
Depreciation and amortisation - cost of goods sold (2 533) (2 745)
Depreciation and amortisation - selling costs (2 513) (2 982)
Depreciation and amortisation - administration costs (3 775) (3 265)
Total depreciation, amortisation and impairment of non-financial assets (4 207) (8 992)
Fair value adjustment to biological assets (9 906) 2 181
Merger and acquisition related costs (610) (2 748)
Net loss from disposal of subsidiaries (1 436) –
2023
EUR 000
2022
EUR 000
Operating profit 15 821 34 024
Add-back for:
Depreciation, amortisation and impairment 4 207 8 992
Fair value adjustment to biological assets 9 906 (2 181)
Total 29 934 40 835
Merger and acquistion related costs 610 2 748
Net loss from disposal of subsidiaries 1 436 –
AMBER BEVERAGE GROUP | ANNUAL REPORT 202394
6.1. Costs of Goods Sold
2023
EUR 000
2022
EUR 000
Cost of inventories 214 779 226 939
Staff costs 11 295 13 034
Utility expense 3 774 4 394
Nature resource tax 3 423 2 603
Depreciation and amortisation 2 533 2 745
Maintenance costs 957 1 170
Real estate tax 275 264
Laboratory expense 98 86
Insurance costs 84 61
Change in accruals (202) (197)
Other production costs 2 615 4 476
6.2. Selling Expenses
2023
EUR 000
2022
EUR 000
Staff costs 25 355 24 848
Transport and logistics 10 322 11 628
Advertising, marketing and promotional costs 6 728 9 578
Depreciation and amortisation 2 513 2 982
Maintenance of premises and similar costs 1 936 2 069
Change in accruals 4 169
Packaging materials 271 334
Maintenance of cars 156 149
Other distribution costs 3 751 3 679
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 95
7. Auditor’s Remuneration
The Group has paid the following amounts to its auditors PricewaterhouseCoopers and other firms in respect to the audit of the
financial statements.
In 2023 the Group has acquired non-audited services in amount of EUR 27 thousand.
6.4. Other Operational Income
6.3. General and Administrative Expenses
2023
EUR 000
2022
EUR 000
Fees paid for audit and audit related services 406 291
Total 406 291
2023
EUR 000
2022
EUR 000
Income from logistic services 3 527 3 558
Reversal of impairment loss (see Note 12) 4 614 –
Income from management services and royalties 370 317
Gain from sale of materials 131 181
Net gain on sale of property, plant and equipment 2 135 90
Other income 3 879 3 346
Total 14 656 7 492
2023
EUR 000
2022
EUR 000
Staff costs 12 577 13 258
Depreciation and amortisation 3 775 3 265
Management and professional service expense 1 219 2 076
Office expense 942 1 419
IT maintenance 711 575
Business trips 581 532
Communication 457 470
Representation 353 297
Bank commissions 228 264
Training expense 107 63
Other administration 2 628 2 729
AMBER BEVERAGE GROUP | ANNUAL REPORT 202396
8. Staff Costs
Personnel expenses incurred by the Group during the period are analysed as follows:
2023
EUR 000
2022
EUR 000
Wages and salaries 43 496 42 636
Social security contributions 6 752 7 132
Change in accruals (1 022) 1 372
2023 2022
Production 764 1 324
Wholesale and retail 662 692
Other 96 82
The average number of persons employed by the Group during the period, including managers was as follows:
In 2023 position Foreign exchange loss, net includes unrealized net foreign exchange loss of EUR 692 thousand mainly due to euro
valuation against Russian rubles and Mexican pesos (2022: unrealized net foreign exchange loss of EUR 516 thousand).
9. Finance Income and Costs
2023
EUR 000
2022
EUR 000
Finance income
Interest income 689 114
Interest income from related parties 2 307 799
Other financial income 403 284
Total finance income 3 399 1 197
Finance costs
Interest expenses (6 877) (4 283)
Interest expenses to related parties (627) (780)
Foreign exchange loss, net (1 227) (1 073)
Amortisation of loan related expenses (772) (544)
Total finance costs (9 503) (6 680)
Net finance income/ (costs) (6 104) (5 483)
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 97
10. Corporate Income Tax
10.1. Components of Corporate Income Tax
Corporate income tax comprises current and deferred
tax of the reporting year. Corporate income tax for the
reporting period is included in the consolidated financial
statements based on the management’s calculations
prepared in accordance with requirements of tax
legislation of each company of the Group. Deferred
income tax arising from temporary differences between
the tax bases of assets and liabilities and their carrying
amounts in the consolidated financial statements is
calculated using the liability method. Deferred income
tax liabilities are determined based on the tax rates that
are expected to apply when the temporary differences
reverse. Deferred tax assets/liabilities are written off in
the consolidated statement of comprehensive income
of the reporting period based on the legislative changes
resulting in a change in deferred tax base. Income taxes
are recognised through profit or loss unless they relate to
items recognised directly in equity.
Corporate income tax in Latvia and Estonia is calculated
on the basis of distributed profit (20/80 of the net
amount payable to shareholder) and is shifted from the
moment of earning the profits to the moment of their
distribution, i.e., when shareholder makes a decision for
distribution of dividends and conditionally distributed
profit, which includes taxable objects in accordance
with respective legislation (non-business expenses for
example), when they occur. Tax calculated at a tax rate of
20% in Latvia and Estonia.
2023
EUR 000
2022
EUR 000
Current income tax expense 2 744 2 828
Deferred tax charge 1 595 2 167
10.2. Reconciliation of Accounting Profit to Income Tax Charges
2023
EUR 000
2022
EUR 000
Profit before tax 9 717 28 541
Income tax calculated at effective tax rate 1 798 5 391
Adjusting for:
Expenses non-deductible for tax purposes 2 651 (1 616)
Change in allowance for deferred tax asset (110) 1 220
Income tax expense recognized in profit or loss 4 339 4 995
Effective tax rate (calculated as weighted proportional tax rate among the locations of Group entities) for reporting year is
18.50% (2022: 18.89%).
AMBER BEVERAGE GROUP | ANNUAL REPORT 202398
31/12/2022
EUR 000
Charged to
profit or loss
EUR 000
Charged
to OCI
EUR 000
31/12/2023
EUR 000
Temporary differences
Property, plant and equipment 411 145 - 556
Tax loss carried forwards (2 326) 1 145 - (1 181)
Other provisions and accruals 2 640 321 - 2 961
Allowance for deferred tax asset 2 667 (16) (94) 2 557
3 392 1 595 (94) 4 893
Deferred tax asset - (223)
Deferred tax liabilities 3 392 5 116
31/12/2021
EUR 000
Charged to
profit or loss
EUR 000
Charged
to OCI
EUR 000
31/12/2022
EUR 000
Temporary differences
Property, plant and equipment 534 (123) – 411
Tax loss carried forwards (1 814) (512) – (2 326)
Other provisions and accruals 1 178 1 462 – 2 640
Allowance for deferred tax asset 1 492 1 340 (165) 2 667
1 390 2 167 (165) 3 392
Deferred tax asset – –
Deferred tax liabilities 1 390 3 392
10.3. Movements in Components of Deferred Tax
Utilisation of tax loss carried forwards is not limited in time.
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 99
Operating Assets and Liabilities
This section describes the assets used to generate the Group’s performance and the
liabilities incurred. This section also provides detailed disclosures on the Group’s
recent acquisitions of subsidiaries and discontinued operations.
11. Business Combinations and Assets Held for Sale
Business combinations are accounted for using the
acquisition method. The cost of any acquisition is
measured as the aggregate of the consideration
transferred, measured at acquisition date fair value
and the amount of any non–controlling interest in the
acquiree. For each business combination, the acquirer
measures the non–controlling interest in the acquiree
either at fair value or at the proportionate share of the
acquirer’s identifiable net assets.
Acquisition costs incurred are expensed and included
within merger and acquisition (M&A) related costs.
When the Group acquires a business, it assesses the
financial assets and liabilities assumed for appropriate
classification and designation in accordance with
the contractual terms, economic circumstances and
pertinent conditions as at the acquisition date. This
includes the separation of embedded derivatives in host
contracts by the acquiree.
Goodwill is initially recognised at cost being the excess
of the aggregate of the consideration transferred and the
amount recognised for non–controlling interest over the
net identifiable assets acquired and liabilities assumed.
If this consideration is lower than the fair value of the
net assets of the subsidiary acquired, the difference is
recognised in the profit or loss.
After initial recognition goodwill is measured at cost less
any accumulated impairment losses. For impairment
testing, goodwill acquired in a business combination
is from the acquisition date, allocated to each of the
Group’s cash generating units that are expected to
benefit from the combination irrespective of whether
assets or liabilities of the acquisition are assigned to
those units.
Where goodwill forms part of a cash generating unit
and part of the operation within that unit is disposed,
the goodwill associated with the operation disposed is
included in the carrying amount of the operation when
determining the gain or loss on disposal of the operation.
Goodwill disposed in this circumstance is measured
based on the relative values of the operation disposed
Acquisition of subsidiaries
The initial accounting for a business combination
involves identifying and determining the fair values
to be assigned to the acquiree’s identifiable assets,
liabilities and contingent liabilities (contingent
consideration) and the cost of the combination. If
the initial accounting for a business combination can
be determined only provisionally by the end of the
period in which the combination is affected because
either the fair values to be assigned to the acquiree’s
identifiable assets, liabilities or contingent liabilities,
or the cost of the combination can be determined only
provisionally, the Group accounts for the combination
using those provisional values. The Group recognises
any adjustments to those provisional values because
of completion of the initial accounting within twelve
months of the acquisition date.
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023100
Assets Held for Sale
The Group classifies non-current assets and disposal
groups as held for sale if their carrying amounts will be
recovered principally through a sale transaction rather than
through continuing use. Non-current assets and disposal
groups classified as held for sale are measured at the lower
of their carrying amount and fair value less costs to sell.
Costs to sell are the incremental costs directly attributable
to the disposal of an asset (disposal group), excluding
finance costs and income tax expense.
The criteria for held for sale classification is regarded as
met only when the sale is highly probable, and the asset
or disposal group is available for immediate sale in its
present condition. Actions required to complete the sale
should indicate that it is unlikely that significant changes
to the sale will be made or that the decision to sell will be
withdrawn. Management must be committed to the plan to
sell the asset and the sale expected to be completed within
one year from the date of the classification. Property, plant
and equipment and intangible assets are not depreciated
or amortised once classified as held for sale.
Assets and liabilities classified as held for sale are
presented separately as current items in the statement of
financial position.
11.1. Assets Held for Sale
As per terms and conditions of the transaction, part of the consideration receivable for disposal of shares of Amber Permalko
AO in amount of EUR 636 thousand is deferred for 2 years and is recognized as Other non-current financial assets in the
consolidated statement of financial position.
Amber Permalko AO
EUR 000
Rits Holding SIA
EUR 000
Total
EUR 000
Assets (17 923) (1 059) (18 982)
Liabilities 10 930 493 11 423
Non-controlling interest 514 – 514
Total net assets disposed (6 479) (566) (7 045)
Consideration receivable 4 647 962 5 609
Total gain/(loss) from disposal of subsidiaries (1 832) 396 (1 436)
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 101
As at 31 December 2022 the Group has classified investment in Amber Permalko AO as disposal group. In July 2023 the sales
31/12/2022
EUR 000
Assets
Intangible assets 124
Property, plant and equipment 1 988
Deferred tax asset 48
Inventories 4 802
Trade and other receivables 16 072
Cash and cash equivalents 293
Assets held for sale 23 327
Liabilities
Deferred tax liability (121)
Trade and other payables (2 498)
Taxes payable (11 083)
Liabilities directly associated with assets held for sale (13 702)
2022
EUR 000
The net cash flows incurred by the Disposal Group
Operating 2 728
Investing (216)
Financing (4 388)
Net cash outflow (1 876)
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023102
11.2. Impact on Financial Results
The operating profit development in 2023 has been impacted
by the merger and acquisitions (M&A) of prior years as
well as disposal of several investments, following the
strategical direction of the Group. Therefore, to allow proper
benchmarking of the operating profit 2023 development in
comparison to 2022 the impact of mergers and acquisitions can
be presented as follows:
M&A represents the share of financial performance of
subsidiaries that have been included in the Group for a period
less than two full reporting periods, i.e., for 2023 and 2022 the
M&A segment includes the operating profit generated by Walsh
Whiskey group entities (acquired in 2021). Disposed business
comprise operating profit generated by Amber Permalko AO
and Rits Holdings SIA.
2023
Organic growth
EUR 000
M&A impact
EUR 000
Disposed
subsidiaries
EUR 000
Total
EUR 000
Revenue 475 390 9 895 12 324 497 609
Excise tax and duties (168 522) (29) – (168 551)
Net revenue 306 868 9 866 12 324 329 058
Cost of goods sold (225 876) (5 444) (8 311) (239 631)
Gross profit 80 992 4 422 4 013 89 427
Selling expenses (46 528) (2 044) (2 464) (51 036)
General and administration expenses (21 757) (917) (904) (23 578)
Net impairment losses on financial assets (264) (3) – (267)
Fair value adjustment on biological assets (9 906) – – (9 906)
Other operational income 14 547 – 109 14 656
Other operational expenses (1 011) – (1 854) (2 865)
Merger and acquisition related costs (610) – – (610)
Operating profit 15 463 1 458 (1 100) 15 821
2022
Organic growth
EUR 000
M&A impact
EUR 000
Total
EUR 000
Revenue 520 068 10 060 530 128
Excise tax and duties (164 336) (16) (164 352)
Net revenue 355 732 10 044 365 776
Cost of goods sold (250 812) (4 763) (255 575)
Gross profit 104 920 5 281 110 201
Selling expenses (52 492) (2 944) (55 436)
General and administration expenses (24 040) (908) (24 948)
Net impairment losses on financial assets 9 54 63
Fair value adjustment on biological assets 2 181 – 2 181
Other operational income 7 492 – 7 492
Other operational expenses (2 781) – (2 781)
Merger and acquisition related costs – (2 748) (2 748)
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 103
12. Intangible Assets
The main categories of intangible assets accounted
by the Group are goodwill, trademarks and respective
registration costs, and computer software and licences.
The following accounting policies are used for
(a) Goodwill
Goodwill on acquisition of subsidiaries is included in
intangible assets. Separately recognised goodwill is
tested annually for impairment and carried at cost less
accumulated impairment losses. Impairment losses
on goodwill are not reversed. Gains and losses on the
disposal of an entity include the carrying amount of
goodwill of the entity sold.
Goodwill is allocated to cash–generating units for the
purpose of impairment testing. The allocation is made
to those cash–generating units or groups of cash–
generating units that are expected to benefit from the
(b) Brands
Trademarks are recognised at purchase price including
expenses incidental thereto or at production cost.
Trademarks have an indefinite useful life. Trademark
registration expenses across the world are treated as
intangible assets and are presented as part of other
intangible assets. Such expenses are capitalised based
on invoices and amortized over a period of three years
(the average registration period of trademark)
by using straight–line method. Trademarks with
indefinite useful life are tested annually for impairment
and carried at cost less accumulated impairment losses.
If events that previously have triggered the recognition of
impairment have ceased to exist, impairment might be
reversed to initial cost value.
(c) Computer software and licences
Internal as well as external costs associated with
developing or maintaining computer software are
recognised as an expense as incurred. Acquired
computer software licences are capitalised on the basis
of the costs incurred to acquire and bring to use the
specific software. These costs are amortized over their
estimated useful lives of three to five years.
Impairment of non–financial assets
Assets that have an indefinite useful life, are not subject
to amortisation and are tested for impairment annually.
Assets that are subject to amortisation are reviewed
for impairment whenever events or changes in
circumstances indicate that the carrying amount may
not be recoverable. An impairment loss is recognised
for the amount by which the asset’s carrying amount
exceeds its recoverable amount. The recoverable amount
is the higher of an asset’s fair value less costs to sell and
value in use. For the purposes of assessing impairment,
assets are grouped at the lowest levels for which there are
separately identifiable cash flows (cash–generating units).
Non–financial assets other than goodwill that suffered
an impairment are reviewed for possible reversal of the
impairment at each reporting date.
Goodwill arising through business combinations and
trademarks have been allocated for impairment testing
purposes to ten cash–generating units (CGU) based
on the core functional activity and the ownership of
intellectual property. This represents the lowest level
within the Group at which goodwill and trademarks are
Cash generating units
The Group has identified the following cash generating
units: production units (grain and agave) and distribution
units (Baltics, the UK, Australia, Austria). Impairment tests
are performed separately for Moskovskaya®, KAH®, The
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023104
Goodwill
EUR 000
Brands
EUR 000
Conces-
sions,
licences
and other
intangible
assets
EUR 000
Intangi-
bles under
develop-
ment
EUR 000
Total
EUR 000
As at 1 January 2022
Cost value 42 127 41 229 7 613 945 91 914
Accumulated amortisation and impairment – (4 940) (5 627) (206) (10 773)
Net book value 42 127 36 289 1 986 739 81 141
2022
Additions – – – 1 346 1 346
Reclassification – 275 1 334 (1 609) –
Reclassified to assets held for sale – (116) (9) – (125)
Amortisation – (197) (1 081) – (1 278)
Foreign exchange differences (46) 19 109 – 82
Total 42 081 36 270 2 340 475 81 166
As at 31 December 2022
Cost value 42 081 41 184 9 020 681 92 966
Accumulated amortisation and impairment – (4 914) (6 680) (206) (11 800)
Net book value 42 081 36 270 2 340 475 81 166
2023
Additions – – – 2 475 2 475
Reclassification – 19 1 668 (1 687) –
Amortisation – (163) (1 403) – (1 566)
Foreign exchange differences 714 370 (143) (15) 926
Impairment reversal – 4 614 – – 4 614
Total 42 795 41 110 2 462 1 248 87 615
As at 31 December 2023
Cost value 42 795 41 573 10 333 1 454 96 155
Accumulated amortisation and impairment – (463) (7 871) (206) (8 540)
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 105
Segment level summary of goodwill is presented as following:
The book value of trademark portfolio is presented as following:
31/12/2023
EUR 000
31/12/2022
EUR 000
31/12/2021
EUR 000
Production - Grain 5 935 5 935 5 935
Production - Agave 6 719 6 033 5 436
Distribution - Baltics 12 312 12 312 12 312
Distribution - UK 11 277 11 048 11 663
Distribution - Australia 5 543 5 744 5 773
Distribution - Austria 1 009 1 009 1 009
31/12/2023
EUR 000
31/12/2022
EUR 000
31/12/2021
EUR 000
Writers' Tears ® 13 164 13 164 13 164
Moskovskaya ® 14 778 10 164 10 164
The Irishman ® 7 820 7 820 7 820
KAH ® 2 190 2 093 2 000
Other brands 3 158 3 029 3 141
In 2023, as the result of impairment review and because of the expected volume and sales value development in the future
as the result of implemented brand building activities, and entrances in new markets globally, the Group has reversed the
impairment loss previously allocated to the Moskovskaya® brand. The reversal of impairment loss in amount of EUR 4 614
thousand was recognized as Other operating income attributable to Distribution and Brand Management segment within the
segment reporting (see Note 5).
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023106
Impairment review
Assessment of the recoverable amount of an intangible asset
with an indefinite life requires management’s estimate and
judgment. Impairment reviews are carried out to ensure that
intangible assets, including trademarks, are not carried at
above their recoverable amounts. The tests are dependent
on management’s estimates and judgements, in particular
in relation to the forecasting of future cash flows, the
discount rates applied to those cash flows and the expected
long–term growth rates. Such estimates and judgements
are subject to change as a result of changing economic
conditions and actual cash flows may differ from forecasts.
The Group tests whether goodwill and the book value of
trademarks have suffered any impairment on an annual
basis. The management has identified ten cash generated
units (CGUs) – Production Grain, Production Agave,
Distribution Baltic, Distribution the United Kingdom (UK),
Distribution Australia (AUS), and Distribution Austria (AUT).
Trademarks Moskovskaya®, KAH®, The Irishman® and Writers'
Tears® are treated as separate CGUs for impairment test
purposes.
For the 2023 and previous reporting periods, the recoverable
amount of the CGUs was determined based on value–in–use
calculations which require the use of assumptions. The
calculations use cash flow projections based on financial
budgets approved by management covering a three–year
(for trademark related CGUs) and five–year (for other CGUs)
period. Cash flows beyond the three–year or five–year period
are extrapolated using the estimated terminal growth rates
stated below. The Group reviews the CGU composition
annually and amends the CGU’s subject to impairment
review, if needed.
The following table sets out the key assumptions for those
CGUs that have significant goodwill allocated to them:
Production Distribution
2023 Grain Agave Baltics UK AUS AUT
Sales volume growth (average), % 9% 33% 5% 10% 18% 23%
Sales price growth (average), % 2.2% 32.7% 4% 5% 5% 6%
Gross margin growth (average), % 3.2% 33.7% 4% 11% 3% 7%
EBITDA margin (average), % 7.1% 10.7% 10% 5% 6% 6%
Replacement CAPEX 2 500 328 891 50 81 30
Discount rate 10.1% 16.5% 12.0% 10.3% 9.6% 8.7%
Terminal value growth 2.6% 2.1% 1.9% 0.5% 1.2% 0.8%
Production Distribution
2022 Grain Agave Baltics UK AUS AUT
Sales volume growth (average), % 5% 25% 5% 15% 10% 13%
Sales price growth (average), % 3.8% 7.4% 1% 0% –1% 2%
Gross margin growth (average), % 6.9% 13.8% 2% 1% –2% 3%
EBITDA margin (average), % 8.3% 18.3% 10% 6% 8% 4%
Replacement CAPEX 2 500 328 1 463 50 14 37
Discount rate 14.5% 17.3% 14.1% 14.4% 10.7% 14.0%
Terminal value growth 3.5% 3.0% 3.3% 2.0% 2.5% 2.0%
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 107
Key assumptions used in the value–in–use calculations (average values for the forecasting period) are as follows:
• Sales volume – average growth rate over the forecast
period is based on management’s expectations on
market and category development and assumptions on
expansion in the respective markets;
• Sales price– annual percentage increases assumed in all
markets based on historic data except for agave, where
the sales price development is linked to changes in
product mix;
• Annual capital expenditure – expected cash costs in
the CGUs. This is based on the historical experience
of management, and the planned refurbishment
expenditure. No incremental revenue or cost savings are
assumed in the value–in–use model as a result of this
expenditure.
• Discount rates – rates reflect the current market
assessment of the risks specific to each operation and
their business model. The discount rate is estimated
based on an average guideline of companies adjusted for
the operational size of the Group and specific regional
factors.
• The assumed terminal growth rate used to extrapolate
cash flows beyond the forecast period reflects
management expectation and takes into consideration
growth achieved to date, current strategy and expected
Sensitivity to change in key assumptions
For all intangibles with an indefinite life, Management has
concluded that no reasonable possible change in the key
assumptions on which it has determined the recoverable
amounts would cause their carrying values to exceed their
recoverable amounts.
Trademark
2022 Moskovskaya® KAH® The Irishman® Writers' Tears®
Sales volume growth (average), % 15% 91% 23% 23%
Sales price growth (average), % 3.8% 8.4% 7.0% 7.0%
Discount rate 13.8% 17.3% 13.8% 13.8%
Terminal value growth 2.3% 3.0% 0.5% 0.5%
Trademark
2023 Moskovskaya® KAH® The Irishman® Writers' Tears®
Sales volume growth (average), % 13% 82% 26% 26%
Sales price growth (average), % 0.2% 0.0% 7.0% 7.0%
Discount rate 11.9% 16.5% 11.8% 11.8%
Terminal value growth 1.9% 1.5% 0.5% 0.5%
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023108
13. Property, Plant and Equipment
Recognition and measurement
Items of property, plant and equipment (PPE) are
measured at cost less accumulated depreciation and
accumulated impairment losses, except for land used
in agricultural activities which is measured at fair value
less impairment losses recognised after the date of
revaluation. Valuation of land used in agricultural
activities is performed with sufficient frequency to ensure
that the carrying amount of a revalued assets do not
differ materially from their fair value.
The cost value includes expenditure that is directly
attributable to the acquisition of the asset. The cost of
self–constructed assets includes the cost of materials
and direct labour, any other costs directly attributable
to bringing the assets to a working condition for
their intended use, and capitalised borrowing costs.
Purchased software that is integral to the functionality
of the related equipment is capitalised as part of that
equipment.
Subsequent costs are included in the asset’s
carrying amount or recognised as a separate asset,
as appropriate, only when it is probable that future
economic benefits associated with the item will flow
to the Group and the cost of the item can be measured
reliably. The carrying amount of the replaced part is
derecognised. All other repairs and maintenance costs
are charged to the statement of comprehensive income
during the financial period in which they are incurred.
Gains or losses on disposal of an item of property,
plant and equipment are determined by comparing
the proceeds from disposal with the carrying amount
of property, plant and equipment, and are recognised
on a net basis within other income in statement of
comprehensive income.
For land used in agricultural activities a revaluation
surplus is recorded in OCI and credited to the asset
revaluation reserve in equity. However, to the extent
that it reverses a revaluation deficit of the same asset
previously recognised in statement of comprehenive
income, the increase is recognised in statement
of comprehensive income. A revaluation deficit is
recognised in the statement of comprehensive income,
except to the extent that it offsets an existing surplus
on the same asset recognised in the asset revaluation
reserve..
Upon disposal, any revaluation surplus relating to the
particular asset being sold is transferred to retained
earnings.
Depreciation
Depreciation is calculated using the straight-line method
to allocate the cost of the assets, net of their residual
values, over their estimated useful lives as follows:
Buildings and its components: 10 – 71 years
Machinery and equipment: 2 – 25 years
Other tangible assets: 2 – 25 years
Freehold land is not depreciated.
Properties in the course of construction for production,
supply or administrative purposes are carried at cost,
less any recognised impairment loss. Depreciation of
these assets, on the same basis as other property assets,
commences when the assets are ready for their intended
use.
Depreciation methods, useful lives and residual values
are reviewed at each financial year–end and adjusted
if appropriate. Impairment losses are recognised as an
Impairment of property, plant and equipment
Assets that are subject to depreciation are reviewed
for impairment whenever events or changes in
circumstances indicate that the carrying amount may not
be recoverable. An impairment loss is recognised for the
amount by which the asset’s carrying amount exceeds
its recoverable amount. The recoverable amount is
the higher of an asset’s fair value less costs to sell and
value in use. For the purposes of assessing impairment,
assets are grouped at the lowest levels for which there
are separately identifiable cash flows (cash–generating
units). Non–financial assets other than goodwill that
suffered an impairment are reviewed for possible
reversal of the impairment at each reporting date.
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 109
Land and
buildings
EUR 000
Land
used in
agricul-
tural
activity
EUR 000
Machin-
ery and
equip-
ment
EUR 000
Other
PPE
EUR 000
Construc-
tion in
progress
EUR 000
Leasehold
improve-
ment
Eur 000
Total
EUR 000
As at 1 January 2022 (restated)
Cost value/ revalued amount 57 680 3 707 32 910 7 279 8 960 1 546 112 082
Accumulated depreciation and
impairment
(24 905) – (22 441) (5 910) (245) (434) (53 935)
Net book value 32 775 3 707 10 469 1 369 8 715 1 112 58 147
2022
Additions – – 48 – 6 857 23 6 928
Disposals (35) – (81) (19) (129) – (264)
Reclassification 933 2 792 1 322 597 (7 394) 30 (1 720)
Reclassification from right-of-use
assets
– – 586 – – – 586
Reclassification to assets held
for sale
(913) – (799) (48) (261) – (2 021)
Foreign exchange differences 2 414 451 702 (86) 246 – 3 727
Depreciation (2 362) – (2 024) (537) – (214) (5 137)
Total 32 812 6 950 10 223 1 276 8 034 951 60 246
As at 31 December 2022
Cost value/ revalued amount 59 616 6 950 32 857 7 174 8 279 1 471 116 347
Accumulated depreciation and
impairment
(26 804) – (22 634) (5 898) (245) (520) (56 101)
Net book value 32 812 6 950 10 223 1 276 8 034 951 60 246
2023
Additions – – – – 11 680 10 11 690
Disposals (1 935) – (51) (30) (18) – (2 034)
Reclassification 450 – 1 925 534 (3 517) – (608)
Reclassification to right-of-use
assets
– – (1 096) – – – (1 096)
Reclassification from right-of-use
assets
– – 135 – – – 135
Foreign exchange differences (3 290) 791 (160) (17) 58 (4) (2 622)
Depreciation (2 270) – (1 798) (526) – (215) (4 809)
Asset revaluation surplus – 523 – – – – 523
Total 25 767 8 264 9 178 1 237 16 237 742 61 425
As at 31 December 2023
Cost value/ revalued amount 53 120 8 264 32 950 7 289 16 482 1 449 119 554
Accumulated depreciation and
impairment
(27 353) – (23 772) (6 052) (245) (707) (58 129)
The gross carrying value of fully depreciated property, plant
and equipment that is still in use is EUR 22 176 thousand
(31.12.2022: EUR 24 262 thousand).
As at 31 December 2023 fixed assets of the Group with the
net book value of EUR 35.6 million (31.12.2022: EUR 20.8
million) are pledged under the conditions of the Mortgage
and Commercial pledge agreements as the security for
December 2023 the Group has capitalized the borrowing
costs in amount of EUR 2 438 thousand (31.12.2022: EUR 140
thousand) related to warehouse construction project, which
are included in the position Construction in progress.
The total Construction of progress position as at includes the
high-bay warehouse construction project costs of EUR 14.4
million (31.12.2022: EUR 5.7 million).
Had the Land used in agricultural activity been carried
at historical cost value, the total asset value of respective
category would be EUR 2 358 thousand (31.12.2022:
EUR 2 117 thousand).
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023110
14. Right–of–use Assets
The Group recognizes right–of–use assets at the
commencement date of the lease (i.e., the date the
underlying asset is available for use). The Group’s right–of–use
assets represent leases of real estate, production equipment
and machinery items. Right–of–use assets are measured at
cost, less any accumulated depreciation and impairment,
and adjusted for any remeasurement of lease liabilities. Cost
includes the amount of lease liabilities recognised (including
management assumptions on expected extensions of
current agreements), initial direct costs incurred, and lease
payments made before the commencement date less
any lease incentives received. Except where the Group has
sufficient confidence that the ownership of leased assets will
be transferred at the end of the lease term, recognised right–
of–use assets are depreciated on a straight–line basis over the
shorter of the lease term and the estimated useful lives of the
assets. If the lease period of right–of–use assets is remeasured
due to changes in assumptions or contractual rights on
right–of–use assets, the asset value is adjusted respectively.
Right–of–use assets are subject to impairment if impairment
indications are identified.
Land and
buildings
EUR 000
Machinery and
equipment
EUR 000
Total
EUR 000
As at 1 January 2022 5 444 2 892 8 336
Additions 414 775 1 189
Change in management assumptions 1 886 117 2 003
Disposals – (127) (127)
Reclassification to/ from property, plant and equipment – (585) (585)
Foreign exchange differences (104) 1 (103)
Depreciation (2 000) (635) (2 635)
As at 31 December 2022 5 640 2 438 8 078
Additions 420 2 109 2 529
Change in management assumptions 1 126 – 1 126
Disposals (275) (6) (281)
Reclassification to/ from property, plant and equipment – 961 961
Foreign exchange differences (460) (26) (486)
Depreciation (1 746) (493) (2 239)
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 111
2023
EUR 000
2022
EUR 000
As at 1 January 14 774 11 159
Additions 73 1 750
Capitalised maintenance costs 903 551
Transfers of harvested agave to inventories (1 262) (2 129)
(Loss)/ gain on change in fair value (9 906) 2 181
Foreign exchange differences 1 434 1 262
As at 31 December 2023 the Group owns plantations of 400 ha of Blue Weber Agave at different aging profile (2-4 years)
(31.12.2022: 400 ha).
Agave plants growing on the plantation are accounted
as biological assets until the point of harvest. Biological
assets are measured on initial recognition and at the
end of each reporting period at fair value less cost
to sell. Changes in fair value of growing agave plants
are recognized in the consolidated statement of
comprehensive income. Costs related to growing agave
plants are capitalized.
Fair value of agave plants is determined by reference to
expected market prices at the expected year of harvest,
adjusted by the costs to reach maturity. Significant
estimates include the time of harvest, sales price at the
point of harvest, costs to incur until harvest.
15. Biological Assets
Inventories
Inventories are stated at the lower of cost and net
realisable value. Net realisable value is the estimated
selling price in the ordinary course of business, less the
estimated costs of completion and selling expenses.
When the net realisable value of inventories is lower than
its cost, impairment is recognised to reduce the value of
inventories to its net realisable value.
The cost of inventories is based on a first–in–first–out
method and includes expenditure incurred in acquiring
the inventories and bringing them to their existing
location and condition. In the case of manufactured
inventories and work in progress, costs include an
appropriate share of production overheads based on
normal operating capacity.
Trade receivables
Trade receivables are amounts due from customers for
merchandise sold or services performed in the ordinary
course of business. If collection is expected in one year or
less, they are classified as current assets. If not, they are
presented as non–current assets.
Trade receivables are recognised initially at invoiced
amount and subsequently measured at amortised cost
using the effective interest method, less loss allowance,
which is recognised according to the simplified approach
of expected credit loss method (see Note 17.5).
Trade payables
Trade payables are obligations to pay for goods or
services that have been acquired in the ordinary course of
business from suppliers. Accounts payable are classified
as current liabilities if payment is due within one year or
less. If not, they are presented as non–current liabilities.
Trade payables are carried at amortised cost which is the
fair value of the consideration to be paid in the future for
goods and services received, billed to the Group, unless
16. Working Capital
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023112
16.1. Inventories
31/12/2023
EUR 000
31/12/2022
EUR 000
31/12/2021
EUR 000
Raw materials 23 697 22 723 17 253
Finished goods and merchandize 59 388 60 396 56 301
Production in progress 3 309 4 412 4 807
Goods in transit 3 233 3 250 3 459
Other 408 134 753
Provisions for obsolete inventories (4 387) (3 130) (3 230)
Inventories of the Group with the book value as of 31
December 2023 of EUR 72.7 million (31.12.2022: EUR 63.1
million) are pledged in accordance with the terms of
Commercial pledge agreements as the security for loans
from the credit institutions (see Note 18).
31/12/2023
EUR 000
31/12/2022
EUR 000
31/12/2021
EUR 000
Gross trade receivables 91 381 91 931 106 407
Expected credit loss allowance (Note 17.5) (1 403) (1 356) (2 604)
Net trade receivables 89 978 90 575 103 803
Receivables from related parties (Note 26.1) 40 581 38 023 35 878
Accrued income 4 266 3 982 2 100
Prepayments 2 657 1 941 1 577
Other debtors 9 593 3 732 3 886
Concentration of credit risk of Trade receivables with the
customers of similar characteristics (national retail chains) as
at 31 December 2023 is 36% (31.12.2022: 34%).
Receivables from related party mainly represent debt of S.P.I.
Spirits (Cyprus) Ltd., as Amber Latvijas balzams and Amber
Production Tequila are manufacturing alcoholic beverages for
S.P.I. Spirits (Cyprus), under the Private label agreement.
Trade receivables with the book value as at 31 December
2023 of EUR 72.7 million (31.12.2022: EUR 64.4 million) of the
Group are pledged under the conditions of the Commercial
pledge agreements as the security for loans from the credit
institutions (see Note 18).
16.2. Trade and Other Receivables
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 113
16.3. Taxes Payable
31/12/2023
EUR 000
31/12/2022
EUR 000
31/12/2021
EUR 000
Excise tax 39 525 38 991 37 819
Value added tax 12 943 9 670 12 175
Current income tax liability 1 237 264 2 367
Other 2 430 3 485 5 628
Terms and conditions of the above financial liabilities:
• Trade payables are non–interest bearing and are
normally settled on 30–day terms;
• Other payables are non–interest bearing and have an
average term of six months except for dividends, which
are payable on demand;
• For terms and conditions with related parties refer to
Note 26.
For explanations on the Group’s liquidity risk management
processes, refer to Note 17.5.
Contingent consideration is related to acquisition of the
Amber Beverage Austria and Walsh Whiskey group entities.
16.4. Trade and Other Payables
31/12/2023
EUR 000
31/12/2022
EUR 000
31/12/2021
EUR 000
Trade payables 63 122 60 071 50 337
Accrued expense 11 198 8 462 9 944
Contingent consideration (Note 28) 1 549 5 557 3 345
Dividends payable (Note 26.4) 10 588 3 348 650
Vacation reserve 2 077 2 157 2 061
Payables to related parties (Note 26.1) 4 997 1 454 1 619
Salaries payable 1 174 1 122 1 065
Advances received 972 991 686
Deferred income 1 271 973 455
Other payables 1 427 4 119 4 161
Total 98 375 88 254 74 323
Out of that:
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023114
Risk Management and Capital Structure
This section sets out the policies and procedures applied to manage the Group’s
capital structure and the financial risks the Group is exposed to. The Group
considers the following components of its balance sheet to be capital: borrowings
and equity. The Group manages its capital structure to achieve capital efficiency,
provide flexibility to invest through the economic cycle and give efficient access to
debt markets at attractive cost levels.
17. Risk Management
The Group’s activity is exposed to various financial risks,
including credit risk, currency risk, liquidity risk and interest
rate risk. The Management of the Group considers and
adopts risk management policy for each of the risk. The
Group’s management regularly carries out financial risk
assessment and monitoring in order to reduce the negative
impact of financial risks on the Group’s performance.
17.1. Market Risk
Market risk is the risk that the fair value of future cash flows
of a financial instrument will fluctuate because of changes in
foreign currency exchange rates and interest rates. Financial
instruments affected by market risk include loans and
borrowings and derivative financial instruments (see also
17.2. Sensitivity Analysis
The Parent Company recognises that movements in certain
risk variables (such as interest rates or foreign exchange
rates) might affect the value of its derivatives and also
the amounts recorded in its equity and its statement of
comprehensive income for the period. Therefore, the Parent
Company has assessed:
• What would be reasonably possible changes in the risk
variables at the end of the reporting period;
• The effects on statement of comprehensive income and
equity, if such changes in the risk variables were to occur
(see also Note 17.3 and 17.4).
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 115
17.3. Interest Rate Risk
The following table demonstrates the sensitivity to a
reasonably possible change in interest rates on the Group’s
floating rate loans and borrowings which at the end of 31
December 2023 are not hedged (see also Note 18).
With all other variables being constant, the Group’s profit
before tax is affected through the impact on floating rate
borrowings as follows:
The assigned movement in basis points for interest rate
sensitivity analysis is based upon the currently observable
market environment.
The Group cash balances are held by banks and earn
immaterial levels of interest. Management has concluded
that reasonable changes in the EURIBOR rates will have an
immaterial impact on interest income earned on the Group
cash balances. No interest rate sensitivity has been included in
relation to the Group’s cash balances. As financial assets and
liabilities having fixed interest rates are accounted at amortized
cost, they are not subject to interest rate risk.
31/12/2023
EUR 000
31/12/2022
EUR 000
31/12/2021
EUR 000
At floating rates 109 777 66 946 58 461
Effect on profit before tax
Currency on the borrowings
Change in
basis points
2023
EUR 000
Change in
basis points
2022
EUR 000
EUR +50 438 +50 305
-50 (438) -50 (305)
AUD +50 28 +50 21
-50 (28) -50 (21)
GBP +50 10 +50 9
-50 (10) -50 (9)
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023116
31/12/2023
CUR 000
31/12/2022
CUR 000
31/12/2021
CUR 000
Financial assets in USD 7 036 4 311 4 793
Financial liabilities in USD (3 784) (2 017) (2 363)
Open position in USD, net 3 252 2 294 2 430
Open position in USD calculated in EUR, net 2 943 2 151 2 146
Financial assets in GBP 124 60 62
Financial liabilities in GBP (637) (1 058) (15 316)
Open position in GBP net (513) (998) (15 254)
Open position in GBP calculated in EUR, net (590) (1 125) (18 153)
The following table demonstrates the sensitivity to a reasonably possible change in currency rates on outstanding financial
2023 2022
Change in
currency rate
Effect on equity,
EUR 000
Change in
currency rate
Effect on equity,
EUR 000
USD +10% (268) +10% (196)
-10% 327 -10% 239
GPB +10% 53 +10% 102
-10% (66) -10% (125)
17.4. Foreign Currency Risk
The Group operates internationally and is exposed to foreign
currency risk arising mainly from the U.S. dollars, Sterling
pounds and Mexican pesos fluctuations resulting from
purchase of raw materials and consumables as well as sales
activities.
The foreign currency risk is considered as immaterial from
the Group's perspective, except for the risk arising from
translation to the presentation currency of the Group.
The Group’s significant open currency position at the end of
the reporting period is:
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 117
17.5. Credit Risk
Credit risk is the risk that a counterparty will not meet
its obligations under a financial instrument or customer
contract, leading to a financial loss. The Group is exposed
to credit risk from its operating activities (primarily for
trade receivables) and from its financing activities, foreign
exchange transactions and other financial instruments.
The Group’s policy provides that the goods are sold and
services are provided to customers with appropriate credit
history. If there is no independent rating available, risk
control assesses the credit quality of the customer, taking
into account its financial position, past experience and other
factors. Individual risk limits are set based on internal or
external ratings in accordance with limits set by the Group.
The compliance with credit limits by customers is regularly
monitored by line management.
The Group has the following types of financial assets that are
subject to the expected credit loss model:
• trade receivables (including from related parties) for
sales of finished goods and providing of services
• loans to related parties.
While cash and cash equivalents are also subject to the
impairment requirement of IFRS 9, the identified impairment
loss was immaterial. Receivables from related parties do not
involve material credit risk as there is no evidence that would
indicate impairment loss.
The largest concentration of credit risk arises from the debts
of Group companies and loan issued to Group companies:
on 31 December 2023 36% of total positions are related to
Group companies (31.12.2022: 39%). Taking into account the
strong position of the Group, no provisions for impairment
losses on issued loans to Group companies and Receivables
from related parties were made. The Group considers the
credit risk on particular items to be low.
Trade receivables
The Group applies the IFRS 9 simplified approach to
measuring expected credit losses which uses lifetime
expected loss allowance for all trade receivables. To measure
the expected credit losses, trade receivables have been
grouped based on shared credit risk characteristics and the
days past due. The expected loss rates are based on the
payment profiles of sales over a period of 36 month before
31 December 2023 and the corresponding historical credit
losses experienced within this period. The historical loss
rates are adjusted to reflect current and forward–looking
information on macroeconomic factors affecting the ability
of the customers to settle the receivables. On that basis, the
loss allowance as at 31 December 2023 was determined for
trade receivables, as follows:
31/12/2023
EUR 000
31/12/2022
EUR 000
31/12/2021
EUR 000
Loans to related parties 35 701 30 334 23 686
Non-current financial investments 2 214 2 184 2 810
Net trade receivables 89 978 90 575 103 803
Receivables from related parties 40 581 38 023 35 878
Other debtors 27 438 7 836 5 986
Cash 16 065 7 490 7 442
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023118
2023
EUR 000
2022
EUR 000
As at 1 January 1 356 2 604
Reclassified to assets held for sale – (5)
Increase in loss allowance recognized in profit or loss during the year 353 492
Receivables written off during the year as uncollectible (113) (1 594)
Foreign exchange differences (107) 413
Unused amounts reversed (86) (554)
Trade receivables are written off when there is no
reasonable expectation of recovery. Indicators that there
is no reasonable expectation of recovery include legal
assessment and the customer’s existence. Impairment losses
on trade receivables are presented as net impairment losses
within operating profit. Subsequent recoveries of amounts
previously written off are credited against the same line item.
The closing loss allowances for trade receivables are
reconciled to the opening loss allowances as following:
31 December 2023 Total Not due 1-90 91-180 181-360 361-
Gross carrying amount - Trade receivables 91 381 74 727 12 671 2 652 693 638
Expected loss rate 0.10% 0.30% 5% 75% 100%
Loss allowance (1 403) (74) (38) (133) (520) (638)
31 December 2022 Total Not due 1-90 91-180 181-360 361-
Gross carrying amount - Trade receivables 91 931 81 642 8 620 572 528 569
Expected loss rate 0.25% 0.60% 10% 90% 100%
Loss allowance (1 356) (203) (52) (57) (475) (569)
31 December 2021 Total Not due 1-90 91-180 181-360 361-
Gross carrying amount - Trade receivables 106 407 91 281 12 107 1 043 296 1 680
Expected loss rate 0.45% 0.95% 15% 83% 100%
Loss allowance (2 604) (407) (115) (156) (246) (1 680)
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 119
31/12/2022
Financial liabilities
Less than
1 year
EUR 000
Between
2 and 5 years
EUR 000
More than
5 years
EUR 000
Total con-
tractual cash
flows
EUR 000
Carrying
amount
EUR 000
Interest bearing loans and borrowings 89 707 18 438 – 108 145 100 328
Leases 2 877 6 233 – 9 110 7 554
Derivatives (98) – – (98) (98)
Trade and other payables 86 877 1 377 – 88 254 88 254
31/12/2021
Financial liabilities
Less than
1 year
EUR 000
Between
2 and 5 years
EUR 000
More than
5 years
EUR 000
Total con-
tractual cash
flows
EUR 000
Carrying
amount
EUR 000
Interest bearing loans and borrowings 60 185 48 000 – 108 185 101 954
Leases 2 868 5 066 – 7 934 7 148
Derivatives – 68 – 68 68
Trade and other payables 71 323 3 000 – 74 323 74 323
Total 134 376 56 134 – 190 510 183 493
31/12/2023
Financial liabilities
Less than
1 year
EUR 000
Between
2 and 5 years
EUR 000
More than
5 years
EUR 000
Total con-
tractual cash
flows
EUR 000
Carrying
amount
EUR 000
Interest bearing loans and borrowings 87 165 5 809 – 92 974 85 813
Bonds 30 000 – – 30 000 30 000
Leases 3 390 7 783 – 11 173 8 383
Derivatives (8) – – (8) (8)
Trade and other payables 97 018 1 357 – 98 375 98 375
As at 31 December 2023, the Group has further EUR 1 301 thousand (31.12.2022: EUR 10 085 thousand) of undrawn facilities
available under the terms of credit line agreements with financial institutions.
17.7. Fair Value Measurement
Management assessed that fair value of cash and cash
equivalents, trade receivables, loans issued, trade payables and
other current liabilities approximate their carrying amounts
largely due to the short–term maturities of these instruments.
For non–current financial assets and liabilities, the fair values
are also not significantly different to their carrying amounts.
The fair values were estimated based on cash flows discounted
Fair value hierarchy
The Group uses the following hierarchy for determining and
disclosing the fair value of financial instruments by valuation
17.6 Liquidity Risk
Liquidity risk is the risk that the Group will not be able to meet
its financial obligations as they fall due. The Group manages
liquidity risk by maintaining adequate cash reserves and
borrowing facilities, by continuously monitoring forecast
and actual cash flows and matching the maturity profiles of
financial assets and liabilities.
The table below summarises the maturity profile of the Group’s
undiscounted financial liabilities as at 31 December 2023.
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023120
• Level 1: quoted (unadjusted) prices in active markets for
identical assets or liabilities.
• Level 2: other techniques for which all inputs which have a
significant effect on the recorded fair value are observable,
either directly or indirectly.
• Level 3: techniques which use inputs which have a
significant effect on the recorded fair value that are not
based on observable market data.
All the Group’s financial assets and financial liabilities except for
cash and derivative financial instruments, which is classified in
Level 2, are classified in Level 3 of fair value hierarchy. The fair
value of financial assets and financial liabilities approximates to
their book value. Fair value of biological assets (see Note 16) is
17.8. Financial Assets and Financial Liabilities
31/12/2023
EUR 000
31/12/2022
EUR 000
31/12/2021
EUR 000
Financial assets
Financial assets at amortised cost
Loans to related parties 35 701 30 334 23 686
Loans to other 2 214 2 184 2 810
Trade receivables and receivables from related parties 130 599 128 598 139 681
Other assets 22 809 3 684 4 382
Other receivables 4 623 4 296 2 416
Cash and cash equivalents 16 065 7 490 7 442
Total 211 971 176 586 180 417
Financial liabilities
Financial liabilities at amortised cost
Loans from credit institutions 81 209 86 324 93 169
Bonds 30 000 – –
Derivative financial instruments (8) (98) 68
Loans from related parties 4 604 14 004 8 787
Lease liabilities 8 383 7 554 7 148
Trade and other payables 135 651 117 570 111 281
Other liabilities 15 878 16 562 17 230
Total 275 717 241 916 237 683
31/12/2023
Financial
Assets
EUR 000
31/12/2023
Financial
Liabilities
EUR 000
31/12/2022
Financial
Assets
EUR 000
31/12/2022
Financial
Liabilities
EUR 000
31/12/2021
Financial
Assets
EUR 000
31/12/2021
Financial
Liabilities
EUR 000
Euro 173 551 (248 535) 137 879 (208 190) 127 058 (173 104)
Sterling 16 211 (12 114) 16 604 (13 443) 20 629 (33 118)
Australian Dollar 7 794 (7 829) 9 435 (7 255) 7 753 (4 764)
Russian Ruble 4 510 (3 360) 4 091 (9 292) 18 737 (21 857)
US Dollar 3 193 (1 825) 4 042 (1 891) 4 232 (2 086)
Mexican Peso 5 559 (1 899) 3 325 (1 687) 1 942 (2 752)
Canadian Dollar 1 159 (157) 1 211 (157) 67 –
Total 211 977 (275 719) 176 587 (241 916) 180 417 (237 681)
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 121
Borrowings are recognised initially at fair value, net of
transaction costs incurred. Borrowings are subsequently
carried at amortised cost; any difference between the
proceeds (net of transaction costs) and the redemption value
is recognised in the statement of comprehensive income
over the period of the borrowings using the effective interest
method. General and specific borrowing costs directly
attributable to the acquisition, construction or production
of qualifying assets, which are assets that necessarily take a
substantial period of time to get ready for their intended use
or sale, are added to the costs of those assets, until such time
as the assets are substantially ready for their intended use or
Group has an unconditional right to defer settlement of the
liability for at least 12 months after the end of the reporting
period.
Bank overdrafts form an integral part of the Group’s cash
management and are presented as short-term liabilities
in the consolidated statement of financial position. In the
consolidated statement of cash flows the bank overdrafts are
disclosed on a net basis as they have quick turnover and are
short-term from maturity perspective.
Cash and cash equivalents comprise cash in hand and
deposits which are readily convertible to known amounts of
cash and which are subject to insignificant risk of changes in
value and have an original maturity of three months or less,
including money market deposits, commercial paper, and
investments.
Net borrowings are defined as gross borrowings (short–term
borrowings and long–term borrowings plus lease liabilities
plus interest rate hedging instruments) less cash and cash
equivalents and short-term deposits.
18. Net Borrowings
31/12/2023
EUR 000
31/12/2022
EUR 000
31/12/2021
EUR 000
Bank overdrafts 43 691 42 103 37 648
Bank loans 37 147 43 888 21 388
4-y EUR 30m bonds 30 000 – –
Accrued interest on bank loans 287 176 85
Loans from related parties (Note 26.2) 79 12 58
Borrowings due within one year 111 204 86 179 59 179
Non–current interest–bearing loans and borrowings
Bank loans 84 157 34 048
Loans from related parties (Note 26.2) 4 525 13 992 8 727
Borrowings due after one year 4 609 14 149 42 775
Total borrowings before derivative financial instruments 115 813 100 328 101 954
Derivative financial instruments (8) (98) 68
Lease liabilities (Note 19) 8 383 7 554 7 148
Gross borrowings 124 188 107 784 109 170
Less: Cash and cash equivalents (Note 20) (16 065) (7 490) (7 442)
Less: Short-term bank deposits (12 000) – –
On 21 April 2023, Amber Beverage Group Holding S.à r.l., with the
intention of acquiring financing for the construction of a high-bay
automated warehouse in Riga, Latvia, issued EUR 30 million
in 4-year bonds (ISIN: LV0000870137), which are listed on the
Frankfurt Stock Exchange (WKN: A3LE0T). As of 16 October 2023,
the bonds are listed on the Nasdaq Riga Stock Exchange Baltic
Regulated market (AMBEFLOT27A).
The coupon at 3mEURIBOR + 7.5% is calculated and paid on
quarterly basis.
As part of the terms and conditions of the Offering Memorandum,
the proceeds from the bond issue can be utilised to fund the
construction of the project and to serve the bond debt. Funds
obtained from the bond issue have been put on short-term
deposits with Signet Bank AS with different maturities following
the estimated utilisation profile for the project.
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023122
31/12/2023 31/12/2022 31/12/2021
Cash
and cash
equivalents
EUR 000
Short-term
bank
deposits
EUR 000
Gross
borrowings
EUR 000
Cash
and cash
equivalents
EUR 000
Gross
borrowings
EUR 000
Cash
and cash
equivalents
EUR 000
Gross
borrowings
EUR 000
Euro 12 604 12 000 (114 633) 3 357 (95 277) 4 526 (75 769)
US dollar 151 – (33) 890 (34) 639 (31)
Sterling 962 – (1 958) 1 302 (1 916) 1 248 (19 928)
Mexican peso 550 – – 376 – 166 (3 696)
Australian dollar 13 – (5 689) 1 133 (4 323) 558 (63)
Russian ruble 1 662 – (1 849) 273 (6 208) 219 (9 658)
Other 123 – (26) 159 (26) 86 (25)
Total 16 065 12 000 (124 188) 7 490 (107 784) 7 442 (109 170)
18.1 Analysis of Net Borrowings by Currency
18.2 Movement of Borrowings
Fulfilment of the Group’s liabilities towards bank borrowings is secured
and enforced by:
(i) The mortgage of largest part of real estate owned by the Group;
(ii) Commercial pledge of all Group’s movable property owned by the
Parent Company, Amber Beverage Group SIA, Amber Distribution
Latvia SIA, Amber Production Tequila S.A. de C.V., Interbaltija AG AS
and Amber Distribution Lithuania UAB as aggregation of property on
the date of pledging as well as future aggregation of property;
(iii) The pledge of all shares of subsidiaries owned by the Parent
Company, and any other shares that may be acquired in the future.
Bonds are secured by the mortgage over the real estate, commercial
pledge on machinery and equipment to be acquired for the
warehouse, commercial pledge on loans issued to the SPI Group
Holding Ltd and guarantees issued by the Group entities.
The Group is subject to certain covenants related primary to its
borrowings from Luminor Bank AS Latvian branch, Credit Suisse AG,
BluOr Bank AS and Rietumu Banka AS and bondholders. The Group
is constantly monitoring the compliance with financial covenants as
agreed with the respective lenders and is communicating on their
fulfilment. As per covenant calculations as of 31.12.2023, the Group
has not met the DEBT/EBITDA ratio as agreed with Rietumu Banka AS.
Accordingly, the Group did not have an unconditional right (within
the meaning of paragraph 69 d) of IAS 1 "Presentation of Financial
Statements") to defer settlement of the respective loan for 12 months or
longer. Accordingly, there was a risk that the loan would be accelerated
and become due and payable at a future date within 12 months of
the end of the reporting period, which could in turn trigger a cross-
acceleration event of default under the Group’s outstanding bonds. As
a result, the Group also did not have an unconditional right as per IAS
1 to defer settlement of its bonds for 12 months or longer. The Group
therefore classified the outstanding loan liability towards Rietumu
Banka AS of EUR 9 454 thousand and its long-term bonds of EUR 30
000 thousand as short-term. Notwithstanding such classification,
management notes that, after the year-end, Rietumu Banka AS has
confirmed there are no breaches, due to which the bank would
withdraw from the loan agreement and utilize its rights to request the
early repayment of the loan and cross-acceleration events of default
under the bonds were not triggered as at such date, and the Group
remained otherwise in full compliance with the terms of its bonds.
2023
EUR 000
2022
EUR 000
As at 1 January 100 328 101 954
Disposals through reorganisation of the Group (204) –
Borrowings received 40 050 10 078
Net change in overdrafts 1 691 3 500
Borrowings repaid (25 078) (27 314)
Other non-cash movement – 5 833
Foreign exchange differences (1 245) 5 416
Interest accrued 8 650 4 415
Interest paid (8 379) (3 554)
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 123
The Group assesses at contract inception whether a
contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset
of a period of time in exchange for consideration.
The Group as a lessee
The Group applies a single recognition and measurement
approach for all leases, except for short–term leases and
leases of low–value assets. The Group recognizes lease
liabilities to make lease payments and right–of–use assets
representing the right to use the underlying assets.
At the commencement date of the lease, the Group
recognises lease liabilities relating to real estate and
production equipment measured at the present
value of lease payments. Lease liabilities represent
fixed lease payments. In calculating the liabilities, the
Group uses its incremental borrowing rate at the lease
commencement date, except where the borrowing rate is
readily determined. The Group has applied the discount
rate of 7.83% (2022: 5.08%) for the calculation of lease
liabilities upon initial recognition and their subsequent
re–calculation at the year end. The carrying amount of
lease liabilities is remeasured if there is a modification, a
change in the lease term, a change in the lease payments
or a change in the assessment of an option to purchase
the underlying asset at the end of the period. Every lease
payment is apportioned between lease liabilities and
interest expenses thereon. Interest paid on lease liabilities
is recognised in the statement of comprehensive income
over the lease term.
Short–term leases and leases of low–value assets
The Group applies the short–term lease recognition
exemption to its short–term leases of other property,
plant and equipment items (i.e., those leases that have a
lease term less than 12 months from the commencement
date and do not contain a purchase option). It also
applies the lease of low–value assets recognition
exemption to leases of office equipment that are
considered to be low value. Lease payment on short–term
leases and leases of low–value assets are recognized as
expenses on a straight–line basis over the lease term.
19. Leases
Cash
and cash
equiva-
lents
EUR 000
Short-
term
deposits
EUR 000
Leases
due after
1 year
EUR 000
Leases
due with-
in 1 year
EUR 000
Borrow-
ings due
after
1 year
EUR 000
Borrow-
ings due
within 1
year
EUR 000
Deriv-
ative
financial
instru-
ments
EUR 000
Total
EUR 000
Net debt as at 1 January 2022 7 442 – (4 389) (2 759) (42 775) (59 179) (68) (101 728)
Cash flows 341 – – 2 845 – 27 314 – 30 500
New leases – – (970) – – – – (970)
New borrowings – – – – (78) (10 000)
Other non-cash movement (293) – 284 (2 565) 28 704 (44 314) 166 (18 018)
Net debt as at 31 December 2022 7 490 – (5 075) (2 479) (14 149) (86 179) 98 (100 294)
Cash flows 8 575 12 000 – 2 777 – 25 078 – 48 430
New leases – – (3 250) – – – (3 250)
Proceeds from bonds issuance – – – – (30 000) – – (30 000)
New borrowings – – – – (10 050) – – (10 050)
Other non-cash movement – – 2 689 (3 045) 49 590 (50 103) (90) (959)
Net debt as at 31 December 2023 16 065 12 000 (5 636) (2 747) (4 609) (111 204) 8 (96 123)
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023124
2023
EUR 000
2022
EUR 000
As at 1 January 7 554 7 148
Additions 3 250 970
Changes in management assumptions on remaining lease period 1 143 2 424
Interest (361) 128
Payments (2 777) (2 845)
Disposals (301) -
Foreign exchange difference (125) (271)
As at 31 December 8 383 7 554
Accounted as:
Non-current liabilities 5 636 5 075
Current liabilities 2 747 2 479
Total 8 383 7 554
20. Cash and Cash Equivalents
The deposits have been placed on various terms (not exceeding three months from the initial date of placement) with credit
institutions. The applied deposit rates are within the range of 2.35%-3.35%.
Cash and short-term deposits in the consolidated
statement of financial position comprise cash at banks
and on hand and short-term highly liquid deposits
with an original maturity of three months or less, that
are held for the purpose of meeting short-term cash
commitments and are readily convertible to a known
amount of cash and subject to an insignificant risk of
changes in value. Bank overdrafts are shown within
borrowings in current liabilities on the statement of
financial position.
31/12/2023
EUR 000
31/12/2022
EUR 000
31/12/2021
EUR 000
Cash at bank 5 673 7 278 7 243
Short term deposits 10 164 – –
Petty cash 4 3 6
Cash in shops 115 98 69
Cash in transit 109 111 124
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 125
For the purpose of the statement of cash flows, cash and cash equivalents comprise the following at 31 December:
21. Capital Management
With the key targets being the maintenance of the financial ratios
with the framework set by the agreements with external lenders
and maintenance of financial stability of the Group, the capital
structure is managed at the Group level on an ongoing basis.
The Management controls the gearing ratio, calculated as net
debt (interest bearing loans and borrowings, leases, net of
cash and cash equivalents and short term deposits) to equity.
As of 31 December 2023 the gearing ratio is 52% (31.12.2022:
53%) and ratio equity to total assets is 39% (31.12.2022: 41%).
To ensure capital sufficiency, the Management of the Group
proposes to leave the profit of reporting period not distributed.
31/12/2023
EUR 000
31/12/2022
EUR 000
31/12/2021
EUR 000
Borrowings 124 188 107 784 109 170
Cash and cash equivalents (16 065) (7 490) (7 442)
Short term bank deposits (12 000) – –
Equity 184 834 192 483 180 349
Gearing ratio 52% 52% 56%
Equity 184 834 192 483 180 349
Assets 468 648 458 025 423 221
Equity to Assets ratio 39% 42% 43%
Borrowings 124 188 107 784 109 170
EBITDA 29 934 40 835 35 621
Debt/EBITDA ratio 4.1x 2.6x 3.1x
Cash at bank includes restricted cash in the amount of EUR 290 thousand (31.12.2022: EUR 290 thousand), which has been placed
with stable credit ratings.
31/12/2023
EUR 000
31/12/2022
EUR 000
31/12/2021
EUR 000
Cash at bank 5 673 7 278 7 243
Short term deposits 10 164 – –
Petty cash 4 3 6
Cash in shops 115 98 69
Cash in transit 109 111 124
Cash and cash equivalents attributable to disposal group – 293 –
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023126
22. Share Capital and Share Premium
The Parent Company Amber Beverage Group Holding S.à r.l.
was established on 26 September 2017. The share capital of
the Parent Company as at 31 December 2023 is EUR 12 500
(31.12.2022: EUR 12 500) and consists of 12 500 shares with par
value of EUR 1 each. Share capital has been fully paid.
As the result of Group reorganization started in 2017 and
finalized in 2018, the shareholders of the Parent Company
have contributed the share premium in the amount of
EUR 132.6 million.
23. Pooling Reserve
In 2017, the Group acquired a majority shareholding in
Tambovskoye spirtovoye predpriyatye “Talvis” AO (since 2021
Amber Talvis AO) from the related party S.P.I. Production
B.V. (70.95%) and minority shareholder (1.91%). In 2018, the
Group acquired a majority shareholding in Permalko AO
(since 2021 Amber Permalko AO) from the related party S.P.I.
Production B.V. (92.6%). In 2019, the Group acquired a 100%
shareholding in DDE Holding Ltd. (since 2019 Amberbev
International Ltd) from the related party S.P.I. Spirits (Cyprus)
Ltd. In 2020, the Group acquired a 100% shareholding in Rits
Holdings SIA from the related party SPI Holding Sarl.
As the result of divestment of Amber Permalko AO and Rits
Holdings SIA in 2023, respective share of pooling reserve in
amount of EUR 3 227 thousand was transferred to retained
earnings.
As these transactions were treated as part of the SPI Group
reorganisation, the assets and liabilities were accounted at
their book values on the dates of acquisition, with net assets
recognised as a non-distributable pooling reserve.
As at 31 December 2023 93% (31.12.2022: 91%) of non-controlling interest closing balance referres to Amber Latvijas balzams AS,
which is listed on the Nasdaq Riga Stock exchange.
24. Non–controlling Interest
2023
EUR 000
2022
EUR 000
As at 1 January 15 445 12 008
Share of profit for the period 1 073 3 022
Disposal (514) –
Dividends (469) (484)
Foreign exchange differences (421) 899
31/12/2023
EUR 000
31/12/2022
EUR 000
31/12/2021
EUR 000
Borrowings 124 188 107 784 109 170
Cash and cash equivalents (16 065) (7 490) (7 442)
Short term bank deposits (12 000) – –
EBITDA 29 934 40 835 35 621
Net Debt/ EBITDA ratio 3.2x 2.5x 2.9x
EBITDA 29 934 40 835 35 621
Consolidated Net finance charges
1
9 320 6 862 3 340
Interest coverage ratio 3.2x 6x 10.7x
1 Consolidated finance charges are calculated as interest expense reduced by deposit interest income.
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 127
Other Financial Information
This section includes additional financial information that is either required by
the relevant accounting standards or which management considers be material
information for shareholders.
25. Commitments and Contingencies
25.1. Guarantees Received
Luminor Bank AS Latvian Branch has issued two payment
guarantees to the Group entities Amber Latvijas balzams AS
and Amber Distribution Latvia SIA for total maximal amount of
EUR 1 058 thousand. The applied interest rate is 1 month
EURIBOR + 2.05% maturity date – 31 December 2025.
25.2 Commitments
As at 31 December 2023, the Group had commitments of EUR
36.7 million (2022: EUR 14 million) relating to completion of
the automated warehouse project in Riga, Latvia.
25.3. Trademark Related Contingencies
Trademark related disputes
SPI Group is the owner of a number of world–famous vodka
trademarks (sometimes also referred to as “Soviet vodka
brands”) in most countries of the world. One of the key
“Soviet brands” in the trademark portfolio of the Group is
Moskovskaya®. The history of the Moskovskaya® trademark
goes back to the Soviet times, namely, to the 1960s–70s,
when the Soviet State Enterprise SOJUZPLODOIMPORT,
under instructions of the USSR Ministry of Foreign Trade,
started to commercialize Russian vodka around the world,
mainly STOLICHNAYA and Moskovskaya®.
In order to facilitate and protect such business, the
trademark Moskovskaya® was registered in a number
of countries in the world (including in the USSR) in
the name of aforementioned Soviet State Enterprise
SOJUZPLODOIMPORT.
Due to the liberalization of the Soviet economy, which was
the result of the famous “PERESTROYKA”, the management
of SOJUZPLODOIMPORT was instructed by the competent
USSR authority to convert the State Enterprise into a private
entity. Such transformation started in September 1990 and
ended in January 1992. The transformation procedure was
initiated with the mutual consent of the competent USSR
authority and the employees of SOJUZPLODOIMPORT and
was conducted in accordance with applicable law.
As a result of the transformation initiated in September
1990, the Soviet State Enterprise SOJUZPLODOIMPORT
was converted into the private entity (joint stock
company) with the same name, and in January 1992 the
Joint Stock Company SOJUZPLODOIMPORT was duly
registered as the legal successor of Soviet State Enterprise
SOJUZPLODOIMPORT.
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023128
As the legal successor of Soviet State Enterprise
SOJUZPLODOIMPORT, the Joint Stock Company
SOJUZPLODOIMPORT inherited all assets of the former,
including the worldwide trademark portfolio which included
Moskovskaya® trademark registrations.
It should be noted that both the USSR and the Russian
Federation state authorities were well aware of
SOJUZPLODOIMPORT’s transformation into the private entity
and not only consented, but also actively assisted in the
worldwide promotion of Soviet vodka brands by the joint stock
company SOJUZPLODOIMPORT. None of those authorities
ever questioned the validity of the transformation of the state
enterprise, as well as its successor’s title to the trademarks
worldwide. Moreover, on a number of occasions Russian State
authorities directly and indirectly confirmed the validity of
title of Joint Stock Company SOJUZPLODOIMPORT to the
trademarks. This was the case until 2000.
In 1997 a group of investors acquired the controlling
shareholding in the Joint Stock Company
SOJUZPLODOIMPORT. Later, SPI Group was created and
SOJUZPLODOIMPORT became a part of this group.
The new shareholders invested considerable resources into
the company and conducted its restructuring. The intellectual
property (IP) portfolio was also restructured and divided
between the Russian and the Dutch companies of SPI Group.
In 2000, a campaign was initiated at the top level of the Russian
government for the re–nationalization of the Soviet vodka
brands lawfully owned by SPI Group. As part of this campaign
the Russian national registrations of the Soviet brands were
seized for the benefit of the Russian Federation and (after more
than eight years of acquiescence and recognition of its validity
by the Russian authorities) the transformation of the State
enterprise SOJUZPLODOIMPORT into the private company was
declared void in Russia.
It should be noted than neither the SPI Group, nor
its shareholders participated in the allegedly invalid
transformation of the State enterprise SOJUZPLODOIMPORT
into the private company. The private company
SOJUZPLODOIMPORT was acquired in 1997, more than 5 years
after the allegedly void transformation of the State enterprise
SOJUZPLODOIMPORT into the private entity was concluded.
Since 2003, a state enterprise of the Russian Federation named
FKP (Federal Treasury Enterprise) SOJUZPLODOIMPORT
claimed recognition of its ownership of former-Soviet vodka
brands owned by Amber Beverage Group and a number of
parties under common control of the UBO and included in the
group of companies of Stoli Group Sarl (together referred to
as “SPI Group” or “SPI”) in a number of jurisdictions. SPI and
Amber Beverage Group are actively defending those lawsuits.
Since December 2015, Amber Beverage Group, through
its subsidiary, holds the title for Moskovskaya® trademark
are subject to ongoing disputes as detailed below. Prior to
December 2015, Moskovskaya® trademark registration has been
held by SPI.
Austria: In August 2014 the Regional Court of Linz, Austria,
rendered a decision in a case filed by FKP in 2005 by which
the court ordered the trademarks in Austria to be transferred
to FKP. This decision was reversed by the appeals court in
December 2014 and FKP appealed to the Cassation Court
of Austria which ordered the appeals court to consider the
possible binding effect of the Dutch decisions. On 5 February
2018, the appeals court ruled in favor of SPI. The appeals court
held that the Dutch decisions had no binding effect in Austria
and went on to criticize the Dutch courts’ approach, finding
that the Dutch courts: a) wrongly found that an invalidity of the
Russian privatization would not be subject to any limitation
period, b) ignored the fact that the privatization had been
accepted by all parties for years until political power in Russia
changed in 1999/2000, and c) ignored considerations on the
merits of Russian limitation law. FKP appealed to the Austrian
Supreme Court, which decided in June 2018 to return the case
to the appeals court for further consideration. On 5 September
2018, the Appeals Court issued a decision negative to SPI
based on its application of the Benelux decision pursuant to
the Brussels I regulation. SPI filed an extraordinary appeal on
8 October 2018, which was rejected by the Austrian Supreme
Court in April 2020. Further proceedings will take place to
quantify damages, which are not expected to have a material
adverse impact. A second related trademark infringement case
was filed by FKP in August 2020 against Amber IP Brands Sarl
and a party under common control. An initial court hearing is
expected on 13 June 2024.
Lebanon: In 2011, SPI was successful in defending its trademark
in Lebanon, both in the first instance and on appeal. FKP’s
appeal to the cassation court remains pending.
Australia: In Australia, a motion to stay the proceedings was
filed by SPI as a result of the Russian Federation’s failure to
provide discovery. On 20 November 2017 the Federal Court of
Australia ordered that the case be stayed until further notice.
The Court confirmed that the Russian Federation was the “real
plaintiff” in the proceeding, and suspended the case unless
the Russian Federation produces documents that it has been
withholding for years. The Russian Federation did not produce
the relevant documents by the deadline of 30 November 2018,
and SPI filed a motion to dismiss FKP’s claims. On 30 May 2019,
the Court found that the Russian Federation’s failure to provide
discovery amounted to an abuse of process and ordered a
permanent stay relating to all parts of the proceedings which
relate to topics in respect of which the Russian Federation
has failed to provide discovery. On 31 October 2019, the Court
ordered any further proceedings on FKP’s asserted claims
permanently stayed. FKP appealed this decision and the case
has now been returned to the lower court. FKP filed a motion
for summary judgment, the hearing for which will take place in
the second half of 2024 or later. FKP also issued a procedural
challenge on the defenses of SPI. This challenge was not
successful, and they have filed a leave to appeal such decision.
SPI has filed an affidavit in opposition to their motion for leave
to appeal and that decision is pending.
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 129
Armenia: In July 2014, FKP filed a claim against the trademark
registrar in Armenia seeking cancellation of the Stolichnaya
trademarks there. In February 2019, the Administrative Court
fully rejected FKP’s claims and found that FKP does not have
legal standing to present a claim against SPI. FKP appealed this
decision and in March 2024 FKP has been granted permission
to present their claim. This decision has been appealed.
Greece: In July 2014, SPI received a decision in its favor in the
Athens Court of First Instance in respect of a claim filed by FKP
to terminate SPI’s rights to the Stolichnaya and Moskovskaya®
trademarks. In the meantime, FKP filed a new lawsuit in Greece
in December 2015 seeking acknowledgment of the res judicata
of the judgments of the Russian court and The Hague Court of
Appeals and seeking declaration of ownership of the dispute
trademarks. In September 2019 the court dismissed FKP’s
lawsuit on the grounds of lack of jurisdiction and lack of legal
the final judgment is pending. A final decision is expected no
sooner than Q4 2024 and perhaps much later.
Vietnam: In April 2014, SPI was informed that certain
international registrations in Vietnam had been transferred
to FKP. As a result, neither Amber Beverage Group nor SPI
can currently sell its Moskovskaya® branded products in
that market. SPI believes such a transfer was illegal and is
challenging the action and sales in Vietnam have stopped
pending resolution.
Israel: By judgment of 16 June 2022, the court rejected FKP’s
application. FKP did not appeal. The litigation is over.
The Netherlands: In March 2015, the court rendered a decision,
the result of which was the cancellation of the contested
Benelux trademarks and/or their transfer to FKP. SPI filed
an appeal and FKP filed a cross-appeal. In January 2018 the
appellate court ordered SPI to provide a report regarding the
Benelux profits of, among others, Moskovskaya® in order to
determine the amount of damages that will have to be paid
by the defendant - related party. In July 2018 FKP initiated
preliminary relief proceedings. The preliminary relief judge
ordered a related party to provide a bank guarantee in the
amount of EUR 6 million (which a related party was unable
to procure), subject to a proceeding on the merits to analyze
the report on Benelux profits. SPI appealed the January 2018
judgment to the Dutch Supreme Court and in January 2020
the appeal was rejected. However, from year 2016 and till
now, Amber Beverage Group was not selling its Moskovskaya®
branded products in the market, therefore there is no profit for
the relevant period.
In 2012, FKP filed a second action in the Netherlands seeking
an order to restore to FKP some additional Benelux trademarks
and, in addition, trademarks in the United Kingdom, Ireland,
France, Italy, Denmark, Switzerland, Portugal, Spain, Sweden
and Norway. An interim judgment was handed down in May
2017. Pursuant to the interim judgment, the plaintiff and the
defendant had to inform the Court about legal issues in each
jurisdiction. It is noteworthy that this Court did not decide that
case on the basis of the Benelux decision alone, acknowledging
that local laws of each of the 10 jurisdictions above remain
relevant. Defendant made its required submission in February
2018 containing legal and expert opinions from 10 jurisdictions.
In May 2019, the Court granted defendant’s discovery request
in relation to seized documents, ordering that FKP produce
documents seized by Russian authorities in the late 1990s and
in the 2000s. In June 2020, a five day hearing was held. On July
22, 2020, the Court issued a decision in favor of defendant
in relation to the seized documents which affirmed FKP’s
obligation to produce them and also confirmed that penalties
have accrued against FKP for their ongoing failure to do so. In
June 2021, the Court issued a decision favorable to defendant
in 7 jurisdictions (Denmark, France, Italy, Norway, Portugal,
Spain and Switzerland) leaving only 3 jurisdictions to deal with
on appeal. In the meantime, the decision has not taken effect
25.4 Lawsuit Related Contingencies
Environment pollution case
On 18 October 2018 a planned inspection of the Vilnius
Region Environmental Protection Department of the
Ministry of Environment of the Republic of Lithuania
(hereinafter – Vilnius RAAD) was performed and Amber
Distribution Lithuania UAB (previously known as Bennet
Distributors UAB) (ADLT) was informed that by the decision
of RAAD dated 18 December 2017 and 22 February 2018
the approvals issued by the Packaging Managers on the
arrangement of metal and PET packaging in 2013–2015 tax
periods were revoked. Therefore, on 18 December 2018, by
the decision of the Vilnius RAAD ADLT was obliged to pay
a fee of EUR 267 thousand for environmental pollution for
packaging waste. ADLT has filed a plaint with the Vilnius
Regional Administrative Court seeking the annulment of the
unlawfully adopted act. The case is currently on hold.
Litigation with AAS “BALTA”
On 21 May 2021, AAS BALTA filed a lawsuit against SIA
Amber Distribution Latvia (hereinafter – ADLV) in a claim
for damages in connection with a fire case in the 2016 in
“Maxima” store in Liepaja. AAS “BALTA” considers that the
cause of the fire was a damaged refrigerator and in BALTA’s
opinion the legal possessor of this refrigerator is ADLV. BALTA
bases its opinion on the cause of the fire with an expert
opinion. ADLV does not admit its fault and the grounds of
claims. The case has not yet been heard in the court of first
instance.
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023130
The parties are considered related when one party has
a possibility to control the other one or has significant
influence over the other party in making financial and
operating decisions. Related parties of the Parent
Company are subsidiaries, associates, and shareholders
who could control or who have significant influence over
the Parent Company in accepting operating business
decisions, key management personnel of the Parent
Company including members of Supervisory Board and
close family members of any above–mentioned persons,
as well as entities over which those persons have a
control or significant influence.
Balances and transactions between the Parent Company
and its subsidiaries, which are related to the Parent
Company, have been eliminated on consolidation and are
not disclosed in this note. Details of transactions between
the Group and other related parties (related through
the SPI Group Holding Limited or Stoli Group S.a r.l.), or
other entities controlled by ultimate beneficial owner are
disclosed below.
The main shareholder of the Group, which owns 94%
of shares of the Parent Company is SPI Group Holding
Limited which is incorporated in Cyprus, ultimate
26. Related Party Transactions
26.1. Trading Transactions
Outstanding balances at the year–end are unsecured and
interest free and settlement occurs in cash. There have been
no guarantees provided or received for any related party
receivables or payables. For the year ended 31 December
2023 the Group has not recorded any impairment of
receivables relating to amounts owed by related parties
(31.12.2022: nil). This assessment is undertaken each
financial year through examining the financial position of the
related party and the market in which the related party
operates.
Amounts owed by related parties Amounts owed to related parties
31/12/2023
EUR 000
31/12/2022
EUR 000
31/12/2021
EUR 000
31/12/2023
EUR 000
31/12/2022
EUR 000
31/12/2021
EUR 000
SPI Group Holding Ltd 3 564 3 533 3 528 10 1 17
Other related companies 37 017 34 490 32 350 4 987 1 453 1 602
Total controlled by the
Ultimate benficial owner
Sale of services and goods Purchase of services and goods
2023
EUR 000
2022
EUR 000
2023
EUR 000
2022
EUR 000
SPI Group Holding Ltd – – 8 300
Other related companies 51 234 63 976 965 562
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 131
26.2. Loans from and to Related Parties
31/12/2023
EUR 000
31/12/2022
EUR 000
31/12/2021
EUR 000
Loans to related parties
Issued by Parent Company
Non-current portion 29 560 26 463 20 698
Current portion 6 020 3 717 2 856
Total 35 580 30 180 23 554
Issued by other ABG Group companies
Non-current portion 121 154 132
Current portion - - -
Total 121 154 132
Total loans to related parties 35 701 30 334 23 686
Loans from related parties
Received by Parent Company
Non-current portion 3 125 8 090 3 647
Current portion 79 - 49
Total 3 204 8 090 3 696
Received by other ABG Group companies
Non-current portion 1 400 5 902 5 080
Current portion - 12 9
Total 1 400 5 914 5 089
Total loans from related parties 4 604 14 004 8 785
Loans to and from related parties have been issued to and re-
ceived from related parties within Stoli Group. The non–current
loans issued to related parties are not secured and are maturing
in 2025–2026. The Group has applied fixed interest rate of 3–8%
(2022: 3-8%) for the long–term loans issued determined based
on Transfer Pricing study. The current portion of loans to related
parties mainly consists of accrued interest on long term loans.
The term loans from related parties are maturing in 2025–2027,
with fixed interest rates of 3–11%. Loan issued by the Parent
Company to SPI Group Holding Limited with the book value
as at 31 December 2023 of EUR 35.6 million (31.12.2022: nil) is
pledged under the conditions of the Commercial pledge agree-
ment as the security for issued bonds (see Note 18).
26.3. Compensation to Key Management Personnel
2023
EUR 000
2022
EUR 000
Short-term employee benefits 4 453 4 315
Social security costs 503 528
The key management represents the statutory representatives, including proxies and members of Supervisory Board of the Group.
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023132
26.4 Movement of Dividends
2023
EUR 000
2022
EUR 000
As at 1 January 3 348 650
Dividends declared 10 000 11 000
Dividends declared to non-controlling interests in subsidiaries 469 484
Dividends paid (2 760) (7 602)
Other movement – (700)
Dividends paid to non-controlling interests in subsidiaries (469) (484)
2023
EUR 000
2022
EUR 000
As at 1 January 1 059 897
Additions 2 176
Disposals (1 057) –
Depreciation (4) (14)
Investment properties consisting of several land plots and
commercial buildings in Riga, Latvia, which were held for
rental income generation purposes were disposed in March
2023 by transferring the shares of Rits Holding SIA to a
27. Investment Properties
Investment properties are land, buildings or part of
buildings held by the Group to earn rentals or for capital
appreciation rather than use in the production or supply
of goods or services or for administrative purposes
or sale in the ordinary course of business and are not
occupied by the Group. Investment properties are initially
recognised at acquisition cost. Subsequently investment
properties are carried at their cost less any accumulated
depreciation and any accumulated impairment losses.
The depreciation is calculated using the straight–line
method. Applied depreciation rates are within the range
of 10 to 71 years and are based on estimated useful life
set for respective asset categories. The useful lives are
reviewed, and adjusted if appropriate, at each end of the
financial year. Transfers are made to (or from) investment
properties only when there is a change in use. Impairment
of investment properties is recognized if the net book
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 133
Information on legal addresses of the subsidiaries is presented in the stand-alone financial statements of the Parent Company.
28. Group Information
1 In 2023 the Group finalized the acquisition of Indie Brands group entities and
obtained 100% control over the share capital of Indie Brands Ltd.
2 On 13 June 2023 the Group sold the shares of Amber Permalko AO to a non-
related party.
3 On 30 March 2023 the Group sold the shares of Rits Holdings SIA to a related
party outside the Group.
Name Principal activities
Country of
incorporation/
operations
% Equity
interest
31/12/2023
% Equity
interest
31/12/2022
Amber Distribution Latvia SIA Distribution Latvia 100% 100%
Interbaltija AG AS Distribution Latvia 100% 100%
Amber Distribution Estonia OU Distribution Estonia 100% 100%
Amber Distribution Lithuania UAB Distribution Lithuania 100% 100%
Amber Beverage UK Ltd Distribution the UK 100% 100%
Amber Beverage Australia Pty Ltd Distribution Australia 100% 100%
Amber Beverage Austria GmbH Distribution Austria 90% 90%
Amber Beverage Germany GmbH Distribution Germany 100% 100%
Indie Brands Ltd
1
Distribution the UK 100% 75%
Indie Spirits Ltd
1
Distribution the UK 100% 75%
WW Equity House Holding Ltd Holding activities Ireland 100% 100%
WW Equity House Trading Ltd
Distribution and Brand
management
Ireland 100% 100%
Amberbev International Ltd Distribution Cyprus 100% 100%
Amber Latvijas balzams AS Production of alcoholic beverages Latvia 89.99% 89.99%
Amber Production Tequila S.A. de C.V. Production of alcoholic beverages Mexico 100% 100%
Amber Agave S.A. de C.V. Agricultural activities Mexico 100% 100%
Amber Permalko AO
2
Production of alcoholic beverages Russia – 92.6%
Amber Talvis AO Rectification of ethyl alcohol Russia 72.87% 72.87%
Amber Production Remedia OU
Production of alcohol beverages Estonia 100% 100%
Amber IP Brands S.à r.l.
Intellectual property rights
management
Switzerland 100% 100%
Amber Beverage Group SIA Management services Latvia 100% 100%
Think Spirits NL B.V. Management services the Netherlands 100% 100%
ABG Real Estate SIA Real estate management Latvia 100% 100%
Rits Holding SIA
3
Real estate management Latvia – 100%
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023134
29. Other Accounting Policies
The principal accounting policies adopted in the preparation
of these consolidated financial statements are set out
below. These policies have been consistently applied, unless
otherwise stated.
Revenue from contracts with customers
The Group is in the business of production and distribution of
alcoholic beverages. Revenue from contracts with customers
is recognised when control of the goods is transferred to the
customer at an amount that reflects the consideration to
which the Group expects to be entitled in exchange for those
goods or services. The Group has generally concluded that it is
the principal in its revenue arrangements because it typically
controls the goods before transferring them to the customer.
Excise tax expense
Local tax authorities impose multiple taxes, duties and fees.
These include excise on sale or production of alcoholic
beverages, environmental taxes on the use of certain raw
materials or packaging materials, or the energy consumption
in the production process. Excise duties are very common
in the beverage industry, but levied differently amongst the
countries the Group operates in. The Group performs a country
by country analysis to assess whether the excise duty are sales–
related or effectively a production tax. In most countries excise
duties are effectively a production tax as excise duties become
payable when goods are moved from bonded warehouses and
is not based on the sales value. In these countries, increases
in excise duty are not always (fully) passed on to customers
and the Group cannot, or can only partly, reclaim the excise
duty in the case products are eventually not sold to customers.
Excise tax is borne by the Group for these countries and
shown as expenses. To provide transparency on the impact
of the accounting for excise, the Group presents the excise tax
expense on a separate line below revenue in the consolidated
statement of profit of loss and other comprehensive income.
A subtotal called 'Net revenue' is therefore included in the
Profit or Loss statement. This 'Net revenue' subtotal is 'revenue'
as defined in IFRS 15 (after discounts) minus the excise tax
expense for those countries where the excise is borne by the
Group.
Only for those countries where excise is levied at the moment
of the sales transaction and excise is based on the sales value,
the excise duties are collected on behalf of a tax authority and
Sale of finished goods
Revenue from sale of finished goods is recognised at the point
in time when control of the asset is transferred to the customer,
generally on delivery of the finished goods. The normal credit
term is 30 to 90 days upon delivery.
In determining the transaction price for the sale of finished
(i) Variable consideration
If the consideration in a contract includes a variable amount,
the Group estimates the amount of consideration to which it
will be entitled in exchange for transferring the goods to the
customer. The variable consideration is estimated at contract
inception and constrained until it is highly probable that a
significant revenue reversal in the amount of cumulative
revenue recognised will not occur when the associated
uncertainty with the variable consideration is subsequently
resolved. Some contracts for the sale of finished goods provide
customers with volume rebates and rights to return that gives
• Volume rebates
The Group provides retrospective volume rebates to certain
customers once the quantity of products purchased during
the period exceeds a threshold specified in the contract.
Rebates are offset against amounts payable by the customer.
To estimate the variable consideration for the expected future
rebates, the Group applies the most likely amount method
for contracts with a single–volume. The selected method best
predicts the amount of variable consideration is primarily
driven by the number of volume thresholds contained in
the contract. The Group then applies the requirements on
constraining estimates of variable consideration and recognises
• Rights of return
Certain contracts in specific jurisdictions provide a customer
with a right to return the goods within a specified period. The
Group uses the expected value method to estimate the goods
that will not be returned because this method best predicts the
amount of variable consideration to which the Group will be
entitled. The requirements in IFRS 15 on constraining estimates
of variable consideration are also applied in order to determine
the amount of variable consideration that can be included
in the transaction price. For goods that are expected to be
returned, instead of revenue, the Group recognises a refund
liability. A right of return asset (and corresponding adjustment
to cost of sales) is also recognised for the right to recover
products from a customer.
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 135
(ii) Contract assets – Trade receivables
A receivable represents the Group’s right to an amount of
consideration that is unconditional (i.e., only the passage of time
Revenue from providing services
Revenue from providing services (mainly logistic services) is
recognised over time in the amount to which the Group has a
right to invoice. Customers are invoiced on a monthly basis and
consideration is payable when invoiced.
Financing components
The Group does not expect to have any contracts where the
period between the transfer of the promised goods or services
to the customer and payment by the customer exceeds one year.
Consequently, the Group does not adjust any of the transaction
prices for the time value of money.
Financial assets
(i) Classification
The Group classifies its financial assets as those to be measured
at amortised cost.
The classification depends on the entity’s business model for
managing the financial assets and the contractual terms of the
cash flows.
The Group reclassifies debt investments when and only when its
Regular way purchases and sales of financial assets are
recognised on trade–date, the date on which the Group commits
to purchase or sell the asset. Financial assets are derecognised
when the rights to receive cash flows from the financial assets
have expired or have been transferred and the Group has
(iii) Measurement
At initial recognition, the Group measures a financial asset at its fair
value plus, in the case of a financial asset not at fair value through
profit or loss (FVPL), transaction costs that are directly attributable
to the acquisition of the financial asset. Transaction costs of
financial assets carried at FVPL are expensed in profit or loss.
Financial assets with embedded derivatives are considered in
their entirety when determining whether their cash flows are
Debt instruments
Subsequent measurement of debt instruments depends on the
Group’s business model for managing the asset and the cash
flow characteristics of the asset. There are three measurement
categories into which the Group classifies its debt instruments:
• Amortised cost: Assets that are held for collection
of contractual cash flows where those cash flows
represent solely payments of principal and interest are
measured at amortised cost. Interest income from these
financial assets is included in finance income using the
effective interest rate method. Any gain or loss arising
on derecognition is recognised directly in profit or loss
and presented in other gains/(losses) together with
foreign exchange gains and losses. Impairment losses are
presented as separate line item in the statement of profit
or loss.
• FVOCI: Assets that are held for collection of contractual
cash flows and for selling the financial assets, where the
assets’ cash flows represent solely payments of principal
and interest, are measured at FVOCI. Movements in
the carrying amount are taken through OCI, except for
the recognition of impairment gains or losses, interest
income and foreign exchange gains and losses which
are recognised in profit or loss. When the financial asset
is derecognised, the cumulative gain or loss previously
recognised in OCI is reclassified from equity to profit
or loss and recognised in other gains/(losses). Interest
income from these financial assets is included in finance
income using the effective interest rate method. Foreign
exchange gains and losses are presented in other gains/
(losses) and impairment expenses are presented as
separate line item in the statement of profit or loss.
• FVPL: Assets that do not meet the criteria for amortised
cost or FVOCI are measured at FVPL. A gain or loss on a
debt investment that is subsequently measured at FVPL
is recognised in profit or loss and presented net within
other gains/(losses) in the period in which it arises.
Changes in the fair value of financial assets at FVPL are
recognised in other gains/(losses) in the statement of profit or
Impairment of financial assets – provisions for expected credit
losses (ECL)
Expected losses on financial assets are recognised and
measured using one of two approaches: the general approach
or the simplified approach.
The Group measures debt instruments (including loans) at
amortised cost using the ECL. The Group determines the
ECL and establish loss provisions at each reporting date. The
principle of determining the ECL reflects: (i) an objective,
transaction–weighted amount determined by analysing a range
of possible outcomes; (ii) the time value of money; and (iii) all
reasonable and demonstrable information about past events,
current conditions, and future projections available without
undue cost or effort at the end of each reporting period.
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023136
The Group applies the simplified approach under IFRS 9 in
determining expected credit losses for trade receivables, which
requires the recognition of provisions for lifetime expected
credit losses for all trade receivables that are grouped based
on common credit characteristics and past due payments. The
amount of the expected credit losses depends on the days in
For all other financial assets for which impairment monitoring
is required under IFRS 9, the Group applies the general
approach of a three–step impairment model based on changes
in credit quality since initial recognition. A financial instrument
that is not impaired at initial recognition is classified as a Level
1 financial instrument. A Level 1 financial asset is measured at
an amount equal to the portion of the lifetime ECL that would
be incurred in the event of default within the next 12 months
or until contractual maturity, whichever is shorter (“the 12–
month ECL”). If the Group identifies a significantly increased
credit risk (“SICR”) at initial recognition, the relevant asset
is transferred to Level 2 and its ECL is determined using the
lifetime ECL, i.e., until the expiry of the contract but considering
expected prepayments, if any (“the lifetime ECL”). If the Group
determines that a financial asset is impaired, the asset is
transferred to Level 3 and measured using a lifetime ECL.
Financial assets measured at amortised cost are presented in
the balance sheet net of provisions for ECL.
The carrying amount of the financial assets is reduced using a
provision account and the amount of the loss is recognised in
the consolidated profit or loss statement under Net impairment
losses of financial assets.
Offsetting
Financial assets and liabilities are offset , and the net amount
presented in the consolidated statement of financial position
only when there is a legal right to do so and there is an
intention to make net settlements or to sell the asset and settle
liability simultaneously.
Financial liabilities
Borrowings are recognised initially at fair value, net of
transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the
proceeds (net of transaction costs) and the redemption value
is recognised in statement of comprehensive income over
the period of the borrowings using the effective interest rate
method. Financial liabilities are classified as current liabilities
unless the Group has an unconditional right to defer settlement
of the liability for at least 12 months after the end of the
reporting period. Other financial liabilities are measured at
Derivative financial instruments
Derivatives are initially recognised at fair value as at the date
when the contract is concluded. Derivatives are subsequently
measured at fair value. The method of recognizing the resulting
gain and loss depends on whether the derivative is designated
as a hedging instrument, and if so, the nature of the item being
hedged. The Group designates derivatives as hedges of an
interest rate changes of its borrowings (cash flow hedge).
The effective portion of changes in the fair value of derivatives
that are designated and qualify for cash flow hedges is
recognised in equity item “Derivatives revaluation reserve”.
The gain or loss relating to the ineffective portion is recognised
immediately in the statement of comprehensive income.
Amounts accumulated in equity are reclassified in the
statement of comprehensive income in the periods when the
hedged item effects statement of comprehensive income. The
gain or loss relating to the effective portion of interest rate
swaps hedging variable rate borrowings is recognised in the
statement of comprehensive income within “Finance costs”.
The gain or loss relating to the ineffective portion is recognised
in the statement of comprehensive income within “Other
expenses”.
Share capital and share premium
Ordinary shares are classified as share capital. The excess of
consideration received from the shareholders and the nominal
value of ordinary shares are classified as share premium.
Employee benefits
Short–term employee benefits, including salaries and social
security contributions, bonuses and paid vacation benefits
are included in the statement of comprehensive income on an
accrual basis.
The Group has no legal or constructive obligation to make
pensions or similar benefit payments beyond the payments
to the state through the social security contribution payments
in different jurisdictions in accordance with local legislative
requirements.
Government grants
Government grants are recognized where there is a reasonable
assurance that the grant will be received and all attached
conditions will be complied with. When the grant relates to an
expense item, it is recognized as deduction of expenses on a
systematic basis over the periods that the related costs, which
it is intended to compensate, are expensed. When the grant
relates to an asset it is recognized as income in equal amounts
over the expected useful life of the related asset. Unamortized
part of the government grants is presented as deferred income
in the consolidated statement of financial position.
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 137
30. Impact from Changes in Accounting Policy
As of 1 January 2023, the Group has changed the accounting
policy for accounting of land used in agricultural activities by
moving to revaluation model. The impact to respective class
of assets is presented as following:
The fair value of respective assets – land used in agricultural
activity was determined on basis of market valuation
prepared by independent valuator in 2023. To arrive at the fair
value at the moment of acquisition of these assets (in 2020
and 2022 respectively) the Group calculated the present value
by applying the average inflation rates as stated by the Central
Bank of Mexico, selected to be the most appropriate and
31. Events After the Balance Sheet Date
In January 2024, the Parent Company finalized the
acquisition process of Amber Beverage Austria GmbH and
obtained 100% control over the share capital of Amber
Beverage Austria GmbH.
In January 2024, the renaming process of Interbaltija AG AS
was finalized and the new company name Interbaltija Amber
SIA was registered with the Commerce Register of Latvia.
As part of the refinancing process in January 2024, the Parent
Company made partial repayment of outstanding facility
towards Credit Suisse AG by EUR 3.5 million and towards
Luminor Bank AS Latvian Branch by EUR 1.5 million. The
overdraft facility provided by Luminor Bank AS was extended
until 30 June 2024, with further extension subject to the
development of the refinancing process of Credit Suisse AG
facility. In February 2024, the Credit Suisse AG and the Group
agreed on further extension of loan facility with the set final
repayment date by 20 December 2024.
In January 2024, the Audit Committee of the Parent
Company was established as independent supervisory body.
Mr. Simon Charles Rowe (as chairman), Mr. Olivier Cagioulis
and Ms. Michele Perez were appointed as members of the
Audit Committee for the three-year period.
In January 2024, Ms Jekaterina Stuge resigned from the
positions of Chairman of the Board of Managers and Member
of Supervisory Board. She was replaced by Mr. Arturs Evarts
in the position of Chairman of the Board of Managers.
There were no other subsequent events since the last
date of the financial period until the date of signing these
consolidated financial statements, which require adjustment
EUR 000
As at 1 January 2022 (reported) 1 347
As the result of change in accounting policy 2 360
As at 1 January 2022 (restated) 3 707
Additions 613
As the result of change in accounting policy 2 179
Foreign exchange differences 451
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023138
Statement of the Board of Managers’ Responsibilities
for the Preparation and Approval of the Consolidated
Financial Statements
The Board of Managers is responsible for the preparation,
publishing and fair presentation of the consolidated
financial statements in accordance with Luxembourg legal
and regulatory requirements relating to the preparation
and presentation of the consolidated financial statements,
and for such internal control as the Board of Managers
determines is necessary to enable the preparation of
consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Board
of Managers is responsible for assessing the Group’s ability
to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going
concern basis of accounting unless the Board of Managers
either intends to liquidate the Group or to cease operations,
or has no realistic alternative but to do so.
We confirm that to the best of our knowledge and belief:
• The consolidated financial statements of Amber Beverage
Group S.à r.l. (the ‘Company’) presented in this Annual
Report and established in conformity with International
Financial Reporting Standards as adopted by the European
Union give a true and fair view of the consolidated
statements of comprehensive income, changes in equity
and cash flows for the year that ended, and notes to the
consolidated financial statements, including a summary of
significant accounting policies; and
• The Directors' Report includes a fair review of the
development and performance of the business and
position of the Company and the undertakings included
within the consolidation taken as a whole, together with a
description of the principal risks and uncertainties it faces.
Arturs Evarts
Chairman of the Board of Managers
Approved by the Board of Managers and signed on its behalf on 27 May 2024 by:
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 139
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023140
Independent
Auditor’s Report
140 AMBER BEVERAGE GROUP | ANNUAL REPORT 2023
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 141AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 141
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023142
PricewaterhouseCoopers, Société coopérative, 2 rue Gerhard Mercator, B.P.
1443, L–1014 Luxembourg T : +352 494848 1, F : +352 494848 2900, www.pwc.lu
Cabinet de révision agréé. Expert–comptable (autorisation gouvernementale
n°10028256) R.C.S. Luxembourg B 65 477 – TVA LU25482518
To the Shareholders of Amber Beverage Group Holding S.à r.l.
Our opinion
In our opinion, the accompanying consolidated financial
statements give a true and fair view of the consolidated
financial position of Amber Beverage Group Holding S.à r.l.
(the “Company”) and its subsidiaries (the “Group”) as
at 31 December 2023, and of its consolidated financial
performance and its consolidated cash flows for the year
then ended in accordance with IFRS Accounting Standards
as adopted by the European Union.
Our opinion is consistent with our additional report to the
Audit Committee or equivalent.
What we have audited
The Group’s consolidated financial statements comprise:
• the consolidated statement of financial position as at
31 December 2023;
• the consolidated statement of profit or loss and other
comprehensive income for the year then ended;
• the consolidated statement of changes in equity for the
year then ended;
• the consolidated statement of cash flows for the year
then ended; and
• the notes to the consolidated financial statements,
including material accounting policy information and
other explanatory information.
Basis for opinion
We conducted our audit in accordance with the
EU Regulation No 537/2014, the Law of 23 July 2016 on the
audit profession (Law of 23 July 2016) and with International
Standards on Auditing (ISAs) as adopted for Luxembourg by
the “Commission de Surveillance du Secteur Financier” (CSSF).
Our responsibilities under the EU Regulation No 537/2014, the
Law of 23 July 2016 and ISAs as adopted for Luxembourg by
the CSSF are further described in the “Responsibilities of the
“Réviseur d’entreprises agréé” for the audit of the consolidated
financial statements” section of our report.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
We are independent of the Group in accordance with the
International Code of Ethics for Professional Accountants,
including International Independence Standards, issued by the
International Ethics Standards Board for Accountants (IESBA
Code) as adopted for Luxembourg by the CSSF together with
the ethical requirements that are relevant to our audit of the
consolidated financial statements. We have fulfilled our other
ethical responsibilities under those ethical requirements.
To the best of our knowledge and belief, we declare that we
have not provided non-audit services that are prohibited under
Article 5(1) of the EU Regulation No 537/2014.
The non-audit services that we have provided to the Company
and its controlled undertakings, if applicable, for the year then
ended, are disclosed in Note 7 to the consolidated financial
statements.
Report on the audit of the consolidated financial statements
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 143
Key audit matters
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the
consolidated financial statements of the current period. These
matters were addressed in the context of our audit of the
consolidated financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion
on these matters.
Key audit matter
Impairment of goodwill and trademarks
As of 31 December 2023, the Group has goodwill in the amount
of EUR 42 795 thousand and trademarks in amount of EUR
41 110 thousand. Trademarks are intangible assets with an
indefinite useful life. As required by IAS 36 Impairment of
Assets, management performed an annual impairment test of
goodwill and trademarks based on the value in use determined
on the basis of a discounted cash flows model for each of the
cash-generating units (CGUs) and for each trademark. As a
result, no impairment was recognised for the year ended 31
December 2023 for goodwill and trademarks, and a reversal of
impairment loss on trademarks was recognised for an amount
of EUR 4 614 thousand.
Taking into account significant management judgements and
magnitude of the amounts involved, we considered this to be a
key audit matter. Refer to Note 12 to the consolidated financial
statements for the related disclosures.
How our audit addressed the key
audit matter
Our audit procedures included the following:
• We evaluated the design and implementation of relevant
internal controls;
• We evaluated Management's determination of the
CGUs as well as the method and model used for the
determination of the value in use, considering the
requirements of IAS 36;
• We involved valuation experts and checked the
appropriateness of the methodology applied by the
Group and independently recalculated the weighted
average cost of capital based on the use of market data
and verified the long-term growth rate to market data;
• We agreed the forecasted cash flows used for the
calculation of the value in use for goodwill impairment to
5-years budget as approved by the Board of Managers;
• We evaluated management’s ability to reasonably
estimate cash flow forecasts by comparing actual results
to management’s historical forecasts;
• We evaluated and challenged significant assumptions
used by management in recoverable amount
calculations:
– For goodwill impairment: such as the sales growth,
EBITDA growth, replacement capital expenditure,
long-term growth and discount rates;
– For trademarks: such as the sales volumes growth,
royalty rate;
• We performed sensitivity analysis of the models to
changes in the key assumptions;
• We considered the appropriateness of the disclosures in
Note 12 to the consolidated financial statements.
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023144
Other information
The Board of Managers is responsible for the other
information. The other information comprises the
information stated in the Directors' report and the
Corporate Governance Statement but does not include
the consolidated financial statements and our audit report
thereon.
Our opinion on the consolidated financial statements does
not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the consolidated financial
statements, our responsibility is to read the other
information identified above and, in doing so, consider
whether the other information is materially inconsistent with
the consolidated financial statements or our knowledge
obtained in the audit, or otherwise appears to be materially
misstated. If, based on the work we have performed, we
conclude that there is a material misstatement of this other
information, we are required to report that fact. We have
nothing to report in this regard.
Responsibilities of the Board of Managers and those charged with
governance for the consolidated financial statements
The Board of Managers is responsible for the preparation and
fair presentation of the consolidated financial statements
in accordance with IFRS Accounting Standards as adopted
by the European Union, and for such internal control as the
Board of Managers determines is necessary to enable the
preparation of consolidated financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Board
of Managers is responsible for assessing the Group’s ability
to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going
concern basis of accounting unless the Board of Managers
either intends to liquidate the Group or to cease operations,
or has no realistic alternative but to do so.
Those charged with governance are responsible for
overseeing the Group’s financial reporting process.
The Board of Managers is responsible for presenting and
marking up the consolidated financial statements in
compliance with the requirements set out in the Delegated
Regulation 2019/815 on European Single Electronic Format
(“ESEF Regulation”).
Responsibilities of the “Réviseur d’entreprises agréé” for the audit of the
consolidated financial statements
The objectives of our audit are to obtain reasonable
assurance about whether the consolidated financial
statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an audit
report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with the
EU Regulation No 537/2014, the Law of 23 July 2016 and with
ISAs as adopted for Luxembourg by the CSSF will always
detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken
on the basis of these consolidated financial statements.
As part of an audit in accordance with the
EU Regulation No 537/2014, the Law of 23 July 2016 and
with ISAs as adopted for Luxembourg by the CSSF, we
exercise professional judgement and maintain professional
scepticism throughout the audit. We also:
• identify and assess the risks of material misstatement
of the consolidated financial statements, whether due
to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the
override of internal control;
• obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of
the Group’s internal control;
AMBER BEVERAGE GROUP | ANNUAL REPORT 2023 145
• evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by the Board of Managers;
• conclude on the appropriateness of the Board of Managers’
use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may
cast significant doubt on the Group’s ability to continue as
a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our audit report
to the related disclosures in the consolidated financial
statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our audit report.
However, future events or conditions may cause the Group
to cease to continue as a going concern;
• evaluate the overall presentation, structure and content
of the consolidated financial statements, including the
disclosures, and whether the consolidated financial
statements represent the underlying transactions and
events in a manner that achieves fair presentation;
• obtain sufficient appropriate audit evidence regarding the
financial information of the entities and business activities
within the Group to express an opinion on the consolidated
financial statements. We are responsible for the direction,
supervision and performance of the Group audit. We
remain solely responsible for our audit opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and communicate to
them all relationships and other matters that may reasonably
be thought to bear on our independence, and where
applicable, actions taken to eliminate threats or safeguards
applied.
From the matters communicated with those charged with
governance, we determine those matters that were of
most significance in the audit of the consolidated financial
statements of the current period and are therefore the key
audit matters. We describe these matters in our audit report
unless law or regulation precludes public disclosure about the
matter.
We assess whether the consolidated financial statements have
been prepared, in all material respects, in compliance with the
requirements laid down in the ESEF Regulation.
Report on other legal and regulatory requirements
The Directors' report is consistent with the consolidated
financial statements and has been prepared in accordance with
applicable legal requirements.
The accompanying Corporate Governance Statement is
presented on pages 28 to 33 to these consolidated financial
statements. The information required by Article 68ter
Paragraph (1) Letters c) and d) of the Law of 19 December
2002 on the commercial and companies register and on the
accounting records and annual accounts of undertakings,
as amended, is consistent with the consolidated financial
statements and has been prepared in accordance with
applicable legal requirements.
We have been appointed as “Réviseur d’Entreprises Agréé”
by the General Meeting of the Shareholders on 5 December
2023 and the duration of our uninterrupted engagement,
including previous renewals and reappointments, is 7 years.
We have checked the compliance of the consolidated
financial statements of the Group as at 31 December 2023
with relevant statutory requirements set out in the ESEF
Regulation that are applicable to consolidated financial
statements.
For the Group it relates to the requirement that:
• the consolidated financial statements are prepared in a
valid XHTML format;
• the XBRL markup of the consolidated financial
statements uses the core taxonomy and the common
rules on markups specified in the ESEF Regulation.
In our opinion, the consolidated financial statements of the
Group as at 31 December 2023 have been prepared, in all
material respects, in compliance with the requirements laid
down in the ESEF Regulation.
PricewaterhouseCoopers, Société coopérative
Represented by
Andrei Chizhov
Luxembourg, 27 May 2024
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