Amber Beverage Group Reports Strong 2022 Full-Year Results and Continues Its Global Growth
Financial Highlights
* Sales of EUR 365.8million
* EBITDA of EUR 42.9million
* Net revenue EUR 365.7million, (+17.9%)
Operational Highlights
* Growth of Tequila and Irish Whiskey categories benefited ABG core brands
* Several range extensions for ABG-owned Tequila brands
* 270th anniversary of Riga Black Balsam® marked with an important trademark acquisition
* Significant UK grocery listing for KAH by Tesco
* Reinforcement of the EU origins of Moskovskaya® Vodka brand
* New markets opening out for ABG included: Algeria, Bahrain, Benelux, Ireland, Israel, Jordan, Nigeria, Poland, Serbia, Sweden, Tunisia, Turkey, and the UAE
* Important new partnerships in Canada, Germany and elsewhere
* Strengthening and expansion of third-party brand relationships
The fast-growing global producer and distributor of alcoholic beverages, Amber Beverage Group (ABG), has released positive financial results reaching sales of EUR 365.8 million and EBITDA of EUR 42.9 million, exceeding its expectations. Net revenue in 2022 stood at EUR 365.7 million, (+17.9%). The latest ABG Annual Report for 2022 can be found here.
This is a particularly strong achievement in the light of global challenges facing virtually all consumer goods manufacturers and distributors. These included an increase in prices for raw materials and energy, the availability of materials, the need to restructure supply chains to meet production plans, and the need to review sales prices. Throughout the year, ABG improved the efficiency of production processes to deliver high quality products with a competitive cost advantage.
From a brand perspective, awareness of the company's core brands has continued to increase with strong sales in the markets in which they are distributed. The portfolio of core brands comprises Rooster Rojo® Tequila, KAH® Tequila, The Irishman® Whiskey and Writers' Tears® Whiskey, Moskovskaya® Vodka, Riga Black Balsam®, Cross Keys Gin®, Cosmopolitan Diva®, and the company has continued to effectively increase sales and distribution of these.
Chief Executive Officer of Amber Beverage Group, Jekaterina Stuģe, said: "The year 2022 has been a record year for the entire Amber Beverage Group. We accomplished sales of EUR 365.8 million and EBITDA of EUR 42.9 million, exceeding our expectations once again. Our global strategy, Sirius25 - named after Sirius, one of the brightest stars in the night sky - is continuing to work flawlessly. It defines our approach to ABG's brand development in domestic and international markets, outstanding management of third-party brands, and excellence in production processes - all of which we highlight in this Annual Report and Accounts.
"The unwavering commitment and quick thinking displayed by members of the Amber Beverage Group team throughout the world has impressed every member of the Supervisory Board. The company did not halt its expansion, once again overachieved its financial results, and was still able to achieve several significant victories despite the geopolitical and economic turmoil that was taking place in the world. On behalf of the management team, I take this opportunity to express my gratitude to all our colleagues within Amber Beverage Group."
Amber Beverage Group has a strong and diverse portfolio including several products in categories that are growing worldwide. In particular, strong growth was seen in the Tequila category with strong performances from core tequila brands, Rooster Rojo® Tequila and KAH® Tequila, and also in the Irish Whiskey category, with growth of the Walsh Whiskey brands acquired in 2021, The Irishman® Whiskey and Writers' Tears® Whiskey. The company broke into new markets and grew existing markets in EMEIA and GTR with a total value growth of +63%. New markets for ABG include Algeria, Bahrain, Benelux, Ireland, Israel, Jordan, Nigeria, Poland, Serbia, Sweden, Tunisia, Turkey, and the UAE.
The year saw significant new product developments at both ABG-owned distilleries. Amber Production Tequila in Mexico developed two new products: the fifth expression in five years since inception of the fast-growing Rooster Rojo® Tequila range - an Ahumado (smoked) variant; and a premium aged expression of KAH® Extra Añejo Tequila.
Amber Latvijas balzams launched a novelty addition to another of the core brands, Riga Black Balsam® - a new generation party brand called BLACK 1752®. A special limited edition of Moskovskaya® Vodka was launched, donating 100% of the profits to support the people of Ukraine in the Group's continuing support for its neighbour. Continuing emphasis on the brand's EU provenance helped to protect listings for Moskovskaya Vodka and to secure growth of +16%. In addition, there was a comprehensive rebranding of The Irishman® Whiskey range, to reflect the superiority of the liquid.
Third-party brand management is an important part of ABG's business. The Group maintained its partnerships with world-renowned producers and vintners of distilled spirits and wines, promoting their brands in the markets served by ABG distribution companies. ABG also established new cooperation agreements with several major third-party brand owners during the year.
Jekaterina Stuge added: "Thanks to our ability to adapt to the challenging conditions, I am confident that we will continue to move closer to our goal of becoming one of the Top 10 global spirits industry players. The global forecast for spirits in absolute figures without adjustments to inflation foresees stable growth of the industry through to 2025."
