June 18, 2012

Latvia's Rigas Piensaimnieks' 2011 sales up 3%

The financial report published in the Latvian business register stated that Rigas Piensaimnieks dairy company generated LVL19.124 million (US$35 million) in sales last year, up 3% from 2010, and closed the year with LVL524,300 (US$957,000) in losses in contrast to profit a year ago.

The company's management report said that losses were related with the low economic activity of the domestic market that influenced the whole dairy sector. "With the stagnation in processed milk sector continuing, milk purchase prices rose and prices of other supplies also grew," said the company.

Last year, Rigas Piensaimnieks focused on exports. "A systematic work of marketing promoted increase of exports by about 43%," said the company's management, adding that Rigas Piensaimnieks has managed to establish long-term cooperation with partners in the western markets.

Last year the company continued developing its main brands -- Karums and Dzintars -- and continued developing the brand that was introduced in 2010 -- Karums Active.

Rigas Piensaimnieks in 2011 purchased from farms and individual suppliers and processed 26,116 tonnes of milk.

The company's management also said that last year the company focused on identifying productivity reserves and optimising costs. "We will continue to do it also in 2012," said the management.

In 2010, the dairy company posted a profit of LVL214,000 (US$391,000) on a turnover of LVL18.606 million (US$34 million).

Rigas Piensaimnieks was founded in 1993. In December 2010, DCEMF Holdings, which is registered in the Cayman Islands, became the sole owner of the company.