The Top 50 list the largest Baltic companies published by the international risk management company “Coface” this year includes 26 companies from Lithuania, 16 from Estonia and only eight from Latvia. Although the representation of our state-owned companies in the rating is modest, the most profitable company of all included in the rating is directly from Latvia – “Latvenergo”.
Compared to the previous year, the number of Latvian companies in the ranking has increased from six to eight. In total, Latvian companies provide 11.46% of the total turnover and 25.2% of the profits of the companies included in the rating, as reported by “Coface”.
The total turnover of the Baltic Top 50 companies in 2023 amounted to almost EUR 69.7 billion, and the profits – EUR 2.8 billion.
Lithuanian companies hold the first five spots on this list. Two Estonian and one Latvia company are in the Top 10.
The Top 50 ranking leader was retail and pharmacy chain manager “Vilniaus prekyba”, whose turnover has grown to almost EUR 7.7 billion, and profit – by 38%, reaching almost EUR 287 million. The second place goes to energy company “Orlen Lietuva”, whose profit last year grew by an impressive 260%, reaching EUR 294 million. The third place is held by the group of retail chain companies “Maxima Grupė”, whose turnover has grown to EUR 5.8 billion, but profit by 76.9%, reaching EUR 184 million. The fourth in the list is the parent company of the Lithuanian energy company group Ignitis Grupė, and the fifth is the Lithuanian trading company “Maxima LT”.
Latvian companies on the list
Latvian companies represent various sectors and their performance in general is quite competitive: energy company “Latvenergo” (6th place in the rating) – turnover last year exceeded two billion euros, but profit increased by almost 91%, reaching almost EUR 351 million; retail company “Rimi Latvia” (20th place) – turnover exceeded one billion euros, but profit was EUR 29 million. Retail company “Maxima Latvija” (21st place) – turnover almost EUR 1.1 billion, profit was EUR 56.5 million; IT product and consumer electronics distributor “Elko Grupa” (23rd place) – turnover almost EUR 1.1 billion, profit EUR 11.9 million, and oil product supply company “Orlen Latvija” (31st place) – EUR 827 million turnover and almost EUR 3.7 million profit. Aviation company “airBaltic” (38th place) – turnover EUR 664 million, but profit almost EUR 33.7 million; forestry company “Latvian State Forests” (42nd place) – turnover EUR 626 million, profit – almost EUR 221 million. Fuel sales service provider “Circle K Latvia” (43rd place) – turnover almost EUR 621 million, but profit – EUR 7.8 million.
These eight Latvian companies employed a total of almost 17.8 thousand people last year and generated a turnover of almost EUR 8 billion, as well as a profit of EUR 715 million.
Biggest earners and losers
Among all the rating companies, the leader in terms of profit is “Latvenergo”, which overtook the Lithuanian biotechnology company “Thermo Fisher Scientific Baltics”, the Lithuanian energy companies “Ignitis Grupe” and “ORLEN Lietuva”, as well as the Estonian investment manager “Infortar”. In turn, the biggest losses among the Top 50 largest rating companies last year were suffered by Estonian energy companies – “Eesti Energia” and “Enefit Power”, which had losses of EUR 422 million and almost EUR 392 million, respectively, as well as Lithuanian electricity trader “Ignitis” – losses of EUR 123 million.
The Baltic region, according to economists from Coface, has experienced significant economic challenges in recent years due to the impact of Russia’s full-scale invasion of Ukraine and fluctuations in the global economy. The challenges that began in 2022 continued to affect economic performance even in 2023, when inflation remained at a high level, consumers limited spending, and wages increased minimally. In the Baltic States, the pace of economic growth dropped significantly, and Estonia even experienced a recession last year (-3.0% decline in gross domestic product (GDP)). Comparatively in Latvia and Lithuania, economic growth was positive, but low – 1.7% and 0.3%, respectively.
The drop in exports was particularly pronounced in Lithuania (-11% in 2023), reflecting the weak demand of the European Union and its impact on the industry throughout the region.
The slowdown in economic activity also had an impact on the business environment, however, Latvian companies included in the Coface Top 50 ranking proved highly competitive, showing a significant profit contribution, says Coface.
GDP outlook for Latvia in 2025 – 1.8%
Although the economic situation in the Baltic States has started to improve in 2024, “Coface” predicts that Estonia and Latvia could close the year even with negative growth, while Lithuania will experience a moderate recovery. Forecasts for 2025 are more positive – Lithuania’s GDP is expected to grow by 2.8%, in Estonia growth will reach 2.0%, but in Latvia it will be 1.8%.
A slowdown in consumer price growth could have a positive impact on household incomes and spending in the period ahead, especially as inflation stabilizes at a lower level. However, service price inflation is expected to remain relatively high, and fiscal policy decisions, including deficit financing and raising excise taxes, can pose additional challenges in the Baltic States.