Three Lithuania based companies lead the Baltic TOP 30 Most Valuable Enterprises list

• Thermo Fisher Scientific Baltic has retained its position as the most valuable company in the Baltics for the second year in a row, with a valuation exceeding €6.1 billion

• Revolut, now consolidating its results in Lithuania, surpasses the combined valuation of Swedbank and SEB

• The current golden age of timber has propelled the value of Baltic forest management companies to unprecedented highs

Thermo Fisher Scientific Baltics, a Lithuania-based company specializing in manufacturing and distributing products for life science research and diagnostics on a global scale, has secured its position as the most valuable company in the Baltics for the second year in a row. Despite a decrease in demand for products and components related to the COVID-19 pandemic, the company's value continued to rise, registering a 2% growth last year and reaching a valuation exceeding €6.1 billion. In a notable development, Revolut Holdings Europe has emerged as the second most valuable company in the Baltics, with a valuation surpassing €5.9 billion. Taking the third spot is the Lithuanian-owned Vilniaus prekyba group, which has elevated its value to €4.8 billion.

The list of the most valuable companies in the three Baltic countries—Lithuania, Latvia, and Estonia—was compiled by experts from Confidentus, Prudentia, and Nasdaq's offices in Vilnius, Riga, and Tallinn, who conducted a comprehensive financial analysis based on publicly available company performance and governance information. The value of the top 30 companies ranges from €702.5 million to over €6.1 billion, resulting in a total combined value of €55 billion.

Kristupas Kukarskas, an investment banking expert and partner at Confidentus, who analyzed the value of Lithuanian companies, notes, "The number of the most valuable Baltic companies based in Lithuania has increased from eight to ten over the past year. Lithuanian companies continue to lead the list, and their total value is the highest, reaching almost €26.3 billion this year, reflecting a remarkable 40.6% increase compared to the previous year. This significant growth is attributed to the inaugural inclusion of Revolut Holdings Europe, which consolidates the results of Revolut Bank in Lithuania on the list of the most valuable companies in the Baltics, achieving a value of €5.9 billion. The list of the most valuable companies in the Baltics decreased from six to four companies registered in Latvia, with the same number of companies registered in Estonia (10) and six companies registered in two or more of the Baltic States."

The leader maintained its position even as revenues and profits fell

Thermo Fisher Scientific Baltic, a subsidiary of Thermo Fisher Scientific, a major U.S. scientific products company that ranked first in the top 30 most valuable companies in the Baltic States, experienced a 24% decrease in revenue to €1.477 billion in 2022. This decline was attributed to reduced demand for products related to the COVID-19 pandemic. However, the company successfully increased its net profit margin from 31.83% to 37.54%, resulting in only a marginal decrease in net profit to €554 million.

The 2022 Thermo Fisher Scientific Baltic report predicted that ongoing global geopolitical and macroeconomic trends may continue to impact the company's revenue this year. The conflict between Russia and Ukraine has prompted countries to adjust their budgets, redirecting funds toward strengthening the defense sector. This shift has subsequently led to decreased investment in the science sector and technical innovation.

The actual value of Revolut in the Baltics has been unveiled as the company swiftly ascended to the second position in the Baltic TOP30, just one step above Vilniaus prekyba

In July 2022, following the Bank of Lithuania's classification of Revolut Holdings Europe as part of a financial conglomerate, the company successfully acquired 100% ownership of Revolut Bank, Revolut Insurance, and Revolut Securities Europe. This strategic move elevated Revolut to one of the most esteemed companies registered in the Baltics, boasting an estimated value of €5.9 billion.

By the end of 2021, Revolut Bank, the Lithuanian arm of the global financial platform Revolut, secured a full banking license from the European Central Bank. This accreditation empowered the bank to deliver payment services, issue electronic money, maintain deposit insurance-covered accounts, and extend consumer credit to its clientele. Publicly accessible data indicates that Revolut serves 35 million individual customers and 500,000 corporate clients worldwide.

According to Karlis Krastins, Managing partner at Prudentia, banks and other financial institutions have been under constant pressure starting from regulators and ending to governments and broader society, especially starting from the beginning of 2022. Central banks around the world are fighting inflation, interest rates have been increasing to levels not seen for more than 10-15 years. Banks showed steep increase in profitability but by surprise for some critics, it hasn’t transformed in value growth. All banks in the Baltic TOP 30 experienced modest single-digit growth, or some even decreased in value.

But in 2023 Baltic TOP 30 there is one important newcomer – this is Revolut Holdings Europe. Revolut Group made structural changes in 2022 and the whole business in Europe is managed now by European holding with 3 operational companies all registered in Lithuania. Revolut operations and financials showed some challenges in 2022 which everyone can see in Annual Report of Revolut. “But Revolut remains a significant global player in the fin-tech industry. We do see a huge difference in how investors evaluate “legacy banks” (Revolut’s definition) and other fintech companies like Revolut. For banks the average price-to-book ratio is 0,88, but for the Revolut peer group – 14,77”, says K. Krastins.

The net profit of Vilniaus prekyba, which maintained its third-place position, experienced a consecutive annual decline of around 10%. However, consolidated revenues exhibited growth, surging by 17% and surpassing €6.5 billion. The total workforce of the Euroapotheca pharmacy chain, supermarket chains Maxima and Ermitažas, Akropolis shopping centers, as well as the real estate development and rental companies managed through subsidiaries, increased by 7% by the end of 2022, bringing the group's employee count to over 47,000.

Swedbank Baltics secured the fourth spot in the list of the top ten most valuable companies in the Baltics, experiencing a 7% rise to nearly €3.4 billion. Meanwhile, Latvenergo, a Latvian-registered company, claimed the fifth position, witnessing a notable 19% increase in value, reaching €2.9 billion. The only change in the rankings among these companies in the Top 30 is attributed to the emergence of a new participant in the Baltic market, Revolut Holdings Europe.

Ignitis Grupė, which held the fifth position last year, has now descended to seventh place, surpassed by Willgrow (formerly ME investicija). This investment firm encompasses Girteka Group, a logistics services provider, and Sirin Development, an industrial real estate developer. In 2022, the company's valuation surged by 55%, surpassing €2.5 billion.

In stark contrast, Lietuvos Geležinkeliai, which held the ninth position in the previous year, has experienced a significant decline, now occupying the 20th position this year. The group's overall value witnessed a sharp decline of 28% (€389 million), with net profit standing at a mere €1.2 million in the past year, a stark contrast to the nearly 20-fold increase recorded in 2021 (€23.5 million). Despite a 35% increase in passenger transportation in 2022 compared to the previous year, freight volumes experienced a significant contraction of 39%, totaling 31 million tonnes—20 million tonnes less than the 2021 figures.

The challenges faced by Lietuvos Geležinkeliai in 2022, as outlined in their report, were attributed to the Russian war in Ukraine, sanctions against Russia and Belarus, and decisions by customers to curtail their connections with these nations.

All three state-owned companies in Latvia, Estonia, and Lithuania have secured positions in the Baltic TOP 30

The Latvian state-owned company Latvijas valsts meži, responsible for administering and managing state-owned forest property, demonstrated exceptional growth at 64%, reaching a value of €2.2 billion and securing the 9th position in the Baltic Top 30 list of the most valuable companies. The Estonian State Forest Management Centre (Riigimetsa majandamise keskus), positioned 23rd in the top 30, also exhibited strong performance, with a 25% increase in value, reaching €1 billion.

Lithuania's State Forest Enterprise achieved a significant milestone by making its debut on the list of most valuable companies, claiming the 27th spot with a value of €791 million. In 2022, the company recorded its highest profit since its foundation, reporting revenues of €320 million (compared to €205.9 million in 2021) and a pre-tax profit of €127.5 million (compared to €44.5 million in 2021).

The total value of companies engaged in the administration and management of state-owned forest property surpassing €4 billion in 2022.

A hypothetical consolidation of the values of all three Baltic forest management companies would position this forest giant as the fourth most valuable company in the Baltics. The success of these companies is attributed to the favorable conditions in the timber market and strategic investments in renewal, as noted by K. Kukarskas, Partner at Confidentus.

“In this year’s Baltic TOP 30, we see a strong representation of all 3 Baltic Forest management companies. Forests are an important factor for our countries especially considering sustainability and climate issues.  However, it is important to stress that the situation for the broader wood processing industry remains challenging. World commodity markets remain volatile, real estate markets and new housing have decreased significantly in 2022 and continue in 2023. State forest companies are the biggest suppliers of raw materials to wood processing companies, like Graanul Invest and many other producers of sawn timber, plywood, furniture blanks, etc. All in all, after very good results in 2022, many wood processing companies decreased in value this year”, adds K. Krastins, Manager Partner at Prudentia. 

Infortar goes on stock exchange in Estonia

According to Illar Kaasik, partner at Prudentia Tallinn, a noteworthy event close to the publication of the 2023 Baltic TOP 30 is the initial public offering of the shares of Estonia's largest investment company, Infortar. The subscription period ends on December 7 and the shares are expected to be traded on the Tallinn Stock Exchange for the first time on December 14. The number of shares to be issued in the offering ranges from 1,200,000 to 1,980,000 and the price range of the offer is 26 — 32 euros per share. The financial volume of the offer is therefore between 31.2 and 63.4 million euros.

“During more than 25 years of operation, Infortar has gradually increased its investment portfolio, and today the group has 48 subsidiaries. Among largest investments are 100% share in Eesti Gaas, Estonia's largest gas company, and approximately 42% share in Tallink Grupp, the leading maritime shipping and transport group in the Baltic Sea region. In addition, Infortar has a significant real estate portfolio, mainly in Tallinn and its surroundings, as well as shares in other companies that support its core business”, says I. Kaasik.

The Baltic Enterprise Value Analysis evaluated data from approximately 1,000 companies operating in Lithuania, Latvia, and Estonia. The comparable multipliers method determined the enterprise value (or equity value for financial services firms). The evaluation also considered companies' strong governance, relying on publicly disclosed information. For publicly listed companies, values were calculated based on the closing prices on the stock exchange.

It is important to note that the study exclusively utilized publicly available data for companies registered in the Baltic States. Consequently, it excluded prominent Baltic technology start-ups and unicorns that opted to consolidate their financial results outside the Baltic States. In cases where a company operated across multiple Baltic countries, its value was assessed on a consolidated basis.

30 most valuable companies in the Baltic States in 2023 (value in EUR)

1. Thermo Fisher Scientific Baltics, UAB – 6,180 B

2. Revolut Holdings Europe, UAB – 5,924 B

3. Vilniaus prekyba, UAB – 4,816 B

4. Swedbank Baltics, AS – 3,397 B

5. Latvenergo, AS – 2,912 B

6. Willgrow, UAB – 2,549 B

7. Ignitis grupė, AB – 2,463 B

8. SEB Bank Group –2,312 B

9. Latvijas Valsts Meži, AS – 2,206 B

10. Telia Group – 1,897 B

11. Enefit Green, AS – 1,458 B

12. Luminor Bank, AS – 1,352 B

13. Eesti Energia, AS – 1,204 B

14. Tele2 Group – 1,202 B

15. Mikrotikls, SIA – 1,182 B

16. LHV Group, AS – 1,154 B

17. Baltic Classifieds Group – 1,115 B

18. Tallink Grupp, AS – 1,106 B

19. Bitė Lietuva, UAB – 1,082 B

20. Lietuvos geležinkeliai, AB – 1,049 B

21. Riigi Kinnisvara, AS  – 1,030 B

22. Graanul Invest, AS – 1,020 B

23. Riigimetsa Majandamise Keskus, SA – 1,012 B

24. Gren Group – 1,010 M

25. Utilitas, OÜ – 844 M

26. Infotar, AS – 799 M

27. Valstybinių miškų urėdija, VĮ – 791 M

28. Rimi Group – 732 M

29. Koncernas Achemos Grupė, UAB – 730 M

30. Epso-G, UAB – 702 M