Coface Baltics Top 50 - 2016 edition
Among the CEE economies, the Baltic States are the most exposed to trading with Russia. The ban on food imports introduced in 2014 and the deterioration of the Russian economy have therefore posed significant risks for the Baltic economies and local businesses.
Nevertheless, they are members of the European Union and joining the euro was also a demonstration of their political integration with Western Europe. Faced with a contraction in Russian demand, the Baltics have shifted their exports to other markets, with significant compensation also coming from an improvement in domestic markets.
This rather challenging situation is also expressed in the results of this year’s Top 50 ranking. While overall turnover decreased slightly by -1.0% from EUR 33.6 to 33.2 billion, both net profit and employment figures rose. A huge part of the decrease in turnover can be traced to the problematic conditions faced by oil & gas companies in 2015, which could not be offset by better performance in other sectors, such as Non specialised trade and Automotive & Transport.
Lithuanian companies dominate the ranking for the third time in a row (29 with a turnover of EUR 22.9 billion) and performed reasonably well in 2015. Thirteen improved their position year on year, and four entered the ranking for the first time. Latvia comes second in terms of both total number of companies (13) and turnover generated (EUR 6.4 billion). Estonia is represented with only eight top enterprises which earned around EUR 3.8 billion in 2015.
Nothing new at the top: The Top 3 remain firmly in Lithuanian hands. Although the largest company, Orlen Lietuva AB, faced another very challenging year of shrinking revenues (-19.9%), it succeeded in turning its net loss in 2014 into a profit in 2015. Vilniaus Prekyba UAB is closing in year by year: with an increase in turnover of almost 4%, the gap between the Baltic No. 1 and No. 2 continues to narrow. There was only one change in the Top 10: Koncernas Achemos Grupe booted out Latvenergo AG and re-entered in 9th place.
- Economic Outlook
- The Ranking