At the top of the 2024 Baltic TOP 30 of the most valuable companies – the trio of Lithuanian companies, the leader has changed
From left: Karlis Krastinš, Managing Partner at Prudentia Riga; Vytautas Valvonis, CEO of Revolut Holdings Europe; Kristupas Kukarskas, Partner at Confidentus; Indrek Uudeküll, Partner at Prudentia Tallinn.
- Revolut put on the shirt of the most valuable company – for the first time the value in the Baltic TOP approached EUR 7 billion
- Companies registered in Lithuania remain in the first three positions
- The total value of the Baltic TOP 30 most valuable companies increased by EUR 5 billion
- The financial sector represented by 5 banking groups showed robust growth and reached EUR 17 billions in total value
The Lithuanian-registered financial company UAB Revolut Holdings Europe, which provides services from Lithuania to clients throughout the European Economic Area, has climbed to the top of the annual TOP 30 (Baltic TOP 30) of the most valuable companies of the Baltics. The holding company combines Revolut Bank, which provides banking services, Revolut Securities Europe, which provides investment services, and Revolut Insurance Europe, which provides insurance services. According to experts' assessments using the Baltic TOP 30 approach, the value of Lithuania's "Revolut" group of enterprises hit 6.9 billion EUR and climbed by 17% this year. According to experts' assessments using the Baltic TOP 30 methodology, the value of Revolut group companies in Lithuania hit EUR 6.9 billion and climbed by 17% this year.
"The previous year was another phase of rapid growth for us, and this is undoubtedly reflected in the financial situation. In Europe, we have more than 35 million private clients, and we offer more and more services, including savings, investments, and credits, soon we will start providing housing loans, which Lithuanians will be the first to try. We plan to continue growing," says Vytautas Valvonis, CEO of Revolut Holdings Europe.
UAB Vilniaus prekyba, one of the largest Lithuanian-owned companies in the Baltics, climbed from third to second place in the Baltic TOP 30, increasing its value by 19% year-on-year to EUR 5.7 billion. The third place went to Thermo Fisher Scientific Baltics UAB, having previously been ranked first among the most valuable companies in the Baltics for two years in a row. The company's value declined by 13% year-on-year to EUR 5.4 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 representative offices in Tallinn, Riga and Vilnius, who conducted a large-scale financial analysis based on public information about the performance and management of the companies.
" When the Revolut financial group decided to establish its headquarters in Lithuania and transfer the provision of services to customers in the European Union from the United Kingdom, it was only a matter of time before the company, which is rapidly expanding and has caught a good wave, surpassed the Baltic TOP 30 old-timers in terms of value. Of course, the end of the Covid pandemic indirectly aided Revolut’s rise to first place this year, pushing Thermo Fisher Scientific Baltics, a Lithuanian company that manufactures vaccine components and other vaccine-related products, down to third place.
Analyzing the changes in the value of companies over a year, it is clear that the aggregate value of the Baltic TOP 30 is growing rapidly and has already reached EUR 60.4 billion – EUR 5.2 billion more than the previous year, representing a 9.3% increase," says investment banking expert and partner of the company Confidentus Kristupas Kukarskas.
Eleven of the companies included in the Baltic TOP 30 list this year are registered in Lithuania, nine in Estonia, four in Latvia, and six have registered offices in several Baltic countries.
Companies from the financial sector rank among the top ten of the TOP 30 most valued companies in the Baltic States
“We are happy to present this 2024 Baltic TOP 30 which is 11th in a row. This is unique analytical tool, which hopefully will help Baltic and international audience better understand most valuable and important Baltic companies and factors affecting its value.
I would like to emphasize significant positive changes in value which were recorded not only by Revolut, but also by other financial sector groups active in the Baltic States: Swedbank (4th place), SEB (6th place), and Luminor (9th place). The value of all of them grew sharply during the year, from 17 to 28 percent. Another financial institution, LHV Group, which offers banking services in Estonia and holds a license in the United Kingdom, placed 18th” says investment banking expert and Managing partner of the company Prudentia in Riga Kārlis Krastiņš.
According to the experts who compiled the list of the thirty most valuable companies, it is noteworthy that for the first time, the Baltic TOP 30 included a crypto-currency company registered in Lithuania. Bifinity (22nd rank), valued at more than EUR 1 billion, is owned by Changpeng Zhao, the founder and CEO of Binance, one of the world's largest cryptocurrency exchanges. Bifinity provides fiat currency payment services in the European Economic Area for Binance customers who wish to withdraw Euros from the Binance wallet or buy crypto with EUR via their credit cards.
The values of energy-related companies varied unevenly
"The value of energy companies rose differently – Latvenergo (5th place), which is more recognizable in Lithuania by its subsidiary name Elektrum Lietuva, climbed by 38 percent, as well as Eesti Energia (12th place), familiar in Lithuania as its subsidiary Enefit, grew by 35%. The value of the Ignitis group (8th place) grew less – 13 percent, while the value of the listed green energy producer "Enefit Green" (15th place) declined by 4 percent", says investment banking expert and Managing partner of the company Prudentia in Tallinn Illar Kaasik.
Epso-G, which managed the electricity and gas transmission companies Litgrid, Amber Grid and other companies, was among the most valuable companies in the Baltic countries last year, lost value and slipped off of the Baltic TOP 30 list. The Gren group (25th place), which generates and provides heating across Lithuania, Latvia, and Estonia, had its value fall by 9 percent. Utilitas (28th place), an Estonian heat and power producer and provider, lost 13 percent of its value.
Two new oil-related companies entered the TOP 30: Orlen Lietuva (14th place) and Estonia's Viru Keemia Grupp (27th place), a shale oil company that also engages in combined heat and power generation and fine chemicals production and trade of products.
The ranks of companies in the forest sector have thinned out drastically
According to the experts who made up the Baltic TOP 30, the forestry sector, which shone last year, has significantly weakened its position this year. Latvian state forestry company Latvijas Valsts Meži (9th place) fell the most (-25%), while the Lithuanian state forestry company Lietuvos Valstybinių miškų urėdija and the Estonian state forestry company Riigimetsa Majandamise Keskus did not even make it into the top thirty. Graanul Invest, one of the largest producers of wood pellets in Europe which is located in Estonia, also dropped out of the Baltic TOP 30.
The "status quo" has not changed in the telecommunications sector
In the Baltic countries, the positions of telecommunications companies operating under the brands Telia, Tele 2, and Bitė have changed by little. Telia Group (10th place), which lost 9 percent of its value, maintained its leading position in the telecommunications sector in the Baltic countries, while Tele 2 Group (16th place) and Bitė Group (17th place) increased their value by 8 and 6%, respectively.
Only one of the most famous technology unicorns of the Baltic countries is included in the TOP 30
During the research, only publicly available data of companies that are registered in the Baltic States were evaluated, therefore some well-known Baltic technology startups and unicorns, which do not consolidate financial results in the Baltic States or have not yet crossed the profit threshold, were not included in the list.
Among the well-known technology unicorns of Baltic origin - such as Bolt, Wise, Playtech, Vinted, Nord Security, Printful and Baltic Classified Group, only the Lithuanian-founded ad platform group Baltic Classified group (13th place), which is listed on the London Stock Exchange is in the Baltic TOP 30. "We expect to see more unicorns in the TOP 30 next year, as some of them have finally started to work profitably and will be able to be evaluated according to the Baltic TOP 30 methodology, according to which company values, and in the case of financial services companies, equity values, are determined using the comparative multiples method, i.e. according to market prices", says K. Kukarskas.
During the analysis of the value of companies in the Baltic countries, the experts composing Baltic TOP 30 annually evaluate the data of more than a thousand companies in Lithuania, Latvia, and Estonia. The value of companies (in the case of financial services companies – their equity value) is determined using the comparable trading multiples method (the market approach) and the company’s openness, transparency, and governance are evaluated based on publicly available information. The values of companies listed on the stock exchange are calculated based on the price that was on the stock exchange. If the company operates in several Baltic countries, its value is assessed on a consolidated basis.
