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International Internet Magazine. Baltic States news & analytics Tuesday, 02.06.2020, 02:41

Coface: 14 Estonian businesses among Baltic Top 50

BC, Tallinn, 19.09.2019.Print version
There are 14 Estonian companies in the Baltic Top 50 Ranking of businesses published by international credit insurance company Coface Baltic.

The highest ranked Estonian company is shipper Tallink Grupp in ninth place, followed by Eesti Energia in place 14 and NG Kapital in place 15. Compared with the rankings for 2018, Tallink Grupp and Eesti Energia have dropped two notches each and  NG Kapital climbed one notch, Coface said.

The other Estonian companies in the Coface Baltic Top 50 Ranking are Ericsson Eesti, Tallinna Kaubamaja Grupp, Manoir Energy, Enefit Energiatootmine, Baltic Sea Bunkering, NT Bunkering, Maxima Eesti, Orlen Eesti, Riverito, Selver and BLRT Grupp.

The rankings also include seven companies from Latvia and 29 from Lithuania. The top three places in the ranking are held by Lithuanian companies, with Orlen Lietuva ranked as the biggest, Vilniaus Prekyba as the second biggest and Maxima Grupe as the third biggest company in the Baltics.

Grzegorz Sielewicz, economic analyst at Coface Group, said in his remarks added to the rankings that the Baltic region's economic growth is strongly driven by domestic demand. The countries benefit from the favorable situation on the labor market as well as rebounding fixed asset investments.

"Nevertheless, the external environment remains crucial for the Baltic states. The share of exports of goods and services as a percentage of nominal GDP is especially high in Lithuania and Estonia, where it amounted to 82% and 72% respectively last year. In Latvia it was 59%, making dependence on foreign markets a further important factor," Sielewicz said.

Lively investment in Estonia, which equaled 24% of GDP in 2018, continues to contribute to growth in 2019. Private investment is supported by sustained business confidence and the high capacity utilization rate. In addition, companies enjoy a tax exemption on reinvested profits. Public investment, boosted by European funds, will benefit the development of infrastructure, particularly in transport and education.

However, Estonia's growth is expected to slow in 2019. Private consumption -- the traditional driver of growth -- should continue to expand, but its contribution will be limited by a smaller increase in the employment rate. Wage growth, fueled by the shortage of skilled labor as a result of emigration and population decline, is also expected to be lower, the report says on Estonia.

The Coface Baltic Top 50 ranking is a joint project of the Coface branch offices in Central Europe. The ranking covers the largest companies in the region, based on their turnover for the calendar year of 2018. The study includes Estonia, Latvia and Lithuania.

As part of the survey, the largest companies in each of the countries, having turnovers equaling or higher than 300 mln euros,  were identified, excluding financial service providers such as banks, insurance companies, leasing firms and brokers. The ranking of the Coface Baltic Top 50 companies is based on revenues and includes other key corporate indicators, such as net profits and the number of employees.

Turnover and profit were converted into euros using the exchange rates effective at the end of 2018.

Coface is an international expert on business risks and credit insurer. The company has been active in the Baltic state for over 13 years.

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