We are in the TOP 20 list of the most valuable companies in the agricultural sector
The total value of Latvian companies in 2021, compared to the previous year, has increased by 9.64%, reaching 37.20 billion euros. Data compiled by “Lursoft” shows that the agricultural sector has also undergone changes, with the total value of companies growing to 2.19 billion euros.
There are currently more than 25.7 thousand companies operating in the sector, and their total turnover in 2020 was 2.6 billion euros.
Analyzing the data on the TOP 20 most valuable companies working in the agricultural sector, it can be seen that their total turnover in 2020 exceeded 800 million euros. It is estimated that the total value of the TOP 20 most valuable companies in the agricultural sector has decreased by 8.5% over the last year compared to the previous year – if in 2020 the total value of the TOP 20 most valuable agricultural companies was 1.65 billion euros, then year before – 1, 51 billion euros.In total from the list of the TOP 20 most valuable companies in the agricultural sector, logging is the most widely represented with 6 companies, 3 companies each from the poultry sector, as well as from the sector related to forestry and other forestry activities. The other companies from the list represent various agricultural sectors – cereals, fishing, vegetable growing, etc.
The largest company in the agricultural sector with a significant uprise is still AS “Latvijas valsts meži”, the value of which reaches 911 million euros. Compared to the previous year, the value of the company has decreased by 17% due to the decrease in its turnover and profit. The data available from “Lursoft” shows that the turnover of AS “Latvijas valsts meži” last year, compared to 2019, decreased by 6.78%, but the profit by 40.69%, falling to 349.69 million Euros and 62 million Euros, respectively. , 29 million Euros. In its assessment, “Capitalia” points out that with the rapid increase in timber prices in 2021, it is expected that AS “Latvijas valsts meži” and other timber manufacturers will be able to significantly increase their turnover and profit indicators, and as a result also increase business value. Last year, AS “Latvijas valsts meži” sold 7.52 million cubic meters of wood, including 7.23 million cubic meters of roundwood.
The second most valuable company in the agricultural sector is the lesser-known SIA “Baltreids”, which is engaged in fishing on the coast of Africa. Last year, according to the management report submitted by SIA “Baltreids”, it was engaged in fishing in the fishing areas of Mauritania and Morocco. The company has been able to show high profit rates on a regular basis, but it has been particularly successful in 2020, as a result of which the value of the company’s business has increased significantly – by 40%. The value of SIA “Baltreids”, registered in Liepaja and owned by Oleg Hramov and Nikolay Varushechkin, reached 102.79 million Euros last year. In 2020, the company managed to increase its turnover to 32.17 million Euros and its profit to 13.66 million Euros.
The top three most valuable companies are closed by the Valmiera region grain cooperative “VAKS”, which has been able to double its turnover during the last five years and has rapidly moved up to the list of the most valuable agricultural companies.
Among the most valuable companies in the industry, forestry-related companies are the most widely represented (9 out of 20), while the fastest jump in business value (355% compared to the previous year) was demonstrated by AS “Agrofirma Tērvete”, a newcomer to this top list. “Capitalia” points out that the value of Zemgale agricultural company AS “Agrofirma Tērvete” has increased due to significant non-core income in 2020, so it may be difficult to maintain its high 11th place in the list of the most valuable companies in the industry next year. Lursoft has researched that the turnover of AS Agrofirma Tērvete last year was the lowest in the last eight years, decreasing to 11.52 million Euros, at the same time the company gained 8.83 million Euros in revenue from other economic activities.
Changes in the list of the TOP 20 most valuable agricultural enterprises have been registered in seven positions. SIA “Gaižēni”, SIA “PATA”, SIA “Miķelāni bekons”, also SIA “Jubergs”, SIA “Laskana-mežs” and SIA “Krauzers” have dropped from the list, while SIA “Sabiedrība Mārupe” has given its place to the top related company SIA “Mārupe Greenhouses”with several times higher turnover. “Lursoft” Multi report data shows that SIA “Mārupes Siltumnīcas” in 2020 managed to increase the turnover to 11.33 million Euros, but the profit to 2.37 million Euros, and it is planned to invest in the further development of the company. 2020 was the first in its entire period of operation, when the company’s profit exceeded the mark of 2 million Euros. In the submitted annual report, the company has indicated that in 2020 it grew cucumbers and tomatoes in an area of 8.6 ha. Other newcomers to the TOP 20 list of the most valuable agricultural companies – AS “Ziedi JP”, KS “Durbes grauds”, forestry companies SIA “R GRUPA” and SIA “Vecvagari M”, as well as biogas producer SIA “Anaerobic holding”.
|Top||Company||Value (EUR)||Turnover for the last financial year for which the company has submitted an annual report, EUR||Profit for the last financial year for which the company has submitted an annual report, EUR||Employees|
|1||AS “Latvijas valsts meži”||911,225,200||349,692,869||62,285,706||1386|
|4||AS “Putnu fabrika Ķekava”||58,950,200||75,331,953||-817,455||776|
|6||SIA “Billerudokrsnas Latvia”||53,600,800||49,688,059||1,020,051||66|
|7||SIA “Metsa Forest Latvia”||47,249,800||42,870,075||1,646,411||42|
|10||SIA “Sodra mežs”||21,905,600||18,446,140||692,654||13|
|11||AS “Agrofirma Tērvete”||19,804,000||11,521,091||6,649,709||141|
|12||SIA “Niedrāji MR”||17,839,200||17,862,664||1,725,659||173|
|13||SIA “Rīgas mežs”||15,654,500||18,212,297||648,640||411|
|14||AS “Ziedi JP”||14,640,100||6,568,043||5,755,006||87|
|15||SIA “Latvi Dan Agro”||10,632,300||12,462,415||2,121,926||86|
|16||KS “Durbes grauds”||10,568,500||21,961,687||164,650||26|
|17||SIA “R GRUPA”||10,481,800||19,244,430||855,615||84|
|18||SIA “Vecvagari M”||10,298,400||11,347,901||1,534,406||151|
|19||SIA “Mārupes Siltumnīcas”||9446,300||11,327,082||2,377,604||118|
|20||SIA “Anaerobic holding”||9,011,700||4,766,877||1,949,967||36|
The business valuation methodology used is based on the comparable company method, which is one of the generally accepted company valuation methods. The assessment is based on the historical financial results submitted by the company. The calculation of the company’s value considers the historical turnover, turnover growth and profitability indicators of the company and the industry. The valuation model was prepared by “Capitalia” in collaboration with “Lursoft”.