The turnover of the TOP 100 fastest-growing companies in Latvia has increased almost 9.2-fold since 2019, according to a study conducted by Lursoft. Last year, the companies included in this list generated a combined turnover of 948.66 million EUR and achieved a profit of 126.53 million EUR after tax. In 2021, the TOP 100 fastest-growing companies provided 2,480 jobs.

To highlight companies during Latvia's celebration week that have proven through their operations that Latvian businesses have growth potential, Lursoft has compiled the TOP 100 list of the fastest-growing companies in 2021. The list mainly contains companies that are still little-known, but it also includes businesses that, even after several years of operation, still manage to demonstrate a significant leap in growth.

In the TOP 100 list of fastest-growing companies, firms are ranked according to the largest turnover increase compared to 2019. For a company to be included in the TOP 100 fastest-growing companies list, it must meet several criteria:

The profitability ratio must be greater than 4;

The company must have positive equity;

It must have operated at a profit between 2019 and 2021;

The company must be a VAT payer;

The company must not have a registered insolvency process;

The company must have active officials.

Not stopping at failures, but changing the direction of operations

For a company to enter the latest TOP 100 list of fastest-growing companies, its turnover had to grow by at least 312.4% compared to 2019, as is the case for the aircraft parts wholesaler SIA “RIGMO”, founded in 2011. Although SIA “RIGMO”’s turnover fell to 0.75 million EUR in 2019, it has grown gradually in subsequent years, reaching 3.09 million EUR last year, which is the best result in the company’s entire history.

Until 2016, SIA “RIGMO” operated at a loss, so it changed its original line of business—metal structure manufacturing—to aircraft parts wholesaling and the extension of aircraft resources, while simultaneously closing its metal structure manufacturing and selling both the production premises and equipment. Since 2017, SIA “RIGMO” has been operating at a profit.

In its submitted management report for 2021, SIA “RIGMO” indicated that its operations in recent years have also been affected by the Covid-19 pandemic. “Despite the general increase in production resource prices and high pressure on service prices from clients, the company continued its operations. In 2021, there was a decline in turnover for several months, but we were able to reorient ourselves, as a result of which turnover increased by 73.18% last year, exceeding 3 million EUR,” states the SIA “RIGMO” management report.

Lursoft data show that almost a third of the companies included in the TOP 100 list of fastest-growing companies, like SIA “RIGMO”, represent the trade sector.

One third – those working in the trade sector

The trade sector representatives included in the TOP 100 list of fastest-growing companies generated a combined turnover of 430.64 million EUR in 2021, accounting for 45% of the total turnover of the TOP 100 fastest-growing companies. Since 2019, the combined turnover of these companies has grown by 971.19%. It should be noted that although it is the most widely represented sector in terms of numbers, in terms of the number of employees, it has been overtaken by healthcare (represented in the top by only 2 companies), as well as the ICT, manufacturing, and construction sectors.

The fastest-growing turnover among all companies in the TOP 100 list was recorded in the real estate sector. However, Lursoft’s study data show that only one company from this sector made it into the TOP 100 fastest-growing companies – SIA “VINSA”. With an 8077.1% turnover increase compared to 2021, it ranked 2nd on the list of 100 fastest-growing companies. The Lithuanian-capital company SIA “VINSA” experienced a rapid leap in turnover specifically in 2021, as in previous years its turnover was only slightly above 100 thousand EUR. Analyzing Lursoft report data, it can be seen that SIA “VINSA” currently has four registered rental properties in Riga – premises on Avotu iela 18, Pūpolu iela 13, and two properties on Dzirnavu iela. The company ended last year with a profit of 1.08 million EUR.

An even faster increase in turnover since 2019 was seen only by the list leader, SIA “BTT”, which, just like SIA “VINSA”, saw a significant turnover increase specifically in 2021. In 2019, the company’s turnover was 181.25 thousand EUR; in 2020, the figure increased to 668.01 thousand EUR, but last year it reached 18.84 million EUR. SIA “BTT”, which deals with electricity production, had the opportunity to expand its economic activity in 2021 because, as a result of an auction, contracts were signed for the rights to use the Inčukalns underground gas storage facility and receive natural gas injection, storage, and withdrawal services. At the same time, the company also gained the opportunity to purchase natural gas itself and sell it.

This year, SIA “BTT” plans to improve and strengthen its market position by increasing electricity and heat sales volumes where possible.

Lursoft has researched that the sole shareholder of SIA “BTT”, Edgars Mustaps, also owns SIA “E-genitor” and SIA “Red Riga”, the latter of which was registered only this May.

Rapid growth for regional companies too

Although both leaders of the list, SIA “BTT” and SIA “VINSA”, are registered in Riga, the TOP 100 list of fastest-growing companies also includes firms registered outside the capital.

Data compiled by Lursoft reveal that slightly more than half, i.e., 55 companies, are registered in Riga, and another 21 in the Pierīga region. Both Kurzeme and Vidzeme are represented in the top by 7 companies each, while Zemgale and Latgale have 5. It should be noted that, compared to last year’s top, the representation of Riga-based companies in the TOP 100 list of fastest-growing companies has decreased, as 65 capital-based companies were found in the 2020 top.

Among the regions, Kurzeme is the best represented in the top. The Ventspils company SIA “COMAR”, which deals with ship agency services, managed to rank 13th in the TOP of fastest-growing companies; its turnover has grown by 1047.65% since 2019. Lursoft Multi-report data show that in 2019, SIA “COMAR” had a turnover of 275.11 thousand EUR, in 2020 it was already 2.45 million EUR, and last year its turnover increased to 3.16 million EUR. In its submitted management report, SIA “COMAR” indicated that it handled 33 dry cargo ships last year. To expand its operations, the company also concluded a contract with ASKO TRADE PTE.LTD for the supply of coal and conducted marketing research, including the conclusion of contracts for brokerage services, which allowed the company to increase its income. It should be added that SIA “COMAR” also managed to rank in the top of fastest-growing companies the year before, although it has slipped down by 6 positions in the list over the year.

Ventspils is also represented in the top of fastest-growing companies by SIA “TRIZ TRADE”, which is in 95th position on the list.

Average age of companies – 7 years

Lursoft has calculated that the average age of the companies included in the list is 7 years, although the TOP 100 list also contains businesses whose operating history spans several decades. For example, the Krāslava-based SIA “MEDSERVISS” was registered as early as 1993, but it has experienced a rapid spurt specifically in the last few years. Lursoft data show that in 2020, the doctor's practice SIA “MEDSERVISS” increased its turnover by 43.40% compared to 2019, and in 2021 it grew by another nearly 200%, reaching 3.4 million EUR. The rapid turnover was achieved thanks to the merger of SIA “MEDSERVISS PLUS” and SIA “LIMED Serviss” into the company and the expansion of the range of services offered.

Two places above SIA “MEDSERVISS” in the list of fastest-growing companies is the second medical sector company included in the top, SIA “Centrālā Laboratorija”. Since 2019, the company’s turnover has grown by 331.43%. The Covid-19 pandemic, which was a difficult period of survival for many companies, was a time of opportunity for SIA “Centrālā Laboratorija”, as a result of which the company managed to rapidly grow both its turnover and profit. Lursoft data show that in 2019, SIA “Centrālā Laboratorija” had a turnover of 16.03 million EUR, but last year the company’s turnover had already increased to 69.16 million EUR, while profit after tax, reaching 21.68 million EUR, was nearly 10 times higher than in 2019.

SIA “Centrālā Laboratorija”’s revenue grew rapidly because the company became involved in the acceptance and testing of Covid-19 samples throughout the country. The company purchased parts of NMS laboratories in the Kurzeme region and expanded its sample collection branches.

SIA “Centrālā Laboratorija” plans to invest in the construction of a new laboratory building, the introduction of new testing methods, and the implementation of laboratory automation processes. Currently, based on information available to Lursoft, SIA “Centrālā Laboratorija” has 92 registered branches.

Among the TOP 100 fastest-growing companies, SIA “Centrālā Laboratorija” had the third largest turnover and the largest profit in 2021, proving that even companies with long-term operating experience and an already significant turnover level can achieve rapid growth.

An even higher turnover than SIA “Centrālā Laboratorija” among the TOP 100 fastest-growing companies last year was achieved by SIA “AMV Bunker Ltd” (286.16 million EUR) and SIA “INTER RAO Latvia” (193.47 million EUR). It should be noted that the Enterprise Register has applied sanctions to the actual controller of SIA “INTER RAO Latvia”, Igor Sechin.

Fewer than 10 employees on average per company

The TOP 100 fastest-growing companies employed a total of 2,480 people in 2021. The largest employer among these companies is the previously mentioned SIA “Centrālā Laboratorija”, which employed 743 people last year. Since 2019, the number of employees in the company has grown by almost 300.

A significant increase in the number of employees since 2019 has also been seen at the ICT sector firm SIA “Printify Development”, which is in 57th position in the latest top of fastest-growing companies. The company’s turnover has grown by 450.73% since 2019, while the number of employees has increased by 203.

SIA “Printify Development” is engaged in ensuring the operation of the online platform “Printify” owned by its parent company Printify Inc, including software development, maintenance, improvement, and testing, as well as ensuring the operation of the portal. In addition to the above, in 2021, the company also operated as an online platform offering custom-printed product services from multiple print service providers. Last year, compared to the year before, SIA “Printify Development”’s turnover grew by nearly 10 million EUR, reaching 17.1 million EUR, while its profit after tax increased to 1.34 million EUR.

It should be noted that only SIA “Printify Development” and SIA “Centrālā Laboratorija” out of the companies included in the TOP 100 fastest-growing companies list employed more than 100 people last year. On average, each company included in the top was an employer for 7 workers in 2021, while the total number of employees in the fastest-growing companies has increased by 135.29% since 2019.

TOP 100 fastest-growing companies in Latvia in 2021