News

JSC “Latvia's State Forests” – Third Most Valuable Company in Latvia

JSC “Latvia's State Forests” (LVM) has been recognized as the third most valuable company in Latvia in 2023, according to the top of this year's most valuable companies created by Nasdaq Riga and Prudentia. The value of LVM has reached 2.206 billion euros.

As compared to the previous year, the value of LVM increased by 64 %, which is one of the largest increases among the TOP 101 companies. Liene Dubava, Head of the Nasdaq Riga Exchange, states that the increase in the value of companies is facilitated by good corporate governance and the ability of shareholders and management to formulate and achieve ambitious development goals.

“LVM has been responsibly and far-sightedly managing the natural capital entrusted to it since the company was founded back in 1999, balancing economic, environmental, and social goals. By sustainably managing forests, we have ensured that the stock of wood in Latvia's State forests grows every year, making a significant contribution to mitigating climate change. At the same time, LVM plays an important role in the economic growth of each region and the entire country – this year, LVM is the largest dividend payer among State capital companies, paying 162.5 million euros to the State budget in 2023 and 40.6 million in corporate income tax for the payment of dividends. In the coming years, the company will have to overcome various challenges, because the war waged by Russia in Ukraine has significantly shaken the economies of European countries, causing serious consequences also in Latvian wood industry export markets, as a result of which the prices of products produced in Latvia, as well as production and export volumes, are falling,” says the Chairman of the LVM Board Pēters Putniņš.

JSC “Swedbank Baltics”, the value of which is estimated at 3.398 billion euros, won the status of the most valuable company in Latvia in 2023, while JSC “Latvenergo” ranked second, with its value reaching 2.912 billion euros.  During the year, the value of JSC “Swedbank Baltics” increased by 7 %, while of JSC “Latvenergo” – by 19 %. LLC “Mikrotīkls” ranks fourth with a value of 1.182 billion euros, followed by LLC “Maxima Latvija” the value of which is estimated at 646.7 million euros.​

The list of the most valuable companies has been created since 2005, and it provides an opportunity for entrepreneurs, industry experts and the general public to gain insight into the growth, compliance with corporate governance principles, development and competitiveness of Latvian and Estonian companies.