January 2025
Creditinfo Lithuania Analysis: In 2024, An Average of Three Companies Filed For Bankruptcy Daily
According to Creditinfo Lithuania’s analysis, 1,079 company bankruptcies were registered in Lithuania in 2024—a 16.1% increase compared to 929 cases in 2023. However, this figure is slightly lower than in 2022 when 1,087 bankruptcies were recorded (a 0.7% decrease).
Key Sectors Affected: Construction, Trade, Transport, and Manufacturing
Construction Sector Challenges
The construction sector faced the highest number of bankruptcies in 2024, with 243 cases, marking a 16.8% increase from 208 cases in 2023. However, this was a slight 2.5% decrease compared to 2022 (237 bankruptcies). Currently, 11,299 companies operate in the construction sector in Lithuania.
Dovilė Krikščiukaitė, Head of Legal at Creditinfo Lithuania, noted that the sector struggled with insufficient demand, particularly in real estate. However, engineering construction projects increased by 10.3%, and many companies remain optimistic, planning to hire more employees and anticipating growth.
Despite these challenges, economic analyst Aleksandras Izgorodinas from Citadele Bank projects fewer bankruptcies in 2025 due to declining interest rates in the eurozone. Improved real estate transactions and mortgage volumes are already evident, which could stabilize the construction sector further.
“However, I believe that in 2025, the number of bankruptcies in the construction sector will decline. With falling base interest rates in the eurozone, we are already observing a recovery in real estate transactions and mortgage volumes. Buyers are returning to the real estate market, and the cost of borrowing continues to decrease. This will lead to fewer bankruptcies in the construction sector in 2025. It is projected that the ECB will lower interest rates at least three more times this year, further supporting recovery in Lithuania’s construction and real estate sectors and reducing bankruptcy numbers,” said A. Izgorodinas.
Wholesale and Retail Trade
The wholesale and retail trade sector had the second-highest number of bankruptcies, with 237 cases, a 3.9% increase from 2023 (228 bankruptcies). However, this figure was lower than in 2022 (251 cases). With 23,601 companies, this sector remains the largest in Lithuania.
“Companies in this sector faced fluctuating demand, but recovering domestic consumption and increasing real wages resulted in higher revenues compared to the previous year,” explained D. Krikščiukaitė.
Transport Sector Under Pressure
The transport and logistics sector, comprising 8,684 companies, saw 134 bankruptcies—a dramatic 74% increase from 77 in 2023 and a 35.4% rise compared to 99 cases in 2022.
“Unlike the construction sector, where we see the first signs of recovery, the transport sector is yet to show improvement. For instance, Germany’s truck mileage index, which strongly correlates with Lithuania’s transport services export indicators, fell to its lowest level since the end of 2020 by the end of 2025, being 2% lower than at the end of 2024. This indicates that the transport sector will likely remain under pressure in the near future. The sector is highly sensitive to fuel price fluctuations and supply chain disruptions, which often create difficulties for smaller companies,” commented Citadele Bank’s economist.
Manufacturing Sector Struggles
The manufacturing sector, with 8,440 companies, recorded 121 bankruptcies in 2024—a 31.5% increase from 92 in 2023 and a nearly 25% rise compared to 97 in 2022.
According to Creditinfo Lithuania’s head of legal, reduced demand in European export markets, rising raw material costs, and higher energy expenses led to financial difficulties for many manufacturing companies.
Positive Developments in the Accommodation, Food Services, and Real Estate Sectors
Despite the rise in bankruptcies in the sectors, certain industries exhibited positive trends. In 2024, the number of bankruptcies in the accommodation and food services sector dropped by 20% to 66 cases compared to 82 cases in 2023. Moreover, this figure represents a 52% reduction compared to 2022, which saw 137 bankruptcies. Currently, 3,837 companies operate in this sector in Lithuania.
Similarly, the real estate (RE) operations sector, encompassing 6,621 companies, also demonstrated improvement. Bankruptcies in this sector decreased by 22.7% in 2024, from 44 cases in 2023 to 34 cases. In 2022, 33 insolvency cases were recorded in this sector.
Analysis of insolvent companies revealed that the total turnover of bankrupt companies in 2023 was €194.28 million, with the average annual turnover per company standing at €848,000. Notably, the workforce within these companies experienced a significant decline. At the beginning of 2023, these firms employed 7,292 workers; by October, this number had fallen to 5,551 employees.
“Monitoring the key operational metrics of business partners can help identify early warning signs. A decrease in workforce, reduction in the transport fleet, changes in management or shareholders, relocation of headquarters, or declining turnover are indicators that warrant close attention to ensure reliable partnerships and the fulfillment of financial commitments,” stated Dovilė Krikščiukaitė, Head of the Legal Department at Creditinfo Lietuva.
The head of Creditinfo Lietuva’s Legal Department also observed a trend toward younger companies becoming insolvent. In 2024, the average age of bankrupt companies was 10.58 years, compared to 11.68 years in 2023 and 12.31 years in 2022.
“This shift indicates that an increasing number of young companies are struggling to overcome market challenges and adapt to changing economic conditions. Young businesses often face financial management deficiencies, high costs, and intense competition, which exacerbate their difficulties,” added the Creditinfo Lietuva representative.
Lithuanian Paper Industry: Revenue Growth, Debt Increase & Decreasing Risk
Challenges from a Few Companies Distort the Overall Picture
An analysis by Creditinfo Lietuva reveals a controversial situation in Lithuania’s paper manufacturing sector. While the number of companies has decreased in recent years, the number of employees has grown. In 2023, sector revenues reached €829 million—a 51% increase compared to the beginning of 2021. However, there are worrying signs: the sector’s debt portfolio has grown nearly fivefold over four years. This negative trend is primarily driven by the difficulties of a few companies, while the sector itself demonstrates resilience. No bankruptcies have been recorded in the past three years, and the risk levels are nearly twice as low as the national business risk average.
Current State of the Sector
According to Creditinfo Lietuva, there are currently 176 companies operating in the Lithuanian paper manufacturing sector, employing 5,462 people. While the number of companies has gradually decreased from 191 in 2021 to 176 in November 2024, employee numbers have grown steadily, from 5,022 in January 2021 to 5,462 in November 2024.
Economic Indicators: Positive and Negative Trends In 2023, total sector revenues reached €829 million—4.6% less than at the start of the year (€869 million), but 21% higher than in 2022 (€684.6 million) and 51% higher than in 2021 (€548 million). Over a four-year period, average annual revenues per company increased from €4.2 million to €6.1 million.
The paper manufacturing sector includes companies producing pulp, paper, and cardboard, as well as corrugated paper and cardboard packaging, hygiene and household products, stationery, copy paper, envelopes, wallpapers, and other specialized products.
Debt Portfolio Increased
Fivefold At first glance, the sector has seen a significant increase in overdue financial obligations. Between 2021 and the end of 2024, the debt portfolio grew nearly fivefold, from €157.7K to €776.6K, while the number of debts increased only slightly, from 87 to 89 cases.
“A deeper analysis shows that the overall figures are skewed by issues faced by a few companies—one undergoing restructuring and another involved in legal proceedings. Excluding these, the sector remains stable, with the average debt amount per case decreasing from €2,999 in early 2024 to €2,803,” says Dovilė Krikščiukaitė, Head of Legal at Creditinfo Lietuva.
Bankruptcy Trends
From 2003 to the end of 2024, the paper manufacturing sector recorded 30 bankruptcies. However, insolvency cases have varied across periods. For instance, no bankruptcies occurred between 2022 and 2024 or from 2014 to 2015, while 2009–2010 saw 5 and 4 bankruptcies, respectively.
Risk Levels: Lower Than Other Sectors
Analyzing risk trends between 2022 and 2024, the paper manufacturing sector shows positive stabilization. Currently, 8% of companies are classified as high-risk for late
payments, and 5% are at high risk of bankruptcy. This means over 90% of companies are considered low- or medium-risk. In comparison, the national average bankruptcy risk is 9%, with 16% of companies at risk of payment delays.
“Aside from a few exceptions, Lithuanian paper manufacturers are relatively low risk. Compared to other sectors, this positions them as a stable part of the economy,” adds Krikščiukaitė.
Top Companies by Revenue and Employment
The top 10 Lithuanian paper manufacturers by revenue in 2023 are:
1. Nemuno banga (€178.2M)
2. Aurika (€70.3M)
3. DS Smith Packaging Lithuania (€59.4M)
4. Grigeo Klaipėda (€45.8M)
5. Grigeo Packaging (€36.4M)
6. Rietuva (€32.99M)
7. Pakmarkas (€27.1M)
8. Bigso (€24.9M)
9. Miko ir Tado leidykla (€24.3M)
10. Klaipėdos kartono tara (€23.8M)
Top employers in the sector include:
1. Nemuno banga (580 employees)
2. Aurika (481 employees)
3. Bigso (324 employees)
4. Grigeo Tissue (244 employees)
5. DS Smith Packaging Lithuania (214 employees)
