January 2025
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)
