Lithuanian New Businesses Show Strong Revenue Growth, Nearly 70% Increase Earnings

A report from the Lithuanian Centre of Registers reveals that nearly 70% of new companies established in Lithuania last year saw their revenues grow, contributing to a total turnover of 1.6 billion euros. The analysis, based on financial reports submitted by over 10,500 small partnerships, private limited companies, public limited companies, and agricultural partnerships, indicates a robust performance among business newcomers.

Companies in the IT, pharmaceutical, and logistics sectors experienced the most substantial growth. Paulius Rudzkis, a data analyst at the Centre of Registers, noted that while the initial years of business are not always smooth, statistics show most ventures are successful in their first year. He also pointed to a surge in the registration of small partnerships in recent years due to favorable tax conditions, a trend that continued into the first months of this year.

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In recent years, about 16-17 thousand new legal entities have been registered in the country. Last year, due to favorable tax conditions, the registration of small partnerships rapidly increased, and this boom continued for the first few months of this year. Although the start of business is not rosy for everyone, statistically, it can be said that the vast majority of businesses are successful at least in their first year.

Overall, 69% of the analyzed companies increased their sales revenue last year, while 13% saw a decrease, and nearly a fifth reported no revenue. The total turnover for these companies reached 1.6 billion euros, a significant increase from 571 million euros in 2024. Companies in wholesale and retail trade, manufacturing, construction, and transport sectors were the largest revenue generators.

Rudzkis observed that among the top revenue-generating companies were newly established subsidiaries of established business groups, likely aimed at expanding the overall group's operations. However, successful logistics, transport, and IT startups were also prominent. The highest revenue growth was recorded in companies operating in the expanding transport, IT, and pharmaceutical markets. Last year, 52% of new companies reported pre-tax profits, while 29% incurred losses, and 19% declared neither profit nor loss. Profitable companies generated 353 million euros in pre-tax profit, while loss-making companies incurred 74 million euros in pre-tax losses. As of July 7 this year, 260 legal entities registered in 2024 have already been deregistered.

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Among the companies generating the largest turnovers, we traditionally see new subsidiaries established by groups of companies that have been operating for some time, likely intended for the development of the entire group's activities. However, we can also find successful newcomers in the logistics, transport, or IT sectors. Companies that started operating in the growing transport, IT, and pharmaceutical markets recorded the largest revenue growth.