bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Wednesday 19.12.2018 | Name days: Sarmis, Lelde
LatviaLatvia

Lursoft: catering sector in Latvia – how much industry leaders earn and pay in taxes

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUUsing a study and compiling data on companies’ business activities for the past three years, Lursoft wanted to find out if it is true catering companies in Latvia work with losses, and what their tax contribution is.

There are 5,297 companies registered in Latvia’s catering services sector. 65.37% of them work in restaurant and mobile catering service field, 17.41% provide food delivery services, and 17.22% are associated with bar business. Of all the interviewed businesses that have said their activities are associated with catering services, 12.54% have attracted foreign capital, according to information from Lursoft database.

«It should be said 55.38% of all companies are registered in Riga. Another 18.41% are registered in Pierīga. 3.81% of all catering companies in Latvia are registered in Kurmala, 3.00% – in Liepaja, 2.28% in Jelgava, and 2.23% – in Daugavpils,» according to Lursoft communications manager Indra Urtāne.

Company’s representatives say that 8.38% of companies working in the catering sector were registered last year. The most successful newcomer is SIA T73, which owns two eateries, a restaurant, a café and even a bar. In 2017, SIA T73 turnover was EUR 1.02 million. The year was concluded by the company with losses worth EUR 70.19 thousand. Company’s shares are owned through SIA International SV by one Viktors Ravdive.

Lido, McDonald’s and Daily had largest turnovers

As for turnover, the largest turnover of 2016 was demonstrated by AS Lido – EUR 36.46 million. When the survey was being prepared, the company’s financial account for 2017 was not yet ready. Because of that, it is unknown if Lido managed to maintain its leader position. Nevertheless, Lido continued successfully developing an increasing its turnover in the past six years, says Lursoft communications manager.

She says competitors did not remain idle this whole time. For example, turnover of SIA Premier Restaurants Latvia grew to reach EUR 36.12 million in 2017. This company’s turnover has increased by 13.43% in one year’s time. The TOP 3 largest catering companies list also includes SIA Baltic Restaurants Latvia, which is well known with its Daily lunch restaurants. The company’s turnover reached EUR 15.20 million in 2017 (+11.87% compared with 2016). Last year, SIA Baltic Restaurants Latvia commenced work in ten new catering locations. Three of its catering companies were closed. As a result, SIA Baltic Restaurants Latvia concluded 2017 with 89 catering locations. 35 of them are located in schools, and 28 of them are staff lunch restaurants, Urtāne says.

Data from Lursoft shows that Latvian catering industry’s total turnover had increased by 9.66% in 2016 – EUR 523.69 million. Four of Latvia’s largest catering companies have yet to submit annual accounts (AS Lido, SIA Lage Ko, SIA Airo Catering Services Latvija and SIA Čilija pizza). Nevertheless, according to available data, turnover of the country’s catering industry reached EUR 478.47 million in 2017.

Among industry’s largest winners – prison catering and fast snacks restaurant

SIA Premier Restaurant Latvia has been the most successful catering business in Latvia for the last several years. In 2017, the company’s profits after taxes were 42.93% larger than a year prior. The second largest catering company profit-wise in 2016 and 2017 was SIA Aleks UN V, which actively participates and wins in different procurement contests for catering services, says Lursoft representative.

For example, SIA Aleks UN V together with SIA Māras lācis won in a procumrent project for the provision of catering services in Riga Central Prison, Olaine Prison and Liepaja Prison last year. This year, on the other hand, they won in a procurement project for Pauls Stradins Clinical University Hospital (contract price – EUR 5.90 million).

According to current data, SIA Lido Domina had the third largest revenue in 2017. Data from Lursoft shows that it has two more companies under its wing – a restaurant in Origo shopping centre and one in Domina Shopping Centre. The company’s revenue has grown 2.6 times over the course of one year, reaching EUR 614.71 thousand.

Industry’s paid tax volume up 22.51% since 2015

«Looking at the changes in catering sector’s paid tax volume, we can see that the amount companies have paid to the state budget has increased 22.51% over the course of the past three years, reaching EUR 109.03 million, whereas the PIT amount has grown 28.92% and insurance fees – by 22.01%. The number of employees has increased by only 5.31% in 2017 when compared to 2016. AS Lido was the industry’s largest employer in 2017,» according to Lursoft communication manager.

Last year, the company paid to the state budget EUR 9.50 million in taxes, which is 53.55% more than the amount paid by SIA Premier Restaurant Latvia. Although the tax amount paid by AS Lido has increased by 2.17%, the largest tax payment for the company was made in 2015, when SRS was paid EUR 9.81 million. «It should be added that AS Lido had the largest PIT and insurance payments in the industry in the last several years. Since 2015, the company’s paid PIT volume has increased 9.69%, reaching EUR 2.16 million. Insurance payments have grown by 10.15%, reaching EUR 4.04 million since 2015,» says Urtāne.

Tax debtors

Lursoft communication manager says that after compiling information from SRS, it can be seen that 39.31% of the industry’s companies had tax debts at the beginning of July, with the total size of tax debts reaching EUR 25.81 million.

Tax debts larger than EUR 100,000 were registered for 39 catering companies at the beginning of July.

«The largest tax debtor among catering services was SIA GoldTop, which was founded three years ago. This company has not submitted a single financial account. In May 2017, SRS decided to halt this company’s economic activities. At the beginning of June, SRS decided to cease this company’s economic activities entirely. Its tax debt reached EUR 652.10 thousand at the beginning of July,» says Urtāne.

The second largest tax debtor among catering companies is SIA Čilija Pizza, whose tax debt was EUR 451.07 thousand at the beginning of July.


Leave a reply

UGF and Harmony once again vote to keep Truksnis the Mayor of Jurmala

With votes from the Union of Greens and Farmers and Harmony, Jurmala Mayor Gatis Truksnis has once again managed to keep his post.

Corruption watchdog detains ex-mayor of Daugavpils under suspicion of bribery

Latvia’s Corruption Prevention and Combating Bureau has detained former mayor of Daugavpils Rihards Eigims, according to information from LETA.

Orkla Confectionery & Snacks Latvija invests EUR 53,000 in biscuit production plant

Chocolate and confectioneries production company Orkla Confectionery & Snacks Latvija has invested more than EUR 53,000 in modernization of a biscuit and waffle production plant located on Artilērijas Street. Additional funding has allowed the company to install a powder sugar dosing pot.

60% of Estonians ready to defend their country, survey estimates

A survey commissioned by the Estonian Defence Ministry has found that 60% of Estonian respondents would take part in defence related activity in the event of a military attack.

Will Nils Ušakovs stay as Mayor of Riga?

Members of Riga City Council will meet at 15:00 on 18 December to decide on the dismissal of Riga Mayor Nils Ušakovs. According to the head of Riga City Council faction of the National Alliance Nauris Puntulis: «Ušakovs should follow Andris Ameriks’ example and step down voluntarily.»

Ex-minister: «good deed champions» buy trains first and think how to use them later

AS Pasažieru vilciens wants to purchase 32 new electric trains for a price of EUR 225,303,262. This amount three times exceeds the amount Estonia paid for its electric trains. «The problem in Latvia’s case is not just with the state overpaying but also with good deed champions wanting to buy trains first and think about their use later. There is no clarity in regards to use of those trains and railway infrastructure’s readiness,» BNN was told by ex-Transport Minister of Latvia Anrijs Matīss.

Over 290 000 Estonians on brink of statistical poverty in 2017

In Estonia, 295,000 people or 22.6% of the population were at risk of poverty in 2017, the Baltic country's official statistics found adding that the proportion of such people grew by 1.6% since 2016.

Chinese President Xi: No one can dictate to China

Xi Jinping, the President of China has warned other countries not to tell what Beijing should do and voiced his conviction that the Communist Party of China leads everything in the country.

Companies fined 33,268 euros for distorting competition in public procurements

Latvia’s Competition Council has discovered illegal coordination of activities between SIA Tomega and SIA BTK.LV on multiple occasions. The council has decided to fine SIA Tomega EUR 33,268 for intentionally distorting competition in public procurement procedures.

Global Refugee Compact approved by UN General Assembly

The U.N. General Assembly has with the exception of the U.S. and Hungary endorsed a non-binding compact, which sets forth granting support for countries where the majority of the world's more than 25 million refugees live.

City Property Committee Olegs Burovs to be nominated for Riga Vice-Mayor’s post

During a board meeting of the Honour to Serve Riga party, members decided to propose the head of Riga City Council’s City Property Committee Olegs Burovs, as confirmed by a member of the political party Mareks Gailītis.

Poland respects EU Court's ruling and reverses controversial judge law

Respecting a ruling of the European Court of Justice, Poland has suspended the controversial law of the lowering of the pension age of its Supreme Court judges.

Latvian parties generally satisfied with New Unity’s offer

Potential partners are generally supportive of New Unity’s offer for division of responsibilities in the government. Nevertheless, parties want to discuss other matters, including National Alliance’s continued management over Environment Protection and Regional Development Ministry.

Riga City Council opposition suggests voting for Ušakovs’ dismissal again

On Monday, 17 December, the opposition of Riga City Council submitted a proposal for a meeting to decide on Riga Mayor Nils Ušakovs’ dismissal. The request to dismiss Ušakovs was signed by deputies from all opposition parties in Riga City Council.

Inflation in Latvia was higher than average in EU and Eurozone in November

Inflation in Latvia in November was higher than average inflation in European Union and Eurozone, according to data published by Eurostat.

LRB: there are a number of idle plans with a possible goal to acquire EU money and divert attention

«It is not normal for EUR 100 million to be suddenly pumped into the road industry shortly before elections. By doing this, Transport Minister Uldis Augulis has hurt the road construction industry,» said Latvian Road Builders association’s chairman Andris Bērziņš in a conversation with BNN.

VNT: overall situation in the Latvian transit sector is extremely dire

VNT has experienced 5% growth in last 11 months over the same period 2017 only as a result of its the strategic planning and significant improvements implemented over 2018.

Lithuania gives banking license UK technology «unicorn» Revolut

British digital payment firm Revolut, which has been valued at 1.5 billion euros, has been granted a banking licence in Lithuania, providing the firm the chance to work in the European Union regardless of Brexit.

Estonia testing internet voting with election in mind

E-governance-promoting Estonia is this week testing internet voting offering voters to send holiday greetings and to select themselves a present from the country's e-voting system.

De facto: Tukums airport’s owners deny bribing Lithuanian army official

Wing 4 Sky group – the owner of Tukums airport – denies their involvement in an attempt to bribe a Lithuanian army official. The corruption scandal surfaced when Tukums airport was trying to recover its lost reputation and certificate, as reported by LTV programme De facto.

Andris Ameriks steps down as Vice-Mayor of Riga

The vice-Mayor of Riga Andris Ameriks has decided to step down. He announced his decision at a press-briefing on Monday, 17 December.

May: Repeated Brexit referendum would break population's trust

British Prime Minister Theresa May, responding to high profile calls in the UK politics to hold a second referendum over the country's withdrawal from the European Union, has evaluated that it would «break faith with the British people».

Number of passengers carried by airBaltic up 18% this year

Latvian airline airBaltic has carried 3,842,952 or 18% more passengers during the first eleven months of 2018 than in the same period last year to its network spanning Europe, Scandinavia, Russia, CIS and the Middle East.

Government scenario without UGF to be discussed first in Latvia

Under prime minister candidate Krišjāņis Kariņš’s leadership, parties in Latvia could first discuss government formation without the Union of Greens and Farmers, according to unofficial information.

Katowice conference arrives at guidelines for realising emmission curbs

Signatories of the 2015 Paris Climate Change Agreement have reached a compromise set of guidelines for implementing their commitments as the world's governments agreed to take effective steps to reduce their carbon dioxide emmissions.

Newest comments