CleanR Grupa increases turnover and strengthens its regional expansion in first half of 2023

AS “CleanR Grupa” (Group) has reported EUR 45.5 million turnover in first half of the year, achieving an increase of 39% year over year, informed Juris Gulbis, Chairman of the Board at CleanR Grupa.

CleanR Grupa results of the first six months of 2023 indicate a continuation of the positive trends observed in the first quarter of the year.  The Group’s revenues in the first half of 2023 have increased by EUR 12.7 million compared to the same period last year, reaching EUR 45.5 million.  EBITDA saw even more impressive growth—increasing by EUR 6 million or 120% to a total of EUR 10.9 million, and the Group has maintained a strong equity position of 54%. Thanks to the investments made in modern and automated waste sorting technologies in 2022 and 2023 as well as decreased energy costs in 2023, the financial indicators have improved significantly. By continuing investments in the equipment of its plastic recycling plant in the first half of 2023, the Group has laid the groundwork for sustained financial growth in the future.

“The first half of 2023 at CleanR G Grupa was marked by several business expansion deals which have allowed the Group to strengthen its position in certain business directions in the territory of Latvia. In April this year, the Group’s subsidiary company Vizii Urban acquired KOM- Auto, a Cēsis-based street cleaning firm, which now represents Vizii Urban in the Vidzeme region. The deal was facilitated by the diversification of the Group’s source of funds, listing its bonds on the Nasdaq First North market at the end of last year,” explains Gulbis.

This deal was followed by several successful municipal procurements, as a result of which Vizii Urban provides urban maintenance services in the towns of Sigulda and Bauska.  “The current trend of an increasing number of municipalities outsourcing urban maintenance services makes a positive impact on the whole industry. In the long run, this will foster the development of the urban maintenance businesses in Latvia, with more companies taking part in public tenders and making high-quality bids,” emphasizes the Group’s Chairman of the Board.

At the beginning of this year, CleanR expanded its municipal waste handling area by signing contracts with the rural territories of Garkalne and Ropaži in the Ropaži municipality.  As of 1 July 2023, CleanR is the only municipal waste manager entitled to provide services all over the newly established Ropaži municipality.

Also, focus in the waste management sector was placed on increasing the amount of separately collected waste by investing in educational activities of the general public, setting up the necessary infrastructure, and mounting special campaigns.  In June this year, the Group’s subsidiary company CleanR launched a campaign named Tīrmāja (Clean House) to collect textiles and electronics.  Every week, the company set up a mobile waste collection point in different parts of Riga to collect old textiles and electrical appliances from the city’s residents free of charge.

To prepare itself for the introduction of the extended producer responsibility system for textile waste, CleanR has already set up more than 200 textile containers all over Latvia and keeps expanding the container network.  The new system, through which the Group’s subsidiary Zaļā josta will be able to offer Natural Resource Tax relief to clothes and textile retailers, is expected to come into force in 2025.

By investing in infrastructural improvements, in May this year, the Group’s subsidiary company CleanR installed the first underground garbage bins near Riga’s apartment blocks free of charge. “In the next 12 years, Latvia must reduce landfilled waste at least five time. This may only be achieved by generating less waste, sorting, and recycling.  Riga is setting a good example by promoting waste sorting—sorting of glass, paper, plastic, and metal packaging is already mandatory, and currently the city is also in the process of introducing mandatory sorting of biological waste. These new requirements call for modern infrastructure—waste containers that do not occupy all of the courtyard or green space.  Their function is to make waste sorting user-friendly and motivating,” explains Juris Gulbis. By the end of the year, CleanR is planning to equip 34 sites in Riga with underground garbage bins.

As reported, 2022 was a year of corporate reorganization for the Group. As a result, several business functions were separated and set up as independent Group subsidiary companies. The focus of the new companies is on retention of existing clients and attraction of new ones, investment in modernization of infrastructure and automation of services to offer high quality services in the industrial waste management un urban maintenance sectors.

For further information, contact:

Zane Plone

AS “CleanR Grupa” Public relations manager

E-mail: [email protected]

Phone.: +371 28 627 003