CleanR Grupa in 2023 invested 10 million euros in production development, modernization and market expansion

30 Apr 2024

Latvia’s leading environmental services provider JSC CleanR Grupa (Group) closed the first year after restructuring with stable and positive financial results – its turnover reached 102 million euros, which is an increase of 49% against 2022, while the Group’s investment in production development, modernization and market expansion totaled 10 million euros, according to the Group’s audited results for 2023.

In 2023, the Group’s assets were worth 91 million euros – an increase of 14% against 2022, equity remained strong at 51%, and EBITDA reached 19.6 million euros, up 76% against 2022.

Last year was not only the Group’s first year after restructuring, but also its first year as a capital market participant after its debut on the Nasdaq Riga Stock Exchange, which gives the Group both opportunities and responsibilities to continue to ensure open, transparent and efficient business operations.

The financing of EUR 15 million euros raised via a bond issue was used to develop the environmental services business, including M&A transactions.

“The Group’s results are a guarantee of stability for our partners, the bond investor community in the Baltics, our employees and, ultimately, the economy. They provide us with opportunities to invest in environmental education and the country’s circular economy goals. For example, last year CleanR, a member of the Group, used its own funds to introduce modern infrastructure in Riga – underground containers, which are now in the yards of 34 apartment buildings. We have significantly greened our fleet, currently 42% of our passenger transport is made up of zero-emission vehicles, and we have digitized processes in the Group’s companies to improve customer service and reduce resource consumption,” says Juris Gulbis, Chairman of the Board of CleanR Grupa.

According to Gulbis, the Group is the leader in the waste management segment, investing to introduce Green Deal principles in Latvia, improving the infrastructure of sorted waste collection and promoting recycling.

In 2023, for instance, in preparation for the introduction of textile producers’ responsibility system, which comes into effect on July 1 this year, the Group’s companies have been investing in an expansion of their textile sorting network. The CleanR plastics recycling plant in Ķekava, which opened in spring 2023, has also made a significant contribution to waste management in Latvia and to the implementation of circular economy principles.

Last year was also the first year that CleanR Grupa spent in a new, diversified model of business lines and corporate governance. Last January, after restructuring, the companies spun off from CleanR – urban maintenance company LLC Vizii Urban and industrial waste and debris manager LLC CleanR Verso – started operating as independent companies. Meanwhile, commercial cleaning company LLC Vizii completed the second full year of operations.

“The separation of specialized functions within individual companies has shown that when the administrative structure is concentrated and the business has a clear focus, growth becomes dynamic and efficient. By focusing on two areas – waste management and environmental services – for the first year, we have grown muscle, experience and leadership in both areas,” says Gulbis.

Vizii Urban, for instance, has launched urban maintenance works in Riga, Bauska and Sigulda, Vizii has concluded an agreement for cleaning services in five inpatient facilities of Riga East Clinical University Hospital, while CleanR has expanded its geographic presence in Latgale and the Pierīga region – in the municipalities of Ropaži and Ķekava.

The restructuring objectives have been achieved: the dynamics of the different business lines have been enhanced and corporate governance has been developed, implementing the experience gained over the years within the CleanR structure. While staying part of the Group and maintaining common development objectives, each company continued to provide its customers with a wide range of services, not only the specialized services of each particular company, but also the common services of the Group companies.

In 2023, the Group pursued a multi-pronged development strategy: efficiency and productivity, safety and employee well-being, digitalization of customer service, corporate governance and sustainability.

As part of its efforts to digitize customer service, the Group invested in the development of a unified customer self-service multi-channel platform MANAI VIDEI (FOR MY ENVIRONMENT), a digital web portal and a mobile app. Also in the commercial cleaning segment, the Group’s company Vizii introduced a digital communication and customer service tool – the first mobile quality app, which employees of the serviced facility – Riga East Clinical University Hospital ¬ can use to assess the quality of the performed cleaning work online.

CleanR Group has more than 1,600 employees, which is why it is essential to provide a working environment that fosters growth, where everyone feels valued and can reach their full potential. In 2023, with a particular focus on improving safety at work, the internal work safety project “Drošinātājs” (Fuse) was implemented, involving employees in both assessing the risks and improving their working environment.

The expansion of the CleanR Group’s Supervisory and Management Boards also strengthened the corporate governance model, based on global best practice and ensuring compliance with the principles of openness and transparency in relations between the parties concerned.

“Sustainable corporate governance is a top priority at CleanR Grupa. The Group is already a leader in the environmental services industry, publishing a sustainability report and a consolidated sustainability and financial report, and achieving platinum status in Latvia’s only sustainability ranking – the Sustainability Index. At the same time, as far as responsible business is concerned, work on improving sustainability management never stops,” says Gulbis.

CleanR Grupa is already a zero-waste enterprise, a goal to be strived for in the economic and environmental management of the country as a whole. “The introduction of circular economy solutions in the Group’s management areas and the integration of circularity as a way of life at the level of society as a whole – these will continue to be the Group’s goals,” says Gulbis.

It should also be noted that the consolidation of waste management regions and the establishment of Regional Waste Management Centers, which was started last year, will also mark the regional development of the sector over the next five to seven years.


CleanR Grupa Sustainability Report 2023

CleanR Grupa Consolidated Annual Report 2023

CleanR Grupa Standalone Financial Statement 2023

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