CleanR Grupa turnover grows by 26% in 2022, investments reach EUR 9.7 million

AS CleanR Grupa, Latvia’s largest environmental services provider, saw a 26% year-over-year increase in its turnover in 2022, reaching EUR 68 million, while the Group’s investments in its companies amounted to EUR 9.7 million, according to the Groups unaudited results for the 12-month period of 2022.  

Last year for the Group was marked by internal restructuring, modernization, and improvement of its corporate governance model.

“We created two separate—waste management and environmental services—business lines, allowing each of them to focus on their core activities, thus facilitating growth,” explains Guntars Levics, Member of the Board at CleanR Grupa.

Thanks to the modernization and ever-increasing investments in the digitalization of the processes and services, CleanR Grupa managed to increase its turnover and boost profits in 2022. This was achieved amid surging energy prices, which had a significant impact on the waste management business, and inflationary pressures on pay and raw material supply chains, which adversely affected the environmental services segment. CleanR Grupa gives work to over 1300 people in Latvia, to whom, as a socially responsible employer, the company last year allocated funds worth a total of EUR 240 thousand to mitigate the negative effects of the energy crises.

Also, the Group has invested in business development to reduce its exposure to adverse external factors and facilitate growth.  At the end of 2022, the Group’s bond issue saw significant interest from investors, attracting EUR 15 million worth of funds. The raised funds will be used to further develop the Group’s environmental services solutions, which also includes M&A deals.

Last year, CleanR Grupa made two important acquisitions to strengthen its presence in such market segments as construction waste management, packaging waste management, and extended producer responsibility system. The Group acquired SIA RSC Noma, a Latvian company specializing in construction waste management, and secured a majority stake in SIA Zaļā josta, an extended producer responsibility system provider.

“Our operations, as our investments, are directed toward the achievement of one of the fundamental aims of the circular economy—to increase waste sorting and recycling. We believe that by making the system more user-friendly and modernizing the services provided by the companies of CleanR Grupa, we are pursuing Latvia’s common goal—to decrease the amount of waste buried in landfills,” adds Levics.

To make waste collection and sorting more convenient for the people, the Group’s company CleanR has continued to expand its textile waste container network in and outside of Riga. In addition, the first underground containers have been installed in Riga, which are more capacious, safer, and aesthetically more pleasing.  At the end of 2022, CleanR Grupa’s first plastic recycling plant has been launched in the test mode.

“We envisage 2023 as a dynamic year, in which we keep working on the implementation of the circular economy and Green Deal aims in Latvia, pursue growth, keep improving employee well-being, and raise environmental awareness in society. We will also continue investing in the digitalization of our customer service and other processes,” said Levics.

Levics emphasizes that waste sorting and circular economy are areas which require involvement and engagement from society, therefore, the Group will continue educational and informative activities.

CleanR Grupa’s earnings before interest, tax, and amortization expense (EBITDA) reached EUR 10.6 million in 2022—a 4% increase on the 2021 figure. The investments were financed using the profits of the previous years and operational cash flow.

About AS CleanR Grupa

CleanR Grupa operates the leading companies in the environmental services sector in Latvia. CleanR Grupa includes SIA CleanR, a household waste management company, SIA CleanR Verso, an industrial waste management company, SIA Zaļā josta, an extended producer responsibility system provider, and environmental services companies: SIA Vizii, a cleaning company, SIA Vizii Urban, an urban environment management business, and SIA Vizii Domus, a house management brand.

CleanR Grupa looks after more than 50 thousand customers all over the country, serving half a million Latvian people daily. The Group offers highly digitized environmental services, provides high-quality customer care, and demostrated leadership in the pursuit of sustainability and climate neutrality goals.

For further question, please contact:

Agita Baltbārde

Group Chief Officer for Corporate Affairs and Sustainability

E-mail: [email protected]