JSC CleanR Grupa closes Q1 2024 with positive financial results

31 May 2024

JSC CleanR Grupa closed the first quarter of the year with positive financial results, which significantly surpass the results of the previous year. The turnover in the first quarter of 2024 compared to the same period in 2023 has grown by 30.5%, reaching EUR 28.3 million, the Group said in its three-month report.

EBITDA has grown by EUR 2.1 million or 57.5%, reaching EUR 5.8 million. The gross profit margin in the first quarter of 2024 was 19.6% compared to 18% a year ago. Group’s equity position was 54%.

“The first quarter of 2024 at CleanR Grupa was aimed at strengthening its hand and delivering positive financial results in waste management and environmental services. With respect to waste management, the beginning of the year was used to prepare for the provision of our services in the towns of Liepaja and Jurmala, where the Group`s company CleanR had recently won tenders,” said  CleanR Grupa chairman of the management board Juris Gulbis.

He also said that this year, a novelty in Liepaja will be digitalization as the customers will start using the digital self-service tool “Manai Videi”, where they may conveniently and quickly request or cancel a service, sign a new agreement, receive and pay bills, request or cancel of waste collecting, as well as receive a reminder on their mobile phones about the waste collecting day.

“Overall, we see an increasing demand for services on the digital platform. In the first three months of 2024, the number of active e-services users increased steadily, reaching 60%. In essence, all e-services indicators have increased – the proportion of electronically received request – 45%, digitally signed agreements – 67%,” said Gulbis.

During the new servicing period in Jurmala, which will come into force on June 1, in line with the municipal procurement, the company has allocated significant investments with the aim to modernize the waste management infrastructure by creating a new separately collected waste collection site, setting up underground waste container sites, providing residents with an opportunity to sort waste in their property, installing functional and aesthetically pleasing waste containers, as well as supplementing the range of services with the management of textile, bulky, construction and hazardous waste.

By implementing the principles of the circular economy in the operations of the Group companies, at the beginning of the year, the plastic recycling plant of CleanR, received a certificate from RecyClass, the first and only organization in Europe assessing recycling of plastic waste packaging.

The certificate affirms the quality of the recycling process and its compliance with the EU norms, as well as the origin of the plastic pellets – at the CleanR plastic recycling plant, the company produces pellets from separately collected plastic waste. In addition, the certificate prevents greenwashing as it is awarded to both the plastic recycler and the end producer. Thus, consumers may make sure of the product’s production cycle from waste to a new end-product.

By strengthening its position in the urban services segment, since the end of last year, Vizii Urban, the Group’s urban services firm, has been providing street maintenance services in Riga as a subcontractor. The volume, frequency, and regularity of these works have delivered positive financial results for Vizii Urban in the first quarter of the year.

Another Group company, Vizii, which offers commercial cleaning services, has introduced an innovative solution in the commercial cleaning segment – a digital communication and customer service tool – the first mobile quality assurance app, with the help of which the staff of the serviced sites may assess the quality of the cleaning services online. The Vizii customers are actively using the app and appreciate the benefits of the tool – its user-friendly navigation, prompt delivery of tasks and feedback.

Clean Verso, the Group company specializing in industrial and construction waste management, got engaged in a working group of the Latvian Builders’ Association, developing guidelines for circular management of the construction and demolition waste at building sites. This document is essential as it will help building companies to manage construction waste more efficiently by ensuring separate collection of film, cardboard, or paper packaging. During the drafting process, CleanR Verso shared its experience on the economic benefits of waste sorting, which is relevant for the whole building sector.

Being aware of the role of the leader in the sector of environmental services, at the beginning of the year, the company paid special attention to raising awareness of environmental education by creating “Šūna” (Cell), Latvia’s first environmental education concept space launched at the beginning of May in the centre of Riga between the Latvian National Museum of Art and Art Academy of Latvia. It is also a gift to the society, marking the 80th anniversary of the Group company CleanR. “Šūna” will be available to the society until the Summer Solstice, and will host more than 30 free-of-charge events dedicated to the climate change and environmental sustainability.

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