JSC CleanR Grupa closes first half of the year with quality growth

The most significant financial indicators of JSC CleanR Grupa in the first six months of this year demonstrate a stable and good quality growth compared to the respective period last year, said the Group’s CEO Juris Gulbis.

The company’s turnover in the first half of 2024 has reached EUR 55.6 million, which is by EUR 10.1 million or 22 percent more than in the respective period last year. CleanR Grupa’s turnover has doubled over the past three years.

“Even though waste management services still account for the bulk of the turnover, also other Group’s companies together have achieved the same level of turnover as in the waste management sector in 2021. Thus, the Group’s restructuring has been successful and has brought positive results” the Group’s CEO explained.

The Group’s EBITDA has increased by EUR 2.6 million or 29 percent to EUR 11.7 million which proved that the Group’s companies continue to expand their operations, maintaining profitability.

For example, in the first six months of this year, waste management company CleanR won procurements in Liepaja and Jurmala, continuing to provide waste management services in Jurmala and expanding the territory of services in Liepaja. Besides, customers in Liepaja now have access to the digital self-service platform Manai Videi.

“We will definitely continue to develop our digital platform and the range of services and will urge clients to use these tools more often. Already now we see that people appreciate these opportunities, because the share of agreements signed in the e-environment in the first six months of his year reached 80 percent,” said Gulbis.

The Group continues to strengthen its position in the urban management services sector. Since the end of last year, the Group’s urban management company Vizii Urban has been providing routine street maintenance works in Riga, thus, the company’s financial performance in the first half of this year has been positive. Also, KOM-Auto, a subsidiary of Vizii Urban, has expanded its operations in the Vidzeme region, providing routine maintenance on roads in Amata management territory – Zaube, Nitaure, Amata, Drabesi and Skujene municipalities. KOM-Auto has also started provision of routine road maintenance services in the Bauska region and Rezekne.

Indoor cleaning service management company Vizii in the first half of this year expanded its client base, especially focusing on cleaning premises of specific construction Class A offices, medical institutions and sports facilities. In the first six months of this year, among new Vizii clients there are such large companies as office complex Verde, Rimi Olympic Centre in Riga, Liepaja Regional Hospital, Liepaja Olympic Centre, Riga health centres and many others.

At the same time, Vizii continues to develop the first innovative technologies in the sector – a mobile app for quality management. Clients are actively using the app and show appreciation of its advantages – convenient navigation, fast provision of tasks and feedback.

Meanwhile, CleanR Grupa’s producer responsibility system (PRS) company Zala Josta in the first half of this year actively prepared for textile PRS that came into force on July 1. The company collected information about the companies to which PRS would refer and implemented activities to educate the society and business representatives on responsible and correct sorting and management of textile waste.

The Group continued to work on making its operations greener. Currently 42 percent of CleanR Grupa’s passenger transport vehicles are electric. As many as 70 percent of the specialized car park are low emission transport vehicles, running on electricity, compressed natural gas (CNG) or their engine meets the highest ecology standards – EURO VI.

As the company has expanded its operations in Riga, Bauska and Sigulda, investments have been made also in Vizii Urban car park – upgrading and making it greener. Now Vizii Urban is using electric vacuum equipment in its routine street maintenance – it is first of the kind in Latvia and has received the innovations award of the German Association of Machinery and Municipal Technology.

“The above-mentioned investments are essential in the context of the Group’s sustainability goals and the green public procurements. Waste management in Jurmala and Liepaja also is a proof to our readiness for that. For example, 89 percent of waste management transport in Jurmala will be “clean” vehicles, and CleanR will build the respective charging infrastructure in the city. Meanwhile, in Liepaja, 86 percent of the transport used in the service are environmentally friendly vehicles,” said Gulbis.

He said that in June this year, CleanR received the Green Excellence Award of the Latvian State Environment Service for introduction and implementation of an efficient waste management system that meets all environment protection requirements.

As reported, in 2023, CleanR Grupa was the first company in environment management sector that started to publish non-financial reports and the Group’s sustainability report. Now, improving the reporting practice, the Group has added assessment of risk management and climate risks. In the first half of this year, the Group developed a plan for reducing and preventing climate risks, with modernization of the car park, replacement of the used energy resources and education and engagement of stake holders as its main pillars.

The company’s management will inform investors on detailed Group’s financial results and on the progress in implementation of the strategic goals in an online seminar on September 4. Registration for participants:

https://nasdaq.zoom.us/webinar/register/WN_yh_bzzeyQj-PM0f-IG2EBQ.