CleanR Grupa’s Turnover Increases by 26% in 2022: Investments in Environmental Services Reach 9.7 Million Euros

The turnover of the Latvian environmental services company AS “CleanR Grupa” in 2022, compared to 2021, increased by 26% and reached 68 million euros, while investments in the Group’s companies reached 9.7 million euros, according to the Group’s unaudited results for the 12-month period.

Last year was a year of internal restructuring, modernization and improvement of corporate governance in the company group.

“We separated the business directions – waste management and environmental services, because that way each business can focus on its basic activity in order to achieve growth,” explained Guntars Levits, a member of the board of JSC “CleanR Grupa”.

Thanks to modernization and increasing investments in digitalization of processes and services, “CleanR Group” has managed to increase turnover and improve profit indicators in 2022. This was achieved in the conditions of the increase in the prices of energy resources, which significantly affects the direction of the waste management business, and in the face of inflationary pressure on wages and raw materials, which strongly affects the segment of environmental services. In total, more than 1,300 employees work in the companies of the “CleanR Group” in Latvia, to whom the Group, as a socially responsible employer, provided support for mitigating the impact of the energy crisis in the amount of 240 thousand euros last year.

Also, the group of companies has taken steps by investing in business development to reduce the negative impact of external conditions and promote growth. At the end of 2022, the bond issue of “CleanR Grupa” concluded with significant demand – raising a total of 15 million euros in funding, which will be directed to the development of the environmental services business, including the implementation of M&A transactions.

Last year, “CleanR Group” concluded two important acquisitions of companies in order to strengthen its presence in the segment of producer responsibility systems for construction waste, packaging and environmentally harmful goods. Namely, “CleanR Grupa” acquired the construction waste management company in Latvia SIA “RSC Noma” and carried out the acquisition of majority shares in SIA “Zaļā josta”.

“Our operations and including investments are directed towards achieving one of the basic goals of the circular economy, namely to expand separate waste collection and sorting. We are sure that by making this system convenient for citizens and by continuing to modernize the services provided by CleanR Group companies, we will move towards Latvia’s overall environmental goal – to reduce the amount of waste stored in landfills,” Levics added.

For example, in order to make the shared collection and sorting of waste more convenient for the citizens of Latvia, the Group company “CleanR” has continued to expand the availability of textile containers both in Riga and outside. In addition, the first underground containers have also been installed in Riga, which are more capacious, safer and at the same time more aesthetic in the environment. Also, at the end of 2022, the first polymer or plastic processing plant of “CleanR Group” was completed and started working in test mode.

“We have also planned the year 2023 to be dynamic, purposefully moving towards the development of circular economy and green course principles in Latvia, as well as the growth of the company, strengthening the welfare of employees and educating the public. We will also continue investing in the digitalization of customer service and other processes,” Levits said.

Levits emphasized that waste sorting and circular economy are the areas that can only be implemented with the participation and involvement of the public, so this year too the Group has planned various educational and informative activities.

AS “CleanR Grupa” profit before interest, taxes, depreciation and amortization deductions, or EBITDA, reached 10.6 million euros – this is 4% more than in 2021. Investments were financed from previous years’ profits and cash flow from economic activity.