Eco Baltia Group attains historic high turnover of EUR 218.5 million
The largest environmental resource management and recycling group in the Baltics, Eco Baltia AS (JSC), has achieved its highest ever consolidated turnover of EUR 218.5 million in 2023, according to the group's current unaudited financial figures. Compared to 2022, turnover has increased by 4%. The increase was mainly driven by the solid and convincing results in the environmental management sector, the acquisition of new businesses and expansion in the international market, as well as the process automation and streamlining measures implemented.
The Group's unaudited consolidated profit before tax at the end of the reporting period was EUR 2 million and consolidated EBITDA was EUR 27.6 million, an increase of 8.6% over the previous year.
Māris Simanovičs, Chairman of the Management Board of Eco Baltia, explains that this is yet another year in which the Eco Baltia Group has managed to exceed its previous financial performance: “Despite last year representing a recovery period for the global market following economic challenges, we have used it to the benefit of Eco Baltia's growth. We have evaluated new directions for the development of the Group's companies in the international market, which was achieved through several new acquisitions in both the environmental management and recycling sectors. At the same time, despite the difficult situation in the international recycling market, we have taken important steps in process automation, which will help increase the Group's recycling capacity in the long term."
At the beginning of last year, Eco Baltia, through its subsidiaries, concluded a deal to acquire the road maintenance company Pilsētas Eko Serviss. The transaction resulted in the acquisition of 100% of the shares of Pilsētas Eko Serviss, PES serviss and B 124. The reorganization process was completed on 1 December 2023, when all rights and obligations of the companies were transferred to Eco Baltia vide. In November 2023, Eco Baltia together with one of its shareholders, INVL Baltic Sea Growth Fund, finalized the acquisition of a 70% stake in the Polish company Metal-Plast. SIDN Family Foundation owns 30% of the company.
Eco Baltia's PET bottle and plastic packaging recycling plants have been working to improve and streamline production processes in 2023. Work continued on the development of the new PET Baltija plant in Olaine, which is under construction. The plant is scheduled to open at the end of this year and will cover a total area of approximately 26 250 m2 and will be one of the largest industrial buildings in Latvia and one of the largest PET recycling plants in Northern Europe. Last year, Nordic Plast completed the testing of its new automated sorting line, which will help it to gradually increase its plastic packaging recycling capacity in the future.
Also in the environmental management sector, Eco Baltia experienced stable growth in 2023, which was achieved by submitting the most appropriate and financially advantageous offers in several public tenders for waste management, road maintenance and other service provision. The environmental management companies Eco Baltia vide and Ecoservice continued to invest in the sorting and management of construction waste in both Latvia and Lithuania, while Eco Baltia vide in Latvia, Pierīga, started the construction of a new waste sorting plant. Its total waste sorting capacity will be 45.000 tonnes per year. The plant is expected to be operational in the autumn of this year.
Eco Baltia Group companies have invested around EUR 4 million in the development of the PET and plastic packaging recycling segment and more than EUR 10 million in environmental management, including the introduction of a greener fleet. Investment is shown net of acquisitions of businesses.
"In addition to targeted investments in business development, we operate Eco Baltia on the basis of sustainability principles. This is why last year we continued our work on developing and implementing a consolidated ESG (environmental, social and governance) strategy in the Group's companies. At the same time, one of the most important pillars of our development is improving the working environment, safety and well-being of our employees. How motivated, valued and wellbeing an employee feels also has an impact on the overall performance of the company and therefore on its financial results. In turn, the value of the company is already reflected in the overall market, which was demonstrated last year with the significant investor interest in Eco Baltia's bonds," comments M. Simanovičs.
In 2023, Eco Baltia issued unsecured bonds twice. The first time in February for EUR 8 million for three years and the second time in November for EUR 10 million for three years. Both bond issues attracted strong investor interest, with total demand in February 3.5 times and in November 1.7 times the maximum offer size.
In line with the company's strategic objectives for 2024, one of Eco Baltia's priorities will be to improve working conditions and safety, implement various support measures for employees and promote sustainability. In 2024, it is also planned to continue investing in waste recycling and environmental management, thus contributing to the continued growth, efficiency and competitiveness of the Group's companies both domestically and internationally.
About Eco Baltia
Eco Baltia group is the largest environmental and waste management group in the Baltics, providing the full-cycle waste management solutions from waste collection and sorting to secondary raw material logistics, wholesale and raw material processing as well as PET and PE/PP plastics recycling.
Eco Baltia group has closed 2022 with its historically highest consolidated turnover of EUR 210 million, representing a 75% increase compared to 2021. Total combined sales revenue (pro-forma) in 2022 amounted to 240.5 million euro.
The Group has more than 2.500 employees in Latvia, Lithuania, Poland and the Czech Republic. Its leading companies are PET Baltija, Eco Baltia vide, Latvijas Zaļais punkts, Nordic Plast, JUMIS, Sigulda, TESIL Fibres, TESIL Fibres, UAB Ecoservice, based in Lithuania, and, from November 2023, Metal Plast, based in Poland.
Shareholders of Eco Baltia are private equity fund INVL Baltic Sea Growth Fund (52.81%), the European Bank for the Reconstruction and Development (30.51%) and Māris Simanovičs (16.68%).
Additional information:
Alise Zvaigzne
Public Relations Project Manager
Eco Baltia
Phone +371 28780467
alise.zvaigzne@ecobaltia.lv
www.ecobaltia.lv
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