Author: ecobalt

Eco Baltia Group attains historic high turnover of EUR 218.5 million

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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 Foundationowns 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.

Eco Baltia plans to acquire Eko Osta, a company that collects and recycles hazardous waste

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Expanding the company’s activities and range of environmental services, the largest environmental resource management and recycling company in the Baltics, JSC (AS) Eco Baltiaplans to acquire Eko Osta Ltd. (SIA), Latvia’s leading collection and recycling company for environmentally harmful and hazardous waste. The purchase agreement concluded by the parties, which requires merger authorisation from the Latvian Competition Council (CC), provides for the acquisition of 100% of the shares in Eko Osta.

With the conclusion of the transaction, Eko Osta will become one of the companies in the environmental management sector of the Eco Baltia group, specialising in the management of hazardous and environmentally harmful waste. At the same time, it should be stressed that no changes are planned to the existing cooperation agreements and arrangements for both parties’ clients, partners and employees.

Mr Māris Simanovičs, Chairman of the Board of Eco Baltia: “In recent years, we have significantly expanded Eco Baltia’s areas of activity, strengthening our market position internationally as a full-cycle environmental resource manager. The inclusion of the environmentally harmful and hazardous waste collection and recycling company in the Eco Baltia Group is a significant step towards even faster development, covering an even more diverse waste stream to be recycled. The deal will ensure better collection and circulation of waste in segments where compliance with national standards has so far been difficult. This will benefit both the customers of the group company Latvijas Zaļais punkts in terms of meeting their environmentally harmful waste collection targets, and the country as a whole in meeting its recycling targets more successfully.“

Eko Osta will continue to cooperate with other participants in the producer responsibility system, promoting faster compliance with the national hazardous waste collection and recycling standards.

Andrejs Laškovs, the current shareholder of Eko Osta: “Eko Osta has been providing specific waste management and other services in Latvia for more than 20 years. This requires a special approach and precision in all company processes, ensuring that services are delivered to the highest environmental standards and to an excellent quality. As the environmental management sector develops not only nationally, but also internationally, we see great potential for growth in Eco Baltia’s portfolio of companies. This will benefit for both, the partners, customers and employees of Eko Osta, as well as the country as a whole, by contributing to a comprehensive reduction of negative environmental impacts.”

Eko Osta is engaged in the collection, transportation by floating and land vehicles, treatment and recycling of petroleum-contaminated water and soil, recycled lubricating oils, organic solvents, used oil filters and tyres, as well as geological, hydrogeological, geoecological and geotechnical research, environmental quality monitoring and environmental remediation. Eko Osta employs around 70 people and had a turnover of EUR 7.79 million in 2023.

Jānis Aizbalts, Head of Environmental Management, Eco Baltia Group: “Eco Baltia has experienced rapid development in the environmental sector in recent years. This included covering larger waste management regions and types of materials, as well as the development of recycled materials sorting in Latvia and Lithuania. Last year, we also expanded into urban environmental management, where the Group’s environmental company Eco Baltia vide has more than a decade of experience. The addition of Eko Osta to Eco Baltia’s existing portfolio allows us to take even greater steps to promote the circular economy in the country, while strengthening our market position as a full-cycle waste management and recycling group.“

The acquisition of the company is planned to be carried out through Eco Baltia’s subsidiary Latvijas Zaļais punkts. Financing of the transaction is planned by attracting bank funding, and the parties have agreed not to disclose the amount of the transaction publicly.

20.03.2024.

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Eco Baltia Group’s Lithuanian company Ecoservice investing €18 million to rebuild a sorting centre
UAB Ecoservice, the Lithuania-based waste management company of Eco Baltia, the largest environmental management and waste recycling group in the Baltics, is investing €18 million in the rebuilding the Vilnius Sorting Centre, which was devastated by a fire last year. The investment will also be used to improve the infrastructure of the sorting centre and modernise it to contribute more to the circular economy. The expected completion date for the project is the end of this year.

“We have made the decisions that were necessary for our company’s continued leadership, growth and next steps. After the fire that occurred last August, we immediately took action that helped us to continue our operations without interruptions and followed through on all our commitments to our clients and partners. Now is the time for us to take the next step; namely, to not only restore what was lost, but also to work more effectively by implementing the latest technologies and to improve fire safety,” said Jurgita Nacevičienė, CEO of Ecoservice.

Part of the investment is planned to be financed by UAB Ecoservice and its parent group companies and part by a bank loan.

“Our priority is to provide highest quality services to our clients in Lithuania and in other countries where we operate. We also aim to streamline production processes thereby contributing to the Group’s faster development in the international market. With a long-term perspective in mind, we have decided to finance the reconstruction of our sorting centre in Vilnius, which was damaged by the fire, so that the company can improve its waste collection and sorting processes in Lithuania and maintain a successful operation,” said Māris Simanovičs, Chairman of the Board of Eco Baltia.

The total area of the Ecoservice waste sorting plants buildings is more than 3,500 square metres, while the total area of the entire sorting centre site occupies more than 3 hectares. The state-of-the-art package waste sorting equipment planned there will advance the centre’s operations, in line with the principles of the circular economy, by reducing the waste of resources and maximising the return of materials to the market for re-use. Improving the existing engineering infrastructure will help to ensure compliance with the strictest environmental and fire safety requirements.