Category: Uncategorized

---

On 18 September 2024, Eco Baltia, the largest environmental resource management and recycling group in the Baltics, will hold its Shareholders’ Meeting.

The agenda of the shareholders’ meeting includes the approval of the following resolutions:

1. Decision on approval of the reorganisation by way of demerger (spin-off);

2. Decision on approval of the reorganisation agreement;

3. Decision on approval of the amendments to the Articles of Association of the Company and the full text of the Articles of Association of the Company after the amendments.

Extraordinary shareholders meeting of the company shall take place on September 18, 2024 at 12:00 (Riga time), at Latgales Street 240-3, Riga, Latvia, office of AS “Eco Baltia” and in online communication site.

Shareholders may familiarize themselves with the draft resolutions to be considered at the meeting of shareholders, as well as to submit proposals on the issues included in the agenda at the office of the Company at Latgales street 240-3, Riga, LV-1063, starting from September 4, 2024, on working days from 8:30 to 17:00, contact information: phone +371 67409828 or e-mail address sigita.namateva@ecobaltia.lv.

The shareholders of Eco Baltia AS are INVL Baltic Sea Growth Fund through UAB BSGF Salvus (52.81%), the European Bank for Reconstruction and Development (30.51%) and Māris Simanovičs (16.68%).

Eco Baltia continues to grow turnover this year – up 10% in the first quarter

---

The largest environmental resource management and waste recycling group in the Baltics, Eco Baltia JSC (AS), has closed the first quarter of 2024 with a net turnover of EUR 61.9 million, up 10% year-on-year (Q1 2023: EUR 56.3 million). The turnover was mainly driven by a solid and convincing performance in the environmental management sector, focused efforts on efficiency and automation, and business expansion through acquisitions.

The Group’s consolidated profit before tax for the first three months of 2024 was EUR 670.9 thousand, while consolidated EBITDA in the first quarter reached EUR 9.1 million, an increase of 10.4% compared to the same period last year.

Māris Simanovičs, Chairman of the Management Board of Eco Baltia: “This year we continue to increase the pace of development of the company, focusing on productivity, as well as new businesses and markets. Last year, we already achieved historically unprecedented results, thus strengthening our position in the Latvian and international markets. Similarly to last year, in the first months of this year we have continued to evaluate the development of the Group through the acquisition of new businesses. We are also continuing to work on a number of investment projects in Lithuania and Latvia, which will allow us to increase both the amount of waste collected and the amount of waste recycled over the next few years.”

Expanding Eco Baltia’s portfolio of companies and services, an agreement was signed in March this year to acquire 100% of the shares in Eko Osta, a Latvian company that manages environmentally harmful and hazardous waste. The transaction will continue after the merger has been approved by the Competition Council. Also at the beginning of this year, Eco Baltia acquired a 40.4% stake in the Latvian road maintenance company JSC (AS) Daugavpils specializētais autotransporta uzņēmums.

Eco Balta Group’s largest environmental management companies – Eco Baltia vide in Latvia and Ecoservice in Lithuania – continued to develop a number of investment projects in the first quarter of the year. Eco Baltia vide invested EUR 2.3 million in the construction of construction waste sorting and recycling sites in the Baltic Sea region (Rumbula) and Liepāja. Both sites have gradually started operations in early summer. Eco Baltia vide is also continuing work on the establishment of a sorting plant for municipal and separately collected waste in Acone, Pierīga, which started last year with a total investment of €11.7 million and will be able to sort 45 000 tonnes of waste annually. Meanwhile, the Lithuanian environmental management company Ecoservice approved an investment of €18 million in early 2024 to rebuild a waste sorting centre in Vilnius, which was hit by fire last year.

Targeted development was also implemented in the recycling sector, where PET Baltija, a PET bottle recycler, completed a rebranding and name change to ITERUM this summer. During the first quarter, work continued on the new PET bottle recycling plant in Olaine, with a total project investment of more than €35 million. More than €10 million of this was contributed by ITERUM. The building will have 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. At the same time, ITERUM continues to promote the sale and production of products in cooperation with its Czech subsidiary Tesil Fibres, a leading supplier of fibres to the European market for the automotive, hygiene, textile and furniture segments, by developing the recycled PET raw material chain.

Despite the challenges in the recycling sector in recent years, we have used this period to improve efficiency and automate production processes, which is an integral part of long-term business development in the current market conditions. In the coming years, this will allow us to sort waste more accurately, improve the quality of recycled materials, increase recycling capacity and thus bring more waste back into the circular economy. At the same time, we place a strong emphasis on the well-being of our employees. Therefore, we always set high standards in terms of improving the internal work environment and work safety, developing the skills of employees, as well as creating a family-friendly work environment,” says Mr Simanovičs.

As the Eco Baltia Group’s business model and operations are focused on the circular economy, the development and implementation of a consolidated ESG (Environmental, Social and Governance) strategy is also being pursued in the Group’s companies. In line with the Group’s strategic objectives, the main focus in 2024 will be on improving working conditions and safety, the well-being of employees and the promotion of ESG and sustainability.

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, has approved its audited corporate and consolidated financial statements for 2023. According to the statements, the group’s consolidated turnover last year was the highest ever at EUR 218.4 million, up 4% year-on-year, while EBITDA was EUR 28.4 million, up 11.8% year-on-year.

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.

Compared to the unaudited financial statements for the first 12 months of last year, which were published on 28 March this year, the audited consolidated financial statements include changes in certain line items. Following the audit, the Group’s consolidated turnover decreased by EUR 0.1 million and EBITDA increased by EUR 0.8 million. The changes also affected the net profit of Eco Baltia, which according to the audited consolidated financial statements amounted to EUR 1.5 million (unaudited: EUR 1.7 million). The changes mainly relate to the allocation of goodwill arising on acquisitions to the estimates of assets and liabilities acquired, the restatement of the opening balances of newly acquired corporate financial instruments and deferred corporate income tax in accordance with International Financial Reporting Standards.

As Māris Simanovičs, Chairman of the Board of Eco Baltia AS, explains: “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. In addition to targeted investments in business development, last year we continued our work to develop and implement a consolidated ESG (environmental, social and governance) strategy across the Group’s businesses. At the same time, one of the most important pillars of our development is the improvement of the working environment, safety and employee welfare, which we will continue to work on this year.”

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.

20.06.2024.