Eindhoven -- The 2011 annual results were now presented by Waste service provider and supplier of raw materials and energy Van Gansewinkel Groep. The group posted a rise in revenue and EBITDAE in 2011, primarily due to the
acquisition of Veolia Belgium and the implementation of measures to bring about operational improvements. Operating results were impacted by the price erosion at Energy from Waste and Collection & Services.

Despite the weak economy and the pressure on prices in all divisions, Van Gansewinkel Groep succeeded in further shaping and implementing the strategy for growth and making the company more effective and more efficient. The company also continued its transition towards becoming a leading supplier of raw materials and energy. Van Gansewinkel Groep has further strengthened its leading position in the Benelux by acquiring Veolia in Belgium, a healthy collection and recycling business with an annual revenue of around €100 million.

Unfortunately the company did not manage to fully absorb the price erosion in the Dutch collection activities. In the second half of the year in particular this pressure on prices was apparent and conditions did not improve during the first quarter of 2012. Van Gansewinkel Groep will therefore continue its focus on improving efficiency and quality.

Turnover and revenue

Tendering processes in 2009 for the processing of residual household waste had an adverse delayed effect of €30 million on the Energy from Waste division in 2011. Turnover at Energy from Waste dropped from €277 million to €242 million, while EBITDAE fell from €130 million in 2010 to €109 million in 2011.

The erosion of prices in the Energy from Waste market also had a clear effect on the collection market in 2011. On a comparable basis, revenue at the Collection & Services division dropped by €10 million to €849 million, whilst EBITDAE increased by €3 million to €117 million. The results of the acquisition of Veolia Belgium are included in the consolidation from 1 August 2011 forward. With the inclusion of these results, revenue at Collection & Services increased by €24 million to €883 million, and EBITDAE came in €7 million higher at €121 million.

The Recycling division benefited from higher prices for raw materials, particularly during the first six months of the year. The division realized an organic growth in revenue of €26 million to €135 million, whilst EBITDAE increased by €2 million to €18 million. Including the results of Veolia Belgium, revenue at Recycling rose by €33 million to €142 million and EBITDAE increased by €6 million to €22 million.

Recycling: Pressure on prices

The worldwide focus on the scarcity of raw materials continued to increase in 2011. In part because of this, prices for primary raw materials remained high, despite the crisis. This increasingly made it financially more attractive for manufacturers to use secondary raw materials rather than primary, natural raw materials. As a consequence, Van Gansewinkel Groep’s recycling businesses enjoyed a rise in demand for recycled raw materials. This led to pressure on prices at the front end, however, due to the rising demand for volumes from market operators. Recycling businesses had to put more effort into obtaining waste streams that are suitable for recycling.

The full report can be downloaded from vangansewinkelgroep.com.

Quelle: Van Gansewinkel Groep

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