Van Gansewinkel closes "transition year" with a net profit

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Dutch waste management group Van Gansewinkel was faced with a challenging market and persistent pressure on prices in 2015, which it described as "clearly a transition year". The company was nevertheless able to maintain a stable market share, Van Gansewinkel reported in its annual report, released on Friday.

Group revenue decreased by €17m, down from €962m in 2014 to €945m last year. Van Gansewinkel attributed this chiefly to the "continuing pressure of unfavourable market conditions, which have resulted in lower volumes and lower price levels", both for the waste collection business and on the raw materials market. The company’s earnings before interest, tax, depreciation, amortisation and extraordinary items (Ebitdae) thus fell to €82m, 17 per cent below 2014's total of €99m.

The group recorded a positive net result for the year, a profit of €308m. However, this was mainly due to fair value adjustments ensuing from the company’s new financing structure, Van Gansewinkel reported. The company’s shares were transferred to a group of senior creditors in mid-July 2015 in a debt for equity swap. The transaction cut group debt from about €800m to €320m.

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