VV Holding AS 2015: Reinforced position in sustainability and circular economy
VV Holding AS owns Norsk Gjenvinning Group, Norway’s largest provider of recycling and environmental services. The Norsk Gjenvinning Group's ambition is to be the recycling sector's best player in terms of sustainable business development and in 2015 it reinforced its position within sustainable development and the future's circular economy.
Norsk Gjenvinning Group followed up prior year's strong results in a challenging market. The decline is primarily due to cyclical fluctuations that hit throughout Norway.
The Group reports total operating revenue of NOK 4 091 million which is a slight decrease from the previous year. Lower activity in the Norwegian mainland economy inhibited revenue growth, mainly because of lower prices on raw materials, while pressure on margins contributed to reduced profitability. In response to these challenges we have in 2015 focused strongly on cost reductions combined with efforts to increase prices on upstream activities to normalise the margins. These actions have succeeded in offsetting the negative effects from the economic slowdown. As a result of the above, the operating profit increased from NOK 89.3 million in 2014 to NOK 106.6 million in 2015. The net profit after tax was NOK - 66.9 million, compared with NOK -128.0 million the year before.
2015 was a challenging year operationally, but with the investments and the efforts that have been put into improvement programs and the NG200 costs-cutting programme, the Board believes that Norsk Gjenvinning is in a good position to exploit growth opportunities and improve its profitability when the market conditions again stabilizes.