Press release AVK annual report 2021/2022

With an annual growth of 18%, the AVK Group continues to grow globally in all business areas. 19-12-2022

With the best annual result to date, the AVK Group can look back on a 50% growth over the past four years and a continued increase in profit after the financial year 2021-2022. Revenue increased by just over 18% to DKK 7.6 billion, operating profit increased by 8% to DKK 736 million, and profit after tax increased by 9.6% to DKK 511 million. Thus, the AVK Group remains stable and has also strengthened through the different crises and challenges that the world has experienced over the past two years.

"It is positive that the growth is taking place across our three business units AVK Water, AVK Industrial and AVK Advanced Manufacturing. Similarly, it is worth noting that we have seen growth in virtually all our markets. The mature markets in Europe and the US have been characterised by high activity, while many emerging markets have initiated projects after the covid-19 pandemic," says CEO and owner Niels Aage Kjær in a comment on the financial statements. He points to several factors behind the Group's favourable development.

"For more than 50 years, high quality has been an indispensable requirement for our products, and in many markets, we still see clear trends towards quality becoming a crucial competitive parameter. The financial result is also positively influenced by the fact that there is growing political attention across the markets on the importance of up-to-date drinking water supply and wastewater management," says Niels Aage Kjær.

The organisation is ready to address global challenges

"At the same time, we can see that our global organisation has been geared to deal with covid-19, bottlenecks in the supply chain and international transport, large increases in raw material and freight prices and, most recently, rising energy prices. We have been successful largely due to our decentralised organisation with fast decision-making processes and a great drive."

"Despite the global supply crisis, our dynamic and efficient supply chain has generally ensured that we have been able to deliver to our customers and, in several markets, this has given us a competitive advantage, which has been exchanged for revenue and larger market shares. However, the significant price increases in the year have negatively affected the group's earnings margin," adds Niels Aage Kjær.

The AVK Group's largest investment programme to date

During the financial year, AVK completed the Group's largest investment programme to date to maintain and strengthen its market position. A total of DKK 350 million has been invested in the business, including expanding production capacity and automatization to digitalisation and continued product development.

The investment programme has also included the first phases of the installation of solar cells on the roof of all production facilities. This initiative is part of the AVK Group target of reducing AVK’s environmental and climate impact.

"We are continuously working to reduce energy consumption and expand the use of renewable energy sources. In addition, we focus on recycling materials such as plastic and iron. For example, we now recycle more than 27,000 tons of plastic, which are transformed to new quality products including pallets, street covers and waste containers", says Pernille Kjær, Corporate Communication & Learning Director.

Continued systematic optimisation of production units

"In this financial year, AVK will continue the systematic optimisation of the production units, and the investments will be at the same high level as in 2021-2022, which will have a positive effect on our competitive situation," says Lars Kudsk, CFO of AVK.

"AVK will be affected by the expected slowdown in the world economy in the coming year, but the need to improve water supply and wastewater management in both developed and developing countries will lead to a continued high demand for our products. For example, the EU Drinking Water Directive, launched in 2020, will set a maximum limit on water losses in EU countries and this will support the need for increased investment in renovating and improving water supply infrastructure."

In several developing countries, AVK actively participates in programmes focusing on improving water supply as well as reducing energy consumption and CO2 emissions. AVK is, among other things, part of the Danish-Indian Green Strategic Partnership.

"Based on the overall development, we also expect positive growth in this financial year, albeit at a somewhat lower level than in 2021-2022," adds Lars Kudsk.

300 new employees, including 57 in Denmark

The increasing level of activity is accompanied by an influx of employees. At Group level, employment has increased by more than 300 employees to almost 4,900 employees.

In the Danish companies, the number of employees has grown by 57 to 790. In the local area of Galten, Skovby and Låsby, 41 new jobs have been created, while the staff at AVK Tooling in Sæby has grown by 15 to 90 and AVK Plast in Ribe with 7 new employees has reached a staff of 67 employees. 

Facts about the AVK Group

AVK is a global company with three main business units:

  • AVK Water consists of companies that develop, manufacture, and sell valves, hydrants and accessories to water supply, wastewater treatment, distribution of natural gas and biogas, fire protection, HVAC and irrigation.
  • AVK Industrial consists of companies that develop, manufacture, and sell a broad range of valves for the industrial segment including industrial water treatment, the energy, marine, oil, and paper industries.
  • AVK Advanced Manufacturing consists of companies that develop and produce components in rubber, plastic, and metal, which are part of AVK's own products as well as for customers in the water supply, health, energy and food sectors.
  • AVK comprises 106 operational companies and six affiliates in 37 countries.
  • AVK employs 4,886 people, including 790 in Denmark.

About AVK

Key financial figures 2021/2022