Dedicated Analytical Solutions
FOSS

11-03-2014

A year of progress

In 2013, FOSS improved its financial result again. With a turnover of DKK 1.76 bn and an operating profit of DKK 427 mill., the company achieved the best financial result in the company’s history.  The result is partly created by a satisfactory growth in sales, and partly through significantly improved earnings. FOSS is the world's leading manufacturer of innovative analytical instruments for the global food and agricultural sector and contributes to the sustainable use of raw materials, better food quality and safety.

2013 was a very satisfactory year for the FOSS Group with sales growing organically by 6 % to a total of DKK 1.76 bn not taking currency fluctuations into account.

“We are pleased with the result. An organic growth of 6 % is satisfactory in a market currently estimated to grow by 3 - 4 % per year. This means that we at least have maintained our leading position in the global market,” says Torben Ladegaard, CEO at FOSS, “at the same time, we have become much more efficient in manufacturing our products, which all in all secures us the best financial result ever” – he continues.

Global changes in the food trends

The global changes within food production and the food industry create a good and steady foundation for growth.  

“The positive market trends we are seeing today reflect the needs of a globally growing middle class that drives a change in the food requirements towards more processed quality food. Therefore, a strict quality management, all the way from the field to the finished processed product, is crucial and this is where we can help customers to create value. We see this development especially in emerging economies, where FOSS is investing significantly, but we have also noticed that the growth has not been as significant in the past year”, says Torben Ladegaard.

Significantly improved earnings

FOSS improved earnings significantly in 2013 with the operating profit increasing by 22 % to a total of DKK 427 mill., and the operating margin increasing to 24 % compared to 20 % in 2012. The improvement in earnings is a result of the continuous improvement of operations where an optimized design process, among other things, means that the instruments are simpler to produce and maintain and are far more durable.

Maintaining FOSS leadership

FOSS ' vision is to be a world-class company being first mover on innovation. Therefore, up to 10 % of the revenue was again this year invested in innovation and product development. FOSS will also in the years to come continue to develop new, groundbreaking products mainly targeted towards existing customers.
At the beginning of 2014, FOSS stands well prepared for the future, both market- and product-wise, and expects to continue to grow both the turnover and the profit in 2014.

A continued focus on the competitiveness is the center of attention, and early in 2014 it was announced that FOSS will concentrate the development and production in Denmark and China, and thus close the Swedish development and production site in Höganäs in the end of 2014.

The result

The cash flow from FOSS operating activities amounted to DKK 444 mill. in 2013 compared to DKK 329 mill. in 2012. The profit after tax was DKK 312 mill. which is a slight decrease, compared to 2012, due to lower financial income.

About FOSS

FOSS is the world’s leading producer of innovative analytical instruments for the global food and agricultural sectors, and thereby contributes to the optimal use of raw materials, better food quality and safety. FOSS provides solutions to the world’s 100 largest food companies.

In 2013, FOSS had a turnover of DKK 1.76 bn (EUR 236 mill.). Development and production takes place in Denmark, Sweden and China, and FOSS has more than 28 sales and services companies and more than 1,300 employees globally. The family-owned company was founded by Nils Foss in 1956. Read more here.

Financial highlights

Below please find selected highlights from the annual report 2013/2012 (mill. Danish kroner).

 

2013

2012

Revenue

1,760

1,739

Operating profit  (EBIT)

427

351

Year result

312

326

Total assets

1,557

2,333

Equity

1,098

1,899

Key numbers

 

 

Growth in revenue

1 %

9 %

- Including organic growth

6 %

5 %

Operating margin

24 %

20 %

Solvency ratio

70 %

81 %

Export

98 %

98%

Number of employees (average)

1,293

1,237

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