FOSS shows the best annual results in the history of the company and sets the record in 2017 with a 2.2 bn DKK turnover and a result of 421 m DKK.
The development amounts to an organic growth of 7% and indicates that FOSS has once again gained market shares in a market that is growing with an estimated 4-5% on a yearly basis. The increased growth comes from a globally growing need for delivering safe and high quality food. FOSS is still investing heavily in innovation, more employees and an increasingly strong product portfolio that includes digital services as a new focus area.
The growth is broad and founded on a global level. In particular, the sale of process instruments, which are incorporated directly into food production lines, is a growing part of FOSS’ business. This area has grown with 35% from 2016 to 2017 and now makes up 8% of the total turnover.
“The unique thing about process instruments is that they are placed directly in the production line. This enables continuous production optimisation, thereby minimising waste and ensuring that raw materials are utilised optimally”, explains Kim Vejlby Hansen, CEO at FOSS.
A completely new business area is in development, Digital Services, where the customer can monitor and remote control FOSS instruments from a so-called virtual control room, among other things. This means that food producers with production sites in several countries centrally can secure a consistent and high-quality production across borders, thereby producing in an even more professional and effective way.
A growing middle class creates new needs
According to Reuters, the global middle class will grow to reach five billion in 2030 – the majority of the growth is expected in Asia but also significantly in the Middle East. By then, the middle class will account for more than half of the world’s population.
“The globally growing middle class has an increased demand for safe and high quality food. The very idea behind FOSS is to create solutions that contribute to a sustainable utilisation of raw materials and resources and thereby to better nutrition and health. By implementing analytical solutions, you can secure the optimal use of raw materials to reduce the strain on the environment,” Kim Vejlby Hansen continues.
Customer oriented strategy realised a year in advance
In 2016, FOSS launched a three-year strategy with a focus on supporting the changed and increased demands of the customers. The strategy has been realised one year ahead of schedule and consequently a new strategy was recently launched. For Kim Vejlby Hansen, a dedicated focus on customers is key:
“The most important thing for us is to gain an extensive knowledge of our customers and their markets. To understand the different trends and challenges in a reality that is also largely defined by digitalisation. This enables us to develop solutions for our customers, designed to meet future requirements. For this reason, we have made changes to our organisation, so that everyone within sales and development works in customer-focused teams around segments such as e.g. milk or wine. We strongly believe that this approach will create great value for our customers on the long term as well.”
Investing in innovation
FOSS invests heavily in innovation and has launched more new instruments and solutions within the last two years than ever before. Today, products launched within the last three years make up 23% of the global sale, and we renew our products at a faster pace than previously. As part of the investment in innovation, FOSS is expanding the R&D organisation in both Denmark and in Hungary, where the biotech company, Soft Flow, was acquired two years ago.
In addition FOSS has extended its global presence and now has more employees close to customers around the world, with Peru, Bolivia and Ecuador being among the most recent locations. In conclusion, the global sales team is being expanded with 25%. Today, FOSS is represented in 31 countries with more than 1400 employees.
New board member
At the general meeting on 21 March, Jimmy Maymann joined FOSS’ board of directors. Jimmy Maymann comes with a solid and global experience within digital business, i.e. from AOL and The Huffington Post, where he was CEO.
• FOSS produces analytical solutions for the food & agri industry
• In 2017, FOSS saw the best results in the history of the company, with a turnover of 2.2 bn DKK
• Since 2012, FOSS has hired an additional 300 employees and now employs more than 1400 people around the globe
• During the course of the next five years, FOSS will invest more than one billion DKK in innovation, aimed at driving the digital transformation of the world’s largest food producers, among other things
• FOSS is a global market leader with more than 40,000 customers all around the world.
Main and key figures for the FOSS group, 2017 annual results (m DKK)
|Profit for the year||421||380|
|Growth in turnover||4.9%||5.5%|
|- Organic growth in turnover hereof||6.9%||7.8%|
|Number of employees (yearly average)||1408||1373|
For more information
CEO Kim Vejlby Hansen, tel. +45 27 10 81 23