In 2019 FOSS had 2.15 billion DKK in turnover and a net result of 319 million DKK. This is lower than 2018 and reflects the many external factors at play from floods, fires and African swine fever to trade embargos affecting food industries around the world.
2019 was a challenging year for many of FOSS’ customers in the global food industries and thus for FOSS, who makes analytical solutions for agricultural produce such as grain, milk and meat. However, FOSS continues to grow market shares across food industries and markets.
FOSS CEO Kim Vejlby Hansen elaborates on the business prospects: “The current list of global challenges is long, and the coronavirus is dominating the agenda for most businesses. So far, FOSS is in good shape all things considered – we still get orders and our global production is running at 100%. However, there is no doubt that the coronavirus will have a substantial negative effect in 2020 and possibly beyond. But I’m still confident that in the future, there will only be a greater need for high quality and safe foods which is what our analytical solutions are built to secure.”
The digital business showed a 110% growth YoY in 2019. In the first three months of the year, three central new products from FOSS are set to meet the new global reality head on. Digital solutions hold a massive potential for food analytics in the longer term, but also as an immediate solution to some of the problems food producers are experiencing in relation to the pandemic.
“Here and now we are making our remote software product FossManager free for all customers who aren’t already connected, for the next three months. Then they can access their analytics from a distance and we can better assist them from afar,“ says Kim Vejlby Hansen and continues: “In the longer term, what we can do is help our customers be ready for change and even get ahead of it. That will be good business for them, and for us. And most importantly, it will create a more efficient and sustainable food production.”
Continued investments in innovation
2019 was a year characterised by extreme weather, African swine fever, trade sanctions and political uncertainty, and 2020 follows suit with the coronavirus affecting global production, transportation and trade.
“Uncertainty is the new normal. However, we keep a steady hand. We have set the right course and will continue to invest 10% of revenue in innovation,” says Kim Vejlby Hansen and elaborates: “We keep an eye on the horizon while staying curious in terms of new opportunities, for instance in analytics around alternative food sources and in integrating new technologies into our analytical solutions.”
The global focus on sustainability will further increase the need for new ways of ensuring an efficient food production. FOSS has developed several world-leading databased solutions for increasing efficiency and thereby sustainability. The expectation is to invest several hundred million DKK in further innovation in this area in the years to come.
What the future brings: Smarter analytics
The objective in 2020 is to help customers adopt, implement and benefit from new technologies, which can prove to be game changers in a modern food production.
More than 10,000 analytical instruments around the world are already connected through FOSS’ digital platforms. In the first months of 2020, FOSS has launched three new smart enabled solutions. The new solutions, MeatMaster™ II, NIRS™ DS2500 L and MilkoScan™ FT3, are even more intelligent than their predecessors were and allow for preventive maintenance, remote management and calibrations based on artificial intelligence. All features which will make food producers able to adapt to changes in their produce, to proactively improve operations and adjust to new consumer demands.
Figures from the FOSS group’s 2019 annual results (m DKK)
|Profit for the year||319||378|
|Other key figures|
|Growth in turnover||-3.9%||0.8%|
|Hereof organic growth in turnover||-4.6%||4.3%|
|Number of employees (yearly average)||1,522||1,482|
FOSS contributes to the sustainable use of our planet’s agricultural resources and thus to the nutrition and health of the people of the world. Through analytics, FOSS adds value to customers by improving food quality and optimising production, from raw material to finished product. By turning measurement into information, businesses can run intelligent, data-driven productions with less waste and bigger yields. FOSS helps food and agricultural producers scale their business faster and smarter. Nils Foss founded the family-owned company in Hillerød in 1956. Today, FOSS employs more than 1,500 highly qualified people worldwide with consolidated sales of DKK 2.15 bn in 2019.
Communications consultant Anne Sofie Kirkegaard
+45 60 67 79 98 / email@example.com