Foss achieves profit despite difficult year
increase in organic growth in 2004, helped in part by the merger of
two of Foss subsidiaries, and the introduction of 10 new products
for the world market, reports Wai Lang Chu.
The company reported turnover in 2004 to be DKK 1,237 million (€166 million), a decrease of 2.3 per cent on 2003. However, free cash flow slightly increased at DKK 140 million (€18 million), up from DKK 139 million in 2003.
An improvement of inventory and debtor control contributed to a free cash flow after investments of DKK 140 million or 11 per cent of turnover. Equity ratio increased to 73 per cent, up 1 per cent.
Peter Foss, president of Foss, said that 2004 had been a challenging year for Foss with declining exchange rates, which in spite of organic growth, caused a minor drop in turnover measured in Danish kroner.
"We have achieved a profit before tax of DKK 164 million corresponding to 13 per cent of turnover," he added.
Four new product launches within 2005 now extend the FOSS portfolio of near infrared (NIR) - based analytical solutions adding to existing NIR products and technology.
At the end of 2004, Foss decided to centralise all instrument manufacturing in Scandinavia. As a result, Foss NIRSystems products, which were previously manufactured in the US, will be manufactured in the Foss facilities in Hillerød, Denmark.
Foss attributed improved business processes for EBITA increasing from 13.2 per cent to 13.6 per cent. He said the rise had succeeded in compensating for the negative effect from the development in exchange rates.
The return on net assets was 31 per cent, slightly down from 2003's figure of 32 per cent.
