Kamstrup, one of the world’s leading intelligent metering solutions providers, has posted record-breaking turnover for the seventh consecutive year in its annual report released today.
The annual turnover of EUR 234 million for 2016 surpasses the previous record of EUR 204 million set in 2015. The company’s CEO Per Asmussen says the result is testament to the growing sales volumes, particularly in new markets, which are solidifying Kamstrup’s position as a global leader in the digitalisation of metering solutions.
Globally in 2016, the electricity and water meter markets experienced moderate growth while the heat meter market remained stagnant. Yet again, despite an ever-increasing level of competition, Kamstrup was able to increase its global market share and record organic growth of 14%.
As a result of Kamstrup’s increasing investments in product development, marketing and expansion of its automated production facilities, its 2016 pre-tax profit of EUR 22 million was lower than 2015’s figure of EUR 27 million.
“We’ve taken some giant leaps forward in terms of our international expansion, streamlining our internal lean production procedures and increasing the value our solutions add to our customers’ operations. Thus, given the level of investments we’ve made, we’re really encouraged by our financial results. The seeds for growth have well and truly been sown,” says Asmussen.
Platform for growth in 2017 and beyond
Last year, to meet increasing product demands, Kamstrup unveiled a new technology wing in what was the fourth extension, since 2012, to its headquarters in Stilling, Denmark. And construction of new facilities for production and development of water solutions is already well underway. Due to open in May, the facilities will be more than 10,000m2.
“The automation of our production facilities and digitalisation of internal processes give us the quality assurance and flexibility we need to provide our customers with tailored, best in class metering solutions. In an ever-advancing technologically dependent landscape, this is a must.
“At the same time, we’re on a shared journey with utilities to digitalise every aspect of their business through intelligent metering solutions and manageable data analysis. The digital utility movement is here, is thriving, and will continue to expand throughout the world,” explains Asmussen.
Kamstrup’s growth is forecast to march on in 2017 on the heels of the aforementioned investments and product development. The company has started the year with a record first quarter and expects to finish the year with sales of EUR 275 million.
Rising interest in the new solutions Kamstrup has developed is fuelling growth and resulting in a raft of large orders, particularly in the global water metering market. Consequently, Asmussen expects Kamstrup to gain further market shares in a number of regions and increase its total revenue again in 2017. Part of the global expansion involves the establishment of production facilities outside of Europe in order to increase customer proximity in these markets, Asmussen says.
He adds that the company will continue to invest heavily in product development and production technology alongside talent procurement. For several years now Kamstrup has hired more than 100 new staff each year, predominately within development, sales and marketing, and 2017 will see this continue.
Press release by Kamstrup
For more information, please contact: CEO Per Asmussen T.: +45 89 93 10 00