Marel Food Systems Q1 2009 results
06 May 2009
Good cash flow despite postponement of large projects by customers
Results from core business
- Revenues from core activities totalled EUR 103.2 mln, compared to a record Q1 2008 (EUR 140.5 mln), a decrease of 27%. The drop in revenues is a consequence of low order intake at the height of the financial crisis in the second half of 2008.
- Operating loss (EBIT) from core business before restructuring charges was EUR 1.7 mln (Q1 2008: profit of EUR 13.4 mln). One-off costs related to restructuring were EUR 3.5 mln. EBITDA was EUR 0.4 mln. (Q1 2008: EUR 18.4 mln).
Marel Food Systems’ core business is to provide equipment and systems for the poultry, fish and meat processing industries worldwide. The salmon and freezing parts of Carnitech, as well as its U.S. operations, are now operated under the Marel name and management. Defined now as non-core business are Food and Dairy Systems (F&D), Scanvaegt Nordic and the remaining operations of Carnitech. Redefined turnover of core business in 2008 amounts to EUR 548 mln.
- Consolidated revenues totalled EUR 130.3 mln, compared to EUR 74.0 mln in Q1 2008, an increase of 76%. Net losses after taxes are EUR 7.0 mln (Q1 2008: profit of EUR 0.7 mln).
- Due to strong operating cash flow of EUR 16.8 mln (Q1 2008: EUR 1.8 mln) and limited capital expenditure, the cash position increased from EUR 21 mln to EUR 33 mln.
- Net interest bearing debt amounts to EUR 373 mln (Q4 2008: EUR 379 mln). The average maturity of debt is about four years.
Outlook is positive
- In Q2 2009, the company has disposed of non-core business assets for a total of EUR 37.5 mln, of which EUR 35 mln will be paid in cash, and for a profit in excess of EUR 10 mln.
- Market trends are favorable with rising poultry and fish prices at the same time as major cost items such as corn and oil prices are falling and interest rates are at historical lows.
- Total sales in April are very satisfactory with sales of standard equipment at record high levels. Sales translate into revenues in 4-8 months.
- Revenues in 2010 are expected to be back at the same level as they were in 2008. Due to extensive rationalization measures, the company will then be operating at a sustainable lower cost base. The company target is to continue to grow above the market rate and deliver an EBIT margin above 10%.
For further information, please contact:
Erik Kaman, CFO,
tel: (+354) 563-8000
Sigsteinn Grétarsson, Managing Director of Marel ehf.,
tel: (+354) 563-8000