Marel Food Systems Q4 2008 results
10 Feb 2009
4.4% sales growth and 8.5% profit from operations (EBIT excluding one-time costs) in 2008
- Proforma sales of Marel Food System and Stork Food Systems core business for 2008 totalled EUR 613.3 million, which is an increase of 4.4% compared with 2007.
Proforma profit from operations (EBIT) for the year excluding one-time costs was EUR 51.9 million, which is 8.5% of sales, compared with 41.5 million (7.1% of sales) the year before, representing an increase of 25%.
- IFRS standards require that the company’s inventory be revalued at the time of the acquisition of Stork Food Systems, from the purchase price to the expected sales price. This results in a one-time debit entry of EUR 9.8 million in the fourth quarter, which has no effect on the company’s cash flow.
- One-time costs related to restructuring amounted to EUR 4 million.
- The company has in recent years entered into forward contracts to hedge the costs related to its operations in Iceland. In October 2008, the market for transactions in Icelandic kronas failed and the contracts were rendered null and void. For that reason, a precautionary debit entry of EUR 17.8 million was made under cost of capital.
- Net interest bearing debt amounts to EUR 378.2 million. The average maturity of debt is about four years.
- Equity totalled EUR 286.8 million and the equity ratio was 31.1% at the end of 2008.
Extensive rationalization measures in fourth quarter in response to demanding business environment
- Proforma sales from core business were EUR 138 million compared with EUR 159 million the year before, representing a decrease of 13.4%.
- Loss from operations (EBIT) in the fourth quarter amounted to EUR 7.4 million compared with a profit from operations of EUR 1.6 million for the same period the year before. Profit from operations of core business, excluding one-time expenses related to the acquisition of Stork Food Systems, was EUR 8.4 million, or 6.2% of sales.
- The company initiated extensive restructuring during the quarter, including a reduction of 300 in the number of employees outside Iceland. The resulting costs are expensed in Q4. The annual reduction in cost resulting from these measures is estimated to be EUR 12-15 million.
Consolidated financial statements
- According to the consolidated financial statements, which include the operations of Stork Food Systems for the period 8 May to 31 December, as well as the operations of Food and Dairy Systems, sales for the year 2008 totalled EUR 540.1 million.
- Profit from operations (EBIT) for the year 2008 was EUR 20.4 million, which is 3.8% of sales.
For further information, please contact:
Hörður Arnarson, CEO,
tel: (+354) 563-8000