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Marel Q3 2016 results

26 Oct 2016

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All amounts in EUR

Solid performance with 14.2% EBIT

  • Revenue for Q3 2016 totaled 234.8m [Q3 2015: 189.1m]. On a pro forma basis, revenue in Q3 2015 was 229.7m.
  • EBITDA for Q3 2016 was 41.5m or 17.7% of revenue [Q3 2015: Adj. EBITDA** 31.6m or 16.7% of revenue]. Pro forma adj. EBITDA** Q3 2015 was 41.5m or 18.0% of revenue.
  • EBIT* for Q3 2016 was 33.4m or 14.2% of revenue [Q3 2015: Adj. EBIT** 24.2m or 12.8% of revenue]. Pro forma adj. EBIT** in Q3 2015 was 31.6m or 13.8% of revenue.
  • Net result for Q3 2016 was 17.3m [Q3 2015: 14.7m]. Basic earnings per share were 2.42 euro cents in Q3 2016 [Q3 2015: 2.07 euro cents].
  • Cash flow from operating activities before interest and tax in Q3 2016 was 33.2m [Q3 2015: 29.7m]. Net debt/EBITDA is 2.6x at the end of Q3 2016.
  • The order book was at 305.1m at the end of Q3 2016 compared with 306.5m at the end of Q2 2016 [Q3 2015: 187.7m]. On a pro forma basis the order book at end of Q3 2015 was 303.6m.

Marel continues on a good track and reports solid performance in Q3 2016. Revenue for Q3 2016 is 235 mil-lion with 14.2% EBIT*. Cash flow remains strong resulting in a net debt/EBITDA of 2.6x.

Order intake in Q3 2016 was 233 million and year to date 718 million on a pro forma basis. Order intake of standard equipment and spare parts was strong across all industries. Greenfields and large projects were strong in poultry in the first 9 months while volume of larger projects was soft in meat and fish. Meat began to pick up in Q3 with a unified sales team securing full line projects in Europe and China. In the beginning of Q4, fish secured a landmark greenfield project in Norway.

Pro forma revenue for the first 9 months of 2016 was 733 million and EBIT* was 108.4 million or 14.8%. Marel expects modest organic revenue growth and increase in EBIT* between years.

Arni Oddur Thordarson, CEO:

“We are pleased with our Q3 2016 results. The team is focused and committed and is delivering robust operational results with close to 15% EBIT* year to date. We continue to introduce steady stream of innovative customer solutions and to invest in the business to support future profitable growth.

In general the demand for larger projects is promising while timing of closure of such transactions is hard to predict due to general economic circumstances.

Integration with MPS is on track. We have unified and cross-trained our sales team in meat. This great team has now secured full line projects in various geographical areas. It is clear that we are stronger together in serving our customers’ needs ”.

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* Operating income adjusted for amortization of acquisition-related intangible assets (PPA).

** Adjusted for refocusing cost related to the refocusing program Simpler, Smarter, Faster .

Pro forma financial results include MPS numbers. Pro forma numbers for Q3 2015 are presented to provide better comparison.

Forward-looking statements
Statements in this press release that are not based on historical facts are forward-looking statements. Although such statements are based on management’s current estimates and expectations, forward-looking statements are inherently uncertain. We, therefore, caution the reader that there are a variety of factors that could cause business conditions and results to differ materially from what is contained in our forward-looking statements, and that we do not undertake to update any forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement.