All amounts in EUR
In Q3 order intake was robust at 296 million. Market conditions remain good and Marel’s competitive position is strong. The order book was at a good level of 468 million. Revenue in Q3 2017 was 247 million with a solid EBIT* of 15.2%.
Revenue for the first nine months of 2017 was 743 million compared to 733 million on a pro forma basis for the same period in 2016. EBIT* for the first nine months of 2017 was 111 million (15.0% of revenue) compared to 108 million on a pro forma basis for the same period last year (14.8% of revenue).
Marel’s acquisition of Sulmaq, a Brazilian primary meat processing equipment provider, was finalized on August 31, 2017. Sulmaq’s annual revenue is approximately 25 million. In the short term, the acquisition is not expected to have a material impact on Marel’s financial results.
Cash flow was exceptionally strong in Q3 leading to further deleveraging, despite the acquisition of Sulmaq for an amount equaling the enterprise value of 26 million and the net purchase of treasury shares for 12 million during the quarter.
Furthermore Marel continues to invest in the business to stimulate further growth and value creation. Leverage is now down to x2.0 net debt/EBITDA compared to x2.15 in last quarter.
“We are building on good momentum and delivering yet another quarter with robust order intake of 296 million. We are pleased with the operational results in the quarter with 247 million in revenue and EBIT in excess of 15%.
“This is delivered despite softness in the operational results of Marel Meat when compared with previous quarters. The outstanding performance of Marel Poultry in Q3 outweighs this. By being the leading global provider to three industries; poultry, meat and fish we counterbalance fluctuations in business unit operations, leading to good overall operational results.
“Good earnings and strong cash flow enables us to continue to invest in innovation and strengthening the operational platform. In Q3 we finalized the acquisition of Sulmaq in Brazil for 26 millions in addition to acquiring treasury shares for 12 million. Marel´s financial position is strong and net leverage is down to two times EBITDA.
“We will continue to engage with new and existing customers around the world in exciting projects that will advance food processing.”
* Operating income adjusted for amortization of acquisition-related intangible assets (PPA).
Pro forma results include MPS numbers. Pro forma numbers are presented to provide better comparison.
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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.