06/02/19 Updated 26/03/19

Q4 and full year 2018 results

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Q4 2018 – Record revenues of EUR 331m

All amounts in EUR:

  • Orders received were EUR 296.0m (4Q17: 281.5m).
  • Revenues were EUR 330.8m (4Q18: 294.8m).
  • EBIT* was EUR 48.2m (4Q17: 46.2m), translating to an EBIT* margin of 14.6% (4Q17: 15.7%).
  • Net result was EUR 38.0m (4Q17: 33.8m).
  • Basic earnings per share (EPS) were EUR 5.61 cents (4Q17: 4.81 cents).
  • Cash flow from operating activities before interest and tax in the quarter was EUR 62.2m (4Q17: 65.2m).

Full year 2018 – Strong organic growth and solid operational performance

All amounts in EUR:

  • Orders received were EUR 1,184.1m (FY17: 1,143.7m).
  • Revenues were EUR 1,197.9m (FY17: 1,038.2m).
  • EBIT* was EUR 175.2m (FY17: 157.4m), translating to an EBIT* margin of 14.6% (FY17: 15.2%).
  • Net result was EUR 122.5m (FY17: 96.9m).
  • Basic earnings per share (EPS) were EUR 17.95 cents** (FY17: 13.70 cents).
  • Cash flow from operating activities before interest and tax was EUR 205.8m (FY17: 236.2m).
  • Net debt/EBITDA was x2.0 at year-end (3Q18: x2.1). Targeted capital structure is x2-3 net debt/EBITDA.
  • The order book was EUR 476.0m (YE17: 472.1m).

Árni Oddur Thórdarson, CEO:

“We are delighted to report record revenues of 331 million in the final quarter of 2018, up 12% compared to the strong fourth quarter in 2017. Revenues for the full year 2018 were up 15%, of which 12.5% was organic growth. With one of the largest installed base worldwide and our proactive service mindset, 35% of our total revenues are recurring maintenance revenues. EBIT was solid at 14.6% in Q4 2018 and for the full year.

Orders received in Q4 were 296 million, up by 5% when compared to Q4 2017 and a 10% rise from Q3 2018. The orders received for the full year 2018 were solid at 1,184 million, and rose marginally when compared with the robust growth in 2017. Trade constraints and geopolitical issues make timing of orders harder to predict. In such circumstances however, Marel as a product pioneer with extensive global reach, is well positioned to capitalize on the markets’ requirement to match the supply and demand of food. We still expect the underlying annual growth of the total market to be 4-6% on average and our aim is to continue to grow faster.

Our cash flow generation continues to be best in class and we continuously reinvest in innovation, global reach and infrastructure. We also complement our product portfolio and global reach with acquisitions to accelerate our journey to transform the way food is processed. Last year we acquired MAJA for the enterprise value of 35 million, acquired treasury shares and paid out dividends for close to a 100 million. Our strong operational cash flow and improvements in operating performance lead us to x2 net debt/EBITDA, which is at a similar level to last year despite these high investments.

The dual listing of Marel shares on an international stock exchange in addition to its listing in Iceland is proceeding well and the primary focus is now on Nasdaq Copenhagen and Euronext Amsterdam. It is important for a global leader to have a global stage to support its ambitious growth plan, and drive fair day-to-day trading and continued shareholder returns.”

* Operating income adjusted for PPA related costs, including depreciation and amortization.
** Impacted by a change in corporate tax in the Netherlands.

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