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Marel Q1 2018 results

23 Apr 2018

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Press releaseFinancial accountsPresentationWebcast

All amounts in EUR

Q1 2018 – Strong organic growth and solid performance

  • Orders received were EUR 329m (1Q17: 293m).
  • Revenues were EUR 288m (1Q17: 253m).
  • EBIT* was EUR 44m (1Q17: 38m), translating to an EBIT* margin of 15.2% (1Q17: 14.9%).
  • Net result was EUR 28m (1Q17: 21m) and earnings per share (EPS) were EUR 4.11 cents (1Q17: 2.99 cents).
  • Cash flow from operating activities before interest and tax in the quarter was EUR 56m (1Q17: 38m).
  • Dividend of EUR 4.19 cents per share was paid out to shareholders, corresponding to EUR 29m or around 30% of net profits for 2017, was declared in March 2018. In the quarter, Marel also purchased EUR 30.3m worth of treasury shares.
  • Net debt/EBITDA was x2.0 at quarter-end (YE17: x1.9). Targeted capital structure is x2-3 net debt/EBITDA.
  • The order book was EUR 529m (FY17: 472m).

Arni Oddur Thordarson, CEO:

“We had a great start to the year. Revenue growth was 14% year-on-year and operational performance was solid with 15% EBIT margin.

The food industry is transforming. Consumers are demanding affordable, healthy and convenient food that is processed in a sustainable way. Moreover, safety and traceability is a focus point for all participants in the value chain.

Cash flow remains strong and we continue to invest far above industry standards in innovation in addition to our extensive investments in infrastructure. The aim of these investments is to serve customers’ needs better and bolster our position as a leading global provider of smart and interconnected full-line solutions for the poultry, meat and fish industries.

We continue to closely engage with existing and new customers and the order intake is at all-time high in the quarter, totaling EUR 329 million. The order intake was well balanced geographically and strong across all segments. Our united team of 5,500 employees are both committed and motivated to advance food processing in partnership with customers and continue to deliver shareholder value.””

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

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.

Market share data

Statements regarding market share, including those regarding Marel’s competitive position, are based on outside sources such as research institutes, industry and dealer panels in combination with management estimates. Where information is not yet available to Marel, those statements may also be based on estimates and projections prepared by outside sources or management. Rankings are based on sales unless otherwise stated.