Marel Q3 2018 results

31 Oct 2018


Press releaseFinancial accountsAccounts in Excel

All amounts in EUR

Q3 2018 – Double digit revenue growth with 14.2% EBIT

  • Orders received were EUR 267.7m (3Q17: 295.6m).
  • Revenues were EUR 282.0m (3Q17: 247.0m).
  • EBIT* was EUR 40.0m (3Q17: 37.6m), translating to an EBIT* margin of 14.2% (3Q17: 15.2%).
  • Net result was EUR 26.7m (3Q17: 23.2m).
  • Basic earnings per share (EPS) were EUR 3.94 cents (3Q17: 3.29 cents).
  • Cash flow from operating activities before interest and tax in the quarter was EUR 31.6m (3Q17: 71.8m).
  • Net debt/EBITDA was x2.1 at quarter-end (2Q18: x1.8). Targeted capital structure is x2-3 net debt/EBITDA. In 3Q18, Marel closed the bolt-on acquisition of MAJA for the enterprise value of EUR 35.5m and purchased treasury shares worth EUR 30m.
  • The order book was EUR 510.8m (YE17: 472.3m).

Arni Oddur Thordarson, CEO:

“We are pleased with the results from operations in the third quarter and year to date. In the third quarter, we delivered a 14% increase in revenues between years and a 14.2% EBIT* margin. Year to date revenue growth was 17% with an EBIT* margin of 14.6%. Earnings per share has been gradually increasing in the past 5 years. In the quarter, we closed the acquisition of MAJA with an enterprise value of EUR 35 million and acquired treasury shares for EUR 30 million. Our financial position remains strong with net debt around two times EBITDA.

Currently, there are interesting dynamics at play in the global market for poultry, meat and fish. Trade constraints and geopolitical issues result in a mismatch in food supply and demand within regions while global consumer demand continues to rise. This may lead in lower order intake for the next two to three quarters compared to the great start to the year. Consumers are asking for convenient and safe products at affordable prices and in more varieties than we have ever seen. Consequently the demand for advanced and high-tech food processing solutions is rising. Our market is dynamic and fast growing. We aim to continue to grow at a faster rate than the market by leveraging our strong product leadership and global reach.

We are proceeding according to plan with the potential listing of Marel shares on an International Stock Exchange. We have now narrowed our focus towards three stock exchanges: Amsterdam, Copenhagen and London. Furthermore, the focus is on dual listing the shares on one of those exchanges in addition to our current listing in Iceland. It is our firm belief that this route of a dual listing is the best way to interlink the interests of current and future shareholders.”

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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.