Marel Q1 2017 results


Q1 2017 – Robust order intake and solid operational performance


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Q1 2017 – Robust order intake and solid operational performance

All amounts in EUR:

  • Revenue for Q1 2017 totaled 252.5m [Q1 2016: 220.6m]. On a pro forma basis, revenue in Q1 2016 was 233.9m.
  • EBITDA for Q1 2017 was 46.0m or 18.2% of revenue [Q1 2016: EBITDA 38.2m or 17.3% of revenue]. Pro forma EBITDA in Q1 2016 was 42.5m or 18.2% of revenue.
  • EBIT* for Q1 2017 was 37.7m or 14.9% of revenue [Q1 2016: EBIT* 31.1m or 14.1% of revenue]. Pro forma EBIT* in Q1 2016 was 35.2m or 15.1% of revenue.
  • Net result for Q1 2017 was 21.3m [Q1 2016: 13.8m]. Basic earnings per share were 2.99 euro cents in Q1 2017 [Q1 2016: 1.93 euro cents].
  • Cash flow from operating activities before interest and tax in Q1 2017 was 37.9m [Q1 2016: 27.9m]. Net debt/EBITDA was x2.19 at the end of Q1 2017.
  • The order book was at 390.3m at the end of Q1 2017 compared with 349.5m at the end of Q4 2016 [Q1 2016: 339.9m].

Marel started the year on a strong note. Order intake was robust at 293 million in the quarter. The order intake was well balanced between industries, products and geographies.

The order book is at an all-time high of 390 million compared to 340 million at the same time last year. Revenue was 252 million with 14.9% EBIT* .

Cash flow and operational performance were strong. In Q1, Marel declared a dividend and purchased own shares in the amount of 22.1 million. Net debt/EBITDA was x2.19 at the end of the quarter, which is within the range of the targeted capital structure.

Marel has secured an extension to and amendments of its long term financing at favorable terms and condi-tions reflecting its financial strength and current market conditions.

The all senior loan facilities are approxi-mately 640 million EUR with initial interest terms EURIBOR/LIBOR +185 bps that will vary in line with Marel’s leverage ratio (Net debt/EBITDA) at the end of each quarter. The final maturity is in May 2022.

This provides Marel with increased strategic and operational flexibility to support the ambitious growth plan introduced at Marel’s Annual General Meeting in March 2017.

Árni Oddur Thórdarson, CEO:

“2017 started on a strong note for Marel with increased revenue, operational profit and order intake. Organic revenue growth between years is 8% with a solid EBIT* nearing 15% of revenue.

“We are now reaping the benefits of ongoing investments in innovation and strengthening of our full line offering. Order intake is robust and well balanced between poultry, meat and fish around the globe.

“Marel’s cash flow and financials are strong. We are pleased to announce an extension to and amendments of our financing agreement which provides us with increased operational and strategic flexibility to support our ambitious growth plan.

“I would like to thank our customers and employees for their engagement and good cooperation. Together we are transforming the way food is processed.”

* 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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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.

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