Marel Q2 2018 results


Strong revenue and EBIT growth


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Q2 2018

All amounts in EUR:

  • Orders received were EUR 291.1m (2Q17: 272.7m).
  • Revenues were EUR 296.7m (2Q17: 244.0m).
  • EBIT* was EUR 43.2m (2Q17: 35.9m), translating to an EBIT* margin of 14.6% (2Q17: 14.7%).
  • Net result was EUR 29.5m (2Q17: 18.6m) and earnings per share (EPS) were EUR 4.31 cents (2Q17: 2.62 cents).
  • Cash flow from operating activities before interest and tax in the quarter was EUR 56.4m (2Q17: 61.2m).
  • Net debt/EBITDA was x1.8 at quarter-end (1Q18: x2.0). Targeted capital structure is x2-3 net debt/EBITDA.
  • The order book was EUR 523.2m (YE17: 472.3m).
Q2 Figure

Árni Oddur Thordarson, CEO:

“We continue on a good note with record revenues and stable profit margins in the second quarter. In the first 6 months of the year, revenues and EBIT were up 18% compared with the same period last year.

“It requires the passion and dedication of our 5,500 employees, as well as great partnership with our customers and suppliers, to deliver double digit organic growth as we anticipate this year. The order book is strong and cash flow remains robust enabling us to continue to invest in the platform to support further growth and value creation.

“We are pleased to announce that Marel has reached an agreement to acquire MAJA, a German food processing equipment manufacturer focused on skinning, portioning and ice machines.

“Having worked with them through Sulmaq in Brazil in recent years, we know them to be a highly innovative and well managed business with around 200 employees and annual revenues of roughly EUR 30 million. We expect to finalize the transaction later this year.

“Market conditions have been exceptionally favorable in recent quarters and are now adjusting towards more nor-malized levels. Driven by innovation and market penetration complemented with acquisitions, we aim to continue to grow faster than the long-term market rate.”

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

Read press release in full (PDF, 197KB)

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.

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