Marel Q4 and annual 2014 results

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Q4 2014 – Record order intake and strong cash flow


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Q4 2014 – Record order intake and strong cash flow

All amounts in EUR:

  • Revenue for Q4 2014 totaled 200.0m [Q4 2013: 168.2m].
  • Adjusted EBITDA* for Q4 2014 was 28.1m or 14.1% of revenue. EBITDA was 21.0m or 10.5% of revenue [Q4 2013: 14.1m].
  • Adjusted operating profit* (adj. EBIT) for Q4 2014 was 16.1m or 8.0% of revenue. EBIT was 8.5m or 4.2% of revenue [Q4 2013: 7.4m].
  • Net result for Q4 2014 was 3.0m [Q4 2013: 3.7m]. Earnings per share were 0.41 euro cents [Q4 2013: 0.50 euro cents].
  • Cash flow from operating activities before interest and tax was 32.7m [Q4 2013: 34.7m]. Net interest bearing debt was 174.3m at the end of Q4 2014 [Q4 2013: 217.1m].

Full year 2014 – At the customer, for the customer, while refocusing

All amounts in EUR:

  • Revenue for 2014 totaled 712.6m, an increase of 7.7% compared with the previous year [2013: 661.5m].
  • Adjusted EBITDA* was 83.7m or 11.7% of revenue. EBITDA was 66.7m or 9.4% of revenue [2013: 69.4m].
  • Adjusted operating profit* (adj. EBIT) for 2014 was 48.8m or 6.8% of revenue. EBIT was 29.2m or 4.1% of revenue [2013: 42.9m].
  • Net result for 2014 was 11.7m [2013: 20.6m]. Results were affected by one-off costs associated with the refocusing actions in 2014. Earnings per share were 1.60 euro cents [2013: 2.81 euro cents].
  • Cash flow from operating activities before interest and tax was 102.2m [2013: 80.3m]. Net interest bearing debt was 174.3m at the end of the year [2013: 217.1m].

Marel achieved 7.7% revenue growth in 2014 and an adjusted EBIT of 48.8 million in line with management guidance. Order book in the beginning of 2015 stands at 175 million compared with 132 million in the beginning of 2014.

Management guidance for 2015 is organic revenue growth, with a solid increase in operational and net profit. Full focus remains on strengthening the market approach and operational improvement with the aim to reach EBIT of over 100 million in 2017.

Árni Oddur Thórdarson, CEO:

“The fourth quarter was a good quarter for Marel with record revenue and order intake. In the quarter we saw revenue increase by 19% and order intake by 27% compared with the same quarter one year ago.

“2014 was a year of progress and transformation for Marel. The year started off slow but in the spring we changed the game and we have managed to be at the customer, for the customer, while refocusing our operations.

“The sales last year were a good mix of Greenfields, modernization projects and maintenance business around the globe. There is clearly a tailwind in the market, particularly in the U.S. that fully offsets turbulences in Eastern European countries and other countries that are dependent on raw material resources.

“The Simpler, Smarter, Faster refocusing program is a two year journey and we are now entering the second year. The streamlining of the operation is fully on track and simultaneously we are investing in future growth through innovation and general investments to advance the business.

“We are moving into the right direction with operational improvements in the second half of the year and we enter 2015 with optimism. The order book is at good level, we are streamlining towards lower cost base and our aim is to capture good organic growth and increased profits in 2015 compared with previous year.”

* Before refocusing cost

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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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