Preliminary results for Q2 2022

New record in orders received of EUR 472m, revenues of EUR 397m and operational performance of 6.3% EBIT

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Marel’s preliminary and unaudited financial results for 2Q 2022 show new record in orders received of EUR 472m (2Q21: 371m) and revenues of EUR 397m (2Q21: 328m). In the quarter, the Wenger acquisition contributed EUR 17m to orders received and EUR 12m to revenues. The preliminary order book of EUR 775m (Mar22: 619m and Jun21: 499m), including the acquired order book from Wenger and Sleegers of EUR 81m, is at a record high.

Operational performance is below expectations resulting in a preliminary EBIT* margin of 6.3% in the quarter (2Q21: 11.8%). Wenger contributed positively to operational performance. In light of continued supply chain disruption and inflation at high levels leading to slower ramp up of revenues than originally planned, Marel is taking firm actions to improve operational performance towards the year-end 2023 targets.

To lower costs the difficult decision has been made to reduce headcount by 5% across the global Marel workforce, resulting in estimated annualized cost saving of EUR 20m with one-off cost of around EUR 10m. The strong order book and the full benefit of pricing actions will support gradual ramp up in revenues and improve price/cost coverage and operational performance in the second half of 2022, as stated in the Q1 2022 financial results.

The pipeline remains strong fueled by pioneering solutions and scale up in local sales and service coverage globally initiated ahead of the growth curve. Demand from the poultry and fish industries is on a strong run rate, while the outlook for meat is softer and will impact the industry mix. In this inflationary environment with rising commodity prices, labor scarcity and shifting consumer behavior, Marel is uniquely positioned to support the food industry with the use of robotics and digital solutions that enable more automation, safety and traceability.

The preliminary results are unaudited and subject to change. Marel will release its Q2 2022 financial statements after market closing of both NASDAQ Iceland and Euronext Amsterdam as scheduled on 27 July 2022.

* Operating income adjusted for PPA related costs, including depreciation and amortization, and acquisition related costs.

Q2 2022 investor meeting on 28 July at 10.30 CET

On 28 July 2022, at 10.30am CET (8:30 am GMT), Marel will host a virtual investor meeting where CEO Arni Oddur Thordarson and COO Linda Jonsdottir will give an overview of the Q2 2022 financial results and operational highlights.

The investor presentation is broadcast live and recordings will be available after the meeting on Members of the investment community can also join the investor meeting through conference call. Details for the webcast and conference call will be published the week prior to the investor meeting.

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