"After a successful acquisition phase we have focused our operations in line with the strategy presented in 2006. We have now entered the second phase of profitability and organic growth fuelled by innovation and market penetration. Marel is well positioned on the poultry, meat and fish market which is growing at an attractive rate. We are committed to creating shareholder value and believe the best days of Marel are ahead," said Árni Oddur Thórdarson, Chairman of the Board of Marel, in his address to the company’s AGM. He added that key driver behind Marel‘s successful execution of the strategy was to have first mover advantage in the consolidation of the food equipment industry.
High quality of earnings
Thordarson revealed how the two-phase growth strategy laid out by the Board of Directors in 2006 had placed Marel as a global leader.
- Marel‘s customer base is a diversified group worldwide with no one customer accounting for more than 4% of revenues.
- There is good balance between revenues generated by service and spare parts (1/3) and larger projects (1/3) and standard equipment (1/3).
- Since 2005 sales have increased 11 times in ISK (x5 in EUR) and profits by 15 (x7 in EUR).
- 99% of revenues originate outside of Iceland.
Outlook for the future
"Building on innovation, market penetration and operational excellence we have reached our goal of becoming a truly global company committed to offer solutions to our customer which improve their operations. We have integrated the company to become one Marel and are proud of the 4,000 excellent people working for Marel worldwide. We are grateful for the support that employees, customers and financial partners have granted throughout the years," Theo Hoen, CEO of Marel said in his speech.
Mr. Hoen discussed the strategy moving forward and the outlook for the future:
- The goal is to reach EUR 1 billion in turnover by 2015.
- Entering 2012 the order book is at a high level of EUR 196 million.
- Marel will continue to invest handsomely in R&D at about 6% level.
- Marel aims for a gross profit of 40% in the next 3-5 years.
New Vice-Chairman of the Board of Directors
The Consolidated Financial Statements and the Report of the Board of Directors were approved unanimously by the meeting and all the proposals presented by the Board were passed. The number of Board members was reduced from eight to seven with the retirement of Smári Rúnar Thorvaldsson.
The seven directors were all re-elected. They are: Arnar Thór Másson, Árni Oddur Thórdarson, Ásthildur Margrét Otharsdóttir, Fridrik Jóhannsson, Helgi Magnússon, Margrét Jónsdóttir, Theo Bruinsma. Árni Oddur Thórdarson continues as Chairman of the Board while Ásthildur Margrét Otharsdóttir is the new Vice-Chairman of the Board.