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Marel achieved a 6.8% growth in a challenging market (Photo: Marel ehf)
COMPANY OF THE WEEK: Marel Shows Healthy Growth in a Challenging Market
(ICELAND, 2/7/2013)
Playing on its strengths by reaping the benefits of integration and a global network of sales and service, Marel showed solid revenue growth of 6.8%. Marel’s core business has grown organically by 29% in the last four years, a period which has been economically challenging.
Revenues for the year are in line with the Company’s expectations with EBIT margin of 8.6%, below the long-term target of 10-12%. Last year was challenging in Europe and United States with delays in high margin standard equipment whereas sales of large projects in new markets continued to grow. Large greenfield projects are expected to generate future revenues in the form of standard equipment and service related revenues.
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| Marel is a multinational company, with over 4,000 employees worldwide. The company's business units are located in the Netherlands, Denmark, the United States, Iceland, Slovakia and Singapore |
Highlights 2012 Annual Results (in Euros)
- Revenues for 2012 totaled 714.0 million (m), an increase of 6.8% compared to the year before (2011: 668.4m).
- EBITDA was 86.0m or 12.0% of revenues compared with 87.0m in 2011 (2011: 98.0m normalized).
- Operating profit was 61.1m or 8.6% of revenues compared with 62.2m in 2011 (2011: 73.2m normalized).
- Net result for 2012 was 35.6m compared to 34.5m in 2011. Earnings per share were 4.88 euro cents [2011: 4.70 euro cents].
- Cash flow remains healthy and net interest bearing debt is 243.2m at the end of 2012 (2011: 250.5m). The order book was at 125.4m at the end of the year (2011: 188.9m).
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| Theo Hoen, Marel's CEO |
Marel's CEO Theo Hoen said: “A healthy 6.8% growth in a challenging market is an achievement. In the last four years we have grown immensely. We have introduced a steady pipeline of new products, strengthened our sales and service network, and at the same time we have merged several companies into one.
Last year we saw strong growth in our fish segment and in fourth quarter we saw signs of a turn-around in the meat industry. We maintained our position as market leader in further processing, and the poultry segment remained the backbone of our revenue base with returns above target.
We expect moderate growth in 2013, assuming recovery in our established markets in the second half of the year, in particular in United States which has been in downturn for over two years. Looking further into the future, we believe that our innovative products and standardization of solutions and service in all our industries will secure strong organic growth. With increased sales of standard solutions and focus on operational excellence we expect to be back on track with 10-12% EBIT in the second half of 2013.”
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| Marel is a global leader in integrated systems for the fish and poultry industry segments, and a major provider in the meat industry |
Highlights Q4 2012 Results
- Solid revenues with lower profit margin
- Revenues for Q4 2012 totaled 178.4m, a decrease of 3% compared to revenues for the same period the year before (Q4 2011: 183.9m).
- EBITDA was 19.5m, or 10.9% of revenues (Q4 2011: 27.9m).
- Operating profit (EBIT) was 13.6m, or 7.6% of revenues (Q4 2011: 21.6m).
- Net result was 7.1m for Q4 2012 (Q4 2011: 15.0m).
- Operating cash flow before interest and tax remains healthy at 28.6m for Q4 compared to 19.9m in Q4 2011.
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| Marel offers cutting edge equipment and software components |
In the face of challenging economic conditions throughout 2012, Marel generated healthy revenue stream based on its strong market position and product pipeline.
Orders received during Q4 2012 amounted to 152.3m (Q4 2011: 176.0m) which is an increase from previous quarter. At the end of 2012, the order book amounted to 125.4m as opposed to 188.9m at the end of the previous year.
In December 2012, Marel signed an agreement with its lenders to amend and extend the term of present loan facilities from November 2010 by one year, or to the end of 2016. This important achievement in global, turbulent financial markets will lead to more efficient financing and lower financing cost.
About Marel ehf
Marel ehf (Public, ICE:MARL) is the leading global provider of advanced equipment, systems and services to the fish, meat and poultry industries.
The company's brands – Marel, Stork Poultry Processing and Townsend Further Processing – are among the most respected in the industry, offering the convenience of a single source to meet its customers’ every need.
With offices and subsidiaries in over 30 countries and a global network of more than 100 agents and distributors, Marel works side-by-side with its customers to extend the boundaries of food processing.
Source: Marel
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Margaret E.L. Stacey
Editor Companies and Products
[email protected]
www.seafood.media
Information of the company:
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Address:
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Austurhraun 9
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City:
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Gardabaer
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State/ZIP:
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(IS-210)
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Country:
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Iceland
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Phone:
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+354 563 8000
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Fax:
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+354 563 8001
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E-Mail:
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[email protected]
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