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Marel salmon processing line. (Photo Credit: Marel)
Delayed market recovery for Marel
(ICELAND, 7/26/2013)
Challenging and uncertain market conditions in the fish industry worldwide have been reflected in Marel's decrease in profits for the first half of the year, with revenues totalling EUR 336.5 million, a decrease of 9.4 per cent compared to those of the same period the year before (H1 2012 EUR 371.3 million).
Other factors affecting the firm's performance were exchange rate differences, volatile prices, liquidation of important firms and consolidation and restructuring in the industry.
The leading company specializing in animal, fish and poultry advanced equipment experienced a decrease in profits of 4.3 per cent for the second quarter of the year, compared to the second quarter of 2012 (EUR 186.5m).
However, the company's EBITDA for Q2 was on the rise with a 10.6 per cent more in revenues (EUR 19.0 m) compared to EUR 18.6m in the same quarter of 2012.
Equally, the EBIT (operating profit) was 6.9 per cent higher with EUR 12.3m compared to EUR 12.2m in the second quarter of 2012.
Their net interest bearing debt is lower with EUR 228.8m at the end of this quarter as opposed to 262.0m in the second quarter of 2012.
The order book is at EUR 131.8m with a 13 per cent decrease with respect to the second quarter of 2012 (EUR 151.1m).
In the first half of 2013 their EBIT margin was of 6.7 per cent with EUR 22.6m while in the same period of 2012 it was of EUR 33.3m.
The net result was also down with 10.9m for the first six months of 2013 compared to 20.1m for the same period in 2012.
Despite these results and several projects presumably postponed, the company is still in a leading position as confirmed by the launch of the new I-Cut 130, a cutting-edge portion cutter which is already generating orders.
Marel is still strong with companies constantly needing to invest in new technology and equipment to keep up-to-date, the company is confident they will recover even if it takes slightly longer than they had anticipated, in 2014 rather than in the second half of 2013.
Theo Hoen, the firm's CEO said: “We had a decent quarter considering challenging market conditions. With a growing installed base in recent years and extensive sales and service network, Marel’s revenues deriving from service and spare parts are constantly increasing. At the same time investments in large projects are delayed which is causing underutilization and has influenced our gross profit. We will keep our focus on operational efficiency while maintaining a good level of investment in innovation and market development."
He added that they remain optimistic about the prospects and anticipate that market recovery will take longer time despite their earlier view.
The underlying market growth is present with investment need building up and the firm is ready to capture increased demand when markets recover.
By Gabriela Raffaele
[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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More about: 
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