Marel Q4 and full year 2015 results

03. February 2016

2015 - Year of profitable growth and strategic moves

Q4 2015 - Solid performance and MPS acquisition

  • Revenue for Q4 2015 totaled 201.9m [Q4 2014: 200.0m].
  • Adjusted* EBITDA for Q4 2015 was 30.0m or 14.9% of revenue [Q4 2014: 28.1m]. EBITDA
  • was 23.6m or 11.7% of revenue [Q4 2014: 21.0m].
  • Adjusted EBIT for Q4 2015 was 22.2m or 11.0% of revenue [Q4 2014: 16.1m]. EBIT was
  • 14.6m or 7.2% of revenue [Q4 2014: 8.5m].
  • Net result for Q4 2015 was 9.9m [Q4 2014: 3.0m]. Earnings per share were 1.40 euro cents in
  • Q4 2015 compared with 0.41 euro cents in Q4 2014.
  • Cash flow from operating activities before interest and tax in Q4 2015 was 26.9m [Q4 2014:
  • 32.7m].
  • The order book was at 180.9m at the end of the quarter compared with 187.7m at the end of
  • Q3 2015 [Q4 2014: 174.9m].

Full year 2015 - Adjusted EBIT 100 million, 12.2% of sales

  • Revenue for 2015 totaled 818.6m, an increase of 14.9% compared with previous year [2014:
  • 712.6m].
  • Adjusted EBITDA was 135.7m or 16.6% of revenue compared with 83.7m and 11.7% for
  • 2014. EBITDA was 120.8m or 14.8% of revenue [2014: 66.7m and 9.4%].
  • Adjusted EBIT was 99.9m or 12.2% of revenue compared with 48.8m and 6.8% for 2014.
  • EBIT was 81.6m or 10.0% of revenue [2014: 29.2m and 4.1%].
  • Net result for 2015 was 56.7m [2014: 11.7m]. Earnings per share were 7.93 euro cents
  • compared with 1.60 euro cents in 2014.
  • Cash flow from operating activities before interest and tax was 119.7m [2014: 102.2m]. Net
  • interest bearing debt at the end of the year 2015 was 142.8m compared with 174.3m at the
  • end of 2014.

Marel achieved 15% revenue growth in 2015. Revenue was 819 million with 12.2% adjusted EBIT or
100 million compared with 49 million in 2014 (6.8%). Net profit for 2015 is 57 million compared with 12
million last year. Cash flow and operational performance was strong leading to net debt/EBITDA at
1.05 at the end of the year compared with 2.08 at the end of 2014. Marel is entering the year 2016
with order book of 181 million compared with 175 million at the beginning of 2015.


Marel closed the acquisition of MPS on January 29, 2016. The purchase price is 382 million on a debt
and cash-free basis. Preliminary numbers from MPS’ operation show revenue of 158 million in 2015
and EBITDA of 41 million. Orders received were strong and totaled 190 million and MPS enters 2016
with order book of 140 million.


Marel has finalized long term all senior financing of an approximately 670 million with final maturity in
November 2020. The financing is at favorable terms in line with Marel´s financial strengths and current
market conditions. Initial interest terms are EURIBOR/LIBOR plus a margin of 275 basis points which
will vary in line with Marel’s leverage ratio (Net debt/EBITDA) at the end of each quarter. Opening
leverage post MPS acquisition is below 3x Net debt/EBITDA.

Marel’s earnings per share (EPS) in 2015 are 7.93 euro cents compared with 1.60 euro cents for
2014. The acquisition of MPS is expected to be highly accretive and will enhance EPS going forward.
The Board of Directors will propose to the 2016 Annual General Meeting that dividend of 1.58 euro
cent per outstanding share will be paid for 2015, corresponding to 11.3 million or approximately 20%
of net profit for the year.


Pro-forma revenue for combined Marel and MPS in 2015 is 977 million with estimated adjusted EBIT
of 133 million. Pro-forma order book is around 320 million entering 2016 compared with 280 million at
the beginning of the year 2015. Management expects modest organic revenue and EBIT growth in
2016 compared with 2015 on pro-forma basis, before purchase price allocation in relation with the
acquisition.

Arni Oddur Thordarson, CEO:
2015 was a great year for Marel. We successfully concluded our two year refocusing program,
rationalizing the product portfolio, optimizing our manufacturing footprint and streamlining the
operation. We managed to engage even better with our customers while refocusing, resulting in a 15%
increase in revenue with 100 million in operating profits in 2015 compared with 49 million in 2014.


With the acquisition of MPS we further enhanced Marel’s position as a global leading provider of
advanced systems and services to the poultry, meat and fish industries. In many ways we are now
taking similar steps in the meat industry as were taken eight years ago in the poultry industry with the
Stork acquisition, which stimulated organic growth and value creation for customers and shareholders.


Parallel to the acquisition of MPS we secured long term stable financing for the whole company that
will support operational and financial flexibility going forward. We appreciate the continued trust from
the banks that are supporting Marel as the consolidator in the industry.


MPS is concluding a great year just like Marel. Combined revenues last year were 977 million with
adjusted EBIT of 133 million. After a period of strong growth, we expect modest organic growth in
revenues and operating performance in 2016”.

Full press release

Annual report

 

“ Fail early in order to succeed sooner ”

- Tom Kelley - founder of IDEO.