Marel Q2 2016 Results

28. July 2016

Record revenue and robust operational performance

  • Revenue for Q2 2016 totaled 264.2m [Q2 2015: 218.3m]. On a pro forma basis, revenue in Q2 2015 was 253.1m.
  • EBITDA for Q2 2016 was 48.4m or 18.3% of revenue [Q2 2015: Adj. EBITDA** 37.2m or 17.1% of revenue]. Pro forma adj. EBITDA** Q2 2015 was 47.7m or 18.9% of revenue.
  • EBIT* for Q2 2016 was 39.7m or 15.0% of revenue [Q2 2015: Adj. EBIT** 29.7m or 13.6% of revenue]. Pro forma adj. EBIT** in Q2 2015 was 38.4m or 15.2% of revenue.
  • Net result for Q2 2016 was 22.1m [Q2 2015: 19.5m]. Earnings per share were 3.09 euro cents in Q2 2016 [Q2 2015: 2.71 euro cents].
  • Cash flow from operating activities before interest and tax in Q2 2016 was 43.7m [Q2 2015: 23.7m]. Net debt/EBITDA is 2.7x at the end of Q2 2016.
  • The order book was at 306.5m at the end of Q2 2016 compared with 340.0m at the end of Q1 2016 [Q2 2015: 165.9m]. On a pro forma basis the order book at the end of Q2 2015 was 272.4m.

Q2 2016 was a good quarter for Marel with record revenue of 264 million and 15.0% EBIT*. In the first half of the year Marel saw good performance and profitability. Pro forma revenue for 1H 2016 is 498 million with pro forma EBIT* of 15.1%.

Order intake in Q2 2016 was at 231 million and year to date 485 million. Order intake of standard equipment and spare parts was strong across all industries. Market conditions for large greenfield projects in the meat and fish industries were soft in 1H while Marel Poultry has managed to secure several large projects in 1H 2016.

Cash flow from operating activities was strong and Marel continues to invest in the business to prepare for future growth and full potential. Net debt/EBITDA is 2.7x which is within the range of the targeted capital struc-ture.

Arni Oddur Thordarson, CEO:

We are pleased with Marel’s second quarter results with record revenue and robust operational performance. Revenue is 264 million with 15.0% EBIT.

In 2016 we have introduced a steady flow of new innovative solutions enabling poultry, meat and fish processors to advance their business further. The cash generated from operations is strong and we are investing in the business to improve premises, tools and processes to prepare for full potential and future growth. Despite the temporary spike in investments we have continued to deleverage and strengthen financials.

Last year we saw significant organic revenue growth and increase in order intake, both for Marel and MPS. Marel increased significantly revenue and profitability in first half of 2016 with MPS on board. Long term growth prospects for Marel are promising while short term economic uncertainty has recently increased. Our target for the year is modest organic growth and an increase in operating profit between years.


Streamlining in Seattle concluded
In the first half 2015 Marel discontinued several activities such as High Speed Slicing and freezing. In the first half of 2016, Marel streamlined its operations in Seattle. Revenue and order intake from discontinued opera-tions are 15 million lower in 1H 2016 than for same period last year.

Marel is now focusing its onboard business on innovative and standardized solutions instead of customized ad-hoc solutions and is running the business with 50 less employees going forward.

* Operating income adjusted for amortization of acquisition-related intangible assets (PPA).

** Adjusted for refocusing cost related to the refocusing program Simpler, Smarter, Faster .

Pro forma financial results include MPS numbers. Pro forma numbers for Q2 2015 are presented to provide better comparison.

Full press release.

 

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