Marel Q1 2016 Results: Pro Forma EBIT of 15% and strong order book
Q1 2016: Pro forma financial results
- Revenue for Q1 2016 totaled 233.9m [Q1 2015: 244.1m of which discontinued operations were 6m].
- EBIT* was 35.2m or 15.1% of revenue for Q1 2016 [Q1 2015: Adj. EBIT** 35.2m 14.4%].
- The order book was at 339.9m at the end of the Q1 2016 [Q1 2015: 289.3m].
Pro forma financial results include MPS for the full quarter. Pro forma Q1 2016 is compared to pro forma Q1
2015 to show more representative future indicator than the consolidated accounts.
Order intake was robust and was on pro forma basis 254 million in the quarter. The order intake is well balanced
both geographically and between product groups. Large Greenfields were secured in India, U.S., Brazil
and Europe during the quarter. Cash flow and operational performance was strong and net debt/EBITDA is
2.9x at the end of the quarter, which is within the range of the targeted capital structure.
The year began on a good note for Marel with the operations of MPS positively impacting on profitability and
performance. Pro forma revenue was 234 million with EBIT of 15%. Taking into account the order book and
delivery time of projects to customers, increase is foreseen in revenue over the course of the year.
Management reaffirms guidance of modest organic revenue growth and increase in EBIT* between years
compared with last year pro forma result of 977 million revenues and adjusted EBIT of 133 million.
Q1 2016: Consolidated financial results
- Revenue for Q1 2016 totaled 220.6m [Q1 2015: 209.3m].
- EBITDA for Q1 2016 was 38.2m or 17.3% of revenue [Q1 2015: Adj. EBITDA** 36.9m or 17.6%].
- EBIT* for Q1 2016 was 31.1m or 14.1% of revenue [Q1 2015: Adj. EBIT** 23.8m or 11.4% of revenue].
- Net result for Q1 2016 was 13.8m [Q1 2015: 12.6m]. Earnings per share were 1.93 euro cents in Q1
- 2016 [Q1 2015: 1.73 euro cents].
- Cash flow from operating activities before interest and tax in Q1 2016 was 27.9m [Q1 2015: 39.5m].
- The order book was at 339.9m at the end of the quarter compared with 178.0m at the end of Q1 2015
- [Q4 2015: 180.9m].
Marel’s consolidated accounts include MPS for two months and are compared to Q1 2015 Marel stand alone.
Arni Oddur Thordarson, CEO:
“The year 2016 has kicked off well. I would like to welcome the MPS team on board. Our first steps as a united
team are promising. We have maintained the momentum with excellent orders received in the quarter of 254
million, our operational results are strong with a pro forma EBIT of 15% and we enter the future with a record
order book of 340 million.
We can already see the positive effect that MPS is having on our operations. We are now a full line provider of
solutions and services in Poultry, Meat and Fish. Marel Meat is now accounting for 33% of total revenue with
best in class profitability.
Taking into account the order book and the upcoming delivery time of projects to customers, we foresee an
increase in revenues over the course of the year. We reaffirm our guidance of modest organic revenue growth
and increase in operational results between years compared with the 2015 pro forma result of 977 million in
revenue and adjusted EBIT of 133 million”.
MPS is part of Marel’s official consolidated financial accounts since January 29, 2016. Integration of the two
companies is on track. Marel provides pro forma financial results to help investors make comparisons of Marel’s
operating results from one financial period to another. Pro forma results are considered a better future
indicator than consolidated accounts and give better reflection of the underlying business performance.