(All amounts in EUR)
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Revenue for Q3 2014 was 187.9m [Q3 2013: 156.9m].
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Adjusted EBITDA* for Q3 2014 was 25.9m or 13.8% of revenue. EBITDA was 24.6m or 13.1% of revenue [Q3 2013: 19.5m].
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Adjusted operating profit* (adj.EBIT) for Q3 2014 was 17.4m or 9.3% of revenue. EBIT was 16.1m or 8.6% of revenue [Q3 2013: 12.9m].
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Net result for Q3 2014 was 9.8m [Q3 2013: 6.0m]. Earnings per share were1.34 euro cents [Q3 2013: 0.81 euro cents].
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Cash flow from operating activities before interest and tax was 29.7m [Q3 2013: 3.0m]. Net interest bearing debt was 191.3m at the end of Q3 2014 [Q3 2013: 239.0m].
- The order book was at 169.2m at the end of Q3 2014 compared with 156.4m at the end of Q2 2014 [Q3 2013: 138.3m]
Marel achieved order intake of 201 million during the third quarter. Modernization projects and standard equipment sales were at a high level in the U.S. and Europe. Several small and medium sized Greenfields were secured in growing emerging markets such as Africa, Asia and South America.
In the first nine months of the year, revenue increased by 4% compared to the previous year with operational profit increasing over the course of the year. Adjusted EBIT was 32.7 million year to date. Marel reaffirms management guidance to reach organic revenue growth with an adjusted EBIT in the range of 40 - 50 million in 2014. There is full focus on strengthening the market approach and operational improvement with the aim to reach an EBIT of over 100 million in 2017.
Arni Oddur Thordarson, CEO:
“Third quarter was a good quarter for Marel. We have managed to be at the customer, for the customer while refocusing our business. Order intake and revenue increased by 20% compared with the previous year with good improvement in operational results.
We worked on modernization and expansion projects with long time partners in the U.S. and Europe during the quarter. The customer base expanded in growing markets as we secured several small and medium sized Greenfields in Africa, Asia and South America.
There is a clear tailwind in our markets. With a focused market approach and decisive steps towards lowering the cost base we are in the position to create good value going forward.”
Simpler, Smarter, and Faster
Marel’s refocusing plan to become simpler, smarter, and faster is on track. The plan’s objectives are to increase efficiency in order to serve customers better and reduce the annual cost base by 20-25 million over the course of 2014 and 2015.
The transfer of Marel’s meat operations from Oss to the multi-industry site in Boxmeer is proceeding according to plan. The transfer of salmon activities from Norresundby to Stovring has been completed and Marel’s salmon operation is running with increased efficiency in Q3 2014 and onward.
Recurring annual cost saving from actions taken in the first 9 months of the year is estimated to be approximately 8 million compared with one-off costs of approximately 12 million. The one-off costs in Q3 amount to 1.3 million which is related to preparation for manufacturing optimization in coming quarters.
Record order intake in Q3
Marel secured record order intake during Q3 on the back of strong order intake in the previous quarter. Orders received amounted to 201 million compared with 188 million in Q2 2014 and 163.3 million in Q3 2013. The order book now stands at 169.2 million, 12.8 million higher than in the previous quarter.
Outlook
In the first nine months of the year revenue has increased by 4% compared to the previous year with operational profit increasing over the course of the year. Adjusted EBIT is 32.7 million year to date. Marel reaffirms management guidance to reach organic revenue growth with an adjusted EBIT in the range of 40 - 50 million in 2014. There is full focus on strengthening the market approach and operational improvement with the aim to reach an EBIT of over 100 million in 2017.
In the mid- and long-term, the Company believes its innovative products and global presence in all industries will secure good growth and increased profitability. The long-term outlook in the industry remains favorable and the estimated market growth is 4-6% in upcoming years. Marel’s goal is to continue to grow faster than the market based on innovative customer solutions and its extensive sales and service network.
It should be kept in mind that results may vary from quarter to quarter due to general economic developments, fluctuations in orders received, and deliveries of larger systems.
Presentation of results, October 23, 2014
Marel will present its results at an investor meeting on Thursday, 23 October, at 8:30 am (GMT), at the Company’s headquarters at Austurhraun 9, Gardabaer. The meeting will also be webcast at marel.com/webcast.
Publication days of Consolidated Financial Statements in 2015
4th quarter 2014 February 4, 2015
Annual General Meeting 2014 March 4, 2015
1st quarter 2015 April 29, 2015
2nd quarter 2015 July 29, 2015
3rd quarter 2015 October 28 2015
4th quarter 2015 February 3, 2016
Release of financial statements will take place after market closing on the aforementioned dates.
For further information, contact:
Linda Jonsdottir, Corporate Director of Treasury and IR, tel: (+354) 563 8464 / mobile: (+354) 825 8464.
Audbjorg Olafsdottir, Investor Relations specialist, tel: (+354) 563 8626 / mobile: (+354) 853 8626.
