2012-04-26 16:25:00 CEST
2012-04-26 16:26:02 CEST
REGULATED INFORMATION
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Marel hf. - Financial Statement Release
Marel Q1 2012 results (All amounts in EUR)
Strong revenue growth and good profitability
-- R
evenues for Q1 2012 totalled 184.9 million, an increase of 20.4%
compared to the first quarter of 2011 [153.5 million].
-- EBITDA was 27.4 million or 14.8% of revenues [Q1 2011: 23.3 million].
-- Operating profit (EBIT) was 21.1 million or 11.4% of revenues [Q1 2011:
17.1 million].
-- Net result for Q1 2012 was 13.1 million [Q1 2011: 8.8 million]. Earnings
per share were 1.80 euro [Q1 2011: 1.20] which represents an increase of
50% from the previous year.
-- Cash flow remains healthy and net interest bearing debt is 254.2 million at
the end of the quarter compared to 250.5 million at year-end 2011.
-- The order book is at a solid level of 201 million at the end of the
quarter, significantly higher than in Q1 2011 [169 million].
Marel starts the year off strong in Q1 and in line with the Company's growth
strategy. Revenues amounted to 184.9 million, which represents an increase of
20.4% compared to Q1 2011, similar to the record fourth quarter of 2011 [183.9
million]. The EBIT margin of 11.4% is in line with the Company's target of
10-12% return on sales.
Marel has good geographical revenue split. This quarter, solid growth in areas
such as Asia and South America fully offsets a slower US market. The outlook
for 2012 remains positive based on the level of the order book and market
trends as perceived by Marel.
Theo Hoen, CEO:
“We are satisfied with robust revenues growth and profit is in line with our
targets. Strong order intake continued in the first quarter, particularly in
our poultry and fish business, especially in Asia and South America. Marel
clearly benefits from its strong market position and geographical expansion.
Furthermore, our commitment to investments in innovation enables us to steadily
offer new products and solutions, thus bringing added value to our customers.
We remain focused on improving operational efficiency by enhancing processes
and strengthening our sales and services network. In short, we are well on
track with our strategy and our employees are committed to reaching Marel's
ambitious goals.”
Order book remains strong
In Q1 there was robust growth in orders received, which amounted to 189 million
compared to 161 million in Q1 2011. Orders received once again exceeded orders
booked off resulting in an order book of 201 million at the end of quarter (Q1
2011: 169 million). The main drivers of growth are innovative products such as
RevoPortioner, Sensor X and the delivery of complete processing lines that
comprise a wide range of products. This is coupled with comprehensive
geographical coverage.
Operating results Quarter Quarter Change
1 1
Consolidated 2012 2011 in %
--------------------------------------------------------------------------------
Revenues 184.864 153.537 20,4
Gross profit 67.992 58.918 15,4
Gross profit as a % of revenues 36,8 38,4
Result from operations (EBIT) 21.119 17.121 23,4
EBIT as a % of revenues 11,4 11,2
EBITDA 27.401 23.323 17,5
EBITDA as a % of revenues 14,8 15,2
Net result 13.068 8.776 48,9
Net result as a % of consolidated revenues 7,1 5,7
Orders received 1) 189.420 160.710 17,9
Order book 200.773 169.328 18,6
--------------------------------------------------------------------------------
1) Included are service revenues.
Cash Flows
--------------------------------------------------------------------------------
Cash generated from operating activities, before 13.509 14.115
interest & tax
Net cash from (to) operating activities 9.596 8.462
Investing activities (7.184) (5.239)
Financing activities (872) (22.863
)
------------------
Net cash flow 1.540 (19.642
)
Financial position
--------------------------------------------------------------------------------
Net interest bearing debt 254.179 247.622
Operational working capital 2) 112.952 60.316
2) Third party debtors, inventories, net work in progress and
third party creditors.
Key ratios
--------------------------------------------------------------------------------
Current ratio 1,3 1,3
Quick ratio 0,9 0,9
Number of outstanding shares 726.344 735.569
Market capitalisation in millions of euros based on 636,5 581,7
exchange rate at end of period
Return on equity 13,9% 10,0%
Earnings per share in euro cents 1,80 1,2
Leverage 3) 2,49 2,74
3) Net interest bearing debt / normalised last twelve
months EBITDA.
Markets
Marel's core business focuses on four industry segments: poultry, fish, meat
and further processing.
Poultry: This quarter the order intake was good, with large orders coming in
from the US, Central America, Russia, Middle East and Europe. The high load in
the Company's manufacturing facilities continued. A new greenfield project was
started with the Aeroscalder. Aeroscalder technology allows for reductions in
water and energy consumption and thereby diminishes the carbon footprint of
poultry processing plants. To better service Marel's customers, a global
service structure is being established. The new structure will enable Marel to
provide ample support throughout the world.
Fish: We had a good start in Q1 marked by the successful Salmon Showhow that
took place at Marel premises in Norresundby, Denmark. The annual event
attracted around 200 customers from the global salmon processing industry,
where they experienced our latest developments in salmon processing systems.
Marel‘s largest single sale in the fish industry was concluded in Q1, a
processing flowline for high-volume processing facilities for whitefish. The
system was introduced in 2011 and features a solution specifically developed to
meet the requirements of the Chinese and other emerging markets. Worker
shortages and higher operating costs have increased demand for greater
automation, a niche for Marel's economic and labour-saving solutions that
deliver faster processing times, increased yield and improved product handling,
as well as offering better management tools.
Meat: The year started with project activities covering a wide range of Marel
systems, and with a significant number of proposals being submitted. Of
particular note has been the interest of processors in the new Trim Management
System, which was introduced in late 2011. This activity has resulted in
several orders in Q1 with more expected in the second quarter. Although the
meat industry has seen slow activities, there is a future demand as many of the
major processors have plans to replace their old equipment. With Marel being
well placed to satisfy their requirements, we are optimistic of further orders
in the short term. Looking ahead there is good activity in Eastern Europe and
Australasia where we expect to be able to build on our recent successes.
Further processing: The first quarter of 2012 has seen a continued steady order
intake, in line with expectations. Several QX sausage lines were sold in
Western Europe and the US. The RevoPortioner 400 proved to be popular with
smaller businesses and companies with a greater variation in products, a market
segment where there is a noticeable increase in interest. A couple of events
took place in the DemoCenter in Boxmeer, which has expanded to include a
Customer Experience Center where customers can be received in comfortable
surroundings. The first event, hosted together with the Meat Industry Center,
focused on Coating. The second was a Sausage Event. Both attracted an
international mix of customers. At the end of the first quarter, the Further
Processing Industry Center participated in the Anuga FoodTec exhibition
together with the Meat Industry Centre, displaying the new RevoPortioner
500-600-700 and introducing both the ValueFryer and the newest version of the
ModularOven.
Innovation
Investing in R&D is fundamental to the success of Marel. To strengthen its
position in the fish industry Marel has created a new research team. Marel
believes that it is critical to understand the underlying mechanisms of “why
things work“ or “why things do not work“ before transferring knowledge into
equipment. This includes, for example understanding bone connection and muscle
physiology, pre- and postmortem, when modelling chilling curves. Only a
thorough understanding of the principles and mechanisms makes possible the
development of transformational breakthrough technologies, such as SuperChill
for ground fish and Automatic Pinbone Removal. These are two examples of
completely new approaches based on research.
Operational excellence
Cost efficiency
Marel continues to maintain a strict focus on rationalisation, manufacturing
efficiency and cost control. Great effort continues to be invested in creating
further value by ensuring that the Company's reduced cost base is sustainable
despite the growth in activity.
Cash flow
Operational cash flow before interest and tax remains good at 13.5 million [Q1
2011; 14.1 million]. The higher operational working capital stems from the
growth of the company.
Finance
The balance sheet is strong and net interest bearing debt amounted to 254.2
million at the end of Q1 2012, compared with 250.5 million at the end of Q4
2011. The business remains well invested, though there has been some expansion
of facilities and equipment in order to allow further growth. In February the
remaining ISK denominated, EUR 7.6m equivalent bond issue of Marel matured.
With the repayment of this bond issue Marel has removed the remaining exposure
to the Icelandic krona (ISK) in the balance sheet and is now financed in EUR
and USD in a proportion giving a natural hedge to exposures. During Q1,
according to the AGM's decision, a dividend of 0.95 euro cents per share was
paid out to shareholders, corresponding to about 20% of Company profits for the
year 2011. The Company also purchased treasury shares to cover the employee
stock option plan. The dividend and the purchase of own shares amounted to EUR
9.5 million.
Outlook
Marel is well on track with its growth strategy and optimistic that 2012 will
be in line with the Company's expectations, as new markets will compensate for
slower activities in more established markets. A good start in Q1 and the
strength of the order book, signals a solid continuation for 2012. However, 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, 27 April 2012
Marel will present its results at an investor meeting on Friday, 27 April, at
8:30 a.m. GMT, at the Company‘s headquarters at Austurhraun 9, Gardabaer. The
meeting will also be webcast at www.marel.com/webcast.
Publication days of the Consolidated Financial Statements in 2012
-- 2nd quarter 2012
25 July 2012
-- 3rd quarter 2012
24 October 2012
-- 4th quarter 2012
30 January 2013
For further information, contact:
Helga Björk Eiríksdóttir, Investor relations manager, tel: (+354) 563 8453 /
mobile: (+354) 853 8543
Erik Kaman, CFO, tel: (+354) 563 8072
Sigsteinn Grétarsson, COO, tel: (+354) 563 8072
About Marel
Marel is the leading global provider of advanced equipment, systems and services
to the fish, meat and poultry industries. With offices and subsidiaries in more
than 30 countries and a global network of more than 100 agents and
distributors, we work side-by-side with our customers to extend the boundaries
of food processing performance. Advance with Marel for all your processing
needs.
Forward-looking statements
Statements in this press release that are not based on historical facts are
forward-looking statements. Although such statements are based on
management's current estimates and expectations, forward-looking statements are
inherently uncertain. We, therefore, caution the reader that there are a
variety of factors that could cause business conditions and results to differ
materially from what is contained in our forward-looking statements, and that
we do not undertake to update any forward-looking statements. All
forward-looking statements are qualified in their entirety by this cautionary
statement.
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