Marel Food Systems hf. - Financial Statement Release

2007 - Net profit for 2007 totaled EUR 6.1 million

Net profit for 2007 totaled EUR 6.1 million

Year 2007

•  Sales for 2007 totaled EUR 290 million compared with EUR 209 million, which
   is an increase of about 39% from the previous year.  Proforma growth in sales
   for the period was about 4.5%.  At a fixed exchange rate EUR/USD the proforma
   growth is 6.1%.
•  Net profit for 2007 totaled EUR 6.1 million compared with 0.2 million in
   2006. 

•  Profit from operations EBIT in 2007 was EUR 10.0 million compared with EUR
   7.5 million the previous year.  Charged one-time costs resulting from
   integration totaled about EUR 5 million for the first half of the year.
   Profit from operations EBIT before one-time costs was 5.2% of sales (15
   million) compared with 3.6% the year before. 

•  Working capital from operations totaled EUR 13.0 million. In 2006, this was
   2.7 million. 

•  Net profit from shares in Stork was EUR 4.6 million.

•  Net cash at end of the period totaled EUR 30.4 million, compared with EUR
   63.1 million at the end of 2006. The change can be traced to the purchase of
   shares in Stork NV and increases in shares in the company. All shares in
   Stork were sold on 17 January which gave  EUR 53 million after repayment of
   related debts. 

•  Shares in Marel Food Systems sold for EUR 34.6 million in 2007, with a strong
   showing by Icelandic pension funds. 

•  Equity totaled EUR 182 million compared with 144 million the year before, and
   equity ratio was 42.5% at the end of 2007.
•  An agreement was reached whereby the company acquires Stork Food Systems for
   EUR 415 million, which has been fully financed. The agreement is subject to
   approval by European competition authorities. 


Fourth quarter 2007

•  Sales in the fourth quarter of 2007 totaled EUR 78.9 milljón compared with
   71.9 million for the same period the year before.  Sales therefore increased
   by about 9.7% from the previous year and 11.8% at fixed exchange rate of
   EUR/USD. 

•  Net profit for the period totaled EUR 3.4 million compared with a loss of EUR
   0.5 million in 2006. 

•  Profit from operations  EBIT for the period October to December 2007 was EUR
   1.6 million, which is 2.0% of revenue compared with 1.1 million the previous
   year. 

•  Shares in the Dutch company Stork NV are entered at market value, and a
   profit of EUR 5.1 million was realized from associated companies in the
   fourth quarter. 


Hörður Arnarson, CEO:

“ The year 2007 was characterized by the extensive integration of Marel,
Scanvægt, AEW/Delford and Carnitech. An agreement for the acquisition of Stork
Food Systems was signed last November. With the acquisition of Stork, Marel
Food Systems will have grown almost fivefold since the company‘s strategy was
introduced in 2006. The full focus will now be on increased profitability and
internal growth. 

Integration of the companies has in large part progressed well and the company
has retained market share in a fast growing market.  It is disappointing,
however, that synergies have not yet impacted the company‘s profits. 

For the year 2008 the company is now projecting an EBIT about 8% but remain
dedicated to reach above 10% EBIT margin level before year end.  These
projection are without the effects of Stork Food Systems.   The core business
of Stork Food Systems had sales  of about 300 million euros in 2007 with 10.6%
EBIT.  Continuous healthy organic growth with continued good profitability is
expected in the core business of Stork Food System.” 

Prospects

A large part of integration activities have returned the intended results, but
it is apparent that several tasks have experienced temporary negative effects,
both regarding operational units in the sales network and product categories.
Work is in progress to restructure these areas to ensure acceptable results. 


The company's goal of achieving at least a 10% profit from operations (EBIT)
remains unchanged and is now expected to be reach in 2009. For the year 2008
the company is now projecting an EBIT of about 8%, at the same time it is
projected that operating profit for the first half of the year 2008 will be
lower than for the year in whole. These projection are without the effects of
Stork Food Systems.   The core business of Stork Food Systems had sales of 300
million euros in 2007 with 10.6% EBIT.  Continuous healthy organic growth with
continued good profitability is expected in the core business of Stork Food
System. 

An exciting period lies ahead where primary emphasis is placed on improved
profitability and dynamic organic growth based on product development and
marketing efforts in new markets. 

The Financial Statements for Marel Food Systems for 2007 was approved at
Marel's Board of Director's meeting today 12 February 2008. 
Marel Food Systems comprises 32 companies with operations in 22 countries. 

Presentation of results
Marel will present performance results at a meeting on Wednesday 13 February
2008 at 8:30 in the company's headquarters at Austurhraun 9 in Garðabær,
Iceland 

Publication days of the Consolidated Financial Statements in 2008 and the
Annual General Meeting 2009 

Annual General Meeting Marel Food Systems hf		7 March 2008

Publication dates of the Financial Statements for 2008:

1st quarter		6 May 2008
2nd quarter		12 August 2008
3rd quarter		4 November 2008
Annual Financial Statements and 4th quarter 2008	10 February 2009
Annual General Meeting Marel Food Systems hf	10 March 2009



For further information, contact:
Hörður Arnarson, CEO 			Tel: (+354) 563-8000

Attachments:

marel group 31 12 2007.pdf

new release q4 2007.pdf