Growth for Marel in Challenging Market06 February 2013
ICELAND - Meat and food industry equipment manufacturer Marel has seen revenues for 2012 reach €714.0 million, an increase of 6.8 per cent compared to the year before when they were €668.4 million.
EBITDA was €86.0 million or 12.0 per cent of revenues compared to €87.0 million in 2011.
Operating profit was €61.1 million or 8.6 per cent of revenues compared with €62.2 million in 2011.
Net result for 2012 was €35.6 million compared to €34.5 million in 2011. The order book was at €125.4 million at the end of the year compared to €188.9 million in 2011.
Playing on its strengths by reaping the benefits of integration and a global network of sales and service, Marel said it showed solid revenue growth of 6.8 per cent.
Marel's core business has grown organically by 29 per cent in the last four years, a period which has been economically challenging.
Revenues for the year are in line with the Company's expectations with EBIT margin of 8.6 per cent, below the long-term target of 10-12 per cent.
Last year was challenging in Europe and USA with delays in high margin standard equipment whereas sales of large projects in new markets continued to grow. Large greenfield projects are expected to generate future revenues in the form of standard equipment and service related revenues.
Theo Hoen, CEO said: "A healthy 6.8 per cent growth in a challenging market is an achievement. In the last four years we have grown immensely. We have introduced a steady pipeline of new products, strengthened our sales and service network, and at the same time we have merged several companies into one.
"Last year we saw strong growth in our fish segment and in fourth quarter we saw signs of a turn-around in the meat industry. We maintained our position as market leader in further processing, and the poultry segment remained the backbone of our revenue base with returns above target.
"We expect moderate growth in 2013, assuming recovery in our established markets in the second half of the year, in particular in USA which has been in downturn for over two years. Looking further into the future, we believe that our innovative products and standardization of solutions and service in all our industries will secure strong organic growth. With increased sales of standard solutions and focus on operational excellence we expect to be back on track with 10-12 per cent EBIT in the second half of 2013."
He added: "The Company's revenue base remains strong and can generally be divided into three approximately equal components: 1) the sale of large systems, often for greenfield projects, 2) the sale of stand-alone equipment and smaller standardized systems, and 3) service and spare parts. However, last year large projects generated around 40 per cent of revenues, whereas standard solutions accounted for less than 25 per cent, lagging behind the previous two years, resulting in lower gross profit in 2012.
"Marel's poultry industry sector still accounts for over 50 per cent of the Company's revenues; however, there are signs that other segments may grow faster in the coming years."
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