Marel Q2 2019: On track with solid sales
Markets continue to remain strong with some shifts in demand between markets within the industries and geographies. A higher proportion of new orders are coming from markets outside of Europe and North America. These are markets where it is more difficult to estimate the timing of fully financially secured orders compared to established markets. Orders received from Asia in particular China continue to be on the rise. Orders received in the second quarter were €311.2 mill., down 3.7% QoQ and up 6.9% compared to second quarter of 2018. The book-to-bill ratio was 0.95 in 2Q19 compared to 0.99 in 1Q19.
The impact of African Swine Fever (ASF) is severe on the overall pork industry and pork supply, however accelerates further new investments with a focus on automation and traceability in China which Marel can support. ASF is also leading to further imports and investments in the poultry industry serving the Chinese market. With Marel´s proprietary software platform Innova our customers have full traceability from live animal intake to the finished product dispatch.
Marel Poultry continues to be the largest driver with 17.9% revenue growth YoY and EBIT of 20.2% in 2Q19. Marel Meat revenues were up 10.5% YoY and 11.2% EBIT. Marel Fish revenues are down by 21.3% with low EBIT of 2.3%, mainly due to soft orders received in 2H 2018 and change in mix in orders, leading to a delay in revenue and profit recognition.
Market conditions have been exceptionally favorable in recent years but are currently more challenging in light of geopolitical uncertainty. Marel enjoys a balanced exposure to global economies and local markets through its global reach, innovative product portfolio and diversified business mix.
In the period 2017-2026, Marel is targeting 12% average annual revenue growth through market penetration and innovation, complemented by strategic partnerships and acquisitions.