Q3 Marel provides details about financial highlights
Orders received were € 285 mill., slightly below what the company aimed for, but an increase of 7% compared with the third quarter of 2018.
Marel Poultry delivered 53% of total revenues and 17.8% EBIT in 3Q19. The Division Marel Meat delivered 33% of total revenues and 10.6% EBIT* in 3Q19.
The acquisition of Cedar Creek Company will strengthen Marel’s software offering in Oceania. While strategic partnerships with Tomra Food will bring new sensor-based sorting and processing technologies to optimize value, reduce waste and increase food safety. Finally, the company joined forces with Curio, bringing them closer to becoming a full-line provider in the global fish segment.
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 to 2026, Marel is targeting 12% average annual revenue growth through market penetration and innovation, complemented by strategic partnerships and acquisitions.
- The company’s management expects 4-6% average annual market growth in the long term. It aims to grow organically faster than the market, driven by innovation and growing market penetration.
- Maintaining solid operational performance and strong cash flow is expected to support 5-7% revenues growth on average by acquisition.
- The company’s management expects basic EPS to grow faster than revenues.
Growth is not expected to be linear but based on opportunities and economic fluctuations. Operational results may vary from quarter to quarter due to general economic developments, fluctuations in orders received and timing of deliveries of larger systems.