ICELAND, Garðabær. The company reports another solid quarter with high revenues for a seasonal quarter, at € 313 mill. revenues and EBIT increased by 11% compared with the same quarter last year with a stable EBIT margin at 14.2%. Recurring service and spare parts revenues are 37% of total revenues, an all-time high. Cash flow is healthy and earnings per share increased by 11% compared to prior year.
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.
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.