Strong close of a great year
„Our committed team delivered record revenues of EUR 295 million in the fourth quarter, an 18% increase in revenues compared with the same period last year. Volumes and revenues increased faster than costs, leading to robust operational results. For the full year, revenues were over EUR 1 billion with 15% EBIT. In light of the good results delivered in 2017 and robust order book, we expect strong organic revenues growth in 2018,“ Arni Oddur Thordarson, CEO said as marel introduced its last‘s year‘s outcome.
“We had a strong close of a great year. In 2017, we had record orders received of EUR 1,144 million, up 13% between years. Our business is about advancing food processing. In recent years we have also been advancing Marel. We have prioritized investments and strengthened processes to be able to deliver complex solutions to customers at the right time and quality. We have also been adding resources to cope with the increased load. Today, we are team of 5,400 dedicated members in over 30 countries.
We drive organic growth and value creation with innovation and market penetration, supported by strategic partnerships and acquisitions. In partnership with our customers, we are transforming the way food is processed. ”
Q4 2017 – Good execution led to higher volumes and EBIT
- Orders received were EUR 282m (3Q17: 296m and 4Q16: 294m).
- Revenues were EUR 295m (3Q17: 247m and 4Q16: 250m).
- EBIT* was EUR 46m (3Q17: 38m and 4Q16: EUR 35m), translating to an EBIT* margin of 15.7% (3Q17: 15.2% and 4Q16: 14.0%).
- Cash flow from operating activities before interest and tax in the quarter was EUR 65m (4Q16: 74m).
- Earnings per share (EPS) were EUR 4.81 cents in the quarter (4Q16: 3.17 cents).
Full year 2017 – Above EUR 1bn in revenues and 15% EBIT
- Orders received were EUR 1,144m in 2017 (2016: 1,013m pro forma).
- Revenues were EUR 1,038m (2016: 983m pro forma).
- EBIT* was EUR 157m, translating to an EBIT margin of 15.2% (2016: 143m pro forma and 14.6% respectively).
- The order book was EUR 472m at year-end (2016: 350m).
- Cash flow from operating activities before interest and tax over the year was EUR 236m (2016: 179m).
- Net debt/EBITDA was x1.9 at year-end (YE16: x2.3) which is fully in line with the targeted capital structure of x2-3 net debt/EBITDA. In 2017, Marel purchased EUR 63.4m worth of treasury shares and finalized the ac-quisition of Sulmaq for an amount equal to the enterprise value of EUR 26m.
- Earnings per share (EPS), trailing twelve months, were EUR 13.70 cents (2016: 10.59 cents).
The Board of Directors has proposed a dividend of EUR 4.19 cents per share for the operating year 2017, the equivalent of approximately 30% of 2017 net results. In addition, the Board of Directors has authorized management to purchase own shares for nominal value of 20 million.
Since listing on Nasdaq Iceland in 1992, Marel has with good support from shareholders delivered compounded average annual growth of over 20% and created excellent value for its stakeholders. As part of Marel’s ambitious growth strategy, the Company has decided to evaluate potential listing alternatives to further advance its global vision and drive continued shareholder returns. Marel is currently in the process of engaging an independent international advisor for this purpose.
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