Marel CEO Theo Hoen reveals the company's impressive results. (Photo: Marel)
Q2 results growing and sustainable: Marel CEO
Friday, July 30, 2010, 15:20 (GMT + 9)
Food processing equipment provider Marel announced that it achieved its long-term target of 10-12 per cent return on sales for the second consecutive quarter. The firm’s equipment order book expanded for the sixth quarter in a row, the company said when it unveiled its results on Thursday.
“We believe that this level of performance is sustainable and can serve as a baseline for further growth moving forward,” explained CEO Theo Hoen.
Iceland-based Marel saw a 26.9 per cent growth in revenues from core business of EUR 136.1 million compared to Q2 2009. EBIT was EUR 15.1 million at 11.1 per cent of sales, compared to EUR 6.5 million at 6.1 per cent of sales during the same period last year.
|Fish Flowline. (Photo: Marel)
EBITDA was EUR 21.1 million at 15.5 per cent of sales versus EUR 12.1 million at 11.4 per cent of sales for Q2 last year. The order book jumped from EUR 112 million to EUR 125 million during the quarter.
“Our challenge now is to reinforce the company’s position as market leader and, at the same time, to increase profitability. The underlying demand in the food industry is rising and automation is increasing at a robust rate in developing countries such as China,” Hoen stated.
The positive results from continued investment in product development during the global economic recession are beginning to show and collaboration from the group’s different divisions has started to add to its profitability, he said.
“I feel that we are well on our way to creating a healthy and sustainable company that will play a major role in the protein industry for many years to come,” the CEO added.
Marel expects its Q3 results to be marked by the summer holiday period, known for a lower level of business activity.
The company said that the order book continues to enlarge due to enhanced market conditions and was EUR 125.3 million at the end of Q2, compared to EUR 76.1 million in Q2 2009.
Marel focuses on the fish, meat, poultry and further processing industry segments.
Tish industry prospects remain favourable, the firm said, particularly in the salmon and aquaculture segments.
Now that it has added the Townsend Further Processing range to the product portfolio for the fish industry, Marel’s offering now covers “virtually the entire value chain.”
“In other areas, the growing trend toward sustainably sourced seafood is already generating a lot of opportunities and is expected to have even more impact in the future,” the company stated.
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Photo Courtesy of FIS Member Marel - Group Headquarters