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Q1 2016: Pro forma financial results
All amounts in EUR:
- Revenue for Q1 2016 totaled 233.9m [Q1 2015: 244.1m of which discontinued operations were 6m].
- EBIT* was 35.2m or 15.1% of revenue for Q1 2016 [Q1 2015: Adj. EBIT** 35.2m or 14.4%].
- The order book was at 339.9m at the end of the Q1 2016 [Q1 2015: 289.3m].
Pro forma financial results include MPS for the full quarter. Pro forma Q1 2016 is compared to pro forma Q1 2015 to show more representative future indicator than the consolidated accounts.
Order intake was robust and was on pro forma basis 254 million in the quarter. The order intake is well balanced both geographically and between product groups.
Large Greenfields were secured in India, U.S., Brazil and Europe during the quarter. Cash flow and operational performance was strong and net debt/EBITDA is 2.9x at the end of the quarter, which is within the range of the targeted capital structure.
The year began on a good note for Marel with the operations of MPS positively impacting on profitability and performance. Pro forma revenue was 234 million with EBIT of 15%.
Taking into account the order book and delivery time of projects to customers, increase is foreseen in revenue over the course of the year.
Management reaffirms guidance of modest organic revenue growth and increase in EBIT* between years compared with last year pro forma result of 977 million revenues and adjusted EBIT of 133 million.
Q1 2016: Consolidated financial results
All amounts in EUR:
- Revenue for Q1 2016 totaled 220.6m [Q1 2015: 209.3m].
- EBITDA for Q1 2016 was 38.2m or 17.3% of revenue [Q1 2015: Adj. EBITDA** 36.9m or 17.6%].
- Net result for Q1 2016 was 13.8m [Q1 2015: 12.6m]. Earnings per share were 1.93 euro cents in Q1 2016 [Q1 2015: 1.73 euro cents].
- Cash flow from operating activities before interest and tax in Q1 2016 was 27.9m [Q1 2015: 39.5m].
- The order book was at 339.9m at the end of the quarter compared with 178.0m at the end of Q1 2015 [Q4 2015: 180.9m].
Marel’s consolidated accounts include MPS for two months and are compared to Q1 2015 Marel stand alone.
Árni Oddur Thórdarson, CEO:
“The year 2016 has kicked off well. I would like to welcome the MPS team on board. Our first steps as a united team are promising.
“We have maintained the momentum with excellent orders received in the quarter of 254 million, our operational results are strong with a pro forma EBIT of 15% and we enter the future with a record order book of 340 million.
“We can already see the positive effect that MPS is having on our operations. We are now a full line provider of solutions and services in Poultry, Meat and Fish. Marel Meat is now accounting for 33% of total revenue with best in class profitability.
“Taking into account the order book and the upcoming delivery time of projects to customers, we foresee an increase in revenues over the course of the year.
“We reaffirm our guidance of modest organic revenue growth and increase in operational results between years compared with the 2015 pro forma result of 977 million in revenue and adjusted EBIT of 133 million.”
MPS is part of Marel’s official consolidated financial accounts since January 29, 2016. Integration of the two companies is on track. Marel provides pro forma financial results to help investors make comparisons of Marel’s operating results from one financial period to another.
Pro forma results are considered a better future indicator than consolidated accounts and give better reflection of the underlying business performance.
* Operating income adjusted for amortization of acquisition-related intangible assets (PPA).
** Adjusted for refocusing cost related to the refocusing program Simpler, Smarter, Faster.
Forward-looking statements
Statements in this press release that are not based on historical facts are forward-looking statements. Although such statements are based on management’s current estimates and expectations, forward-looking statements are inherently uncertain.
We, therefore, caution the reader that there are a variety of factors that could cause business conditions and results to differ materially from what is contained in our forward-looking statements, and that we do not undertake to update any forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement.