Revenues of EUR 413m and 7.9% EBIT, further build up of order book needed to improve operational performance
1Result from operations and EBITDA adjusted for PPA related costs, including depreciation and amortization, acquisition related expenses and restructuring costs. In Q4 2023 and Q1 2024, result from operations is also adjusted for one-off write-offs related to product portfolio rationalization.
2Net debt (excluding lease liabilities) / Pro forma LTM adjusted EBITDA (including recent acquisitions) excluding non-cash and one-off costs per Marel's credit agreement.
Latest financial results
Q1 2024 key figures
Revenues of EUR 413m and 7.9% EBIT, further build up of order book needed to improve operational performance
412.6m
Revenues in EUR
32.8m
Adjusted EBIT in EUR
392.8m
Orders received in EUR
560.3m
Order book in EUR
“The first quarter results were soft, as indicated in the Q4 2023 results, with EUR 413 million in revenues and an 7.9% EBIT margin. We continue to perform well in the aftermarket reaching EUR 800 million in trailing twelve months revenues, while project revenues have declined materially in line with the soft project orders received and weaker order book.
We have been taking decisive cost actions with increased cost discipline to manage through the cycle and improving working capital management. It is, however, clear that further build up of the order book is needed to improve operational performance.
There is continued short-term uncertainty evidenced by the lower-than-expected projects orders received in the quarter. However, we do see signs of improving market fundamentals and customers’ sentiment with lower feed prices, better pricing and positive tone from our customers at key trade shows over the quarter providing us with an optimistic view on the market in the second half this year.
A significant milestone was reached in April when we signed a transaction agreement with JBT. Looking ahead to the potential combination, there are exciting opportunities to accelerate progress on our strategic journey and have a meaningful impact on our industry towards more sustainable food systems. We continue to work closely with JBT ahead of the targeted offer launch later this month.
I want to thank the dedicated and talented global team at Marel navigating this changing landscape, and together we are fully committed to our vision to transform food processing and deliver on our potential.“
Market conditions remain challenging resulting in elevated uncertainty. Headwinds expected to moderate in coming quarters, supported by positive signs in the market.
Labor scarcity and continued wage inflation, coupled with favorable secular trends, focused on automation, robotics technology and digital solutions that support sustainable food processing, will continue to support Marel’s organic growth outlook.
The challenging market conditions have resulted in a decline of the order book in 2023 and 1Q24, orders received and revenues expected to build up in 2H24.
To deliver revenue growth and improved operational performance in the future, build up of the order book is needed.
Marel will publish its financial results according to the below financial calendar:
Financial results will be disclosed and published after market closing of both Nasdaq Iceland and Euronext Amsterdam.
Marel regularly participates in exhibitions around the world where it showcases the company’s innovative solutions. In addition, Marel hosts its own trade shows and KnowHows in the company’s demonstration facilities. Here are some of Marel’s upcoming events in 2024:
On Wednesday 8 May 2024, at 10:30 am CET (8:30 am GMT), Marel will host a virtual investor meeting where CEO Arni Sigurdsson and CFO Sebastiaan Boelen will give an overview of the financial results and operational highlights in the first quarter 2024.
Please note that the investor meeting is virtual only.
The investor meeting will be streamed live via Zoom and a recording will be made available after the meeting on the Investor relations section.
Webcast registrationContact IR
For further information, please contact Marel Investor Relations via email IR@marel.com or tel. (+354) 563 8001
Tinna Molphy
Marino Thor Jakobsson
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