Q3 2023 Earnings Report for Poultry Segment
marel
Poultry
Improvement in orders received and pipeline building up, outlook is promising though operational performance colored by
level of project orders received in previous quarters
50%
of total
revenues
Revenues and EBIT1
Revenues
EUR 203.3m
EBIT1
EUR 28.9m
-3.8% YoY
14.2% of revenues
EUR m, %
236.4
227.8
211.3
204.1
203.3
16.5%
16.5%
15.4%
15.5%
14.2%
3Q22
4Q22
1Q23
2Q23
3Q23
Revenues (EUR m)
-
EBIT (%)
Orders received for Marel Poultry improved QoQ with strong project orders secured from
Turkey, France and the US in the quarter. In Turkey, Marel and Beypilic are expanding
their partnership where Marel will design and deliver a new greenfield spanning 60,000 m2
with two 15,000bph poultry production lines, and two lines dedicated to prepared food
products such as nuggets and schnitzel. The entire facility will be fully integrated with
Innova software to optimize performance and enhance productivity at every stage of the
process.
Outlook is improving on the back of lower input costs and improved profitability for poultry
processors, market environment expected to normalize in coming quarters. Larger project
opportunities are moving higher up the pipeline in terms of probability and 4Q23 has
started off on a stronger note than previous quarters with an agreement for one of the
largest greenfield orders in the poultry segment.
Revenues in 3Q23 for Marel Poultry were stable at EUR 203.3m influenced by level of
project orders received in previous quarters. Aftermarket continues to perform well with
YoY growth spare parts and Service Level Agreements (SLAs).
EBIT1 margin in the quarter was 14.2% (2Q23: 15.5%, 3Q22: 16.5%), movement QoQ
due to costs associated with ramping up new infrastructure in the quarter.
Management targets short-term EBIT margin expansion for the Poultry segment. Demand
outlook for larger projects is improving and Marel Poultry's competitive position and
pipeline remains strong. Based on the large installed base in the poultry industry, Marel
sees further growth opportunities for aftermarket services and SLA sales.
Notes: All financial numbers relate to the Condensed Consolidated Interim Financial Statements Q3 2023. 1 Operating income adjusted for PPA related costs, including depreciation and amortization, and acquisition related expenses as of Q4 2020. In Q3 2022, Q4
2022, Q2 2023 and Q3 2023, operating income is adjusted for restructuring costs.
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