Q3 2023 Earnings Report for Poultry Segment
marel
The road to sustained 14-16% EBIT
Transformative investments and firm actions to strengthen Marel to support growth and return to best-in-class profitability
reaching a sustainable 14-16% EBIT level in the course of 2024
#1
Gross profit
margin
improvement
#2
OPEX
improvement
#3
Further
actions and
market
environment
Actions in execution to expand gross
profit include:
Continued price/cost discipline
Higher mix of standard equipment
Growing aftermarket revenues by
further installed base penetration
Balancing load based on order book
level by reducing flexible layer in
supply chain and engineering
•
Improved portfolio and product
lifecycle management
Actions in execution to reduce OPEX
include:
•
Clear prioritization and execution of
internal improvement projects to
ensure focus
Reaping the benefits of prior
investment in digitalization, resulting
in reduction of headcount
Stronger cost management of
consultancy, travel, and marketing
activities in line with new ways of
working accelerated by the
pandemic
•
Further actions to be realized include:
Streamlining the backend in terms
of location footprint and warehouses
Procurement savings as a result of
ongoing negotiation campaigns
•
Stainless steel
Components
Volume
Wage inflation
and materials
Footprint optimization
Logistics
EBIT¹ development affected by
volume in 3Q23
7.2
-13.4
2.9%
8.7
-5.4%
3.5%
33.8
36.3
8.0%
9.0%
EBIT1
2Q23
Price
OPEX
and mix
Lower
Volume
EBIT1
3Q23
1
Notes: Operating income adjusted for PPA related costs, including depreciation and amortization, and acquisition related expenses. In Q3 2022, Q4 2022, Q2 2023 and Q3 2023, operating income is adjusted for restructuring costs.
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