Q3 2023 Earnings Report for Poultry Segment
marel
Key performance metrics
Management is committed to the financial targets to reach 14-16% EBIT, gross profit of 38-40% of revenues and OPEX of 24%
Earnings per share (EPS)
Trailing twelve months (TTM), euro cents
Free cash flow 1
EUR m
Leverage²
Net debt/EBITDA
13.6
12.9
|
9.1
7.8
5.4
2020
2021
2022
3Q22
3Q23
140.5
116.0
32.4
1.0x
1.0x
-18.1
-34.8
2020
2021
2022
3Q22
3Q23
3.6x
I
I
I
3.9x
3.7x
<3.5x
2020 2021
20223Q22 3Q23 Bank
leverage³
EPS expected to grow faster than revenues
•
Focus on margin expansion and overall operational
improvement and value creation, EPS TTM impacted by
higher financing costs and one-offs, e.g. restructuring
costs, Stranda Prolog insolvency, higher level of
investments and Wenger PPA
Strong cash flow on improved working capital actions taken
•
•
Free cash flow was EUR 32.4m in the quarter (2Q23:
-6.1m, 3Q22: -34.8m), positively impacted by improved
working capital and moderating capital expenditures,
despite elevated income tax payments
Marel's cash flow model remains unchanged. Strong cash
conversion in the quarter and aim to increase towards
historical cash conversion levels by year-end 2023
Focus on deleveraging towards target of 2-3x
•
Bank leverage³ per credit agreement remains below 3.5x
in the quarter (2Q23: 3.4x, 3Q22: 3.8x), strong cash flow
in the quarter had a positive effect on leverage, though
absolute EBITDA was lower in 3Q23 than 3Q22
Leverage² was 3.7x and up from 3.5x at end of second
quarter (3Q22: 3.9x)
Full focus on cash and EBITDA generation to reach
targeted capital structure of 2-3x net debt/EBITDA
Notes: 1 Free cash flow defined as cash generated from operating activities less taxes paid and net investments in PP&E and intangible assets. 2 Net debt (including lease liabilities) / Pro forma LTM adjusted EBITDA (including recent acquisitions). 3 Net debt
(excluding lease liabilities) / Pro forma LTM adjusted EBITDA (including recent acquisitions) excluding non-cash and one-off costs per Marel's credit agreement.
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