Q3 2023 Earnings Report for Poultry Segment
Financial targets and dividend policy
Marel is targeting 12% average annual revenue growth from 2017-2026 through market penetration and innovation,
complemented by strategic partnerships and acquisitions
2017-2026 targets and performance
Financial targets
Revenue
growth1
12%
Innovation
investment
~5-6% of revenues
Earnings per
share (TTM)
Leverage²
EPS to grow
faster than
revenues
Net debt/EBITDA
2-3x
20-40% of
marel
In the period 2017-2026, Marel is targeting 12% average annual revenue growth through
market penetration and innovation, complemented by strategic partnerships and acquisitions.
Maintaining solid operational performance and strong cash flow is expected to support 5-7%
revenue growth on average by acquisition.
•
Marel's management expects average annual market growth of 4-6% in the long term. Marel
aims to grow organically faster than the market, driven by innovation and growing market
penetration.
Recurring revenues to reach 50% of total revenues by YE26, including software and services.
To support new product development and ensure continued competitiveness of existing product
offering.
Adjusted EBIT 14-16%
Gross profit ~38-40%
•
OPEX 24%, made up of SG&A
~18% and innovation of ~5-6%
Focus on delivering healthy growth and
margin enhancement to reach a
sustainable 14-16% EBIT level in the
course of 2024
Marel's management targets Earnings per Share to grow faster than revenues.
The leverage ratio is targeted to be in line with the targeted capital structure of the company.
Dividend policy
net results
Dividend or share buyback targeted at 20-40% of net result. Excess capital used to stimulate
growth and value creation, as well as payment of dividends / funding share buybacks.
Notes: 1 Growth is not expected to be linear but based on opportunities and economic fluctuations. Operational results may vary from quarter to quarter due to general economic developments, fluctuations in orders received and timing of deliveries of larger systems.
2 Net debt (including lease liabilities) / Pro forma LTM adjusted EBITDA (including recent acquisitions).
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