Q3 2023 Earnings Report for Poultry Segment
marel
Meat
Challenging market conditions continue, soft orders in 9M 23. Ongoing actions to increase commercial activity, with focused
portfolio management, and lower the cost base
26%
of total
revenues
Revenues and EBIT1
EUR m, %
131.1
Revenues
EUR 103.9m
-20.7% YoY
EBIT1
EUR 1.3m
1.3% of revenues
133.6
111.6
108.4
103.9
Orders received for Marel Meat in the quarter were soft. North America continues to drive
orders, beef is outperforming pork, and there is more activity within consumer-ready
products in secondary processing than primary processing.
Challenging market conditions continue, though there are bright spots of opportunities on
the horizon. High input costs for our customers are showing signs of moderating. Capacity
rationalization expected to continue, which with wage inflation and labor scarcity, leads to
opportunities for automation investments with focus on key value-added solutions in
secondary processing.
Supply and demand in pork is rebalancing after a period of oversupply, leading to rising
prices of pork and improving profitability of processors from historically low levels. Beef
volume expected to be stable or decline leading to investments in consumer-ready
products, fresh and prepared.
Revenues in 3Q23 were soft for Marel Meat at EUR 103.9m (2Q23: 108.4m, 3Q22: 131.1),
due to lower volumes across projects, standard equipment and aftermarket.
EBIT1 margin in 3Q23 of 1.3% (2Q23: 0.3%, 3Q22: 2.8%), due to a soft order book and low
project revenues, though partly offset by improving project margins and strong cost
management.
8.2%
2.8%
1.3%
0.7%
0.3%
Management continues to target EBIT margin expansion for Marel Meat. Actions ongoing to
drive commercial activity with a focused portfolio of value-added solutions and lower the
cost base.
3Q22
4Q22
1Q23
2Q23
3Q23
Revenues (EUR m)
EBIT (%)
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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