Q3 2023 Earnings Report for Poultry Segment
marel
Fish
Softness in orders currently impacted by tax discussions and shift in consumer preferences, right sizing and operational
improvement actions are supporting margin expansion QoQ
11%
of total
revenues
Revenues and EBIT1
EUR m, %
Revenues
EUR 43.9m
+0.7% YoY
EBIT1
EUR 0.4m
0.9% of revenues
52.3
50.4
47.4
43.9
43.6
1.5%
0.9%
-5.5%
3Q22
4Q22
-7.4%
1Q23
-5.6%
2Q23
3Q23
Revenues (EUR m)
EBIT (%)
Orders received for Marel Fish in the quarter were on a soft note. Demand for salmon-
related solutions across Norway continued to be impacted by resource taxes, clarity
expected in the coming period. Demand in the value chain for whitefish is impacted by
inflation and consumers' shift to cheaper proteins in the current market environment.
Outlook for orders received and pipeline is improving and expected to pick up, although
timing of pipeline conversion to orders remains uncertain. Global harvested salmon volume
is on a growth path in 2024 creating a need for more processing capacity. Salmon is still
the most sought-after fresh fish in retail, both in the US and Europe and processors are
shifting investments towards more value-added products. Expectation for harvested
volume in whitefish to decrease in 2024 due to potential lower quota. Whitefish processors
to focus on operational excellence, further automation and value-added products.
Revenues in 3Q23 for Marel Fish were EUR 43.9m, down 12.9% QoQ and flat YoY
(2Q23: 50.4m, 3Q22: 43.6m).
EBIT margin in 3Q23 improved to 0.9% in the quarter on a EUR 6.5m lower revenue
base compared to 2Q23. Profitability positively impacted by actions enacted resulting in
lower operational costs. Operational performance continues to be impacted by low margin
projects from acquisitions progressing towards final stages with associated one-off
expenses.
Management continues to target EBIT margin expansion for the Fish segment, based on
right sizing actions already enacted, continued focus on operational efficiency and
optimization of manufacturing footprint.
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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