Q3 2023 Earnings Report for Poultry Segment slide image

Q3 2023 Earnings Report for Poultry Segment

marel Plant, Pet and Feed Orders received driven by pet food in 3Q23, outlook and pipeline remains solid. FY23 expectation of historical 14-15% EBIT based on strong deliveries and favorable mix in 4Q23 12% of total revenues Revenues and EBIT1 EUR m, % 55.9 Revenues EBIT1 EUR 47.8m EUR 6.2m -14.5% YoY 13.0% of revenues 65.9 54.6 54.9 47.8 15.7% 14.7% 13.9% 13.0% 10.6% 2Q23 3Q23 3Q22 4Q22 1Q23 Revenues (EUR m) EBIT (%) Orders received for Marel Plant, Pet and Feed (PPF) were driven by strong project orders in pet food, concentrated in North and Latin America, and aftermarket continued on a strong note. Outlook and pipeline remains solid in pet food while softer in plant-based solutions and aqua feed. Wenger has a strong foothold in the North and Latin American market and strong recurring revenues from aftermarket services. Management is focusing on proactive aftermarket services and the further cross- and upselling of Marel's complementary product offering into plant, pet and feed. Revenues in 3Q23 were EUR 47.8m (2Q23: 54.9m, 3Q22: 55.9m) lower than expectation due to timing of shipments and a parts availability issue expected to resolve in 4Q23. EBIT margin in 3Q23 of 13.0% (2Q23: 10.6%, 3Q22: 15.7%), impacted by timing of orders. Management is targeting EBIT margin expansion for the Plant, Pet and Feed segment through higher mix of aftermarket, cross-selling and improved profitability. Operational performance for FY23 expected to be in line with historical performance of 14-15% EBIT based on strong deliveries and favorable mix in 4Q23. 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. 15
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