Q3 2023 Earnings Report for Poultry Segment
Cash flow bridge
Strong cash flow and improved working capital
•
Operating cash flow was EUR 62.4m in the quarter
(2Q23: 27.1m, 3Q22: 1.0m), improving EUR 61.4m
YoY as result of focused efforts on working capital
management including rebalancing of inventory
Cash CAPEX excluding R&D investments in 3Q23
were EUR 11.4m (2Q23: 15.4m, 3Q22: 19.3m), or
2.8% of revenues in the quarter
Free cash flow was EUR 32.4m in 3Q23 (2Q23:
-6.1m, 3Q22: -34.8m), positively impacted by
improved working capital and moderating capital
expenditures, despite elevated income tax payments
Net interest paid elevated due to increase in base
rates in the quarter as well as initial costs for the new
EUR 150m term loan, bank leverage³ remains below
3.5x
Cash flow
EUR m
27.6
•
Marel's strong cash flow model remains unchanged
and aim to increase towards historical cash
conversion levels by year-end 2023
24.2
EBIT
Non cash
items
10.6
62.4
Changes
in working
capital
Cash from
operating
activities bef.
int. & tax
-13.6
-16.4
32.4
-17.1
marel
-11.8
3.5
Taxes paid
Investing
activities
Free cash
flow1
Net interest Other items 2
paid
Decrease
in net debt
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 Currency effect, change in capitalized finance charges and movement in lease liabilities. 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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