Q3 2023 Earnings Report for Poultry Segment slide image

Q3 2023 Earnings Report for Poultry Segment

EBIT 36.3 million, 9% of revenues Good progress in optimization efforts resulting in EUR 7.2m lower OPEX QoQ and EUR 8.6m YoY Operational performance in 3Q23 improving QoQ on a lower revenue base with price/cost ratio, mix and operating expenses moving in the right direction Adjusted EBIT evolution1 EUR m Gross profit margin was 35.6% in the quarter (2Q23: 35.1%, 3Q22: 36.0%), with price/cost ratio and mix improving offset by lower project revenues • Continued focus optimization efforts, OPEX was 26.6% (2Q23: 27.1%, 3Q22: 25.7%), against a target of 24% consisting of SG&A of ~18% and innovation of ~5-6% S&M 13.5% of revenues in 3Q23 (2Q23: 13.4%, 3Q22: 12.6%), and down EUR 2.1m QoQ and EUR 2.7m YoY in absolute terms G&A 7.1% of revenues in the quarter (2Q23: 7.5%, 3Q22: 7.1%) and down EUR 2.9m QoQ and EUR 3.6m YoY in absolute terms 15.2% 14.6% 70 60 50 40 40 I marel 13.5% 13.5% % margin TTM 11.3% Adjusted EBIT 9.6% % margin 16% 14% L 12% 10% 8% R&D 6.0% in the quarter (2Q23: 6.3%, 3Q22: 5.9%), and EUR 2.2m lower QoQ and EUR 2.3m YoY in absolute terms EBIT1 improved QoQ to EUR 36.3m in absolute terms (2Q23: 33.8m, 3Q22: 46.2m), translating to a sequentially higher EBIT margin of 9.0% (2Q23: 8.0%, 3Q22: 10.3%) Improved market outlook supports volume increase, filtering through of pricing and easing in supply chain and logistics supports price/cost ratio and gross profit increase, while optimization and operational improvement actions support a sustainable lower cost base towards the 14-16% EBIT level 30 30 20 T T 6% 4% 10 2% 0 0% 2017 2018 2019 2020 2021 2022 2023 Notes: 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. 5
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