Q3 2023 Earnings Report for Poultry Segment
marel
Financial highlights
Strong cash generation and price/cost improving, EBIT of 9%
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Continued strong aftermarket revenues at EUR 196.2m,
lower total volume of EUR 403.6m revenues due to level
of project orders received in past quarters
Soft orders received of EUR 390.8m in 3Q23, outlook
improving and pipeline is strong, 4Q23 started on a
good note with an agreement for one of the largest
greenfield orders in the poultry segment
Gross profit margin at 35.6% in the quarter (2Q23:
35.1%, 3Q22: 36.0%), with price/cost ratio and mix
improving offset by lower project revenues
Right sizing actions across divisions and functions
executed in 3Q23 resulted in EUR 1.5m in one-off
severance costs accounted and adjusted for in the
quarter (2Q23: EUR 3.9m)
EBIT1 of 9.0% on a lower revenue base achieved with
improved price/cost ratio, mix and lower OPEX
Strong cash generation, operating cash flow of EUR
62.4m and free cash flow of EUR 32.4m in 3Q23 with
normalized CAPEX and improvements in working capital
Bank leverage³ per credit agreement below 3.5x in the
quarter (2Q23: 3.4x, 3Q22: 3.8x), strong cash flow in the
quarter had a positive effect on leverage, though
absolute EBITDA was lower in 3Q23 than 3Q22
Leverage was 3.7x and up from 3.5x at end of second
quarter (3Q22: 3.9x)
Revenues
EUR m
Orders received
EUR m
Order book
EUR m
489
427
751
413
451
447
407 391
675
422
404
363
590 575 562
3Q22 4Q22 1Q23 2Q23 3Q23
3Q22 4Q22 1Q23 2Q23 3Q23
3Q22 4Q22 1Q23 2Q23 3Q23
EBIT¹ margin
%
12.4
10.3
9.0
9.0
8.0
Leverage4
Free cash flow 2
EUR m
Net debt/EBITDA
32.4
3.9x
3.6x 3.5x 3.5x
3.7x <3.5x
10.0
-0.3 -6.1
-34.8
3Q22 4Q22 1Q23 2Q23 3Q23
3Q22 4Q22 1Q23 2Q23 3Q23
3Q22 4Q22 1Q23 2Q23 3Q23 Bank
leverage³
Notes: 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. 2 Free cash flow
defined as cash generated from operating activities less taxes paid and net investments in PP&E and intangible assets. 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. 4 Net debt (including lease liabilities) / Pro forma LTM adjusted EBITDA (including recent acquisitions).
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