For the full year, revenues were EUR 1.2 billion with 14.6% adjusted EBIT margin.
“Revenues for the full year 2018 were up 15%, of which 12.5% was organic growth. With one of the largest installed base worldwide and our proactive service mindset, 35% of our total revenues are recurring maintenance revenues. Adjusted EBIT was solid at 14.6% for the full year.
The orders received for the full year 2018 were solid at EUR 1,184 million, and rose marginally when compared with the robust growth in 2017. Trade constraints and geopolitical issues make timing of orders harder to predict. In such circumstances however, Marel as a product pioneer with extensive global reach, is well positioned to capitalize on the markets’ requirement to match the supply and demand of food. We still expect the underlying annual growth of the total market to be 4-6% on average and our aim is to continue to grow faster.
Our cash flow generation continues to be best in class and we continuously reinvest in innovation, global reach and infrastructure. We also complement our product portfolio and global reach with acquisitions to accelerate our journey to transform the way food is processed. Last year we acquired MAJA for the enterprise value of 35 million, acquired treasury shares and paid out dividends for close to a 100 million. Our strong operational cash flow and improvements in operating performance lead us to a leverage of x2 Net debt/EBITDA, which is at a similar level to last year despite these high investments.
The dual listing of Marel shares on an international stock exchange in addition to its listing in Iceland is proceeding well and the primary focus is now on Nasdaq Copenhagen and Euronext Amsterdam. It is important for a global leader to have a global stage to support its ambitious growth plan, and drive fair day-to-day trading and continued shareholder returns.”
The review of alternative listing options for Marel remains firmly on track. Marel believes that a dual listing of shares on an international stock exchange, in addition to its current listing in Nasdaq Iceland, is the optimal way to align the interests of current and future shareholders. Initially, three locations were considered as listing locations. The selection has now been narrowed to two; Euronext Amsterdam and Nasdaq Copenhagen. Next step in the process is to finalize the listing location by the 2019 AGM.
In June 2018, Marel announced an organizational change where the Commercial function was split into two new functions, Service and Global Markets and new appointments were made to Marel’s Executive Team. This new structure will allow for closer proximity to customers and better scalability to support Marel’s ambitious growth strategy going forward.
The acquisition of MAJA, the German food processing equipment manufacturer, was announced on 25 July 2018. The MAJA transaction was closed on 14 August 2018 and the results of MAJA have been included in the Consolidated Financial Statements from that date. In accordance with IFRS requirements, Marel performs a Purchase Price Allocation (PPA). Based on information currently available, a provisional goodwill amount of EUR 0.7m is reported in the 2018 financial statements. This amount will be adjusted based on the final outcome of the PPA-process.
In October, Marel announced the completion of its first issue in the Schuldschein market. This new financing adds further diversification to our long term funding structure, providing additional operational flexibility to support our growth strategy and continued value creation. The issue was oversubscribed and was subsequently raised to EUR 140 million. The vast majority was placed in the 5-year tranche priced at 110 basis points over EURIBOR, and the 7-year tranche was priced at 130 basis points over EURIBOR.
The ratio of orders received to revenues booked off, an indication of how quickly a business fulfills the demand for its product
Capital expenditure; money spent to buy, maintain, or improve fixed assets
Current assets/Current liabilities
Earnings before interest and tax
Earnings before interest, tax, depreciation and amortization
Earnings per share
Total equity/[Total equity + Total Liabilities]
Net interest bearing debt/ Last twelve months EBITDA
Interest bearing borrowings (current & non-current) - Cash & cash equivalents
Cash and cash equivalents
Accumulated net order intake, where revenue is booked off orders
When full responsibility to maintain an order is assumed, the order is formally registered in the system
Purchase price allocation
[Current assets - Inventories]/Current liabilities
Return on total equity
Result for the period/Average of total equity ([beginning balance + ending balance for the period]/2)
Return on total assets
Result for the period/Average of total assets ([beginning balance + ending balance for the period]/2)