The fish division of food processing equipment manufacturer Marel generated lower revenue and earnings in the third quarter of this year.
Marel generated revenues of EUR 33 million (USD 39 million) in Q3, a decrease of 9.8 percent year-on-year, while its earnings before interest and taxes (EBIT) for the same period totaled EUR 2.5 million (USD 3 million), down from EUR 2.9 million (USD 3.4 million) a year previously.
Posting its third-quarter 2020 results, Marel said that the orders received in the three-month period were at a similar level to the previous quarter.
“Marel has installed reference plants with its innovation partners like Brim in Iceland, making the value chain more agile, dealing with different consumer channels for bone-free, ready-to-cook products at home and for high-end restaurant chains,” the company said.
Management continues to target medium and long-term EBIT margin expansion for Marel Fish, it said.
Marel Fish predominantly sells equipment into the salmon, wild whitefish, and farmed whitefish processing sectors. The division accounted for 12 percent of the company’s total revenues in the last quarter, while Marel Poultry and Marel Meat contributed 55 percent and 31 percent respectively.
Overall, the company’s revenues for the third-quarter amounted to EUR 287.2 million (USD 339.7 million), down from EUR 312.5 million (USD 369.6 million) in the corresponding period of last year. The EBIT fell EUR 200,000 (USD 236,543) to EUR 44.1 million (USD 52.2 million).
For the first nine months, its revenue totaled EUR 894.5 million (USD 1.1 billion) and its EBIT totaled EUR 114.5 million (USD 135.4 million).
Orders received in Q3 and in the first nine months of 2020 were on par with the respective periods of last year, Marel CEO Arni Oddur Thordarson said.
“Demand for automation and more customer channel flexibility in the poultry, meat and fish segments is building up similar to other food value chains. The speed of change is fast, driven by consumers around the world seeking ready-to-cook products as part of a balanced diet that is both safe and affordable,” Thordarson said. “Marel’s digital platforms and global reach with local presence on every continent have proven to be key differentiating factors in these challenging times.”
Marel’s Q3 report said while secular trends like population growth and urbanization have been driving the uptake of automation and digital solutions in the food value-chain, the coronavirus pandemic has been placing more focus on minimizing human intervention as a means to improve hygiene and disease, as well as traceability and trust in the food value chain.
In the period 2017-2026, Marel is targeting 12 percent average annual revenue growth through market penetration and innovation, complemented by strategic partnerships and acquisitions.
Photo courtesy of Marel Fish
