Slow, steady growth for Marel

By

SeafoodSource staff

Published on
October 25, 2012

Food processing equipment company Marel is posting slow growth, with some numbers below target, but overall the company’s Q3 report shows a growth in revenues, and CEO Theo Hoen remained confident the company was heading in the right direction.

"The market in 2012 has been challenging with results in last two quarters below our target. Despite this I feel we are doing well,” Hoen said. ”We believe that demand is building up, and we have many promising projects underway which we expect will turn into orders in the near future.”

Strictly comparing this year’s Q3 to 2011, the company has dropped from EUR 169.1 million (USD 218.2 million) in revenues to EUR 164.3 (USD 212), a decrease of 2.8 percent. Orders were also down, from EUR 196.81 million (USD 254 million) to EUR 151 million (USD 194.9 million).

But the report describes orders at “acceptable” levels, and noted that tough economic conditions and higher feed prices made customers more cautious.

“The company’s position in the market is strong and the near-to long-term outlook for orders received is positive as the protein industry is expected to grow steadily in the coming years,” the report said.

The report also noted that despite the unfavorable quarter-to-quarter comparison, the bottom line is still good. Revenues so far in 2012 are actually up by 10.6 percent over last year, and the company estimates the total year’s revenues to reach EUR 700 million (USD 903.4 million), with growth around 5 to 6 percent.

“All in all, we are well on track realizing our growth agenda and I´m optimistic for the coming years,” Hoen said.

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