Sales for the first six months of 2005 totalled EUR 63.8 million (ISK 5.1 billion), which is an increase of about 13.3% from the previous year.
PRESS RELEASE
Sales for the first six months of 2005 totalled EUR 63.8 million (ISK 5.1 billion), which is an increase of about 13.3% from the previous year.
Profit from operations EBIT for the first half of 2005 was EUR 6.3 million, which is 9.9% of sales revenue. Net profit for the period was EUR 3.9 million, compared with EUR 4.3 million in 2004
Profit from operations EBIT during the second quarter was EUR 3.3 million (ISK 262 million), compared with EUR 4.1 million (ISK 355 million) last year. The profit from operations EBIT during the second quarter 2005 is the next highest in the company’s history.
Net profit per share was 1.67 euro cent, compared with 1.83 euro cent the previous year.
The order book at the end of June 2005 was about EUR 21 million, compared with EUR 18 million at the end of June 2004.
Accounting policies are now fully compliant with IFRS, International Financial Reporting Standards. Comparative figures from previous years have been adjusted to conform to the changes.
The financial statements for the Marel Group for the first half of 2005 were approved at Marel hf.’s Board of Directors meeting today, 9 August 2005.
The Marel Group comprises 16 companies with operations in 11 countries. The newest company, Marel Russland, began operations in the 2nd quarter of 2005.
The following are the main results from the consolidated financial statements for Marel:
| Operations 2nd quarter in thousands of euros |
| |
|
|
| Operating results |
2005 |
2004 |
|
Sales |
33,910 |
31,286 |
|
Cost of sales |
(22,329) |
(19,485) |
|
Gross profit |
11,581 |
11,801 |
| |
|
|
|
Other operating income |
327 |
163 |
|
Sales and marketing expenses |
(4,126) |
(3,710) |
|
Development expenses |
(1,613) |
(1,557) |
|
Administrative expenses |
(2,915) |
(2,621) |
| |
|
|
|
Profit from operations EBIT |
3,254 |
4,076 |
|
Finance costs - net |
(413) |
(428) |
|
Profit before tax |
2,841 |
3,648 |
|
Tax expense |
(737) |
(832) |
|
Net profit |
2,104 |
2,816 |
| |
|
|
|
EBITDA |
4,469 |
5,185 |
| |
|
|
|
Percent of sales |
|
|
|
Gross profit |
34.2% |
37.7% |
|
Sales and marketing expenses |
12.2% |
11.9% |
|
Development expenses |
4.8% |
5.0% |
|
Administrative costs |
8.6% |
8.4% |
|
EBITDA |
13.2% |
16.6% |
|
EBIT |
9.6% |
13.0% |
|
Net profit |
6.2% |
9.0% |
| |
|
|
| |
|
|
| |
|
|
| Operations 1st half of year in thousands of euros |
| |
|
|
| Operating results |
2005 |
2004 |
|
Sales |
63,838 |
56,358 |
|
Cost of sales |
(41,738) |
(35,323) |
|
Gross profit |
22,100 |
21,035 |
| |
|
|
|
Other operating income |
457 |
325 |
|
Sales and marketing expenses |
(7,804) |
(7,230) |
|
Development expenses |
(3,307) |
(3,106) |
|
Administrative expenses |
(5,136) |
(4,639) |
| |
|
|
|
Profit before operations EBIT |
6,310 |
6,385 |
|
Finance costs - net |
(1,285) |
(805) |
|
Profit before tax |
5,025 |
5,580 |
|
Tax expense |
(1,120) |
(1,248) |
|
Net profit |
3,905 |
4,332 |
| |
|
|
|
EBITDA |
8,649 |
8,587 |
| |
|
|
|
Percent of sales |
|
|
|
Gross profit |
34.6% |
37.3% |
|
Sales and marketing expenses |
12.2% |
12.8% |
|
Development expenses |
5.2% |
5.5% |
|
Administrative expenses |
8.0% |
8.2% |
|
EBITDA |
13.5% |
15.2% |
|
EBIT |
9.9% |
11.3% |
|
Net profit |
6.1% |
7.7% |
| |
|
|
|
Financial position at end of period |
30.06.’05 |
31.12.’04 |
|
Total assets |
104,774 |
95,482 |
|
Equity |
37,048 |
33,263 |
|
Working capital |
18,028 |
19,807 |
| |
|
|
| Cash flow first half of year |
2005 |
2004 |
|
Cash generated from operations |
2,712 |
6,152 |
|
(Decrease)/increase in net cash |
(125) |
1.563 |
|
Net cash at end of period |
3,990 |
6,278 |
| |
|
|
|
Highlights at end of June |
2005 |
2004 |
|
Return on owner’s equity |
23.5% |
31.1% |
|
Current ratio |
1.5 |
1.6 |
|
Quick ratio |
0.6 |
0.8 |
|
Equity ratio |
35.4% |
34.1% |
|
Earnings per share in euro cent |
1.67 |
1.83 |
|
Market cap. in millions of euros
based on exchange rate at end of June |
179.2 |
132.4 |
|
|
|
|
Sales in the first six months of 2005 totalled EUR 63.8 million (ISK 5.1 billion), compared with EUR 56.4 million (ISK 4.9 billion) the previous year. Sales have therefore increased by 13,3%. On a fixed exchange rate between the years, sales have increased by about 15%.
The gross margin for the period was EUR 22.1 million, or 34.6% of sales, compared with EUR 21.0 million or 37.3% of sales the year before. This proportional decrease was foreseeable and is primarily attributed to an unfavourable exchange rate. Income in Icelandic krona was about 2% of the Group’s total sales, while expenses were about 22%, chiefly employee wages in Iceland. The krona has strengthened by about 9% against the Euro from the average during the first six months of 2004 to the same period in 2005.
Operating expenses other than cost of sales totalled EUR 16.2 million, which was 25.5% of sales compared with 26.6% the year before. Sales and marketing expenses were EUR 7.8 million, which is about 7.9% more than the previous year. Development expenses, including depreciation of product development expenses from previous years, were about EUR 3.3 million, an increase of about 6.5%. The primary emphasis in sales and marketing, as well as in product development, has been to improve productivity and synergy, and to increase integration within the Marel Group. Administrative costs were EUR 5.1 million, compared with 4.6 million the year before, an increase of about10.7%.
Profit from operations was EUR 6.3 million, or 9.9% of sales, compared with 11.3% in 2004.
Net finance costs totalled EUR 1.3 million, compared with EUR 0.8 million the previous year. The increase is in particular the result of currency exchange losses during the first quarter of 2005.
Net profit of the Marel Group for the first half of 2005 totalled EUR 3.9 million (ISK 314 million), compared with EUR 4.3 million (ISK 378 million) the previous year. The exchange rate has been unfavourable for the company, particularly the rate of the Icelandic krona and the exchange rate between the Euro and the USD. Despite this disadvantageous development acceptable results have been attained, which may be attributed to rationalisation measures and the effects of increased synergy within the Group.
Total assets of the Marel Group at the end of June 2005 were booked at EUR 104.8 million, an increase of 9.3 million or 9.7% from the New Year. This increase is mainly the result of increases in inventory and accounts receivable. Inventory increased by EUR 2.4 million or 11%. Accounts receivable increased by EUR 4 million, or 25% from the New Year. This increase in inventory and accounts receivable is explained by an increase in turnover on the one hand, and many deliveries around and after the end of the second quarter on the other.
Investment in fixed assets in the first half of 2005 was EUR 1.6 million, compared with 0.7 million during the same period last year. Part of investment during this period may be attributed to estimated investment for 2004 having been moved forward to this year.
Net cash from operating activities totalled EUR 2.7 million, compared with 6.1 million the year before. The main reason for this is increased financial commitment in inventory and accounts receivable, but this is partially offset by an increase in accounts payable. At the end of the 2nd quarter of 2005, cash and cash equivalents were EUR 4.0 million, compared with 6.3 million at the end of June 2004.
On average, 851 employees worked for the Marel Group during the first half of 2005, compared to 813 for the same period in 2003. Of the 851 employees, 322 were employed in Iceland, while 529 were employed abroad at 14 companies in 10 countries.
5-year comparison
Key figures from Marel’s operations for the 2nd quarter
|
|
|
|
|
|
| Thous. EUR |
2005 |
2004 |
2003*) |
2002*) |
2001*) |
|
Sales |
33,910 |
31,286 |
30,359 |
26,301 |
22,099 |
|
Profit from operations |
3,254 |
4,076 |
2,723 |
1,412 |
3,089 |
|
EBIT as a % of sales |
9.6% |
13.0% |
9.0% |
5.4% |
14.0% |
|
Net profit |
2,104 |
2,816 |
1,735 |
803 |
1,134 |
| |
|
|
|
|