Sales for the year totalled EUR 112.3 million, compared with EUR 106.1 million the previous year.
Marel hf
PRESS RELEASE
Sales for the year totalled EUR 112.3 million, compared with EUR 106.1 million the previous year.
Sales increased by about 6% in euros, and by about 9% based on a fixed exchange rate.
The order book at the end of the year was about EUR 19 million, compared with 9 million the year before.
Profit from operations EBIT was EUR 10.6 million, compared with 6.6 million the previous year.
Net profit for the year totalled EUR 6.6 million, an increase of about 76% from the year before.
Net profit per share was 2.82 euro cent, compared with 1.59 euro cent the previous year. Net cash from operating activities was EUR 10.6 million, an increase of about 123% from the year before.
Gross profit as a percentage of sales was 36.3%, compared with 32.6% the previous year.
The financial statements of the Marel Group for 2004 have been approved at Marel hf’s Board of Directors meeting today, 15 February 2005.
The Marel Group comprises 15 companies with operations in 10 countries. The newest, Marel Chile , began operations in the third quarter of 2004.
Accounting policies have been changed in relation to the year 2003, but remain unchanged based on previous quarters 2004. The European Union has decreed that companies listed on EU stock exchanges are required to prepare group accounts using International Financial Reporting Standards (IFRS) beginning in 2005. Marel has almost finalised adapting its accounts to IFRS, including changing its information systems and internal management processes. However, this is not fully reflected in the presentation of the accounts for 2004, but will be so in 2005.
Comparative figures for 2003 have been adjusted to conform to changes in the presentation for 2004.
The following are the main results from the consolidated financial statements for Marel:
|
Operation for 2004 in thousands of euros |
| |
|
|
| |
2004 |
2003 |
|
Sales |
112,301 |
106,104 |
|
Cost of sales |
(71,486) |
(71,487) |
|
Gross profit |
40,815 |
34,617 |
| |
|
|
|
Other operating income |
598 |
1,325 |
|
Sales and marketing expenses |
(14,195) |
(13,563) |
|
Development expenses |
(7,457) |
(7,193) |
|
Administrative expenses |
(9,165) |
(8,618) |
| |
|
|
|
Profit from operations EBIT |
10,596 |
6,568 |
|
Finance costs - net |
(1,879) |
(1,658) |
|
Profit before tax |
8,717 |
4,910 |
|
Tax expense |
(2,102) |
(1,161) |
|
Net profit |
6,615 |
3,749 |
| |
|
|
|
EBITDA |
14,092 |
10,129 |
| |
|
|
|
Percent of sales |
|
|
|
Gross profit |
36.3% |
32.6% |
|
Sales and marketing expenses |
12.6% |
12.8% |
|
Development expenses |
6.6% |
6.8% |
|
Administrative expenses |
8.2% |
8.1% |
|
EBITDA |
12.5% |
9.5% |
|
EBIT |
9.4% |
6.2% |
|
Net profit |
5.9% |
3.5% |
| |
|
|
|
Financial position at end of period |
31.12.04 |
31.12.03 |
|
Total assets |
90,551 |
81,334 |
|
Equity |
29,359 |
25,167 |
|
Working capital |
20,909 |
17,700 |
| |
|
|
|
Cash flow for year |
2004 |
2003 |
|
Net cash from operating activities |
10,558 |
4,724 |
|
Increase/(decrease) in net cash |
(361) |
1,836 |
|
Net cash at end of period |
4,366 |
4,727 |
| |
|
|
|
Highlights at end of December |
2004 |
2003 |
|
Return on owners’ equity |
26.3% |
16.5% |
|
Current ratio |
1.8 |
1.7 |
|
Quick ratio |
0.7 |
0.8 |
|
Equity ratio |
32.4% |
30.9% |
|
Earnings per share in euro cents |
2.82 |
1.59 |
|
Market cap. in millions of euros
based on exchange rate on 30 December |
141.6 |
73.7 |
|
|
|
|
Sales in 2004 totalled EUR 112.3 million (ISK 9.8 billion), compared with EUR 106.1 million (ISK 9.2 billion) the previous year. This is an increase in sales of 6%. Based on a fixed exchange rate, sales increased by about 9%.
Gross profit for 2004 was EUR 40.8 million, or 36.3% of sales, compared with 34,6 million or 32.6% of sales the year before. This increase in gross profit can mainly be attributed to increased productivity in sales of standardised products, as well as various organisational changes and increased rationalisation in purchasing.
Operating expenses other than cost of sales were EUR 30.8 million, an increase of about 4.9%. Sales and marketing expenses totalled EUR 14.2 million, which is about 4.7% higher than the previous year. Development costs were about EUR 7.5 million, an increase of about 3.7%. The main emphasis in both sales and marketing, and in product development, has been to improve productivity and synergy with increased integration within the Marel Group. Administrative expenses were EUR 9.2 million, compared with 8.6 million the year before, an increase of about 6.3%.
Profit from operations was EUR 10.6 million, or 9.4% of sales, compared with 6.2% in 200 3.
Net profit of the Marel Group for 2004 totalled EUR 6.6 million (ISK 575 million), compared with EUR 3.7 million (ISK 324 million) the previous year, an increase of about 76%. External conditions were in many ways unfavourable, particularly the exchange rate of the Icelandic króna and the exchange rate of the USD against euro during the latter part of 2004. In light of these conditions, the turnaround in Marel operation is acceptable.
Total assets of the Marel Group at the end of 2004 were booked at EUR 90.6 million, an increase of EUR 9.2 million or 11.3% since the previous year. This increase is mainly due to an increase in inventory and goodwill. The increase in goodwill, EUR 4.5 million, can be traced to the purchases of both Póls hf and a part of the German company Röscherwerke GmbH. This part operates under the brand name Geba, and manufacturers portioning machines for smoked salmon. Inventory and sold projects that are in production increased by about EUR 5.4 million, while accounts payable and payments on account increased by about EUR 5.1 million. Accounts receivable increased by about 7.3% from 2003 to 2004, and the age of the accounts receivable calculated in number of days has been decreasing: it was on average 43 days in 2004, compared to 48 days the previous year.
Investment in permanent operational assets in 2004 totalled 1.6 million, compared with 1.9 million during the last year. This was somewhat less than projected for the year, but part of the planned investment will be carried forward to 2005. The Marel Group invested a total of EUR 6.6 million during the year, an increase from 2003 when investment totalled EUR 2.0 million. The largest individual investments were the purchases of Póls hf and Geba.
Marel purchased own shares, in excess of sold shares, for EUR 3.0 million during 2004, and at the end of the year owned EUR 6.6 million in own shares, which is about 2.7% of total shares in the company.
Net cash from operating activities was EUR 10.6 million, compared with 4.7 million the year before. Net cash from operating activities has never been greater. At the end of 2004, net cash was EUR 4.4 million, compared with 4.7 million at the same time the year before.
On average, 836 employees worked for the Marel Group during 2004, compared to 773 in 2003. Of the 836 employees, two companies in Iceland employed 310, while 526 were employed abroad at 13 companies in 9 countri es
Operations in the 4th quarter
|
Operations – 4th quarter 2004 in thousands of euros |
| |
|
|
| |
2004 |
2003 |
|
Sales |
29,120 |
31,606 |
|
Cost of sales |
(18,570) |
(22,549) |
|
Gross profit |
10,550 |
9,057 |
| |
|
|
|
Other operating income |
180 |
88 |
|
Sales and marketing expenses |
(3,741) |
(3,473) |
|
Development expenses |
(2,334) |
(1,908) |
|
Administrative expenses |
(2,181) |
(2,042) |
| |
|
|
|
Profit from operations EBIT |
2,474 |
1,722 |
|
Finance costs - net |
(730) |
(390) |
|
Profit before taxes |
1,744 |
1,332 |
|
Tax expense |
(341) |
(36) |
|
Net profit |
1,403 |
1,296 |
| |
|
|
|
EBITDA |
3,393 |
2,646 |
| |
|
|
|
Percent of sales |
|
|
|
Gross profit |
36.2% |
28.7% |
|
Sales and marketing expenses |
12.8% |
11.0% |
|
Development expenses |
8.0% |
6.0% |
|
Administrative expenses |
7.5% |
6.5% |
|
EBITDA |
11.7% |
8.4% |
|
EBIT |
8.5% |
5.5% |
|
Net profit for period |
4.8% |
4.1% |
Marel’s net profit for the fourth quarter of 2004 was EUR 1,403 thousand (ISK 121 million). During the same period last year, net profit tot