Net profit for the Marel Group for the first quarter of 2004 was EUR 1.288 thousand, (ISK 112 million). Profit for the same quarter in 2003 was EUR 665 thousand, (ISK 56 million). Profit before depreciation (EBITDA) was EUR 2.796 thousand which is 11,2% of sales.
Net profit for the Marel Group for the first quarter of 2004 was EUR 1.288 thousand, (ISK 112 million). Profit for the same quarter in 2003 was EUR 665 thousand, (ISK 56 million). Profit before depreciation (EBITDA) was EUR 2.796 thousand which is 11,2% of sales. Operating profit (EBIT) was EUR 1.974 thousand. Net cash from operation was EUR 3,3 million compared to EUR 3,0 million in 2003.
The Marel Board of Directors approved the financial statements for the Marel Group for the first quarter of 2004 at a board meeting today, May 11th, 2004.
The European Commission has decreed that from January 1st 2005 all listed companies in the European Union must prepare their group accounts using International Financial Reporting Standards (IFRS). Marel has started to adapt its accounts to IFRS, among other things by changing their information systems, internal management processes etc. This is reflected in the presentation of the accounts for the first quarter of 2004 and these changes are not affecting the financial results. Comparative figures have been adjusted to conform to changes in presentation in the current year.
Following are the main results from the consolidated financial statements of the Marel Group:
| Operation - 1. Quarter in thousands of Euros |
| |
|
|
| Operating results |
2004 |
2003 |
| Sales |
25.071 |
23.718 |
| Cost of sales |
(15.890) |
(16.014) |
| Gross profit |
9.181 |
7.704 |
| |
|
|
| Other operating income |
162 |
560 |
| Sales- and marketing expenses |
(3.551) |
(3.613) |
| Development expenses |
(1.770) |
(1.734) |
| Administrative expenses |
(2.048) |
(1.929) |
| |
|
|
| Profit from operations EBIT |
1.974 |
988 |
| Finance costs - net |
(326) |
(263) |
| Profit before tax |
1.648 |
725 |
| Income tax expense |
(360) |
(60) |
| Net profit |
1.288 |
665 |
| |
|
|
| EBITDA |
2.796 |
1.849 |
| |
|
|
| Percent of sales |
|
|
| Gross profit |
36,6% |
32,5% |
| Sales- and marketing expenses |
14,2% |
15,2% |
| Development expenses |
7,1% |
7,3% |
| Administrative expenses |
8,2% |
8,1% |
| EBITDA |
11,2% |
7,8% |
| EBIT |
7,9% |
4,2% |
| Net profit |
5,1% |
2,8% |
| |
|
|
Financial position
at the end of period |
31.3.’04 |
31.03.’03 |
| Total assets |
84.196 |
87.819 |
| Equity |
25.253 |
22.585 |
| Working capital |
17.777 |
12.473 |
| |
|
|
Cash flow statement
Jan-March |
2004 |
2003 |
| Cash generated from operation |
4.161 |
3.438 |
| Net cash from operating activities |
3.260 |
2.994 |
| Increase in net cash |
1.811 |
2.332 |
| Net cash at the end of period |
6.538 |
5.223 |
| |
|
|
Highlights at the end
of March |
2004 |
2003 |
| Return on owner’s equity |
20,5% |
11,7% |
| Current ratio |
1,6 |
1,4 |
| Quick ratio |
0,8 |
0,8 |
| Equity ratio |
30,0% |
25,7% |
| Earnings per share in euros |
2,00 |
1,03 |
| Market cap., in millions of euros |
98,7 |
62,7 |
Sales in the first quarter 2004 were EUR 25,1 million compared to 23,7 million the year before, a 5.7% increase. On a fixed euro/US dollar exchange rate the growth is on the other hand 13%. Sales started slowly but increased rapidly well into the first quarter, predominantly in the meat and poultry sectors while sales in the fish sector remained low.
The gross margin for the first quarter was EUR 9,2 million or 36.6% of sales compared to EUR 7,7 million or 32,5% for the same period the previous year. This increase can mainly be contributed to increased productivity in the sales of standard products as well as various organisational changes and increased rationalisation in purchasing.
Operating expenses, other than cost of sales, were EUR 7,4 million increasing 1.3%. Sales and marketing expenses were EUR 3,6 million, similar to the year before. Development expenses were EUR 1,8 million or 7.1% of sales. In development and sales and marketing the main emphasis has been on improved productivity and increased synergy following greater integration within the Marel Group. Administrative expenses were EUR 2,0 million compared to EUR 1,9 million for the same period the previous year.
Net profit of the Marel Group for the first quarter 2004 was EUR 1,3 million compared to EUR 0,7 million the year before. External condition continued to be somewhat difficult, specifically the exchange rate between the ISK and the USD.
Total assets of the Marel Group were booked at EUR 84,2 million and have increased by EUR 2,9 million or 3.5% from the beginning of the year. This growth is mainly due to an increase in cash, inventory and accounts receivable. Liabilities were EUR 58,9 million and have increased by EUR 2,8 million since the end of 2003.
Investment in fixed assets during the first quarter was EUR 0,4 million, similar to the previous year.
Receivables were EUR 13,7 million. The grace period is 48 days, the same as in 2003.
Cash generated from operation was EUR 4,2 million compared to EUR 3,4 million the year before. Net cash from operating activities was EUR 3,3 million, and has not been higher in one quarter in the history of the Group. At the end of March 2004 the company had cash of EUR 6,5 million compared to 4,7 million at the end of 2003.
On average 788 employees worked for the Group during the period compared to 737 the first quarter year before. Of the 788, 275 were in Iceland and 513 abroad in 12 companies in 8 countries.
Prospects
The Group’s order book is good, particularly in the meat and poultry industry, while sales into fish industry have been slow. Prospects for the next months are therefore good. The key contracts for sales of larger systems that have been closed this year and are due for delivery in the second and third quarter are:
- Deboning flowline system for beef to Nippon Ham in Australia
- Trimming flowline system for poultry to Tyson in the USA
- Grading system for poultry to CP-Foods Korat in Thailand
- New generation of whitefish processing system to Samherji in Iceland
The value of the above contracts is EUR 10 million. Sales of standard equipment during this quarter have also been good.
The Groups marketing system has been reinforced with the opening of Marel Chile, a new business office that will increase the company’s sales efforts to aquaculture operations. The office will also put an effort into sales and marketing to other sectors in Chile and South America in general.
Marel purchased 97% of shares in the company Póls hf, Iceland. The acquisition date was April 1st, 2004. The integration of the Marel and Póls marketing efforts and product lines has begun and is scheduled to finish at the end of the second quarter.
The financial environment for the Group is rather difficult at the moment due to the exchange rate between the ISK and the USD.
Increased productivity and lowering of costs have been achieved with good results in the last year and that effort will be continued. Special emphasis will be on increasing standardized products and rationalisation in purchasing.
Consolidated Financial Statement publishing schedule for 2004
Marel plans to publish its financial statements for 2004 on the following dates:
2. quarter: Tuesday, August 10th, 2004
3. quarter: Tuesday, November 9th, 2004
4. quarter: Tuesday, February 15th, 2005
The Annual General Meeting of 2005 will be held on March 3rd, 2005.
Marel will present the results of the financial statements for the first quarter of 2004 at the company’s headquarters at Austurhraun 9 in Garðabær on Wednesday, May 12th, at 8:30 AM.