Marel

Marel is the leading global provider of advanced equipment, systems and services to the fish, meat, poultry and further processing industries. Eyrir Invest has been the principal shareholder in Marel since 2005, a period of rapid external and internal growth.

Marel has an extensive sales and service network with offices and subsidiaries in over 30 countries on six continents, a global network of over 100 agents and distributors, and manufacturing facilities in 16 locations worldwide. Marel works side-by-side with its customers to extend the boundaries of food processing performance.

Marel is a multinational company, with around 4,000 employees worldwide. Business units are located in the Netherlands, Denmark, the United States, Iceland, Slovakia and Singapore. The largest number of its employees is based in the Netherlands, followed by Denmark, the United States and Iceland, with the remainder spread out across the globe – from Brazil and several other locations in South America all the way across to Australia and New Zealand in the Pacific

Strategy

Marel has maintained its position as an industry leader in the challenging market environment that has prevailed for the past two years. This can be attributed to Marel building its strategy around two important pillars: market penetration and innovation. Marel’s continuous focus on innovation, even during challenging times, has resulted in a steady flow of innovative products that have transformed the way food is processed around the world. The key to success is through partnership with customers to find products that set new benchmarks in the industry and to listen to the customers’ needs in order to reach continuous improvements.

In order to increase the quality of Marel solutions further, and drive down the fixed cost base, Marel is refocusing its product portfolio and moving from a diverse manufacturing footprint to a few multi-industry sites on global scale. 

At the same time as Marel is streamlining its business, the company continues to invest in innovation and business tools to advance the business. Key growth drivers remain innovation and market penetration that will be supported with bolt-on acquisitions. The company will place an emphasis on closing strategic gaps in the white fish and meat segments in order to create further value for customers.

Marel’s extensive sales and service network is its key competitive edge, and has enabled the Company to shift its focus to new markets when the economic environment has been less favorable in its more traditional markets. Marel’s sales and service network is spread out across more than 30 countries on all continents. The network is Marel’s first line of contact for customers at the local level, and brings first-rate service, consistency, and continuity to its partnership with clients.

Market focus

Marel’s vision for growth is based on four key drivers:

  • Population growth
  • Urbanization
  • Diet and lifestyle change
  • Sustainability and environment

Based on these drivers, Marel has chosen its four markets, in which it is a key player and partner of choice: poultry, fish, meat and further processing. These markets benefit immensely from the underlying drivers. Population growth in general fuels increased demands for proteins. In addition, when combined with the urbanization of populations, the increase in active consumers, individuals with disposable income with which they can acquire housing and food, is dramatic. Furthermore, diet and lifestyle changes are causing increased demand for carefully processed proteins. Meanwhile, energy prices and environmental issues have created a strong need for solutions which offer a sustainable way of manufacturing proteins whilst also protecting the environment

Operations in 2014

Marel’s revenues in 2014 amounted to €712 million, an increase of c. 8% from 2013 despite a slow start at the beginning of the year. Adjusted operating profit amounted to €49 million or 7% of revenue. Marel’s order book grew from €132 million to €175 million. Sales in 2014 were a good mix of greenfield projects, modernization projects and maintenance business worldwide. During the year, Marel enjoyed a tail wind in the market, particularly in the US.

Marel is currently mid-way through its refocusing program “Simpler, Smarter, Faster”. Adjusted for proceeds from sold non-core operations, the program’s total cost as of Q1 2015 is €27 million, of which €12 million is cash-out. Net debt at the end of 2014 was 2.1 times EBITDA and improved further in Q1 2015.

Outlook

With an order book at a good level for the beginning of 2015 and tailwind in main markets, Marel’s management expects organic revenue growth, with a solid increase in operational and net profit. Full focus remains on strengthening the market approach and operational improvement with the aim to reach EBIT of over 100 million in 2017.

In the mid- and long-term, Marel believes its innovative products and global presence in all industries will secure good growth and increased profitability. The long-term outlook in Marel’s markets remains favorable and the estimated market growth for providing advanced solutions and equipment for meat, poultry and fish processing is 4-6%. Marel’s goal is to continue to grow faster than the market, based on its innovative customer solutions and extensive sales and service network. 

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