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Marel Fish increased revenue by more than a quarter in the first three months of 2018 compared to Q1 2017. Photo: Marel
Marel Fish increased revenue by more than a quarter in the first three months of 2018 compared to Q1 2017. Photo: Marel

Food processing equipment manufacturer Marel has reported that revenue from its Marel Fish segment increased by 28% compared to the same period of 2017.

Arni Oddur Thordason:
Arni Oddur Thordason: "The food industry is transforming."

During the first quarter (Q1) of this year, the Iceland-headquartered company – which also makes poultry and meat processing machinery - received orders worth €329 million, up from €239m in the same period in 2017. Revenues also increased from €253m in Q1 2017 to €288m this year.

Marel chief executive Arni Oddur Thordarson said the company had a great start to the year.

“Year-on-year revenue growth was 14% and operational performance was solid with an EBIT margin of 15%,” said Thordarson.

“The food industry is transforming. Consumers demand affordable, healthy and convenient food that is processed sustainably. In addition, safety and traceability is a point of focus for all participants in the value chain.”

In light of the good results delivered in 2017 and a robust order book, Marel expects solid organic growth in 2018.

Well distributed

Marel Fish contributed €39m in Q1 revenues for 2018, a 28% increase on revenues achieved in the same quarter of 2017. This represents 13% of the company's total revenues.

The adjusted EBIT margin for Marel Fish was 8.6%. “This figure represents an improvement of 4.3% for the whole year 2017 but is still below the long-term goal," Marel stated.

According to Marel’s first-quarter report, the first three months of 2018 were solid for Marel Fish. 

“Projects were well distributed geographically and between different products,” stated the report. “Marel Fish is focused on providing full-line offerings for wild whitefish, farmed salmon and farmed whitefish. Large orders were secured in Namibia, Faroe Islands and Latvia.”

The report continued: “Marel Fish has been transformed in recent years and is on the right track as investments in innovation and standardization of the business has delivered good orders received and improved margins.

“It is worth noting that Marel Fish is close to reaching the same level of revenues as before discontinuing its onboard customised solutions in Seattle that accounted for approximately a third of total revenues in 2015.”