190605 Marel | attractive pick-and-shovel play 190605 Marel | attractive pick-and-shovel play

No. pages 10




Independent report on Marel's intended listing on Euronext Amsterdam

Marel will offer 100m new shares, nearly 15% of the current total, as of June 7 be listing on Euronext Amsterdam, in addition to its current listing on Nasdaq Iceland. In this update we will highlight the company's strategic and financial profile as well as its financial targets until 2026.



Table of contents

  •  Listing on Euronext Amsterdam as of Friday 7 June
  • Reasons mentioned for 2nd listing next to Nasdaq Iceland makes sense
  • Marel’s stratecic profile and positioning in the animal protein value chain
  • Marel's habitat of approx. EUR 12bn is estimated to grow by 4-6% annually
  • Marel is a full-line provider in Poultry and Meat
  • Marel holds attractive positions, above all in poultry processing
  • Marel founded in 1982 and grew strongly on back of organic growth and acquisitions
  • Financial profile and track record
    • Margin enhancement accelerated as of 2014, but stabilized since 2016
    • Highest margin achieved by Poultry, then Meat and Fish
    • Meat and Fish margins targeted to improve
  • Targets for 2017-2026
    • Average annual sales growth of 12%
    • ...of which M&A is targeted to contribute 5-7% annually
    • ...and organic growth to contribute 4-6% annually
    • Innovation expenses targeted at 6% of sales
    • EPS growth to exceed sales growth
    • Dividend and/or buy-back to account for 20-40% of net profit
    • Targeted Net debt/EBITDA ratio in the 2.0-3.0x range suggests sufficient funds available for M&A
  • Reasons for the equity issue make perfectly sense
  • Targets backed by strong track record, when Marel's was smaller however
  • Historic valuation ratios and yields reasonable
  • Current valuation ratios not particularly light








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