Fish segment of Icelandic processing equipment makers post low EBIT of 2.3% blaming “soft orders”.
In a financial statement on Thursday, Marel Fish – which predominantly consists of sales of solutions into wild whitefish and salmon – wrote that revenues in 2Q19 were down 21.3 per-cent YoY or EUR 35.2 million (2Q18: EUR 44.7 million), mainly due to soft orders received in 2H 2018.
It wrote that due to changes in the product mix,”there are delays in revenue and profit recognition”.
EBIT was EUR 0.8 million (2Q18: 3.8 million) and the EBIT margin was at 2.3 per-cent (2Q18: 8.5 per-cent). In comparison, the EBIT margin in 1Q19 was 7.4 per-cent.
Overall, it delivered 11 per-cent of Marel’s total revenues and 2.3 per-cent EBIT in 2Q19.
“Marel is systematically investing in innovation to become a full-line provider in those segments with closing application capabilities in primary processing and continue to introduce a steady flow of innovative solutions in secondary processing,” the company wrote.
The company added that highlights in new solutions introduced to the market this year were the RobotBatcher to sort consumer products and various applications serving the white-farmed fish segment. Looking ahead, Marel Fish wrote that management is targeting medium and long-term EBIT margin expansion.