2015 was a great year for Marel. It was a year of profitable growth and strategic moves.
We successfully concluded our two year refocusing program and we enhanced Marel’s position as a full line provider to the poultry, meat and fish industries with the acquisition of MPS meat processing system.
We managed to engage even better with our customers while refocusing, resulting in a 15% increase in revenue with 100 million in operating profits in 2015 compared with 49 million in 2014.
Two years ago, we saw that our structure was too complicated and our fixed cost was too high. We launched our two year refocusing program, Simpler, Smarter, Faster Marel. During the program we rationalized the product portfolio, optimized our manufacturing footprint and streamlined the operation while at the same time we managed to keep the focus on serving the customers’ needs better than ever.
The program has now been successfully concluded and our focus will shift towards reaching our full potential. While some of the initiatives of the refocusing program have been fully concluded, others are ongoing and will be transferred to the new full potential program.
During that program we will step up investments in our business, working with advanced business tools that will enable us to better manage our most valuable assets: our employees, our customers and our products and solutions during their lifecycle. The first milestone on this journey is to add clarity to our branding strategy and communications. We have redefined our brand vision and values in order to become better positioned for future growth and success.
Marel’s acquisition of MPS is fully in line with Marel’s strategy to be at the forefront of delivering full line solutions to the poultry, meat and fish industries globally.
In many ways we are now taking similar steps in the meat industry as were taken eight years ago in the poultry industry with the Stork acquisition, which stimulated organic growth and value creation for customers and shareholders. Following the acquisition of Stork Food Systems, we saw 6% organic annual growth and more remarkably an annual 20% increase in earnings per share.
Marel and MPS have a great strategic and cultural fit with highly complementary product portfolios and geographic presence, creating a strong platform to enhance further growth.
We know each other well as we have been partners in several projects in the meat industry around the globe. MPS has been delivering innovative and automated primary processing solutions and Marel has been delivering the secondary processing solutions with overarching software solutions.
United we will be better positioned to invest in growth and innovation and to add value to our current and future customers. We are stronger together and in a great position to deliver full line solutions to meat processors around the world.
We live in a fast changing, dynamic world. The global population is expected to reach between 9 and 10 billion people in the next two or three decades. Moreover, due to urbanization and better economic prospects in general, the proportion of people considered “active” consumers is increasing at a faster rate than ever before. The need for affordable and safe food that is processed in a sustainable way is clearer than ever.
Marel is the leading global provider of advanced processing systems and services to the poultry, fish and meat industries. We strive for excellence in serving customers’ needs and we are firmly committed to the aim of delivering increased value to all stakeholders; customers, employees and shareholders. With strategic acquisitions, continuous innovation and market penetration we have managed to be at the forefront of our industry.
The quality of our earnings is good. We are growing with our poultry, meat and fish processors in all continents. The mix of new greenfield projects, extension and modernization projects is good. The backbone is our strong maintenance business that accounts for 40% of our revenues. As a united team, in good partnership with our customers, we are in position to reshape the food processing world.
I would like to thank the Marel team for their commitment, dedication and effort during 2015. I look forward to the years ahead. I would like to welcome the employees of MPS on board as an integral part of the Marel team. We are all moving in the same direction – In partnership with our customers we are transforming the way food is processed. Our vision is of a world where quality food is produced sustainably and affordably. United as Marel, we can make it happen!