Marel is committed to its financial targets
In 2Q22, Marel revised its year-end 2023 financial target to a run-rate of 14-16% EBIT, from the previously stated 16%, allowing for 2% contingency buffer due to volatility in market conditions. Other 2023 financial targets were unchanged, gross profit of ~40%, SG&A of ~18% and innovation at the 6% strategic level.
Market conditions remain challenging due to continued supply chain disruption and inflation at high levels resulting in inefficiencies in manufacturing and aftermarket, and higher costs associated with timely delivery. There are signs of easing in supply chain and parts availability which should improve operational efficiency. Favorable secular trends, focused on automation, robotics technology and digital solutions that support sustainable food processing, will continue to support organic growth outlook in the long term. In the short term, the current macroeconomic backdrop is resulting in elevated uncertainty.
Growth is not expected to be linear but based on opportunities and economic fluctuations. Operational results may vary from quarter to quarter due to general economic developments, fluctuations in orders received and timing of deliveries of larger systems.