Cost cuts after disappointing operating profit.
Icelandic food processing company Marel’s preliminary and unaudited financial results for the second quarter of the year show revenues of €397 million. A record high order book is €775 million, including orders from the acquisitions of Wenger and Sleegers of €81 million.
However, operating operations are below expectations, which resulted in a preliminary EBIT margin of 6.3 percent in the quarter. In light of continued supply chain disruption and high-level inflation, leading to slower-than-originally-planned revenue growth, Marel is taking concrete steps to improve operational results for the targets towards the end of 2023.
“To lower costs the difficult decision has been made to reduce headcount by 5% across the global Marel workforce, resulting in estimated annualised cost saving of €20 million with one-off cost of around €10 million,” the company said.