Marel — Interim / Quarterly Report 2014

Jul 23, 2014

marel

Condensed Consolidated Interim Financial Statements

30 June 2014

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marel

CONTENTS

1. The Board of Directors' and CEO's Report 2
2. Condensed Consolidated Statement of Comprehensive Income 3
3. Condensed Consolidated Statement of Financial Position 4
4. Condensed Consolidated Statement of Changes in Equity 5
5. Condensed Consolidated Statement of Cash Flows 6
6. Notes to the Condensed Consolidated Financial Statements 7

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1 The Board of Directors' and CEO's Report

According to our best knowledge it is our opinion that the condensed consolidated interim information gives a true and fair view of the consolidated financial performance of the Company for the six-month period ended 30 June 2014, its assets, liabilities and consolidated financial position as at 30 June 2014 and its consolidated cash flows for the six-month period ended 30 June 2014.

Further, in our opinion the condensed consolidated financial interim information and the endorsement of the Board of Directors and the CEO give a fair view of the development and performance of the Group's operations and its position and describe the principal risks and uncertainties faced by the Group.

The Board of Directors and the CEO have today discussed the condensed consolidated interim financial information of Marel hf. for the six-month period ended 30 June 2014 and confirm these by means of their signatures.

Garðabær, 23 July 2014

Board of Directors

Ásthildur Margrét Otharsdóttir
Arnar Þór Måsson
Ann Elizabeth Savage
Astvaldur Johannesson
Helgi Magnússon
Margrét Jónsdóttir
Olafur S. Gudmundsson

Chief Executive Officer

Árni Oddur Þórðarson

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2 Condensed Consolidated Statement of Comprehensive Income

	Q2 2014	Q2 2013	YTD 2014	YTD 2013
Notes
Revenues	5	169,848	178,430	324,605
Cost of sales - before restructuring costs		(109,504)	(118,913)	(211,595)
Restructuring costs		(5,096)	-	(5,613)
Cost of sales		(114,600)	(118,913)	(217,208)
Gross profit	55,248	59,517	107,397	117,026
Selling and marketing expenses - before restructuring costs		(25,226)	(24,715)	(49,523)
Restructuring costs		(143)	-	(1,653)
Selling and marketing expenses		(25,369)	(24,715)	(51,176)
Research and development expenses - before restructuring costs		(12,003)	(10,926)	(24,016)
Restructuring costs		(37)	-	(483)
Research and development expenses		(12,040)	(10,926)	(24,499)
Administrative expenses - before restructuring costs		(12,376)	(11,514)	(24,166)
Restructuring costs		(1,912)	-	(2,989)
Administrative expenses		(14,288)	(11,514)	(27,155)
Other operating income / (expenses)	2	(49)	5	(46)
Result from operations - before restructuring costs		10,741	12,313	15,310
Restructuring costs		(7,188)	-	(10,738)
Result from operations	3,553	12,313	4,572	22,645
Finance costs	6	(2,998)	(5,940)	(6,680)
Finance income	6	64	140	87
Net finance costs	6	(2,934)	(5,800)	(6,593)
Result before income tax	619	6,513	(2,021)	13,102
Income tax	7	147	(1,294)	916
Profit (loss) for the period	766	5,219	(1,105)	10,942
Other Comprehensive Income
Items that are or will be reclassified to profit or loss:
Currency translation differences	705	(949)	1,231	(1,163)
Cash flow hedges	162	1,982	603	2,469
Income tax relating to cash flow hedges	(28)	(423)	(146)	(544)
Other comprehensive income for the period, net of tax	839	610	1,688	762
Total comprehensive income for the period	1,605	5,829	583	11,704
Profit (loss) attributable to:
Shareholders of the Company	766	5,219	(1,105)	10,942
Comprehensive income attributable to:
Shareholders of the Company	1,605	5,829	583	11,704
Earnings per share for result attributable to equity holders of the Company during the period (expressed in EUR cent per share):
- basic	8	0.10	0.71	(0.15)
- diluted	8	0.10	0.71	(0.15)
Earnings per share for total comprehensive income attributable to equity holders of the Company during the period (expressed in EUR cent per share):
- basic	0.22	0.79	0.08	1.60
- diluted	0.22	0.79	0.08	1.58

The notes on pages 7 - 14 are an integral part of the Condensed Consolidated Interim Financial Statements.

Marel hf., Condensed Consolidated Interim Financial Statements 30 June 2014

All amounts in EUR*1000 unless otherwise stated.

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3 Condensed Consolidated Statement of Financial Position

	Notes	30/06	31/12
ASSETS		2014	2013
Non-current assets
Property, plant and equipment	9	99,172	104,707
Goodwill	10,19	385,153	378,708
Other intangible assets	10	119,253	118,561
Trade receivables		268	691
Deferred income tax assets	11	10,692	9,611
		614,538	612,278
Current assets
Inventories	12	96,680	91,796
Production contracts		26,770	24,829
Trade receivables		68,054	68,737
Assets held for sale	13	2,500	-
Other receivables and prepayments		23,617	22,135
Cash and cash equivalents		17,362	19,793
		234,983	227,290
Total assets		849,521	839,568
EQUITY
Capital and reserves attributable to equity holders of Marel hf.
Share capital	14	6,727	6,727
Share premium	14	316,975	317,294
Hedge reserve		(4,862)	(5,319)
Translation reserve		111	(1,120)
Retained earnings		100,783	101,757
Total equity		419,734	419,339
LIABILITIES
Non-current liabilities
Borrowings	15	203,189	214,846
Deferred income tax liabilities	11	12,212	13,885
Provisions	16	6,202	6,065
Derivative financial instruments		6,583	7,184
		228,186	241,980
Current liabilities
Production contracts		51,227	44,881
Trade and other payables		121,961	105,662
Current income tax liabilities		3,811	3,526
Borrowings	15	18,682	22,077
Provisions	16	5,920	2,103
		201,601	178,249
Total liabilities		429,787	420,229
Total equity and liabilities		849,521	839,568

The notes on pages 7 - 14 are an integral part of the Condensed Consolidated Interim Financial Statements.

Marel hf., Condensed Consolidated Interim Financial Statements 30 June 2014

All amounts in EUR*1000 unless otherwise stated.

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4 Condensed Consolidated Statement of Changes in Equity

	Attributable to equity holders of the Company
	Share Capital	Share premium*	Hedge reserve	Translation reserve	Retained earnings	Total equity
Balance at 1 January 2013	6,691	317,178	(8,112)	473	87,518	403,748
Profit (loss) for the year					10,942	10,942
Total other comprehensive income			1,925	(1,163)		762
Dividend					(7,105)	(7,105)
Treasury shares sold	22	1,330				1,352
Value of services provided		256				256
Value of services provided released		(199)			188	(11)
	22	1,387	1,925	(1,163)	4,025	6,196
Balance at 30 June 2013	6,713	318,565	(6,187)	(690)	91,543	409,944
Profit (loss) for the year					9,678	9,678
Total other comprehensive income			868	(430)		438
Employee share option scheme:
Treasury shares purchased	(43)	(4,107)				(4,150)
Treasury shares sold	57	3,273				3,330
Treasury shares, transaction costs		(13)				(13)
Value of services provided		142				142
Value of services provided released		(566)			536	(30)
	14	(1,271)	868	(430)	10,214	9,395
Balance at 31 December 2013	6,727	317,294	(5,319)	(1,120)	101,757	419,339
Profit (loss) for the year					(1,105)	(1,105)
Total other comprehensive income			457	1,231		1,688
Employee share option scheme:
Treasury shares purchased	(14)	(1,098)				(1,112)
Treasury shares sold	14	827				841
Treasury shares, transaction costs		(3)				(3)
Value of services provided		89				89
Value of services provided released		(134)			131	(3)
	-	(319)	457	1,231	(974)	395
Balance at 30 June 2014	6,727	316,975	(4,862)	111	100,783	419,734

*) Includes reserve for share based payments as per 30 June 2014 of EUR 1,205 (31 December 2013: EUR 1,250).

Dividends

No dividends were declared / paid in 2014.

In 2013 a dividend of EUR 7,105 (EUR 0.97 cent per share) was declared of which EUR 6,488 was paid in Q2 and EUR 617 withholding tax in Q3.

The notes on pages 7 - 14 are an integral part of the Condensed Consolidated Interim Financial Statements.

Marel hf., Condensed Consolidated Interim Financial Statements 30 June 2014

All amounts in EUR*1000 unless otherwise stated.

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5 Condensed Consolidated Statement of Cash Flows

	Notes	Q2 2014	Q2 2013	YTD 2014	YTD 2013
Cash flows from operating activities
Result from operations		3,553	12,313	4,572	22,645
Adjustments to reconcile result from operations to net cash provided by operating activities:
Depreciation and impairment of property, plant and equipment	9	4,415	2,328	6,585	4,762
Amortisation and impairment of intangible assets	10	5,055	4,335	9,937	8,427
Gain on sale of property, plant and equipment		(163)	(32)	(174)	(58)
Changes in non current receivables		175	137	424	1,523
Working capital provided by / (used in) operating activities		13,035	19,082	21,344	37,299
Changes in working capital:
Inventories and production contracts		(1,903)	(1,563)	447	7,627
Trade and other receivables		(1,523)	16,379	(624)	2,301
Trade and other payables		7,083	(8,745)	14,718	(4,737)
Provisions		3,730	196	3,919	93
Changes in operating assets and liabilities		7,387	6,267	18,460	5,284
Cash generated from operating activities		20,422	25,349	39,804	42,583
Taxes paid		(903)	(802)	(976)	(324)
Net Interest and finance costs		(2,909)	(1,045)	(6,873)	(5,292)
Net cash from operating activities		16,610	23,501	31,955	36,967
Cash flows from Investing activities
Purchase of property, plant and equipment		(1,017)	(936)	(3,336)	(2,459)
Investments in intangibles		(5,255)	(6,786)	(10,207)	(12,773)
Proceeds from sale of property, plant and equipment		203	36	359	269
Business combinations		(5,900)	-	(5,900)	-
Net cash used in investing activities		(11,969)	(7,686)	(19,084)	(14,964)
Cash flows from financing activities
Purchase of treasury shares		(883)	808	(1,101)	1,352
Sale of treasury shares		827	-	827	-
Proceeds from borrowings		8,000	20,912	15,000	25,821
Repayments of borrowings		(15,004)	(23,588)	(30,456)	(37,202)
Dividends paid		-	(6,488)	-	(6,488)
Net cash used in financing activities		(7,060)	(8,356)	(15,730)	(16,517)
Net increase (decrease) in net cash		(2,419)	7,459	(2,859)	5,486
Exchange (loss) / gain on net cash		352	(909)	428	(155)
Net cash at beginning of the period		19,429	14,726	19,793	15,945
Net cash at end of the period		17,362	21,276	17,362	21,276

The notes on pages 7 - 14 are an integral part of the Condensed Consolidated Interim Financial Statements.

Marel hf., Condensed Consolidated Interim Financial Statements 30 June 2014

All amounts in EUR*1000 unless otherwise stated.

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6 Notes to the Condensed Consolidated Financial Statements

1. General information

Marel hf. (the Company) is a limited liability company incorporated and domiciled in Iceland. The Company has its listing on the Nasdaq OMX Iceland.

These condensed consolidated interim financial statements have been approved for issue by the board of directors on 23 July 2014. The information included herein is not audited.

All amounts are in thousands of EUR, unless otherwise stated.

2. Basis of preparation

These condensed consolidated interim financial statements of the Company and its subsidiaries (the Group) are for the six months ended 30 June 2014. These have been prepared in accordance with IAS 34 as adopted by the EU. The condensed consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2013. The consolidated financial statements for the Group as for the period ended 31 December 2013 are available upon request from the Company's registered office at Austurhraun 9, Gardabær or at www.marel.com.

3. Accounting policies

The accounting policies adopted are consistent with those of the annual consolidated financial statements for the year ended 31 December 2013, as described in the annual Financial Statements for the year ended 31 December 2013.

4. Financial risk management

The company's policy is to finance its operations in its revenue currencies. More than 99% of Marel's revenues originate outside of Iceland and there is a good currency balance between the company's revenues and costs. Efforts have been made to systematically reduce currency risk in the company's financing and to reduce interest cost.

Marel hf., Condensed Consolidated Interim Financial Statements 30 June 2014

All amounts in EUR*1000 unless otherwise stated.

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5. Segment information

Operating segments

The segments comprise the industries, which form the basis for managerial decision taking.

Results are monitored and managed at the level of the identified operating segments, up to the result from operations. Decisions on Tax and Financing structures are taken on corporate level therefore no financial income and expenses nor tax are allocated to operating segments. The measure of profit or loss per operating segment is provided as result from operations; finance costs and taxes are reported in the column Total.

Intercompany transactions are entered into under at arm's length terms and conditions comparable to those available to unrelated parties. Information on liabilities per operating segment is not provided to the chief operating decision maker and as such not included in this disclosure.

The 'Others' segment includes any business to customers outside the core industries as well as the holding companies.

The segment information for the period ended 30 June 2014 is as follows:

	Poultry	Fish	Meat	Further Processing	Others	Total
Third Party Revenues	169,325	50,808	61,266	37,550	5,656	324,605
Result from operations excluding refocusing	18,538	1,171	(306)	(2,491)	(1,602)	15,310
Refocusing costs						(10,738)
Result from operations						4,572
Finance costs - net						(6,593)
Result before income tax						(2,021)
Income tax						916
Profit (loss) for the period						(1,105)
Assets	511,650	91,795	102,857	97,140	46,079	849,521
Depreciation and amortisation	(5,359)	(1,897)	(2,103)	(3,233)	(1,731)	(14,323)

The segment information for the period ended 30 June 2013 is as follows:

	Poultry	Fish	Meat	Further Processing	Others	Total
Third Party Revenues	171,232	51,324	53,991	53,552	6,359	336,458
Result from operations	25,301	(1,714)	(2,005)	1,742	(679)	22,645
Finance costs - net						(9,543)
Result before income tax						13,102
Income tax						(2,160)
Profit (loss) for the period						10,942
Assets *)	506,795	99,208	100,069	106,718	53,123	865,913
Depreciation and amortisation	(4,642)	(1,914)	(1,860)	(3,153)	(1,620)	(13,189)

*) The assets at 30 June 2013 were restated to reflect the correct allocation of goodwill to the segments.

Marel hf., Condensed Consolidated Interim Financial Statements 30 June 2014

All amounts in EUR*1000 unless otherwise stated.

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6. Net finance costs

Finance costs:	YTD 2014	YTD 2013
Interest on borrowings	(5,402)	(6,391)
Interest on finance leases	(4)	(3)
Other finance expenses	(1,274)	(1,251)
Net foreign exchange transaction losses	-	(2,110)
Subtotal Finance costs	(6,680)	(9,755)
Finance income:
Interest income	42	212
Net foreign exchange transaction gains	45	-
Subtotal Finance income	87	212
Net Finance costs	(6,593)	(9,543)

7. Income tax

	YTD 2014	YTD 2013
Current tax	(1,850)	(1,558)
Deferred tax	2,766	(602)
	916	(2,160)

The tax on the Group's profit before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits of the consolidated companies as follows:

Reconciliation of effective income tax	YTD 2014		YTD 2013
		%		%
Result before income tax	(2,021)		13,102
Income tax using Iceland rate	404	20.0	(2,620)	20.0
Effect tax rates in other jurisdictions	(387)	(19.1)	(1,310)	10.0
Weighted average applicable tax	17	0.9	(3,930)	30.0
FX effect Iceland	94	4.7	150	(1.1)
R&D tax incentives	818	40.5	1,582	(12.1)
Permanent differences	241	11.9	279	(2.1)
Tax losses (un)recognised	(561)	(27.8)	(749)	5.7
(Impairment)/reversal of tax losses	61	3.0	141	(1.1)
Effect of tax rate changes	198	9.8	-	-
Others	48	2.4	367	(2.8)
Tax charge included in the profit or loss for the period	916	45.4	(2,160)	16.5

Marel hf., Condensed Consolidated Interim Financial Statements 30 June 2014

All amounts in EUR*1000 unless otherwise stated.

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8. Earnings per share

Basic earnings per share is calculated by dividing the net profit attributable to shareholders by the weighted average number of ordinary shares in issue during the period, excluding ordinary shares purchased by the Company and held as treasury shares.

Basic earnings per share (EUR cent per share)	YTD 2014	YTD 2013
Net profit (loss) attributable to shareholders	(1,105)	10,942
Weighted average number of outstanding shares in issue (thousands)	735,343	732,566
Basic earnings per share (EUR cent per share)	(0.15)	1.49

The diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The Company has one category of dilutive potential ordinary shares: share options. For the share options a calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the Company's shares) based on the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options.

Diluted earnings per share (EUR cent)	YTD 2014	YTD 2013
Net profit (loss) used to determine diluted earnings per share	(1,105)	10,942
Weighted average number of outstanding shares in issue (thousands)	735,343	732,566
Adjustments for share options (thousands)	1,846	6,918
Weighted average number of outstanding shares for diluted earnings per share (thousands)	737,189	739,484
Diluted earnings per share (EUR cent)	(0.15)	1.48

9. Property, plant and equipment

	Land & buildings	Plant & machinery	Vehicles & equipment	Total
At 1 January 2014
Cost	115,497	66,693	44,767	226,957
Accumulated depreciation	(35,746)	(48,959)	(37,545)	(122,250)
Net book amount	79,751	17,734	7,222	104,707
Six months ended 30 June 2014
Opening net book amount	79,751	17,734	7,222	104,707
Exchange differences	203	72	124	399
Additions	2,233	521	582	3,336
Disposals	-	4	(189)	(185)
Assets held for sale	(2,500)	-	-	(2,500)
Impairment charge	(2,199)	-	-	(2,199)
Depreciation charge	(1,455)	(1,698)	(1,233)	(4,386)
Closing net book amount	76,033	16,633	6,506	99,172
At 30 June 2014
Cost	115,572	67,292	44,913	227,777
Accumulated depreciation	(39,539)	(50,659)	(38,407)	(128,605)
Net book amount	76,033	16,633	6,506	99,172

Depreciation of property, plant and equipment analyses as follows in the Condensed Consolidated Statement of Comprehensive income:

	YTD 2014	YTD 2013
Cost of sales	2,830	2,908
Selling and marketing expenses	367	436
Research and development expenses	207	221
Administrative expenses	982	1,197
	4,386	4,762

Marel hf., Condensed Consolidated Interim Financial Statements 30 June 2014

All amounts in EUR*1000 unless otherwise stated.

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10. Intangible assets

	Goodwill	Development costs	Patents & Trade name	Other Intangibles	Total other Intangibles
At 1 January 2014
Cost	378,708	122,537	50,512	22,792	195,841
Accumulated depreciation	-	(47,630)	(19,182)	(10,468)	(77,280)
Net book amount	378,708	74,907	31,330	12,324	118,561
Six months ended 30 June 2014
Opening net book amount	378,708	74,907	31,330	12,324	118,561
Business combinations	5,900	-	-	-	-
Exchange differences	545	269	145	8	422
Additions	-	8,973	-	1,234	10,207
Amortisation charge	-	(6,744)	(1,757)	(1,436)	(9,937)
Closing net book amount	385,153	77,405	29,718	12,130	119,253
At 30 June 2014
Cost	385,153	132,040	50,760	24,080	206,880
Accumulated amortisation	-	(54,635)	(21,042)	(11,950)	(87,627)
Net book amount	385,153	77,405	29,718	12,130	119,253

Business combinations relates to the agreement with Scanvaegt Nordic, see note 19.

Amortization of intangible assets analyses as follows in the Condensed Consolidated Statement of Comprehensive income:

	YTD 2014	YTD 2013
Cost of sales	50	50
Selling and marketing expenses	195	177
Research and development expenses	7,366	5,949
Administrative expenses	2,326	2,251
	9,937	8,427

Impairment of Goodwill

The Group has tested end 2013 whether goodwill has suffered any impairment. At the closing of Q2 2014, there are no reasons to deviate from the conclusions taken at year-end.

11. Deferred income tax

Deferred income taxes are calculated in full on temporary differences under the liability method. The gross movement on the deferred income tax account is as follows:

At 1 January 2014	(4,274)
Exchange differences and changes within the Group	134
Consolidated Statement of Comprehensive Income charge (excluding rate change)	2,570
Effect of change in tax rates	196
Hedge reserve & translation reserve directly booked through equity	(146)
At 30 June 2014	(1,520)

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when the deferred income taxes relate to the same fiscal authority. The following amounts, determined after appropriate offsetting, are shown in the consolidated Statement of Financial Position:

	30/06 2014	31/12 2013
Deferred income tax assets	10,692	9,611
Deferred income tax liabilities	(12,212)	(13,885)
	(1,520)	(4,274)

Marel hf., Condensed Consolidated Interim Financial Statements 30 June 2014

All amounts in EUR*1000 unless otherwise stated.

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12. Inventories

There were no material reversals of write-downs to fair value. Any write-downs concluded from a recoverability analysis are recognized in Cost of sales.

13. Assets held for sale

Assets held for sale relates to the real estate in Oss.

14. Equity

Share Capital	Ordinary shares (thousands)	Treasury shares (thousands)	Outstanding number of shares (thousands)
At 1 January 2013	735,569	(4,129)	731,440
Treasury shares - sold	-	2,497	2,497
At 30 June 2013	735,569	(1,632)	733,937
Treasury shares - purchased	-	(4,700)	(4,700)
Treasury shares - sold	-	6,215	6,215
At 1 January 2014	735,569	(117)	735,452
Treasury shares - purchased	-	(1,500)	(1,500)
Treasury shares - sold	-	1,488	1,488
At 30 June 2014	735,569	(129)	735,440
Class of share capital:		30/06 2014	31/12 2013
Nominal value		6,727	6,727
Share premium		315,770	316,044
Reserve for share based payments		1,205	1,250
Total share premium reserve		316,975	317,294

The total authorized number of ordinary shares is 735.6 million shares (2013: 735.6 million shares) with a par value of ISK 1 per share. All issued shares are fully paid.

Marel hf., Condensed Consolidated Interim Financial Statements 30 June 2014

All amounts in EUR*1000 unless otherwise stated.

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marel

15. Borrowings

Non-current:	30/06 2014	31/12 2013
Bank borrowings	203,183	214,822
Finance lease liabilities	6	24
	203,189	214,846
Current:
Bank borrowings excluding bank overdrafts	18,678	21,857
Finance lease liabilities	4	220
	18,682	22,077
Total borrowings	221,871	236,923
Secured bank loans	221,861	236,679
Finance lease liabilities	10	244
Total borrowings	221,871	236,923
Liabilities in currency recorded in EUR	Finance lease liabilities	Capitalised finance charges
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Liabilities in DKK	-	-
Liabilities in EUR	-	(3,282)
Liabilities in USD	-	(1,236)
Liabilities in other currencies	10	-
	10	(4,518)
Current matures	(4)	1,321
	6	(3,197)

16. Provisions

In Q2 a provision for reorganization has been created for an amount of EUR 3.5m.

17. Contingencies

At 30 June 2014 the Group had contingent liabilities in respect of bank and other guarantees and other matters arising in the ordinary course of business from which it is anticipated that no material liabilities will arise. In the ordinary course of business the Group has given guarantees amounting to EUR 19,537 (31 December 2013: EUR 18,842) to third parties.

18. Related party transactions

At the end of June 2014, there are no loans to directors (31 December 2013: EUR nil).

19. Business combinations

At 3 June 2014 the Group closed and paid an agreement with Scanvaegt Nordic to buy back the exclusive rights to perform service and sell spare parts for Marel equipment in Denmark and Sweden for an amount of EUR 5.9m. The full amount has been allocated to goodwill.

20. Subsequent events

None.

Marel hf., Condensed Consolidated Interim Financial Statements 30 June 2014

All amounts in EUR*1000 unless otherwise stated.

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21. Quarterly results

	Q2 2014	Q1 2014	Q4 2013	Q3 2013	Q2 2013
Revenue	169,848	154,757	168,182	156,896	178,430
Cost of sales	(114,600)	(102,608)	(109,594)	(98,866)	(118,913)
Gross profit	55,248	52,149	58,588	58,030	59,517
Selling and marketing expenses	(25,369)	(25,807)	(24,447)	(21,871)	(24,715)
Research and development expenses	(12,040)	(12,459)	(11,537)	(10,728)	(10,926)
Administrative expenses	(14,288)	(12,867)	(15,273)	(12,615)	(11,514)
Other operating income / (expenses)	2	3	79	38	(49)
Result from operations (EBIT)	3,553	1,019	7,410	12,854	12,313
Finance costs	(2,998)	(3,682)	(4,966)	(4,706)	(5,940)
Finance income	64	23	97	54	140
Net finance costs	(2,934)	(3,659)	(4,869)	(4,652)	(5,800)
Result before income tax	619	(2,640)	2,541	8,202	6,513
Income tax	147	769	1,160	(2,225)	(1,294)
Profit (loss) for the period	766	(1,871)	3,701	5,977	5,219
Profit before deprec. & amortisation (EBITDA)	13,022	8,071	14,086	19,523	18,978

Marel hf., Condensed Consolidated Interim Financial Statements 30 June 2014

All amounts in EUR*1000 unless otherwise stated.