25013719 2024-01-01 2024-12-31 25013719 2024-01-01 2024-12-31 1 25013719 2024-01-01 2024-12-31 1 25013719 2024-01-01 2024-12-31 2 25013719 2024-01-01 2024-12-31 3 25013719 2024-01-01 2024-12-31 4 25013719 2024-01-01 2024-12-31 1 25013719 2023-01-01 2023-12-31 25013719 2024-12-31 25013719 2023-12-31 25013719 2022-12-31 fsa:ContributedCapitalMember 25013719 2022-12-31 fsa:ReserveForDevelopmentExpenditureMember 25013719 2022-12-31 fsa:RetainedEarningsMember 25013719 2022-12-31 fsa:ProposedDividendRecognisedInEquityMember 25013719 2022-12-31 25013719 2023-01-01 2023-12-31 fsa:RetainedEarningsMember 25013719 2023-01-01 2023-12-31 fsa:ReserveForDevelopmentExpenditureMember 25013719 2023-01-01 2023-12-31 fsa:ProposedDividendRecognisedInEquityMember 25013719 2023-12-31 fsa:ContributedCapitalMember 25013719 2023-12-31 fsa:ReserveForDevelopmentExpenditureMember 25013719 2023-12-31 fsa:RetainedEarningsMember 25013719 2023-12-31 fsa:ProposedDividendRecognisedInEquityMember 25013719 2024-01-01 2024-12-31 fsa:RetainedEarningsMember 25013719 2024-01-01 2024-12-31 fsa:ReserveForDevelopmentExpenditureMember 25013719 2024-12-31 fsa:ContributedCapitalMember 25013719 2024-12-31 fsa:ReserveForDevelopmentExpenditureMember 25013719 2024-12-31 fsa:RetainedEarningsMember 25013719 2024-12-31 fsa:ProposedDividendRecognisedInEquityMember iso4217:EUR xbrli:pure Arni Sigurjonsson The Board of Directors and the Management Board have today discussed and approved the an-nual report of Marel A/S for the financial year 1 January - 31 December 2024. The annual report has been prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the Company's assets, liabili-ties and financial position at 31 December 2024 and of the results of its operations for the finan-cial year 1 January – 31 December 2024. Further, in our opinion, the Management's review gives a fair review of the development in the Company's activities and financial matters and of the results for the year and of the Company's financial position. We recommend that the annual report be approved at the annual general meeting. Aarhus Jesper Hjortshøj Arni Sigurjonsson Chairman Morten Munk Rasmussen Halla Björkvinsdottir Caspar Engmark To the shareholders of Marel A/S We have audited the financial statements of Marel A/S for the financial year 1 January – 31 De-cember 2024 comprising income statement, balance sheet, statement of changes in equity and notes, including accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 December 2024 and of the results of the Company's operations for the financial year 1 January – 31 December 2024 in accordance with the Danish Financial Statements Act. We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor's responsibilities for the audit of the financial statements" section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethi-cal responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act and for such internal control, that Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, Management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements in Denmark will always detect a material misstatement when it exists. Misstatements may arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of financial statement users made on the basis of these finan-cial statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also  identify and assess the risks of material misstatement of the company financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepre-sentations or the override of internal control.  obtain an understanding of internal control relevant to the audit in order to design audit proce-dures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.  evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.  conclude on the appropriateness of Management's use of the going concern basis of accounting in preparing the financial statements and, based on the audit evidence obtained, whether a ma-terial uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclu-sions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.  evaluate the overall presentation, structure and contents of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Management is responsible for the Management's review. Our opinion on the financial statements does not cover the Management's review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the Manage-ment's review and, in doing so, consider whether the Management's review is materially incon-sistent with the financial statements or our knowledge obtained during the audit, or otherwise ap-pears to be materially misstated. Moreover, it is our responsibility to consider whether the Management's review provides the in-formation required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that the Management's review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statement Act. We did not identify any material misstatement of the Manage-ment's review. Aarhus KPMG Statsautoriseret Revisionspartnerselskab 25578198 Michael E. K. Rasmussen State Authorised Public Accountant mne41364 Marel A/S P. O. Pedersens Vej 18 DK 8200 Aarhus N 25013719 Aarhus Frederiks Plads 42 DK 8000 Aarhus C Consolidated financial statements The financial statements of Marel A/S are included in the consolidated financial statements of Marel hf., Austurhraun 9, 210 Gardabaer, Iceland. The consolidated financial statements can be downloaded at www.marel.com. Financial highlights for the Company (EUR'000)2024 2023 2022 2021 2020 Income statement: Revenue120.825132.431135.377127.175105.195Gross profit13.9987.20924.87418.59020.448Ordinary operating profit/loss-4.998-10.6357.1595.0487.910Financial income and expenses, net374-2.3202.9031.8853.178Profit/loss for the year-3.019-9.8458.3726.05610.083Balance sheet: Total assets107.310115.490129.366126.897100.505Equity10.83513.86928.72825.28223.219Gross investments in property, plant and equipment7981.3381.9089.550798Financial ratios %: Gross margin11,65,418,414,619,4Operating margin-4,1-8,05,34,07,5Return on investment (yearly basis)-6,6-12,27,76,412,5Return on equity-24,4-46,231,025,044,0Solvency ratio10,112,022,219,923,1The financial ratios are defined as follows: Gross margin Gross profit/loss x 100 Revenue Operating margin Ordinary operating profit/loss x 100 Revenue Return on invest-Ordinary operating profit/loss x 100 ment Average number of operating assets Return on equity Profit after tax x 100 Average equity Solvency ratio Equity at year end x 100 Total equity and liabilities at 31 DecemberDevelopment in activities and financial position Revenue in 2024 totalled EUR 120,8 million, which is a decrease of EUR 11,6 million (8,8%) compared to 2023. The gross profit was improved from 5,4% in 2023 to 11,6% in 2024, driven by improved product margins and lower R&D costs due to the impairment loss on a capitalized R&D project in 2023. Loss for the year after tax totalled EUR 3,0 million, which is an increase of EUR 6,8 million compared to 2023. Equity totalled EUR 10,8 million at the end of the year, corresponding to a solvency ratio of 10,1%. The financial statements did not entirely live up to the expectations disclosed in the latest published annual report. Events after the balance sheet date No events materially affecting the Company’s financial position have occurred subsequent to the financial year end. Particular risks Our management has identified certain key risks to our business that demand attention. Of these, seven key risks are discussed below, together with an overview of corresponding mitigative ac-tions. Information Security Risk: Failure to secure our information systems and data could result in operational disruptions, financial losses, and reputational damage. With cybersecurity laws becoming more prescriptive, Marel must remain compliant while also securing customers' data. The Company invests in facility upgrades and infrastructure integrity and aims for international security certifications. Reputation and Compliance Risk: Operating globally, Marel must comply with a variety of evolving regulations. Non-compliance could lead to penalties and negative publicity. Social media further amplifies reputational risks. Marel aims to uphold stakeholder rights and adhere to responsible business practices across juris-dictions. People Management Risk: Risks include high employee turnover, skill mismatches, and lack of succession planning. Work-force instability and evolving employment expectations post-pandemic pose challenges. Marel fo-cuses on being an attractive employer and fostering employee engagement. Innovation Risk: Technology shifts, sustainability requirements, and inadequate IP protection can disrupt Marel's objectives. Success depends on product development and software competitiveness. Marel dedi-cates significant resources to industry innovation. Geopolitical Risk: Global events can affect Marel's operations, supply chains, and staff. The company mitigates this via a diversified footprint, local partnerships, and proactive crisis management teams. Supply Chain Management Risk: Challenges include resource scarcity and unpredictable demand. Marel counters this with global distribution centers, dynamic inventory management, and agile manufacturing prioritization. Foreign Exchange Risk: Marel faces currency exposure primarily in EUR/USD and EUR/ISK. It manages this through natural hedging of revenues and costs and hedging instruments per policy. Earnings Volatility Risk: Economic conditions and interest rates affect Marel's cash flow and investment timing. Diversified revenue streams across segments and regions provide some buffer against earnings volatility. Intellectual capital The primary business foundation is to provide competitive products, solutions and technology for the food industry improving its competitiveness. Accordingly, the Company must be able to de-velop and retain intellectual capital and know-how on products and business processes. The Com-pany therefore regularly develops policies and procedures for recruiting, training and retaining employees and for developing and documenting products and business processes. Research and development activities The Company's research and development activities comprise regular development of new and existing products and processes for the food industry. The Company is committed to developing industry-leading technology in partnership with our customers. Annually, we invest approximately 6-8% of revenues in research and development, which trans-lated to EUR 9,5 million in 2024. The level of research and development costs is essential to the creation of transformative solutions for the food processing industry and securing our competitive advantage, which in turn deliver organic growth to the company. Branches in Uruguay The Company’s Branch in Uruguay operating under the name Marel A/S Sucursal Uruguay has been closed in September 2024, and the net equity of EUR 699, has been transferred to Marel A/S. The negative operating profit for 2024 of EUR 10.000 before taxes is consolidated into the income statement. Principal activities Marel is a leading global provider of advanced processing equipment, systems, software and ser-vices to the poultry, meat and fish industries. The company has a global reach with local pres-ence in over 30 countries, with sales and service engineers servicing customers in over 140 coun-tries. The Company’s business model is based on providing full-line solutions and services to the food processing industry, one of the most important value chains in the world. With an emphasis on innovation, close partnership with customers, and global and local reach, this model supports our vision of a world where quality food is produced sustainably and affordably. Our revenue streams consist of sales of standard equipment, major projects, and recurring sales of parts, services, and software licenses. We have a global customer base diversified across dif-ferent industries, product mixes, and geographical areas, allowing us to achieve and maintain strong profitability throughout economic cycles. CSR Policies and Performance in 2024 Marel’s business model is centered on delivering full-line solutions, software, and services to the global food processing industry. The model emphasizes sustainable innovation, efficient resource use, and food safety. In 2024, Marel integrated CSR through strategic initiatives like the launch of a green steel pilot and participation in the Science Based Targets initiative (SBTi) for GHG reduc-tions. Marel A/S is part of the Marel Group that has signed the United Nations Global Compact. The Company meets the statutory requirement for Corporate Social Responsibility by following the Consolidated Sustainability Policy for Marel Group. For the statutory reporting on Corporate So-cial Responsibility, according to §99a in the Danish Financial Statement Act, we refer to the offi-cial CSR reporting for the group. Human Rights Marel respects international human rights and enforces ethical behavior in its supply chain. No violations or policy exceptions were reported in 2024. The Supplier Code of Conduct includes clear commitments to labor rights and non-discrimination. Social and Employee Matters Marel continues to focus on safety, diversity, and upskilling. Key 2024 initiatives and results in-clude:  Established a global minimum standard for parental leave, which was implemented at the beginning of 2024.  Our first Employee Resource Group (ERG), Marel Women’s Network, was launched on International Women’s Day. The network has hosted virtual panel sessions featuring in-spirational Marel leaders and has more than a thousand members who are active on an internal Teams channel.  Global Diversity Policy in effect since 2018, with DEI training via LinkedIn Learning.  27% reduction in reportable incidents.  Average training hours per employee: 11.2. Environment and Climate Marel made significant progress toward its environmental and climate goals in 2024:  GHG emissions (Scopes 1 & 2) reduced by 55% since 2021.  Scope 3 emissions increased slightly due to broader tracking, especially from purchased goods and use of sold products.  84% of manufacturing sites powered by renewable electricity.  Waste recycling rate increased to 75.3%; target: 90% by 2026.  1,440 MWh of solar energy generated in-house.  Green Steel Pilot successfully implemented. Anti-Corruption and Bribery Marel enforces a zero-tolerance policy towards bribery and corruption:  All employees receive regular compliance training.  Independent whistleblower system is in place.  No breaches or incidents were reported in 2024. Future CSR Commitments Following the merger with JBT in January 2025, Marel will recalibrate its Net Zero and other ESG targets. In 2025, Marel plans to:  Expand circular economy practices across product life cycles.  Further diversify management and leadership.  Improve data quality in ESG tracking and Scope 3 emission accuracy. Outlook The continued geopolitical tension in the world is still causing uncertainty. The Company has a balanced exposure to global economies and local markets through its global reach, innovative so-lutions have proved to be key differentiating factors for The Company. These will enable us to push forward and help us navigate geopolitical tensions in the long run. That path is of course one of discovery to some extent, with inherent challenges and learnings. In May/June 2024 we have successfully moved our Central Warehouse function to Holland as describe in the outlook section for 2023. For 2025 we expect a further drop in revenue on spare parts equal to the revenue for the first 5 month of 2024. We also expect to improve our gross margin to the level of 16 – 18% and therefore we expect EBIT between EUR 7 –9 million. These expectations are subject to uncertainties due the increased geopolitical tensions mentioned above. Reporting on data ethics Marel is committed to the responsible and transparent use and protection of personal data entrusted to us by customers, employees, and others. We provide our employees and contractors with train-ing on global privacy principles in accordance with our commitment to respect and safeguard per-sonal data. Our Data Ethics Policy are governed by Marel Compliance, and they will regularly assess whether the policy needs to be updated and initiate relevant updates. Marel Compliance will supervise and report on the day-to-day work of using the data ethic principles of the Policy. Marel Compliance monitors compliance with this Policy with relevant checkpoints, communicating the reports sig-nificant risks or breaches to the Marel Executive Board. Example of the practices we follow to help ensure the integrity of our data privacy processes in-clude: Example of the practices we follow to help ensure the integrity of our data privacy processes in-clude:  Collecting and using the minimum amount of personal data necessary to achieve our business Purposes.  Sharing personal data only with individuals who have a legitimate need for it and will protect it.  Maintaining appropriate administrative, technical, and organizational security measures to pro-tect personal data.  Training our employees on the responsible use of personal information 120825000 132431000 106827000 125222000 13998000 7209000 13600000 10421000 5396000 7423000 -4998000 -10635000 4255000 1703000 726000 384000 4607000 4407000 -4624000 -12955000 -1605000 -3110000 -3019000 -9845000 0 225000 4562000 3558000 0 0 4562000 3783000 17725000 18460000 77000 126000 1529000 1640000 101000 39000 19432000 20265000 35378000 35378000 35378000 35378000 59372000 59426000 11465000 28328000 2163000 2331000 10660000 3516000 11424000 10982000 494000 2300000 683000 744000 77000 35000 25501000 19908000 10972000 7828000 47938000 56064000 107310000 115490000 1342000 1342000 3558000 2775000 5935000 9752000 0 0 10835000 13869000 335000 2141000 610000 542000 168000 89000 1113000 2772000 675000 762000 65000000 64000000 2650000 2647000 68325000 67409000 412000 567000 2433000 1068000 4386000 7037000 15145000 16654000 4661000 6114000 27037000 31440000 95362000 98849000 107310000 115490000 1342000 4279000 18107000 5000000 28728000 14000 14000 -1504000 -8341000 -9845000 5000000 5000000 1342000 2775000 9752000 0 13869000 15000 15000 783000 -3802000 -3019000 1342000 3558000 5935000 0 10835000 Consolidated financial statementsIn accordance with section 112 (1) of the Danish Financial Statements Act, the Company has not prepared consolidated financial statements, as the Company is a subsidiary and as the financial statements of the Company and its subsidiaries are included in the consolidated financial statements of the parent company, Marel hf., Iceland. The annual report of Marel A/S for 2024 has been prepared in accordance with the provisions applying to reporting class C large enterprises under the Danish Financial Statements Act. Foreign currency translationOn initial recognition, transactions denominated in foreign currencies are translated at the exchange rates at the transaction date. Foreign exchange differences arising between the exchange rates at the transaction date and at the date of payment are recognised in the income statement as financial income or financial expenses. Receivables and payables and other monetary items denominated in foreign currencies are translated at the exchange rates at the balance sheet date. The difference between the exchange rates at the balance sheet date and at the date at which the receivable or payable arose or was recognised in the latest financial statements is recognised in the income statement as financial income or financial expenses.Non-current assets acquired in foreign currencies are measured at the exchange rate at the transaction date.Income statementRevenueRevenue from the sale of goods and services is recognised in the income statement provided that delivery and transfer of risk to the buyer have taken place before year-end and that the income can be reliably measured and is expected to be received. Contract work in progress is recognised at the selling price of the work performed. Revenue is measured excl. VAT and taxes and less discounts granted in connection with the sale.Production costsProduction costs comprise costs incurred in generating the revenue for the year. Such costs include direct and indirect costs for raw materials, goods for resale and consumables, wages and salaries, rent and leases, and depreciation of production plant and other assets used for production purposes. Write-down for inventories and write-down in connection with anticipated bad debt losses on contract work in progress are also included. Production costs also comprise development costs that do not qualify for capitalisation and amortisation of capitalised development costs.Distribution costsCosts incurred in distributing goods sold during the year and in conducting sales campaigns, etc. during the year are recognised as distribution costs. Also, costs relating to sales staff, advertising and depreciation are recognised as distribution costs. Administrative expensesAdministrative expenses comprise expenses incurred during the year for Company management and administration, including expenses for administrative staff, management, office premises, insurance and office expenses, etc. and depreciation.Other operating income or operating costs Other operating income and cost compris items secondary to the activities of the Company, including gains and losses on the disposal of non-current assets.Result from investments in subsidiariesResult from investments in subsidiaries comprises dividends from subsidiaries recognised as income in the income statement when adopted at the General Meeting of the subsidiary.Financial income and expensesFinancial income and expenses comprise interest income and expense, finance charges in respect of finance leases, realised and unrealised gains and losses on securities, payables and transactions denominated in foreign currencies, amortisation of financial assets and liabilities as well as surcharges and refunds under the on-account tax scheme, etc.Tax on profit/loss for the yearTax for the year comprises current tax for the year end and changes in deferred tax, including changes in tax rates. The tax expense relating to the profit/loss for the year is recognised in the income statement at the amount attributable to the profit/loss for the year and directly in equity at the amount attributable to entries directly in equity. Balance sheetIntangible assetsDevelopment projects comprise costs directly and indirectly attributable to the Company's development activities and which comply with the criteria for recognition under the Danish Financial Statements Act. Capitalised development projects are measured at cost less accumulated amortisation or at recoverable amount if the latter is lower. Capitalised development projects are amortised on a straight-line basis of the estimated useful lives after completion of the development project. The amortisation period is usually five years.Goodwill is measured at cost less accumulated amortisation and impairment losses.Goodwill is amortized on a straight-line basis over the remaining life. Amortisation is provided on a straight-line basis over the expected useful lives of the assets. The expected useful lives are as follows:Goodwill10yearsSoftware3 - 5yearsProperty, plant and equipmentLand and buildings, plant and machinery, and fixtures, fittings, and other equipment are measured at cost less accumulated depreciation. Land is not depreciated.The basis of depreciation is cost less expected residual value at the end of the useful life.Cost comprises the purchase price and any costs directly attributable to the acquisition until the date when the asset is available for use. Where individual components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items, which are depreciated separately. The basis of depreciation is cost less any projected residual value after the end of the useful life. Depreciation is provided on a straight-line basis over the estimated useful lifeDepreciation is provided on a straight-line basis over the expected useful lives of the assets. The expected useful lives are as follows:Buildings20 - 55yearsPlant and machinery3 - 10yearsFixtures, fittings and other equipment4 - 6yearsThe useful life and residual value are reassessed annually. Changes are treated as accounting estimates, and the effect on depreciation is recognised prospectively.Gains and losses on the disposal of property, plant and equipment are determined as the difference between the selling price less selling costs and the carrying amount at the date of disposal. Gains or losses are recognised in the income statement as other operating income or operating costs.Leased assetsOn initial recognition, leases for non-current assets that transfer substantially all risks and rewards incident to ownership to the Company (finance leases) are recognised in the balance sheet at the lower of fair value and the net present value of future lease payments. When the net present value is calculated, the interest rate implicit in the lease or the incremental borrowing rate is used as the discount factor. Assets held under finance leases are subsequently depreciated as the Company's other non-current assets.Leased assetsThe capitalised residual lease obligation is recognised in the balance sheet as a liability, and the interest element of the lease payment is recognised in the income statement over the term of the lease.Short term leases and leases of low-value assetsShort term leases that have a lease term of 12 month or less and leases of low-value assets are not recognised as right of use assets and lease liability and the lease payments associated with these leases are expensed on a straight-line base over the lease term.The Company's obligation relating to these leases is disclosed in contingent liabilities.Equity investmentsEquity investments in subsidiaries are recognised in the balance sheet at cost. Write-down is made to the lower of cost and recoverable amount. Cost is reduced by dividends received that exceed accumulated earnings after the date of acquisition.For subsidiaries where the parent company has a legal or constructive obligation to cover the deficit equity investments are written down corresponding to the parent company's share of negative equity. Any receivable from these enterprises is written down by the parent company's share of the negative net asset value. If the net asset value exceeds the amount owed, the residual amount is recognised under provisions.Impairment of non-current assetsThe carrying amount of intangible assets and property, plant and equipment as well as investments in subsidiaries is subject to an annual test for indications of impairment other than the decrease in value reflected by depreciation or amortisation.Impairment tests of individual assets or groups of assets are conducted when there is an indication that they may be impaired. Write-down is made to the recoverable amount if this is lower than the carrying amount.Impairment of non-current assetsThe recoverable amount is the higher of an asset's net selling price and its value in use. The value in use is determined as the present value of the anticipated net cash flows from the use of the asset or group of assets.Previously recognised write-downs are reversed when the basis for the write-down no longer exists. Write-down of goodwill is not reversed.InventoriesInventories are measured at cost in accordance with the average cost formula. Where the net realisable value is lower than cost, inventories are written down to this lower value.Goods for resale and raw materials and consumables are measured at cost, comprising purchase price plus delivery costs.Finished goods and work in progress are measured at cost, comprising the cost of raw materials, consumables, direct wages and salaries as well as direct and indirect production overheads. The net realisable value of inventories is calculated as the sales amount less costs of completion and costs necessary to make the sale and is determined taking into account marketability, obsolescence and development in expected sales price.ReceivablesReceivables are measured at amortised cost. Write-down is made for bad debt losses where there is an objective indication that a receivable or a receivable portfolio has been impaired. If there is objective evidence that an individual receivable has been impaired, write-down is made on an individual basis.Receivables with no objective indication of individual impairment are assessed for objective indication of impairment on a portfolio basis. The portfolios are primarily composed on the basis of the country of domicile and credit ratings of the debtors in accordance with the credit risk management policy of the Company. The objective indicators used in relation to portfolios are determined based on historical loss experience.ReceivablesWrite-downs are calculated as the difference between the carrying amount of the receivables and the present value of the expected cash flows, including the realisable value of any collateral received. The effective interest rate for the individual receivable or portfolio is used as discount rate.Contract work in progressContract work in progress is measured at the selling price of the work performed. The selling price is measured by reference to the stage of completion at the balance sheet date and total expected income from the work. The degree of completion is computed as the proportion between resources spent and total estimated resources for the completion of the contract. When it is probable that contract work in progress will result in losses, the estimated loss is recognised in the income statement.When the selling price of contract work in progress cannot be measured reliably, the contract work in progress is measured at the lower of costs incurred and net realisable value.The individual work in progress is recognised in the balance sheet as receivables or payables depending on the net value of the sales amount less on-account invoicing and prepayments. Selling costs and costs incurred in securing contracts are recognised in the income statement as incurred.PrepaymentsPrepayments comprise costs incurred concerning subsequent financial years, such as office rent, insurance premiums and licences. EquityDividends:The expected dividend payment for the year is disclosed as a separate item under equity.Reserve for development costs:The reserve for development costs comprises capitalised development costs. The reserve cannot be used for dividend, distribution or to cover losses. If the recognised development costs are sold or in other ways excluded from the Company's operations, the reserve will be dissolved and transferred directly to the distributable reserves under equity. If the recognised development costs are written down, the part of the reserve corresponding to the write-down of the developments costs will be reversed. If a write-down of development costs is subsequently reversed, the reserve will be re-established. The reserve is reduced by amortisation of capitalised development costs on an ongoing basis.Corporation tax and deferred taxCurrent tax payable and receivable is recognised in the balance sheet as tax computed on the taxable income for the year, adjusted for tax on the taxable income of prior years and for tax paid on account.Deferred tax is measured using the balance sheet liability method on all temporary differences between the carrying amount and the tax value of assets and liabilities. Where alternative tax rules can be applied to determine the tax base, e.g. regarding shares, deferred tax is measured based on the planned use of the asset or settlement of the liability, respectively.Deferred tax assets, including the tax value of tax loss carryforwards, are measured at the expected value of their realisation; either as a set-off against tax on future income or as a set-off against deferred tax liabilities in the same legal tax entity. Any deferred net assets are measured at net realisable values.Deferred tax is measured according to the tax rules and at the tax rates applicable at the balance sheet date when the deferred tax is expected to crystallise as current tax. Changes in deferred tax due to changes in tax rates are recognised in the income statement.Corporation tax and deferred taxThe Company is jointly taxed with other Danish subsidiaries and affiliated companies. Current Danish corporation tax is settled by the parent company, which is the administrative company, and allocated between the jointly taxed companies in proportion to their taxable income. ProvisionsProvisions comprise expected costs of warranties, losses on work in progress, restructurings, etc.Liabilities other than provisionsFinancial liabilities comprising amounts owed to credit institutions, trade payables and payables to group enterprises are recognised at the date of borrowing at cost, corresponding to the proceeds received less transaction costs paid. In subsequent periods, financial liabilities are measured at amortised cost.Financial liabilities also include the capitalised residual obligation on finance leases.Other liabilities are measured at net realisable value.Segment informationSegment information is provided on business segments and geographical markets. The segment information is in line with the Company's accounting policies, risks and internal financial management.Pursuant to section 96(3) of the Danish Financial Statements Act, the Company has not disclosed the fee to the auditors appointed at the annual general meeting.Pursuant to section 98b(3) of the Danish Financial Statements Act, the Company has not disclosed remuneration of Management as only one member of the Management Board is remunerated.The financial statements of Marel A/S are included in the consolidated financial statements of Marel hf., Austurhraun 9, 210 Gardabaer, Iceland. The consolidated financial statements can be downloaded at www.marel.com. true In accordance with section 86(4) of the Danish Financial Statements Act, the Company has not prepared a cash flow statement, as this is included in the consolidated cash flow statement of the parent company, Marel hf., Iceland. 2 Segment informationOperating segmentsThe identified operating segments comprise the three industries, which are the reporting segments. These operating segments form the basis for managerial decision taking.The segment information for the period ended 31 December 2024 is as follows: PoultryFishMeatOthersTotalRevenue 56.933 26.074 27.677 10.141 120.825Geographical informationThe Companys operating segments operate in four main geographical areas20242023Revenue(EUR'000) (EUR'000)Denmark7.8487.024Europe other79.07570.144North America20.10932.947Other countries13.79322.315Total 120.825 132.431 3 Staff costsWages and salaries, etc. 31.054 33.969Pensions 3.091 2.979Other social security costs 514 52934.659 37.477Staff costs are recognised as follows:Production 23.928 26.214Distribution 6.257 6.632Administration 4.473 4.63034.659 37.477Pursuant to section 98b(3) of the Danish Financial Statements Act, the Company has not disclosed remuneration of Management as only one member of the Management Board is remunerated. 349 377 2024 20234 Depreciation (EUR'000) (EUR'000)Land and buildings 591 577Plant and machinery 36 44Fixtures, fittings and other equipment 673 6381.300 1.259Depreciation is recognised as follows:Production 296 263Distribution 339 340Administration 664 6561.300 1.259 5 Result from investments in subsidiariesDividends from group enterprises 4.255 1.7034.255 1.703 6 Financial incomeOther financial income 726 384726 384 7 Financial expensesInterest expense, group enterprises 4.129 3.716Interest expense, leasing 46 31Other financial expenses 432 6604.607 4.407 2024 20238 Tax (EUR'000) (EUR'000)Tax on profit/loss for the year is specified as follows:Current tax 2.165 1.780Correction tax prior years -326 -87Deferred tax -234 1.417Correction deferred tax prior years 0 01.605 3.110 783000 1504000 -3019000 -9845000 10 Intangible assets Completed Ongoing Totaldevelopment development developmentprojects projects projectsCost at 1 January 23.277 2.916 26.193Additions 0 1.678 1.678Transferred 1.205 -1.205 0Cost at 31 December 24.482 3.389 27.871Impairment loss and amortisation at 1 January 22.635 0 22.635Amortisation and impairment for the year 674 0 674Impairment loss and amortisation at 31 December 23.309 0 23.309Carrying amount at 31 December 1.173 3.389 4.562Completed development projects relate to the deveopment and test of machines for the food processing industry and are usually amortised over five years.Ongoing development projects relate to the development and test of machines for the food processing industry and the majority of the projects are expected to be completed within 1-3 years where considerable economic benefits are expected.Software GoodwillCost at 1 January 624 8.295Foreign exchange adjustments at 1 January 0 0Cost at 31 December 624 8.295Impairment loss and amortisation at 1 January 624 8.070Foreign exchange adjustments at 1 January 0 0Amortisation for the year 0 225Impairment loss and amortisation at 31 December 624 8.295Carrying amount at 31 December 0 0Goodwill is amortised over 10 years, as the service business is linked to equipment with a long lifespan. 11 Property, plant and equipment Fixtures, fittingsLand and Plant and and other Assets under Own assets buildings machinery equipment construction TotalCost at 1 January 21.633 1.080 1.939 39 24.691Additions 0 0 31 75 106Transferred 0 0 13 -13 0Disposals 0 -323 0 0 -323Cost at 31 December 21.633 757 1.983 101 24.474Impairment loss and depreciation at 1 January3.4489541.33905.741Disposals0-31000-310Depreciation for the year 460 36 176 0 672Impairment loss and depreciation at 31 December3.908 680 1.515 0 6.103Carrying amount at 31 December 17.725 77 468 101 18.371Leased assetsCost at 1 January 536 0 1.724 0 2.260Foreign exchange adjustments 0 0 -0 0 -0Additions 134 0 558 0 692Disposals -536 0 -350 0 -886Cost at 31 December 133 0 1.932 0 2.065Impairment loss and depreciation at 1 January 260 0 683 0 943Disposals -258 0 -309 0 -567Depreciation for the year 131 0 497 0 628Impairment loss and depreciation at 31 December133 0 871 0 1.004Carrying amount at 31 December 0 0 1.061 0 1.061Total17.725771.52910119.432 2024202312 Equity investments (EUR'000) (EUR'000)Equity investments in group enterprisesCost at 1 January 35.378 35.378Cost at 31 December 35.378 35.378Carrying amount at 31 December 35.378 35.378Specification of subsidiaries Owner- Profit/Registeredsee latest published financial statements ship loss Equityoffice(EUR'000) (EUR'000)Marel Salmon A/S Denmark 100% 649 17.263Marel New Zealand Limited New Zealand 100% -118 1.122Marel GB Ltd. England 100% 814 8.412Marel Food Systems Ltd. Ireland 100% 186 1.915Marel Polska Sp. z.o.o. Poland 100% 710 825Marel Chile SPA Chile 100% 726 2.189Marel Equipameintos Industriales S.A. Uruguay 100% -259 -39 13 InventoriesFinished goods 4.499 7.758Work in progress 6.963 20.568Raw materials and consumables 3 211.465 28.3282024 202314 Contract work in progress (EUR'000) (EUR'000)Contract work in progress 13.072 2.902Progress billings -4.845 -454Net value at 31 December 8.227 2.448- recognised as follows:Contract work in progress 10.660 3.516Prepayments from customers -2.433 -1.068Net value at 31 December 8.227 2.448In the above number, intercompany projects are included with a sales value of EUR 9,915 thousand and progress billings of EUR 99 thousand or a net value of EUR 9,816 thousand with EUR 9,915 thousand reported under assets and EUR 99 thousand reported under liabilities. 15 EquityThe Company's share capital amounts to EUR 1,342 thousand, broken down on a share with a face value of EUR 134.2 thousand. No shares carry special rights.2024 2023 2022 2021 2020Share capital for the last 5 years 1.342 1.342 1.342 1.342 1.342 16 Deferred taxDeferred tax at 1 January 2.141 3.558Deferred tax for the year recognised in profit/loss for the year -1.806 -1.417Deferred tax at 31 December 335 2.141Deferred tax relates to:Intangible assets 1.003 832Property, plant and equipment 684 835Retaxation obligation, foreign entities 13 13Current assets 679 462Provisions 1 -2Leased assets and liabilities -5 1Tax loss carry forward -2.040 0335 2.141 2024 202317 WarrantiesBalance at 1 January 542 640Adjustments for the year 68 -98Balance at 31 December 610 542Date of maturity is expected to be 0-1 year18 Other provisionsReorganisation provision 87 89Employee Benefits Provision 81 0168 89Date of maturity is expected to be 0-1 year 19 Non-current liabilities Hereof fallingCurrent Non-current due after moreportion portion Total than five yearsFinance leases 412 675 1.087 0Payables to group enterprises 15.145 65.000 80.145 0Other payables 4.661 2.650 7.311 2.39420.218 68.325 88.543 2.394 20 Related partiesMarel A/S' related parties comprise the following:Control:Marel hf., Austurhraun 9, Gardabaer, IcelandMarel hf. Holds the majority of the share capital in the CompanyMarel A/S is part of the consolidated financial statements of Marel hf. Austurhraun 9, Gardabaer, Iceland, which is the smallest and largest group in which the Company is included as a subsidiary.The consolidated financial statements of Marel hf. can be obtained by contacting the Company or at the following website: www.marel.com.Related party transactions:GroupSale of goods 106.433 111.261Production costs -40.309 -48.357Distribution costs -4.506 -2.638Administrative expenses -3.474 -7.965Interest -4.129 -3.716Total 54.015 48.585Parent CompanyProduction costs 2.585 3.201Distribution costs 1.399 2.265Administrative expenses -136 2.356Dividends 0 5.000Total 3.848 12.822Payables to group enterprises are disclosed in the balance sheet and in note 19, and interest expense and received dividend are disclosed in note 5 and 7. 21 Collateral, contingent liabilities and lease liabilitiesThe Company is jointly taxed with other Danish group enterprises. Marel A/S is registred as the administrative company, together with the other companies included in the joint taxation, the Company has joint and several unlimited liability for Danish corporation taxes and withholding taxes on dividends, interest and royalties. Corporation taxes payable and withholding taxes within the joint taxation unit totalled a receivable of DKK 3.684 thousand at 31 December 2024. Any subsequent corrections to the taxable joint taxation income or withholding taxes may imply that the Company's liability will increase.Cash at bank and in hand amounting to EUR 10,972 thousand has been pledged as security for a group cash pool. Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2024-01-01 2024-12-31 2023-01-01 2023-12-31 2025-07-04 Reporting class C, large enterprise 1969-05-19 2025-07-04 25578198 KPMG P/S Dampfærgevej 28 2100 København Ø Opinion Basis for Opinion 2025-07-04