Shares

Shares

Marel is the second largest company listed on Nasdaq Iceland by market capitalization. The market value at year-end 2022 was EUR 2.5 billion, compared to EUR 4.6 billion at year-end 2021.

Since listing on Nasdaq Iceland and dual listing on Euronext Amsterdam in 2019, Marel has attracted a diversified international shareholder base, and broadened its analyst coverage. In August 2022, the US investment bank Jefferies initiated equity research coverage on Marel, thereby becoming the eighth firm to actively track and publish opinions on Marel and its stock.

Trading and liquidity

The challenging environment of global markets weighed on the development of Marel’s shares in 2022. Despite a gradual recovery from the pandemic, Marel’s operational and financial performance in 2022 were affected by supply chain disruption and inflation at high levels resulting in inefficiencies in manufacturing and aftermarket, and higher costs associated with timely delivery.

These factors put pressure on Marel’s shares in the first half of the year, but improved slightly in the second half, particularly in the fourth quarter. Marel’s shares declined by 43.9% in ISK on Nasdaq Iceland and by 45.8% in EUR on Euronext Amsterdam.

Marel trades under the ticker MAREL and ISIN IS0000000388 on both Nasdaq Iceland and Euronext Amsterdam. However, the company’s shares are not traded exclusively on the two stock exchanges. With the dual listing on Euronext Amsterdam, trading in Marel’s shares has become more fragmented, with a significant proportion of trading outside of regulated markets resulting in low liquidity for Marel’s shares on Euronext Amsterdam.

Shareholders

Eyrir Invest is Marel’s largest shareholder, holding 24.7% or 190,366,838 shares, followed by the Icelandic Pension Fund of Commerce (LIVE), Gildi Pension fund and LSR Pension Fund, which also had reported shareholdings above 5% in Marel at year-end 2022. Eyrir Invest has been a principal shareholder in Marel since 2005.

All Marel shares listed on Euronext Amsterdam, including shares transferred from Nasdaq Iceland to Euronext Amsterdam, are held in custody on behalf of Euroclear. No single shareholder holding shares only in EUR currently exceeds the threshold of 5% of total share capital.

Shareholders who hold shares in Marel on Nasdaq Iceland and Euronext Amsterdam have identical rights, including voting rights and rights to dividends. As of year-end 2022, 257.7 million shares or 33.4% of Marel’s total issued shares were listed on Euronext Amsterdam. The free float as of year-end 2022 was 75.3%.

Share capital

As of 31 December 2022, Marel’s authorized share capital was ISK 771,007,916, represented by 771,007,916 shares issued, each assigned one vote with a nominal value of ISK 1.00, and 752,714,522 shares outstanding with 18,293,394 shares held by the company as treasury shares, or 2.4% of issued shares.

Stock options

Stock options are granted to management and selected employees. The aim of the stock option agreements is to align the long-term interests of employees and the company. Granted and unexercised stock options totaled 23.1 million shares at the end of 2022 (2021: 18.4 million shares), of which 11.4 million are exercisable in 2023 and 11.7 million in 2024-2025.

On 16 March 2022, Marel’s Annual General Meeting (AGM) approved a new stock option scheme, where up to 25 million shares may be granted as stock options and be in effect at any time under the scheme. If any stock options lapse prior to their vesting date, new stock options may be granted instead. Any options that had not been granted under an identical stock option scheme approved at the 2019 AGM became invalid once the 2022 scheme went into effect.

At Marel’s 2014 AGM, shareholders authorized the Board of Directors to increase the company’s share capital by 35 million shares to fulfill stock option agreements. This authorization was valid for five years following its adoption. It was renewed at the company’s 2019 AGM and applies for five years from its adoption. No new shares were issued in 2022 under this resolution.

Share buyback program

On 1 June 2022, the Board of Directors of Marel decided to initiate a share buyback program on Nasdaq Iceland for up to 4 million shares, or about 0.52% of the total issued share capital in the company. In addition, the Board of Directors of Marel decided to initiate a share buyback program on Euronext Amsterdam for up to 1 million shares, or about 0.13% of the total issued share capital in the company. The purpose of the buyback program was to meet the company’s obligations under share incentive programs with employees.

As part of the buyback program, Marel purchased 4.6 million shares (EUR 19.8 million) in the period 1 June 2022 to 2 September 2022. The buyback program on Nasdaq Iceland was in effect from 1 June 2022 and was discontinued after 1 July 2022, when the maximum number of shares to be purchased was reached. The buyback program on Euronext Amsterdam was in effect from 2 June 2022 until and including 2 September 2022, when the buyback program was ended.

Did you know?

Marel joins the FTSE Global All Cap Index

As of September 2022, Icelandic securities, including Marel, became eligible for the FTSE Global All Cap and associated indices:

  • FTSE Global All Cap incl. Iceland
  • FTSE Emerging All Cap incl. Iceland
  • FTSE All-World incl. Iceland
  • FTSE Emerging incl. Iceland
  • FTSE Frontier excl. Iceland

The inclusion of Iceland in the FTSE Global Equity Index Series (FTSE GEIS), effective from the market open of 19 September 2022, will be implemented in three tranches: in September 2022, December 2022 and March 2023. The securities will be reflected at the full investability weight, i.e., their investability weight once Tranche 3 is completed in March 2023.

The transition to FTSE’s Secondary Emerging Market status is a positive step that could further elevate interest in the Icelandic equity market and Marel more specifically, as one of the 15 Icelandic securities to be included in the FTSE Global Equity Index Series. The reclassification should also attract interest from a broader investor base and help facilitate substantial new inflow into Marel stock on Nasdaq Iceland.

Index inclusion

As one of the 15 Icelandic securities, in September 2022 Marel was included in the FTSE Global Equity Index Series (FTSE GEIS), following Iceland’s recognition as a Secondary Emerging Market by global index provider FTSE Russell.

In 2021, international indexing company MSCI reclassified Iceland from Standalone Markets to Frontier Markets, and subsequently Marel was added to the MSCI’s Frontier Markets Index series. Icelandic stocks have been incorporated in MSCI’s indexes since 2018, when it was the first inclusion of Icelandic stocks since 2008 and since the lifting of capital controls in March 2017.

Marel is also included in the Nordic Large Cap segment of the Nasdaq OMX and is part of the OMXI10, an index that consists of the 10 most actively traded companies on Nasdaq Iceland. Since 2019, Marel has also been included in the VINX Benchmark Index by Nasdaq OMX Nordic.

Market making

Marel has agreements with Kvika Banki and Íslandsbanki for market making in its shares on Nasdaq Iceland, and with ABN AMRO – ODDO BHF and Kepler Cheuvreux on Euronext Amsterdam. The purpose of these agreements is to facilitate trading to improve liquidity and enhance transparent price formation in the company’s shares on both stock exchanges.

Market making on Nasdaq Iceland

As market makers on Nasdaq Iceland, Kvika Banki and Íslandsbanki are committed to making daily bid and ask offers for shares in Marel for a minimum of 30,000 shares, at a price that they determine in every instance. The bid-ask spread shall be determined with reference to the tick size table of Nasdaq Iceland as it is at any given time with the bid-ask spread as close to 1.50% as possible, but not below 1.45%. The market makers are permitted to go below the aforementioned bid-ask spread in case of circumstances due to the tick size table of Nasdaq Iceland.

The total number of shares each market maker is committed to buy or sell each day is 240,000 shares in Marel on Nasdaq Iceland. The agreements with Kvika Banki and Íslandsbanki are valid for an indefinite period and may be terminated with one month’s notice.

Market making on Euronext Amsterdam

As market makers on Euronext Amsterdam, ABN AMRO – ODDO BHF and Kepler Cheuvreux are required to provide quotes, bids and asks, for a minimum aggregate order value of EUR 5,000 each. In accordance with Euronext Amsterdam’s rules, the liquidity providers shall be permanently present during the trading session and 15 minutes before the opening session.

The maximum bid/ask spread is 3% as of the agreement with Kepler Cheuvreux. According to the agreement with ABN AMRO – ODDO BHF, the maximum bid/ask spread is 3% if Marel’s share price exceeds EUR 4.00 and a maximum of EUR 0.12 per share in case the share price is lower than or equal to EUR 4.00. The agreements are valid for one year and can be terminated with written notices with immediate effect for ABN AMRO – ODDO BHF and in one month for Kepler Cheuvreux.

Earnings per share

Earnings per share (EPS), calculated by dividing the net profit attributable to shareholders by the weighted average number of outstanding shares issued, were EUR 7.78 cents in 2022, compared to EUR 12.85 in 2021.

Earnings per share was impacted by one-offs e.g., cost of 5% headcount reduction, Stranda Prolog insolvency, higher level of investments and Wenger PPA in 2022.

Marel’s management targets basic earnings per share to grow faster than revenues, resulting in profitable growth.

Earnings per share

Trailing twelve months

Dividends

Ahead of the AGM on 22 March 2023, Marel’s Board of Directors has proposed that a dividend of EUR 1.56 cents per share be paid for the operational year 2022 (2021: EUR 5.12 cents per share), corresponding to 20% of net results attributable to Shareholders of the Company for the year 2022. The estimated total dividend payment will be around EUR 11.7 million for the operational year 2022, compared to EUR 38.7 million in 2021.

The proposed dividend is in line with Marel’s dividend policy disclosed at Marel’s AGM in March 2011. Dividend or share buyback is targeted at 20-40% of the net result and excess capital is to be used to stimulate growth and value creation.

Dividend history

Year of payment (for previous year of operations) 20231 2022 2021 2020 2019 2018 2017
Dividend per share EUR cents
1.56
5.12
5.45
5.79
5.57
4.19
2.14
Dividend yield, %2
0.48%
0.86%
1.09%
1.27%
2.00%
1.60%
1.00%
Payout ratio, %3
20%
40%
40%
40%
30%
30%
20%
Ex. Dividend date
24 Mar
18 Mar
19 Mar
20 Mar
7 Mar
7 Mar
3 Mar
Record date
27 Mar
21 Mar
22 Mar
23 Mar
8 Mar
8 Mar
6 Mar
Payment date
14 Apr
30 Mar
7 Apr
8 Apr
27 Mar
27 Mar
23 Mar

 

Notes: 1Based on proposal to the 2023 AGM. 2Dividend per share / Price per share at previous year-end. 3Total dividend paid / Net income of previous year.

Share price development on Nasdaq Iceland

At year-end 2022, Marel was the second largest company listed on Nasdaq Iceland by market capitalization.

As of year-end 2022, 513.3 million or 66.6% of Marel’s shares were listed on Nasdaq Iceland. Marel’s share price decreased by 43.9% during 2022. At year-end 2022, Marel’s share price was ISK 490, compared to ISK 874 at the end of 2021. Marel’s average end-ofday spread for 2022 was 0.87% (2021: 0.86%).

Marel’s shares were among the most actively traded on Nasdaq Iceland in 2022. Shares in Marel were traded 13,561 times in 2022 (2021: 7,850 times) for a total market value of EUR 963.9 million (2021: EUR 798.6 million), which corresponds to a velocity rate of 29.6% (2021: 17.6%).

Marel share price on Nasdaq OMX Iceland in 2022 compared to OMXI10 index

Source: Nasdaq OMX Nordic

Share price development on Euronext Amsterdam

Marel’s share price on Euronext Amsterdam decreased by 45.8% during 2022. At year-end 2022, Marel’s share price was EUR 3.22, compared to EUR 5.94 at year-end 2021.

The market value of the company at year-end 2022 was EUR 2.5 billion, compared to EUR 4.6 billion at year-end 2021, a decrease of EUR 2.1 billion.

Shares in Marel on Euronext Amsterdam were traded 19,769 times in 2022 (2021: 20,253 times) for a total market value of EUR 50.5 million (2021: EUR 64.1 million), which corresponds to a velocity rate of 1.5%.

As of year-end 2022, 257.7 million or 33.4% of Marel shares were listed on Euronext Amsterdam.

Marel share price on Euronext Amsterdam in 2022 compared to AMX index

Source: Euronext

Trading data for 2022 and 2021

  2022 2021 Unit
Market capitalization:1
 
 
 
 Nasdaq OMX Iceland
377.8
673.9
ISK bn
 Euronext Amsterdam
2.5 4.6
EUR bn
Share price at year end:
 
 
 
 Nasdaq OMX Iceland
490 874
ISK
 Euronext Amsterdam
3.22 5.94
EUR
High / Low price per share:
 
 
 
 Nasdaq OMX Iceland
888 / 437 973 / 788
ISK
 Euronext Amsterdam
6.00 / 3.06 6.58 / 5.02
EUR
Dividend per share (for previous year of operations)
5.12
5.45
EUR cents
Earnings per share
7.78 12.85
EUR cents
Price-to-earnings ratio
41.4
46.2
P/E
Issued shares
771.0
771.0
Million
Outstanding shares
752.7 755.7
Million
Shares listed at year-end:
 
 
 
 Nasdaq OMX Iceland
66.6%
64.2%
% of issued shares
 Euronext Amsterdam
33.4% 35.8%
% of issued shares

 

Note: 1Issued shares multiplied by share price at last trading day of 2021 and 2022.