John Bean Technologies Corporation (NYSE:JBT) Q2 2022 Earnings Conference Call July 28, 2022 10:00 AM ET
Company Participants
Kedric Meredith - Vice President, Corporate Development and Investor Relations
Brian Deck - President and Chief Executive Officer
Matt Meister - Executive Vice President and Chief Financial Officer
Conference Call Participants
Lawrence Maria - William Blair
Walter Liptak - Seaport Global Securities LLC
Mircea Dobre - Robert W. Baird & Co., Inc.
Operator
Good morning, and welcome to JBT Corporation’s Second Quarter 2022 Earnings Conference Call. My name is Erica, and I will be your conference operator today. As a reminder, today’s call is being recorded. [Operator Instructions]
I will now turn the call over to JBT’s Vice President of Corporate Development and Investor Relations, Kedric Meredith, to begin today’s conference.
Kedric Meredith
Thank you, Erica. Good morning, everyone, and welcome to our second quarter 2022 conference call. With me on the call is our Chief Executive Officer, Brian Deck; and Chief Financial Officer, Matt Meister.
In today’s call, we will use forward-looking statements that are subject to the Safe Harbor language in yesterday’s press release and 8-K filing. JBT’s periodic SEC filings also contain information regarding risk factors that may have an impact on our results. These documents are available in the Investor Relations section of our website. Also our discussion today includes references to certain non-GAAP measures. A reconciliation of these measures to the most comparable GAAP measure can be found in the Investor Relations section of our website.
Now, I’ll turn the call over to Brian.
Brian Deck
Thanks Kedric and good morning everyone. JBT made progress in the second quarter of 2022. With sequential gains in revenue, margins, and earnings. We had record sales of FoodTech, AeroTech continued its march to recovery. However, persistent disruption from inflation supply chain shortages, logistics challenges and COVID related absenteeism continue to weigh on margins. Foreign exchange was a greater headwind than anticipated. Additionally, the concern we raised we raised last quarter about developing economic pressures in the impact of the Ukrainian war on the European markets has materialized. At the same time, as we unveiled with our Elevate 2.0 strategy. One of JBT's pillars of growth comes from our plan to deploy more than $1 billion of capital on strategic M&A over the next four years. We are executing on that strategy.
On July 1, we announced the acquisition of Alco-food-machines. Alco’s solutions complement JBT’s portfolio and further processing for high growth markets, including convenience meals, poultry, and plant based proteins. It has excellent technology that is well regarded in the marketplace. Alco also provides further penetration into the attractive German market, as well as the opportunity to leverage its technology globally. And yesterday, we announced the definitive agreement to acquire Bevcorp. Bevcorp provides filling and closing systems for ready to drink carbonated beverages, a growth market that goes beyond soft drinks to include alcoholic beverages and blends, energy drinks, seltzers and sparkling waters. Compelling aspects of Bevcorp included unique process know-how and best-in-class service culture as reflected by its EBITDA margins in the low to mid 20% range. Bevcorp serves the largest players in the market with long-term relationships and operates 100% in North America. Its technology provides a great adjunct to JBT's existing solutions for the beverage market. And aftermarket represents north of 60% of revenue, providing a resilient business model with a proven record of growth and stability.