Rational AG: turnover up 25% after nine months – EBIT margin at 22%

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EQS-News: RATIONAL AG / Tag(s): Quarterly / Interim statement/Quarterly results

Rational AG: turnover up 25% after nine months – EBIT margin at 22%

03.11.2022 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

Rational AG: turnover up 25% percent after nine months – EBIT margin at 22 percent

  • Revenue increases by 25% in the first nine months of 2022 to reach a new all-time high of 732 million euros
  • iVario sales increase by 63%
  • Third quarter records highest revenue and EBIT in company history
  • Despite continued cost pressure, EBIT margin at 26% in the third quarter and 22% in the first nine months
  • Forecast for 2022: revenue growth of 23% to 28% and EBIT margin of 21.5% to 22.5%

Landsberg am Lech, November 3, 2022 “The order book, which had reached record levels in previous quarters, and the long delivery times fell again for the first time in the third quarter. This is due to the improved supply situation for electronic components and the resulting increase in the number of cooking systems produced and sold,” says Dr. Peter Stadelmann, CEO of Rational AG. Rational’s backlog fell from 400 million euros to 330 million euros, a first step towards normalization.

According to Stadelmann, the number of Combi steamers sold in the first nine months increased slightly compared to the previous year period. According to information provided by the company, the volume of iVario cooking systems sold continued its very encouraging growth, exceeding the first nine months of the previous year by almost 50%.

Revenue up 33 percent to a new all-time high in the third quarter of 2022

At €274.2 million (2021: €206.9 million), Rational’s third-quarter revenue reached a new all-time high, up 33% year-on-year former. “In addition to improved component availability, factors that contributed to the good business performance were strong aftermarket activity and price increases, which took effect,” says CFO Jörg Walter, explaining the encouraging figures. Positive currency movements drove sales up five percentage points.

A similar picture emerged for the first nine months of 2022. After three quarters, the company’s cumulative revenue was 731.9 million euros, 25% more than the previous year ( 2021: €586.3 million). Adjusted for exchange rate variations, revenue growth was 21% compared to the previous year:

Revenue growth was particularly encouraging in North America, where a year-on-year increase of 46% was recorded. Latin America also recorded a significant increase over the previous year, with growth of 65%. Germany and the rest of Europe also ended the first nine months of 2022 on a high note, up 21% and 23% respectively. Only in Asia did turnover decrease slightly compared to the same period of the previous year. “The main reason was weak sales revenue in China due to coronavirus-related lockdowns in many cities. China’s contribution to revenue in Asia is around 40%,” reports Stadelmann.

Gross margin of 54.3 % in the first nine months of 2022

Cost of sales grew faster than revenue in the first nine months, up 30% to €334.6 million (2021: €258.1 million). As a result, the company’s gross margin contracted to 54.3% during this period (2021: 56%). This is due to higher purchase prices for components, raw materials and logistics. Rational’s gross margin improved compared to the second quarter of 2022. In addition to the increase in sales volume, this was mainly due to the entry into force of price increases, positive currency effects, as well as first signs of stabilization in the raw materials and components markets. Third quarter gross margin was 54.7% (2021: 55.3%).

EBIT margin at 22.3 percent

EBIT (profit before financial result and taxes) for the first nine months of the current financial year amounted to 163.4 million euros, up by around 22% compared to the previous year (2021 : 134.1 million euros). The EBIT margin was 22.3% during this period (2021: 22.9%). The fact that operating costs grew more slowly than sales revenue helped Rational achieve record profits. “The EBIT of €70.3 million generated in the third quarter of 2022 (2021: €49.7 million) was the highest for a quarter in the company’s history,” says the CFO Walter. The third quarter EBIT margin was 25.6% (2021: 24.0%).

Employees

According to Rational, the UiU principle (entrepreneur in the company) reinforces employee satisfaction, which makes it an important pillar of the company’s success. This was again confirmed by an employee survey conducted in 2022. In these unprecedented turbulent and difficult times, 87% of UiUs are proud to work for Rational. However, employees also indicated to a greater extent that work and stress levels had increased. At the end of September 2022, Rational Group employed 2,356 people worldwide. Of this total, about 1,370 worked in Germany.

Forecast 2022

More stable material availability, the growing effect of price increases and the beneficial impact of currency fluctuations have propelled Rational Group’s sales to a record high in every quarter of this year.

The continued performance of the company during the current financial year will depend essentially on the following factors. First, the material supply and logistics situation remains tense. On the supplier side, there are not only lockdowns due to the coronavirus, such as in China in the spring of 2022, but also the risk that production at suppliers will be impacted by rising energy costs or staff shortages. “In addition, it is currently difficult to predict how the economy as a whole will behave,” says CEO Stadelmann, looking to the future.

The Rational boss believes sales revenue of 23% to 28% is realistic in 2022, if the supply situation and business performance remain stable. Assuming a similar cost base, the increase in revenue will also have a positive impact on the EBIT margin. In this scenario, it should be between 21.5% and 22.5% at the end of the year.

Contact:

Rational Aktiengesellschaft

Stefan Arnold / Head of Investor Relations

Such. +49 (0)8191 327-2209

Fax +49 (0)8191 327-72 2209

Email: [email protected]

rational-online.com

Editorial note:

The Rational Group is the world market and technology leader for thermal food preparation in professional kitchens. Founded in 1973, the company employs more than 2,300 people, including around 1,370 in Germany. Rational was listed in the Prime Standard of the German stock market in 2000 and is currently represented in the MDAX.

The main objective of the company is to offer the maximum benefit to the customer at all times. Rational is committed to the principle of sustainability, which is expressed in its corporate policies for environmental protection, leadership, job security and social responsibility. Numerous international distinctions testify to the quality of the work carried out by Rational employees year after year.

Figures in millions of euros 9M 2022 9M 2021 Percentage
change
Turnover 731.9 586.3 +25
Gross profit 397.3 328.2 +21
Gross margin in percentage 54.3 56.0
Earnings before financial result and taxes (EBIT) 163.4 134.1 +22
EBIT margin in percentage 22.3 22.9
Profit or loss after tax 124.7 102.0 +22
Earnings per share in EUR 10.97 8.97 +22
Figures in millions of euros Q3 2022 Q3 2021 Percentage
change
Turnover 274.2 206.9 +33
Gross profit 150.1 114.5 +31
Gross margin in percentage 54.7 55.3
Earnings before financial result and taxes (EBIT) 70.3 49.7 +41
EBIT margin in percentage 25.6 24.0
Profit or loss after tax 53.8 37.8 +42
Earnings per share in EUR 4.73 3.33 +42

03.11.2022 CET/CEST Broadcast of a Corporate News, transmitted by EQS News – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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