RATIONAL AG
Rational AG continues successful business performance
DGAP-News: RATIONAL AG / Key word(s): Quarterly / Interim Statement
Rational AG – Statement on the first 9 months of 2017 Landsberg am Lech, 30 October 2017 Rational AG continues successful business performance – Sales revenues up 17% on previous year – growth driven by Americas – Gross margin of 61% – EBIT margin still on the high level of 26% – 72% equity ratio – 93 million euros in operating cash flow – Good development in both segments – 131 new employees hired – Outlook details specified – record investments expected Sales revenues up 17% on previous year – growth driven by Americas In North America, sales revenues grew by 25% in the third quarter and by 34% in the nine-month period. Here, business with chain customers in particular was very successful, while street business also performed well. Sales revenues in the Latin America region were also considerably higher than in the prior-year period, expanding by 27% in the third quarter and by 37% in the nine-month period. In addition to a very good performance in general, orders from major customers and the recovery of the Brazilian market had a particularly positive impact on sales revenues. In Europe (excluding Germany), sales revenues were up by a total of 15% in the third quarter. In the nine-month period, the region grew by 12%. As in the first six months, key growth drivers were the southern European markets of Spain and Italy. Following stagnating sales revenues in the first half of the year, the UK returned to slight growth in the third quarter. Moreover, developments were positive in markets that had been weighed down by political influence in the past. For example, Russia, Greece and Turkey experienced faster-than average growth in the nine-month period. Following encouraging growth in the first half of the year, the Asia region expanded by 10%, and thus more slowly than the general average, in the third quarter. This resulted in cumulative revenue growth of 17%. All the region’s markets recorded increases in sales revenues, and in particular, the development of business with local regional customers in the Chinese market was encouraging. In Rational’s home market of Germany, sales revenues for the quarter were up 16% year-on-year, and growth of 9% was recorded for the nine-month period. The combi steamer segment has already more than recovered from its first quarter backlog. VarioCooking Center(R) business continued to be extremely successful in Germany, expanding by 23% in the first nine months. Business volumes in the rest of the world grew by 15% in the quarter just ended. In the nine-month period, the region was up 13%. It benefited in particular from a significant increase in business with a partner in Australia. As in the first half of the year, the currencies of relevance to Rational fell significantly year-on-year in the third quarter. As a result, sales revenue performance in the year to date has been negatively impacted by exchange rate fluctuations. This development was mainly attributable to the weakness of the pound sterling. Adjusted for these factors, sales revenues increased by 18% in the nine-month period. Gross margin of 61% EBIT margin still on the high level of 26% While, as expected, manufacturing costs rose faster than sales revenues, the increase in operating costs was slightly below average. Operating costs rose by 15%, compared with the first nine months of 2016, to 174.6 million euros (2016: 151.3 million euros). The increase in costs was largely attributable to sales and service, which saw a rise of 13% to 128.5 million euros (2016: 113.6 million euros). By increasing capacities, the investments were mainly directed towards strengthening the global sales and service organisation and expanding central marketing and service processes. Research and development costs incurred for the continuous improvement of products and services rose by 30% to 24.1 million euros over the previous year (2016: 18.5 million euros). Development costs of 0.4 million euros were capitalised in the first nine months of 2017 (2016: 1.8 million euros). Adjusted for this effect, research and development expenses increased by 20%. After nine months, general administration expenses amounted to 22.0 million euros, up 14% on the prior-year period (19.2 million euros). There was a noticeable negative impact on EBIT from translation effects on foreign currency positions as at the balance sheet date. These effects account for a significant portion of other operating expenses and income, reducing nine-month earnings by 4.1 million euros. In the prior-year period, the negative effect had amounted to 2.1 million euros. An EBIT margin of 26% was achieved after nine months (2016: 27%). Adjusted for negative currency effects, the EBIT margin of 27% is the same as in the previous year. 72% equity ratio 93 million euros in operating cash flow The cash flow from investing activities includes investments in property, plant and equipment and in intangible assets. After nine months, these investments amounted to 19.5 million euros (2016: 18.6 million euros). They related primarily to new construction work and renovations to increase production capacities at the Landsberg location. The cash flow from financing activities essentially reflects the dividend of 113.7 million euros distributed in May (2016: 85.3 million euros). Good development in both segments The Frima segment produces and markets the VarioCooking Center(R). Frima continued its successful growth of the previous year in the nine-month period, posting an above-average increase in sales revenues of 21% compared with the Group. Frima generated total sales revenues of 39.8 million euros (2016: 33.0 million euros). Segment earnings stood at 5.9 million euros in the period under review (2016: 4.0 million euros). 131 new employees hired Outlook details specified – record investments expected Performance in the third quarter was again very positive, and the outlook for the rest of the year is good. For this reason, the Executive Board of Rational AG has now provided a more specific sales revenue growth forecast of around 13% for fiscal year 2017. Rational’s Executive Board expects the negative impact of exchange rate movements to continue in the fourth quarter. Given the combined effect of the record investments planned in production capacities at the Landsberg location and costs calculated for the rest of the fiscal year, management therefore assumes an EBIT margin at the lower end of the range between 26% and 27% for 2017. Contact: Editorial note: The company’s principal objective is to offer maximum customer benefit at all times. Internally Rational is committed to the principle of sustainability, which is expressed in its policies on environmental protection, leadership, job security and social responsibility. Numerous international awards bear witness to the high quality of the work done by Rational’s employees year after year.
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30.10.2017 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | RATIONAL AG |
Iglinger Straße 62 | |
86899 Landsberg a. Lech | |
Germany | |
Phone: | 0049 8191 327 2209 |
Fax: | 0049 8191 327 722209 |
E-mail: | ir@rational-online.com |
Internet: | www.rational-online.com |
ISIN: | DE0007010803 |
WKN: | 701080 |
Indices: | SDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange |
End of News | DGAP News Service |