RATIONAL AG
RATIONAL AG: Successful Start to Fiscal Year 2017
DGAP-News: RATIONAL AG / Key word(s): Quarterly / Interim Statement Rational AG – Statement on the First Quarter of 2017 Landsberg am Lech, 3 May 2017 Rational AG – Successful Start to Fiscal Year 2017 – Group-wide sales revenues increase by 22 percent – Growth driven by Americas – 61 percent gross margin – 27 percent EBIT – 78 percent equity ratio – 12 million euros in operating cash flow – Good development for both segments – 75 new employees hired – Outlook confirmed Group-wide sales revenues increase by 22 percent – growth driven by Americas Sales revenues increased 58 percent year on year in North America (U.S. and Canada), where business with chain customers in particular was very successful. Sales revenues in Latin America also rose sharply (+53 percent), with all markets in this region making a contribution. Apart from a very good trend in general, sales revenues there were influenced by orders from larger customers. In addition, the SelfCookingCenter(R) was launched in Brazil in the first quarter of 2017, which also had a positive impact in this period. In Europe (excluding Germany), sales revenues were up by a total of 18 percent. As in previous years, the main growth drivers were Southern European markets; however, countries such as the UK or Turkey, which suffered from political influences last year, also contributed to this growth. Asia also made a good start to the year, with sales revenues 23 percent up on the previous year. In particular, the largest markets in the region – Japan and China – performed positively. In Japan, business with a major partner was very successful again; sales revenues from VarioCookingCenter(R) also increased again there. Business volumes in the rest of the world grew by 18 percent. In particular, Australia grew above average – albeit compared with a relatively weak first quarter in 2016. This high growth in the first quarter of 2017 was enabled by the overall good business trend and, in particular, positive special effects. These include high levels of new orders at overseas subsidiaries at the end of 2016 as a result of the launch of SelfCookingCenter(R) which were not shipped and invoiced until 2017. Other orders were brought forward by customers and were received earlier than expected. In particular, markets that have a higher price level also grew strongly, and the first quarter of 2017 had more working days on the calendar, and hence more invoicing days, which likewise had a positive impact on sales revenues. The performance of the currencies of relevance to Rational largely cancelled each other out year on year and led overall to a slight increase in sales revenues. 61 percent gross margin 27 percent EBIT margin – adjusted for special effects, at previous year’s level The rise in EBIT and the corresponding increase in the EBIT margin are mainly due to the very good sales trend coupled with a below-average increase in operating costs. The latter rose compared to the first quarter of 2017 by 9.2 million euros or 19 percent to 58.3 million euros After three months, general administration expenses amounted to 7.0 million euros, up 8 percent over the previous year (2016: 6.5 million euros). There was a noticeable positive impact on EBIT by 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 and increased earnings by 1.1 million euros in the first quarter of 2017. In the prior-year period, the negative effect had a very clear impact of 2.6 million euros. Adjusted for exchange rate influences, the EBIT margin was 26 percent, around the level of the previous year’s margin after exchange rate adjustments. 78 percent equity ratio 12 million euros in operating cash flow The cash flow from investing activities includes investments in property, plant and equipment and in intangible assets. In the first quarter, this amounted to 3.2 million euros, 0.8 million euros down on the previous year (2016: 4 million euros). The cash outflows from financing activities mainly reflect the repayments of principal and interest payments on outstanding loans up to the end of March and were 1.6 million euros in the period under review (2016: 1.4 million euros). Good development for both segments The FRIMA segment produces and markets the VarioCooking Center(R). FRIMA continued its successful growth of the previous year in the first quarter of 2017, posting an above-average increase in sales revenues of 25 percent compared with the Group. FRIMA generated total sales revenues of 11.8 million euros (2016: 9.5 million euros). Segment earnings stood at Outlook confirmed Sales revenues and EBIT in the first quarter of 2017 were far better than expected. This good performance was due to the positive effects described earlier. These effects are not anticipated in this form in the remainder of the year or, in some cases, will probably have the effect of slowing down our performance in the subsequent quarters. In view of this, the Executive Board of Rational AG confirms the forecast for fiscal year 2017 given in the Annual Report, i.e. continuation of the moderate growth trend for sales volume and revenues, an above-average increase in costs, a slightly higher EBIT than the year before and an EBIT margin between 26 percent and 27 percent. 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.
Disclaimer This quarterly statement contains forward-looking statements that are based on assumptions and expectations at the time the statement is published. They are subject to risks and uncertainties and the actual results may differ significantly from those in the forward-looking statements. Many of these risks and uncertainties are determined by factors that are outside the influence of Rational AG and cannot be assessed reliably at present. They include future market conditions and economic trends, the actions of other market players, and legal and political decisions. Rational AG is also not obligated to publish revisions to these forward-looking statements in order to reflect events or circumstances that have occurred after they were published.
03.05.2017 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: | MDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange |
End of News | DGAP News Service |