- WKN: 701080
- ISIN: DE0007010803
- Land: Deutschland
Nachricht vom 03.05.2018 | 07:00
Rational AG - Successful Start to Fiscal Year 2018
DGAP-News: RATIONAL AG / Key word(s): Quarterly / Interim Statement
Rational AG - Statement on the First Quarter of 2018
Landsberg am Lech, 3 May 2018
Rational AG - Successful Start to Fiscal Year 2018
- Organic growth of 9 percent
- Growth markets Germany and Asia
- 60 percent gross margin
- 24 percent EBIT margin - adjusted for currency effects, at previous year's level
- 80 percent equity ratio - high liquidity
- Good development for both segments
- 70 new employees hired
- Outlook confirmed
Organic growth of 9 percent
In total, Rational generated sales revenues of 173.5 million euros in the first quarter of 2018. Taking into account the base effect due to the previous year's performance and negative currency effects, the recorded growth of 5 percent was still significant and in line with expectations. This equates to average sales revenue growth of 13 percent over two years, bringing the company's growth in the high single-digit range above its own long-term growth targets.
The strong appreciation of the euro - against almost all currencies relevant to Rational - compared with the same quarter of the previous year had a considerable impact on sales revenues in the first quarter of 2018 . In particular, the decline of the US dollar (-15 percent), the Canadian dollar (-11 percent), the Japanese Yen (-11 percent), the Brazilian real (-20 percent), and the British pound (-3 percent) had a significantly negative impact on sales revenues. Adjusted for these effects, Rational sales revenues worldwide increased by 9 percent.
In March 2018, Rational also received high levels of new orders in particular in North and South America, which have not yet been shipped in keeping with the customer roll-out plan for the appliances (worth close to 10 million euros). As a result, orders on hand at the end of the quarter were at a higher level. These orders will contribute to sales revenue growth in the coming months.
Growth markets Germany and Asia
In Europe (excluding Germany), sales revenues were up by 4 percent due to the base effect from the exceptionally high growth of 18 percent in the previous year. In addition, negative currency effects weighed slightly on sales revenues, while growth without currency effects was 5 percent.
In North America, sales revenues were at the previous year's level in the first three months, driven mainly by the base effect due to the extremely high growth of 58 percent in the previous year as well as increased orders on hand at the end of the quarter. The weakness of both the US dollar and Canadian dollar also had a negative impact on sales revenues. Without currency effects, the North America region experienced growth of 14 percent.
Sales revenue performance also took a hit in Latin America by high growth in the previous year (+53 percent) and negative currency effects. Overall, sales revenues were down 8 percent compared with the same quarter in the previous year - adjusted for negative currency effects, they were at the previous year's level. In addition, there was also a high number of orders on hand at the end of the quarter in this region.
Rational got off to a good start to the year in Asia with sales growth of 12 percent compared with the previous year. China was the main driver of this growth during the past quarter. All currencies relevant to the company in Asia also declined in value against the euro. Without currency effects, sales revenues in the region were up 18 percent on the previous year.
60 percent gross margin
The year-on-year decline by 1 percentage point is attributable to the negative currency effects on sales revenues. Without currency effects, gross margin was sightly above the previous year at 61.3 percent.
24 percent EBIT margin - adjusted for currency effects, at previous year's level
Operating costs rose compared to the first quarter 2017 by 4.6 million euros to 62.9 million euros (2017: 58.3 million euros). The increase in costs was largely attributable to sales and service, which saw a rise of 2.3 million euros to 46.1 million euros (2017: 43.8 million euros). Research and development costs rose by 1.5 million euros to 9.0 million euros compared with the previous year (2017: 7.5 million euros). Development costs of 0.2 million euros were capitalised in the first quarter of 2018 (2017: 0.1 million euros). After three months, general administration expenses amounted to 7.8 million euros, up 0.8 million euros over the previous year (2017: 7.0 million euros).
EBIT was negatively impacted by translation effects on foreign currency positions as at the reporting date. These effects are included in other operating expenses and income, negatively impacting EBIT by 0.8 million euros during the reporting period, whereas they had a positive impact of 1.1 million euros in the first quarter 2017.
Adjusted for these exchange rate effects, the EBIT margin was 25.5 percent, almost at the level of the previous year's margin also after exchange rate adjustments.
80 percent equity ratio - high liquidity
In the first three months of the current fiscal year, cash flow from operating activities was 14 thousand euros (2017: 11.5 million euros). The decline is due in particular to the markedly stronger increase in receivables and inventories than in the same period last year and due to slightly lower earnings.
The cash flow from investing activities includes investments in property, plant and equipment and in intangible assets. In the first quarter, these investments amounted to 17.2 million euros (2017: 3.2 million euros), an increase of 14.0 million euros on the previous year. For the first time, around 20 million euros was invested in a special fund for financial investment and hedging purposes.
Cash flow from financing activities reflects payments of principal and interest on loans up to the end of March and amounted to -0.7 million euros (2017: -1.6 million euros). The significant decline is due to the reduced loan amount. In 2017, loans of 9.5 million euros were redeemed ahead of schedule.
On 31 March 2018, in addition to cash and cash equivalents of 178.7 million euros (2017: 110.0 million euros Rational held financial assets in fixed-term deposits and a special fund amounting to 72.6 million euros (2017: 182.2 million euros). Thus, liquidity remains at a high level. The slight decline compared with the previous year is attributable to high investments made during the previous year and the past quarter as well as unscheduled loan repayments during the last fiscal year.
Positive performance for both segments
The Frima segment produces and markets the VarioCooking Center(R). Frima continued its successful growth trend of the previous year with an increase of 14 percent in sales revenues in the first quarter of 2018. In total, Frima generated 13.4 million euros in sales revenues (2017: 11.8 million euros). Segment earnings amounted to 1.3 million euros in the first quarter of 2018 (2017: 0.8 million euros) and thus confirms the expectation of continuous improvement through economies of scale.
70 new employees hired
Despite the extraordinarily strong quarter last year, company expectations were met in the first quarter of 2018 with organic sales revenue growth of 9 percent and EBIT margin adjusted for currency effects at the previous year's level. In addition, on the back of a high number of new orders at the end of the quarter, the company had an increased orders on hand.
Given this, the Rational AG Executive Board confirmed the outlook provided for fiscal year 2018, in other words, sales revenue growth in the high single-digit range and EBIT margin between 26 percent and 27 percent.
The Rational Group is the global market and technology leader for thermal preparation of food in professional kitchens. The company, founded in 1973, employs around 2,000 people, over 1,000 of whom are in Germany. Rational was floated in the Prime Standard of the German stock market in 2000 and is currently represented in the SDAX.
The company's principal objective is to offer maximum customer benefit at all times. Rational is committed to the principle of sustainability, which is expressed in its corporate 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 for year.
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.
|Iglinger Straße 62|
|86899 Landsberg a. Lech|
|Phone:||0049 8191 327 2209|
|Fax:||0049 8191 327 722209|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|
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