Rational AG: Successful first nine months of 2024

Rational AG: Successful first nine months of 2024

• Sales revenues of 875 million euros – 5 percent growth in the first nine months of 2024
• Americas remain the most important growth driver
• EBIT of 226.6 million euros – EBIT margin at 25.9 percent in the first nine months
• 2024 forecast confirmed

Landsberg am Lech, 7 November 2024 

Sales revenues of 875 million euros – 5 percent growth in the first nine months of 2024
“At 294.2 million euros (2023: 272.3 million euros), sales revenues in the third quarter of 2024 were 8 percent higher than in the prior-year quarter,” reports Chief Financial Officer Jörg Walter. In the first nine months of 2024, sales revenues rose by 5 percent to 875.5 million euros (2023: 833.1 million euros). “Both comparative periods benefited from strong sales revenues in after-sales business and growing demand for iVario cooking systems. Despite economic uncertainties, this positive trend underscores the attractiveness of our cooking systems and services,” adds the CFO.

“The first nine months of 2024 show us that economic success does not have to come at the expense of employee satisfaction. On the contrary – satisfied employees are the key to a company’s long-term success. The results of the employee satisfaction survey we completed in the third quarter of 2024 bear that out once again,” says a pleased Dr Peter Stadelmann, Rational’s CEO.

Sales revenues in North and South America in the first nine months of 2024 increased by 8 percent and 10 percent respectively, with the United States in particular contributing to this growth. Sales revenues in Europe (excluding Germany) grew by 4 percent compared to the prior-year period on the back of strong sales revenues in France, Switzerland and Southeastern and Eastern Europe. In Germany, the recovery also continued in the third quarter. Thanks to a good third quarter, sales revenues at the end of September grew by 8 percent and were only slightly down on the previous year. Sales revenues in Asia grew by 3 percent. After the exceptionally good performance of the previous quarters, sales revenues in the third quarter fell by around 14 percent. “This was mainly attributable to partner business in China and Japan. Between the third quarter of 2023 and the second quarter of 2024, we benefited from large additional orders from a chain customer in China,” says Stadelmann, putting the sales revenue figures into context. In the nine-month period, sales revenues have stabilised at a high level.

The iCombi product group achieved sales revenue growth of 4 percent in the first nine months of 2024. Its sales revenues were 777.8 million euros (2023: 745.8 million euros). In the iVario product group, the company posted sales revenues of 97.7 million euros, a 12 percent increase over the previous year (2023: 87.3 million euros).

25.9 percent EBIT margin after nine months
Due to growing sales revenues and, at the same time, a slight decrease in cost of sales to 359.5 million euros (2023: 362.1 million euros), the gross margin rose unexpectedly sharply to 58.9 percent in the first nine months (2023: 56.5 percent). “A stabilisation of the cost level has been apparent since the first half of the year. We expect costs to remain at the current level in the fourth quarter of 2024,” says Jörg Walter with reference to the outlook.

The positive development of gross profit more than offset the fact that, as expected, operating costs rose faster than sales revenues. That also had a positive overall effect on EBIT (earnings before financial result and taxes), which increased by 12 percent in the first nine months of 2024 to 226.6 million euros (2023: 201.9 million euros). This equates to an EBIT margin of 25.9 percent (2023: 24.2 percent).

Employee satisfaction once again at a very high level – 88 percent proud to work for RATIONAL
“As a socially responsible company with a long-term focus, the satisfaction of our employees, the U.i.U.s (entrepreneurs in the company), who work with dedication and commitment for our customers and our business, is a matter of great importance for us. We are therefore delighted that this year’s employee satisfaction survey, U.i.U. Compass, confirmed our efforts. According to the survey, 88 percent of our entrepreneurs in the company are proud to work at Rational. 90 percent are all in all very satisfied or satisfied with their jobs at RATIONAL,” notes Dr Stadelmann with pride.

At the end of September 2024, the Rational Group employed 2,690 U.i.U.s worldwide. Of this total, around 1,500 were employed in Germany.

2024 forecast confirmed
The market potential for Rational’s sustainable, multifunctional and intelligent cooking systems remains enormous. “We continue to be optimistic about the future and confirm our growth forecast in the medium to upper single-digit percentage range. After updating our market assessments in recent weeks, we currently consider growth in the medium single-digit percentage range to be the most likely scenario,” anticipates Dr Stadelmann.

On the earnings side, Rational expects the trends of the first nine months to solidify. “Gross profit is benefiting from the stable cost levels, while operating costs are rising somewhat more slowly than originally assumed. Therefore, with only three months left in the financial year, we expect an EBIT margin of around 26 percent and an absolute EBIT close to the current analyst consensus of around 305 million euros published by Bloomberg,” states Jörg Walter.

Contact:

Rational Aktiengesellschaft

Stefan Arnold / Head of Investor Relations
Tel. +49 (0)8191 327-2209
Fax +49 (0)8191 327-72 2209

E-mail: ir@rational-online.com
rational-online.com

Editorial note:

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 2,700 people, around 1,500 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 MDAX.

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.