Rational AG on track after six months - growth and margins again in line with expectations

- 9 percent sales revenue growth; currency-adjusted 7 percent

- EBIT margin at previous year's level

- Outlook confirmed

After a good first quarter of 2019, Rational AG's successful business performance continued in the second quarter, with sales revenues up by 6 percent. This increase in sales revenues can be considered positive, especially given the high level of growth in the same quarter of 2018 (+17 percent) and the anticipatory effects from the first quarter of 2019, and is at the upper end of the company's expectations.

In total, sales 2019 revenues amounted to 399.4 million euros in the first six months of 2019 (2018: 367.3 million euros), which is an increase of 9 percent compared to the previous year. Foreign currencies that are important for Rational - especially the US dollar - rose against the euro compared with the previous year and had a positive impact on sales revenues. After exchange rate adjustments, sales revenue growth after six months stood at 7 percent.

Above-average growth for the VarioCookingCenter^(R) product group
In the combi-steamer product group, which represents the production and sale of the SelfCookingCenter^(R) and the CombiMaster^(R) Plus, sales revenues after six months rose by 8 percent to 365.5 million euros (2018: 338.9 euros). Sales revenue growth for the VarioCookingCenter^(R) product group was also very positive, with an increase in the first six months of 2019 of 19 percent to 33.9 million euros (2018: 28.5 million euros).

Worldwide growth
In the first six months, Rational was able to increase its sales revenues in all regions of the world. Sales revenues increased by 9 percent in the home market of Germany. In the Rest of Europe, sales revenues were up 5 percent on the previous year. Despite high growth in the previous year, sales revenues in North America increased by 13 percent thanks to positive currency effects. With an increase of 15 percent, Latin America was the fastest growing market in the first six months. Sales revenues in Asia grew by 12 percent. The "Rest of the world" region increases its sales revenues by 14 percent.

Above-average growth in gross profit
In the reporting period, Rational generated a gross profit of 236.1 million euros (2018: 215.3), an increase of 10 percent compared to the previous year. At 59.1 percent, the gross margin was slightly higher than in the previous year (2018: 58.6 percent). The slightly improved margin is mainly attributable to the positive currency effects on sales revenues. After adjustment for exchange rate movements, the gross profit margin was at the previous year's level. In addition, the product mix had a positive impact on the gross profit margin, while the impact of somewhat higher production costs was negative.

EBIT margin at previous year's level
EBIT (earnings before financial result and taxes) stood at 98.2 million euros after six months. This equates to growth of 8 percent compared to the prior-year period (2017: 90.9 million euros). The EBIT margin (EBIT in relation to sales revenues) was 24.6 percent and thus at the same level as in the previous year (2018: 24.7 percent). Adjusted for currency effects, the EBIT margin after six months was around 23.7 percent, hence around one percentage point lower than the previous year.

Operating cash flow of 75 million euros - 72 percent equity ratio
In the first six months, Rational's operating cash flow amounted to 75.1 million euros (2018: 55.0 million euros). At 72 percent on 30 June 2019 (2018: 73 percent), the equity ratio was at its customary high level.

Just under 100 new employees hired
99 new jobs were created in the first six months of 2019, over half of them in Germany. "The focus continues to be on expanding the global sales and service organisation. In addition, we have expanded our headcount in production and central support functions", says Dr Peter Stadelmann, Chief Executive Officer of Rational AG.

Outlook for the year 2019 confirmed
The large majority of our customers are so satisfied with the products and services that they would be happy to purchase them again at any time and also recommend them to friends and colleagues. This assessment was confirmed again in the latest customer satisfaction survey. "Given the high market potential and close association with the basic human need for food, we believe the company is well placed to keep on growing successfully", states Dr Stadelmann.

In view of this, the Rational AG Executive Board confirms the outlook of sales revenue growth in the high single-digit range for fiscal year 2019 and an EBIT margin of around 26 percent.
 

Contact:
Rational Aktiengesellschaft
Stefan Arnold / Head of Investor Relations
Tel. +49 (0)8191 327-2209
Fax +49 (0)8191 327-72 2209
E-mail [email protected]
www.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 2,200 people, over 1,100 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.