Encouraging trend for Rational AG in the first half of 2024

• Six-month sales revenues at 581.2 million euros
• iVario up 11 percent in the first half of 2024
• Asia records convincing strong growth
• 25.6 percent EBIT margin in the first half of 2024
• Forecast for 2024 confirmed: sales revenue growth expected in medium to high single-digit percentage range and EBIT margin slightly up on previous year

Landsberg am Lech, 6 August 2024 “    The figures for the first half of 2024 are again very strong, as we have become used to. But what matters more to us than any financial indicators is the customer. I am therefore all the more pleased that our 2024 customer satisfaction survey once again produced very good results,” says Rational’s CEO Dr Peter Stadelmann. On the morning of 6 August 2024, the company, headquartered in Landsberg am Lech, Germany, published its report for the first six months of 2024.

Sales revenues reach new record level in the second quarter of 2024
“Our sales revenues of 294.8 million euros exceeded the prior-year quarter by 6 percent, setting a new quarterly record,” says CFO Jörg Walter. After the first six months of 2024, sales revenues amounted to 581.2 million euros, 4 percent up on the previous year’s 560.8 million euros. The effects of the procurement crisis in previous fiscal years were the main driver of the unusual order intake trend. The years 2021 and 2022 saw orders brought forward and a rapid rise in orders on hand. As the procurement situation and our delivery capability improved, the high levels of orders on hand could be successfully reduced. “In the first half of 2023 alone, we managed to reduce orders on hand by 85 million euros. To generate successful growth despite the high prior-year figure is therefore a remarkable achievement,” adds the CFO. The orders on hand remained stable at approximately 120 million euros at the end of June.

In the first half year of 2024, Rational experienced strong demand from Asia, with successful developments in China and Japan contributing to a 13 percent growth in the region. North and Latin America also surpassed the previous year by 6 and 7 percent, respectively. Mixed performance in individual European countries meant that sales revenues in the Europe region (excluding Germany) were on a level with the previous year. Established markets like Italy, Benelux, Spain, and Sweden did not meet the previous year’s numbers, but significant growth was observed in Eastern Europe. Conversely, France and the United Kingdom, two of the largest European markets, slightly improved upon their already high figures from the previous year. In Rational’s home market of Germany, sales revenues were down 4 percent on the previous year. “The slight dip is primarily due to the exceptionally high sales revenues recorded in Germany in the first quarter of the preceding year. This development was significantly influenced by the reduction of the high order backlog at that time. The situation in Germany returned to normal in the second quarter,” adds Jörg Walter.

Sales revenues in the iVario product group continued to build on the early-year success, with an 11 percent increase after six months. Similarly, the iCombi product group saw a 3 percent rise in sales revenues during the same period.

EBIT up 10 percent, outpacing sales revenue growth – EBIT margin at 25.6 percent
On the cost side, Rational expects commodity and component costs to stabilise at the current level. Compared to the prior-year period, cost of sales declined slightly, by 3 percent, in the first half of 2024. Gross margin increased by 2.8 percentage points to 58.9 percent.

This favourable trend in the gross margin positively influenced EBIT (earnings before financial result and taxes). Despite operating costs climbing at a faster rate than sales revenues, EBIT grew by 10 percent to 149.0 million euros in the first half of 2024 (2023: 136.0 million euros). This translates to an EBIT margin of 25.6 percent (2023: 24.3 percent).

Number of employees rises to 2,657
“We believe there is significant untapped market potential for our products and services and understand that our products will often require guidance. To tap into this potential, we need customer-focused sales employees who make our customers aware of our technology, provide user training and give support when questions or problems arise,” explains Dr Peter Stadelmann. By the end of the first six months, Rational had 2,657 employees, with approximately 1,500 based in Germany. Over the past 12 months, the Group hired 170 new employees.

Rational’s customers remain highly satisfied

“Our goal is to provide maximum benefit to individuals in large-scale and commercial kitchens. To achieve this, we routinely ask our customers if they would recommend Rational to their business partners, friends, or acquaintances. The outcome is reflected in the Net Promoter Score, or NPS for short,” explains Rational’s CEO. With an NPS of 60 points in 2024, the company maintains its position as a leader in customer satisfaction. Based on data from Rational, peer groups typically score between 30 and 40 points. “We greatly appreciate our customers’ constructive feedback. We acknowledge that we did not fully meet our customers’ expectations for top-quality and first-class service across all regions. We take this feedback seriously and are actively implementing concrete improvements,” adds Dr Stadelmann.

2024 forecast confirmed
For the full year 2024, Rational has confirmed its growth forecast for sales revenues in the mid to high single-digit percentage range. The company anticipates an EBIT margin in the upper part of the current forecast range, indicating a slight improvement over the previous year. “This is primarily due to the positive trend in the gross margin, which is expected to exceed initial projections for fiscal year 2024,” adds 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 more than 2,600 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.