Rational AG: best semester in terms of turnover – nevertheless cautious

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DGAP-News: RATIONAL AG / Key word(s): Half-year report/Half-year results

Rational AG: best semester in terms of turnover – nevertheless cautious

03.08.2022 / 07:00
The issuer is solely responsible for the content of this announcement.

Press release:
Rational AG: best semester in terms of turnover – nevertheless cautious

  • Second quarter revenue above pre-crisis level at 232 million euros, despite significant bottlenecks
  • iVario defies supply challenges and grows by 50%
  • Revenue positively influenced by after-sales activities, price increases and currency effects
  • New orders and pending orders remain at a high level
  • EBIT margin of 20% in the first half of 2022
  • Awards for Rational: best employer brand and among the 100 most sustainable companies in the SME sector

Landsberg am Lech, August 3, 2022 “Since reaching an absolute peak in March, our monthly new orders have become more and more normalized. But this does not mean that our cooking systems have become less attractive. On the contrary, even after the global price adjustments , orders have held up at an encouraging level,” said Rational AG CEO Dr. Peter Stadelmann, commenting on the situation. In the second quarter, orders received once again slightly exceeded the number of devices sold. Orders in progress therefore increased again on June 30, 2022, reaching an exceptionally high level of around 400 million euros, or around 44,000 devices.

Revenue of 232 million euros in the second quarter of 2022 – 458 million euros in the first half of 2022 – best quarter and best half in the company’s history
Similar to the first quarter, Rational was again affected by low processor (CPU) availability in the second quarter of 2022. the company’s history. history demonstrates the resilience of our business model. In particular, cleaners, spare parts and accessories have shown a very dynamic performance in the year to date,” says CFO Jörg Walter.

From a regional perspective, growth rates compared to the first half of the previous year ranged from -9% in Asia to +61% in Latin America. Europe (excluding Germany) and Germany exceeded the prior year period by 23% and 28% respectively. In North America, sales increased by 25%.

Sales by product group: iVario overcomes supply difficulties and increases by 50%
Both Rational Group product groups contributed to the growth. In the iCombi product group, sales increased by 17% year-on-year in the first half of 2022 to €395.1 million (2021: €337.6 million). In the iVario product group, sales increased by 50% to a new record high of EUR 62.6 million (2021: EUR 41.7 million). The potential of the iVario is increasingly extending to all regions of the world. Year over year, sales volume increased by 39%. “The huge demand and positive feedback from our customers – including in overseas regions supplied since 2020 – confirms our long-term strategy. Just as the combi steamer once did, the iVario will revolutionize the professional kitchen,” says Dr. Stadelmann.

54% gross margin and 20% EBIT margin in the first half of 2022
Due to the increase in cost of sales, which significantly outpaced the increase in revenue, Rational AG’s gross margin stood at 54.0% in the first six months of 2022 (2021: 56.3%). Although massive increases in material procurement and logistics costs are already increasingly felt, price increases for Rational cooking systems only take effect with a certain lag. Nevertheless, EBIT (earnings before interest and taxes) increased by another 10% to 93.1 million euros. However, given these conditions, the EBIT margin decreased to 20.3% for the first six months (2021: 22.3%). The EBIT margin was somewhat supported in the first half of 2022 by the fact that at EUR 156.0 million, operating expenses increased more slowly than revenue (2021: EUR 131.1 million euro). In addition, foreign exchange gains of 0.9 million euros (2021: 1.3 million euros) had a positive effect.

Rational invests in new employees and wins an award for its employer brand
At the end of the second quarter, Rational Group had 2,341 employees (December 31, 2021: 2,248), referred to internally as Enterprise Contractors (UiU). Of this total, 1,345 work in Germany (31 December 2021: 1,285). “Our wage increases are generally based on and exceed the adjustments negotiated by the IG Metall union. We have increased the wages of our UiU employees in Germany by 5.1% as of July 1, 2022 and will continue to monitor inflation developments closely,” says the CEO. “We are also particularly delighted with the award given to our employer brand ‘Das Beste vereint!’ (A perfect match), which presents us as a young, modern company,” he adds.

RATIONAL recognized as one of the most sustainable SMEs
With products that save energy and resources, provide safe and ergonomic workplaces, and prepare healthy food, Rational has been making thousands of corporate customers more sustainable for decades. In addition, we strive to make our own value creation as sustainable as possible and to minimize our ecological footprint. We are delighted that the WirtschaftsWoche named us among the most sustainable companies in Germany in its issue 26 published at the end of June. In the ranking, compiled in collaboration with the strategy consulting firm from Munich, we are proud to rank 32nd.

Prospects confirmed
“Right now, future revenue performance is less dependent on market developments and order trends, but rather determined by the availability of components, especially electronic components. Significant risks continue to exist and are difficult to predict. Cost increases and supply shortages following the shutdowns in Shanghai and the Ukraine crisis will continue to affect us indirectly,” says CFO Walter, looking to the second half of the year. It was also difficult to assess the consequences that a possible rationing of gas could have on suppliers and on Rational. On the other hand, the company saw that the sales price increases were starting to take effect, and this would carry over to the second half.

Based on revenue performance in the first six months and expectations for the remainder of the fiscal year, Rational confirms guidance for 2022. “We expect revenue growth of 10-15% compared to the previous year and a slightly higher EBIT margin compared to the previous year. If the identified risks materialize to a greater extent than the first seven months have suggested thus far, we expect slower revenue growth and a lower EBIT margin than the previous year,” says Dr Stadelmann, referring to the unchanged outlook for the current calendar. year. In a friendlier environment with stable parts availability and the positive effects of price increases and foreign currencies, a level of turnover at the upper end of the forecast or slightly higher is realistic. As continued cost pressure is having a negative impact on the EBIT margin, Rational also expects EBIT to be in line with initial expectations in absolute terms.

Contact:

Rational Aktiengesellschaft

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

Email: [email protected]
www.rational-online.com

Editorial note:

The Rational Group is the world market and technology leader for thermal food preparation in professional kitchens. Founded in 1973, the company employs around 2,300 people, including more than 1,300 in Germany. Rational was listed in the Prime Standard of the German stock market in 2000 and is currently represented in the MDAX.

The main objective of the company is to offer the maximum benefit to the customer at all times. Rational is committed to the principle of sustainability, which is expressed in its corporate policies for environmental protection, leadership, job security and social responsibility. Numerous international awards testify to the quality of the work carried out by Rational employees year after year.

Figures in millions of euros H1 2022 S1 2021 Percentage
change
Turnover 457.7 379.3 +21
Gross profit 247.2 213.7 +16
Gross margin in percentage 54.0 56.3
Earnings before financial result and taxes (EBIT) 93.1 84.4 +10
EBIT margin in percentage 20.3 22.3
Profit or loss after tax 70.9 64.2 +10
Earnings per share in EUR 6.23 5.64 +10

Figures in millions of euros Q2 2022 Q2 2021 Percentage
change
Turnover 232.4 211.6 +10
Gross profit 124.4 119.8 +4
Gross margin in percentage 53.5 56.6
Earnings before financial result and taxes (EBIT) 45.4 52.2 –13
EBIT margin in percentage 19.5 24.7
Profit or loss after tax 34.7 39.8 –13
Earnings per share in EUR 3.05 3.50 –13

03.08.2022 Broadcast of a Corporate News, transmitted by the DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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