RATIONAL AG Statement on the first quarter of 2024
50 years of
RATIONAL
50 years of
Innovations
50 years of
Customer Benefit
Landsberg am Lech, 2 May 2024
02 RATIONAL AG
Statement on the first quarter of 2024
03
Key Figures | 04 |
RATIONAL AG starts fiscal year 2024 | 05 |
with a successful first quarter | |
286 million euros sales revenues | 05 |
North America and Asia regions continue to expand | 05 |
iVario back on growth path - | 05 |
iCombi sales revenues at consistently high level | |
58.5% gross margin | 06 |
24.8% EBIT margin | 06 |
27 million euros in operating cash flow | 06 |
iCareSystem AutoDose wins prestigious | 07 |
Internorga Future Award | |
Positive customer response to new | 07 |
iHexagon product category at Internorga | |
Number of employees increased further | 07 |
Forecast confirmed | 07 |
Statement of Comprehensive Income | 08 |
Balance Sheet | 09 |
Cash Flow Statement | 10 |
Statement of Changes in Equity | 11 |
Legal notice and contact | 12 |
Due to rounding, numbers presented may not add up precisely to the totals provided.
04 RATIONAL AG
Statement on the first quarter of 2024
Key Figures
3 months | 3 months | Change | Change | |
In m EUR | 2024 | 2023 | absolute | in % |
Sales revenues by region | ||||
Germany | 29.7 | 35.8 | -6.1 | -17 |
Europe (excluding Germany) | 120.1 | 124.0 | -3.9 | -3 |
North America | 61.9 | 54.6 | +7.3 | +13 |
Latin America | 14.9 | 14.7 | +0.2 | +1 |
Asia | 42.3 | 35.8 | +6.5 | +18 |
Rest of the world | 17.6 | 17.5 | +0.1 | +0 |
Sales revenues generated abroad (in %) | 90 | 87 | +3 | - |
Sales revenues by product group | ||||
iCombi | 255.7 | 253.6 | +2.1 | +1 |
iVario | 30.7 | 28.8 | +1.9 | +7 |
Sales revenues and earnings | ||||
Sales revenues | 286.4 | 282.4 | +4.0 | +1 |
Cost of sales | 118.9 | 125.1 | -6.2 | -5 |
Gross profit | 167.5 | 157.3 | +10.2 | +6 |
in % of sales revenues | 58.5 | 55.7 | +2.8 | - |
Sales and service expenses | 66.3 | 63.8 | +2.5 | +4 |
Research and development expenses | 14.5 | 13.0 | +1.5 | +11 |
General administration expenses | 13.7 | 13.0 | +0.7 | +5 |
Earnings before financial result and taxes (EBIT) | 71.1 | 66.5 | +4.6 | +7 |
in % of sales revenues | 24.8 | 23.5 | +1.3 | - |
Profit or loss after taxes | 56.1 | 51.7 | +4.4 | +9 |
Earnings per share (in EUR) | 4.94 | 4.55 | +0.4 | +9 |
Return on capital employed (ROCE, %) | 36.9 | 37.6 | -0.7 | - |
Cash flow | ||||
Cash flow from operating activities | 26.8 | 43.3 | -16.5 | -38 |
Cash-effective investments | 6.2 | 6.9 | -0.7 | -10 |
Free cash flow 1 | 20.6 | 36.4 | -15.8 | -43 |
Balance Sheet | ||||
Total equity and liabilities | 1,004.8 | 934.1 | +70.7 | +8 |
Equity | 794.3 | 728.3 | +66.0 | +9 |
Equity ratio in % | 79.1 | 78.0 | +1.1 | - |
Number of employees as at 31 March | 2,630 | 2,450 | +180 | +7 |
Key figures for RATIONAL shares | ||||
Quarter-end closing price2 (in EUR) | 799.00 | 617.00 | +182.0 | +29 |
Market capitalisation2 3 | 9,085 | 7,015 | +2,070 | +30 |
1 Cash flow from operating activities less capital expenditures 2 Xetra
3 As of balance sheet date
Key | RATIONAL AG: Sales revenues | Statement of | Balance | Cash Flow | Statement of | Legal Notice | 05 |
Figures | near all-time high | Comprehensive Income | Sheet | Statement | Changes in Equity | Disclaimer | |
04 | 05 | 08 | 09 | 10 | 11 | 12 |
RATIONAL AG starts fiscal year 2024 with a successful first quarter
286 million euros sales revenues
At 286.4 million euros (2023: 282.4 million euros), RATIONAL's sales revenues in the first quarter of 2024 were 1% higher than in the prior-year quarter. Sales revenues had risen by 25% in the first quarter of 2023, boosted by the successful reduction of the exceptionally high orders on hand by around 45 million euros. This shows that year-on-year comparisons of sales revenues and new orders should be interpreted with caution because of the follow-on effects of the supply crisis. Against this background, we believe that, based on stable demand, sales revenue performance is positive. At around 120 million euros, orders on hand are at the same level as at the end of last year. New orders and sales revenues are therefore balanced, as they had been before the supply cri- sis. Currency effects were slightly negative in the first quarter. Measured at the previous year's exchange rates, sales revenues would have been up by 2%.
North America and Asia regions continue to expand
Growth in the high-potential overseas markets of North America and Asia continue to outperform the average. North America expanded by 13% in the first quarter of 2024, while sales revenues in Asia increased by 18%. Growth was attributable to these regions' large individual markets, the United States as well as China and Japan. The situation in Europe (excluding Germany) was mixed. Established markets, such as Italy, France and Spain, failed to reach the highs of the prior -year quarter. Growth in Eastern and Southeastern Europe was all the more encouraging. Moreover, the United Kingdom made an important contribution to growth. On aggregate, our performance in Europe (excluding Germany) was similar to the previous year, declining slightly by 3%. Sales revenues in Germany in the first quarter of 2024 were down significantly,
by 17%, on the prior-year figure. We have identified the rapid growth during the period from 2021 until the first quarter of 2023 as the main reason for the decline. The long-term growth rate in our home market continues to be in the range of our expectations. The Latin America and rest of the world regions were on a level with the prior-year quarter.
iVario back on growth path - iCombi sales revenues at consistently high level
In the iCombi product group, sales revenues were up slightly year-on-year in the first three months of 2024, at 255.7 million euros (2023: 253.6 million euros).
In the iVario product group, we generated sales revenues of
30.7 million euros, an increase of 7% compared with the pri- or-year quarter (2023: 28.8 million euros). Orders brought forward as a result of the supply crisis and the subsequent deliveries pushed iVario sales revenues up to record levels in
2022. The fact that the first quarter of 2024 exceeded both the previous year and the year 2022 (Q1 2022: 30.1 million euros) confirms our positive growth expectations for the product group. The growth of the iVario was mainly attribut- able to strong sales revenues in Europe (excluding Germany) and Asia.
06 RATIONAL AG
Statement on the first quarter of 2024
58.5% gross margin
Despite the rise in sales revenues, cost of sales of 118.9 million euros was 5% down on the previous year (2023:
125.1 million euros). As a result, the gross margin improved by 2.8 percentage points from 55.7% to 58.5%. In the first quarter of 2023, component, commodity and logistics costs began to stabilise. After the highs seen during the supply cri- sis, this trend continued in the course of 2023. A significant reduction in costs compared with the first quarter of 2023 could again be felt in the first three months of 2024. We an- ticipate that the main commodity and component costs will remain close to current levels. We expect the positive year- on-year effect of these factors to diminish in the course of the year. In addition, healthy demand from countries with a higher price level boosted the gross margin.
24.8% EBIT margin
EBIT (earnings before financial result and taxes) for the first three months was 71.1 million euros, 7% higher than in the previous year (2023: 66.5 million euros). The EBIT margin increased to 24.8% (2023: 23.5%), Most of the positive trend of the gross margin is reflected in EBIT. In line with our expectations, operating costs rose slightly faster than sales revenues to a total of 94.5 million euros, 5% up on the previous year (2023: 89.8 million euros).
Operating costs in sales and service stood at 66.3 million euros in the first three months of 2024 (2023: 63.8 million euros), a year-on-year increase of 4%. The increase in costs was driven especially by rising personnel costs due to the recruitment of new staff in sales and related functions, as well as selected expenses for customer events. International logistics costs, on the other hand, were down. Research and development expenses were 11% up on the previous year, at
- million euros (2023: 13.0 million euros). This was due in particular to the successful completion of ongoing devel- opment projects between the two comparative periods. For this reason, development costs capitalised in the prior-year quarter were around 1 million euros higher, which benefit- ed the cost side. Administration expenses went up by 5% to
- million euros (2023: 13.0 million euros).
Net currency losses amounted to 2.1 million euros in the first quarter (2023: 1.4 million euros). Adjusted for all exchange rate effects, the EBIT margin was 25.5%.
27 million euros in operating cash flow
In the first three months, cash provided by operating activities amounted to 26.8 million euros (2023: 43.3 million euros). The decline in the operating cash flow is mainly attributable to higher trade accounts receivable. This contrasts with a slight decline in the previous year.
The cash flows from investing activities include investments in property, plant and equipment and in intangible assets. They amounted to 6.2 million euros in the first three months of 2024 (2023: 6.9 million euros) and related mostly to the expansion of the locations in Landsberg, China and Wittenheim.
Cash outflows from financing activities of 2.9 million euros (2023: 2.6 million euros) reflect primarily payments for lease liabilities in accordance with IFRS 16.
Key | RATIONAL AG: Sales revenues | Statement of | Balance | Cash Flow | Statement of | Legal Notice | 07 |
Figures | near all-time high | Comprehensive Income | Sheet | Statement | Changes in Equity | Disclaimer | |
04 | 05 | 08 | 09 | 10 | 11 | 12 |
iCareSystem AutoDose wins prestigious Internorga Future Award
At this year's Internorga, one of the leading trade fairs for the out-of-home catering market, our pioneering iCareSystem AutoDose received the sought-after Future Award in the "Technology & Equipment" category. The five judges on the jury praised the new product for the new and intelligent solution that is setting standards in the market. In particular, they highlighted that the iCareSystem AutoDose makes everyday work in professional kitchens easier and minimises occupational risk, while at the same time contributing considerably to reducing waste compared to conventional cleaning tabs. The use of cartridges, which are 100% recyclable, reduces plastic waste by 50%.
Positive customer response to new iHexagon product category at Internorga
Also at Internorga, we presented the iHexagon to selected customers in a world premiere. The iHexagon is the first cooking system that intelligently combines the three forms of energy, convection, steam and microwave, on six racks to achieve even faster cooking times and top-quality results. The new cooking system will be rolled out gradually, starting with Germany, the United States and the UK.
Number of employees increased further
This year, we are again counting on our employees, whom we refer to as "entrepreneurs in the company" (U.i.U.s). Their consistent commitment to serving our customers is what has made us successful. At the end of March 2024, the RATIONAL Group employed 2,630 people worldwide. Of this total, around 1,480 were employed in Germany. This means that a total of 180 new jobs have been added since March 2023.
Forecast confirmed
On the strength of the good results of the first quarter of 2024, we are confirming our forecast for fiscal year 2024.
RATIONAL can achieve sustainable organic growth, which is driven above all by strong demand in the overseas regions where penetration rates are still low. Moreover, our close focus on food, a basic human need, makes us less cyclical, and this is supported by recurring sales revenues for cleaners, service parts and accessories and by the exchange of older generations of appliances. Overall, we expect organic sales revenue growth in the mid- to high single-digit percentage range in 2024.
To position our company for sustainable success, we will continue to drive our strategic projects. In addition, with our global sales team in the regions, we will ensure customer proximity. In terms of costs, this means that our operating costs will rise somewhat faster than sales revenues. Since we anticipate that lower material costs will lead to a higher gross profit, we expect the EBIT margin to be close to the previous year's level.
08 RATIONAL AG
Statement on the first quarter of 2024
Statement of Comprehensive Income
RATIONAL Group
in thousands of euros | ||||
3 months | 3 months | |||
Period: 1 January - 31 March | 2024 | 2023 | ||
Sales revenues | 286,425 | 282,449 | ||
Cost of sales | -118,947 | -125,139 | ||
Gross profit | 167,478 | 157,310 | ||
Sales and service expenses | -66,323 | -63,752 | ||
Research and development expenses | -14,516 | -13,024 | ||
General administration expenses | -13,710 | -13,012 | ||
Other operating income | 2,933 | 2,974 | ||
Other operating expenses | -4,721 | -4,032 | ||
Earnings before financial result and taxes (EBIT) | 71,141 | 66,464 | ||
Interest income | 3,119 | 1,121 | ||
Interest expenses | -363 | -252 | ||
Other financial result | -48 | -204 | ||
Gain or loss on the net monetary position in accordance with IAS 29 | -12 | 15 | ||
Earnings before taxes (EBT) | 73,837 | 67,144 |
Income taxes
Profit or loss after taxes
Items that may be reclassified to profit and loss in the future:
Differences from currency translation
Differences from IAS 29 Hyperinflation
Items that will not be reclassified to profit and loss:
Actuarial gains and losses from defined benefit obligations
Other comprehensive income
Total comprehensive income
Average number of shares (undiluted/diluted)
Earnings per share (undiluted/diluted) in euros, based on profit or loss after taxes and the number of shares
-17,721
56,116
-345
-53
3
-395
55,721
11,370,000
4.94
-15,444
51,700
341
3
-
344
52,044
11,370,000
4.55
Key | RATIONAL AG: Sales revenues | Statement of | Balance | Cash Flow | Statement of | Legal Notice | 09 |
Figures | near all-time high | Comprehensive Income | Sheet | Statement | Changes in Equity | Disclaimer | |
04 | 05 | 08 | 09 | 10 | 11 | 12 |
Balance Sheet
RATIONAL Group
Assets
in thousands of euros
Non-current assets
Intangible assets
Property, plant and equipment
Other financial assets
Deferred tax assets
Other assets
Current assets
Inventories
31 March 2024 | 31 Dec 2023 | 31 March 2023 | ||
265,154 | 264,843 | 244,285 | ||
21,592 | 21,229 | 17,723 | ||
218,505 | 219,307 | 205,927 | ||
1,701 | 1,680 | 1,229 | ||
20,534 | 19,638 | 16,921 | ||
2,822 | 2,989 | 2,485 | ||
739,607 | 702,004 | 689,831 | ||
108,551 | 107,111 | 117,794 |
Trade accounts receivable | 178,995 | 171,659 | 174,919 | ||
Other financial assets | 330,933 | 267,634 | 238,579 | ||
Income tax receivables | 3,610 | 1,784 | 300 | ||
Other assets | 23,585 | 15,854 | 21,369 | ||
Cash and cash equivalents | 93,933 | 137,962 | 136,870 | ||
Total equity and liabilities | 1,004,761 | 966,847 | 934,116 |
Equity and liabilities
in thousands of euros
31 March 2024 | 31 Dec 2023 |
31 March 2023
Equity
Subscribed capital
Capital reserves
Retained earnings
Other components of equity
Non-current liabilities
Pension and similar obligations
Other provisions
Other financial liabilities
Deferred tax liabilities
Income tax liabilities
Other liabilities
Current liabilities
Other provisions
Financial debt
Trade accounts payable
Other financial liabilities
Income tax liabilities
Other liabilities
Liabilities
Total equity and liabilities
794,326 | 738,605 | 728,284 | |
11,370 | 11,370 | 11,370 | |
28,058 | 28,058 | 28,058 | |
759,782 | 703,666 | 693,099 | |
-4,884 | -4,489 | -4,243 |
41,636 | 42,297 | 33,319 | |
5,131 | 5,100 | 4,018 | |
12,389 | 12,213 | 10,310 | |
18,831 | 19,581 | 13,382 | |
4,498 | 4,675 | 4,194 | |
- | - | 820 | |
787 | 728 | 595 |
168,799 | 185,945 | 172,513 | |
60,063 | 77,081 | 63,059 | |
- | - | 984 | |
35,095 | 33,063 | 35,920 | |
13,875 | 17,980 | 14,269 | |
27,381 | 26,198 | 23,665 | |
32,385 | 31,623 | 34,616 | |
210,435 | 228,242 | 205,832 | |
1,004,761 | 966,847 | 934,116 |
10 RATIONAL AG
Statement on the first quarter of 2024
Cash Flow Statement
RATIONAL Group
in thousands of euros | ||
3 months | 3 months | |
Period: 1 January - 31 March | 2024 | 2023 |
Earnings before taxes (EBT)
Depreciation and amortisation
Other
Net interest
Changes in
Inventories
Trade accounts receivable and other assets
Provisions
Trade accounts payable and other liabilities
Income taxes paid
Cash flow from operating activities
Capital expenditures in intangible assets and property, plant and equipment
Proceeds from asset disposals
Change in fixed deposits
Interest received
Cash flow from investing activities
Repayment of liabilities to banks
Change in other liabilities to banks
Payments for lease liabilities
Interest paid
Cash flow from financing activities
Effects of exchange rate fluctuations in cash and cash equivalents
Change in cash and cash equivalents
Cash and cash equivalents as at 1 January
Cash and cash equivalents as at 31 March
73,837
8,456
2,375
-2,756
-2,683
-16,199
-16,852
11
-19,438
26,751
-6,245
31
-63,755
1,860
-68,109
-
-
-2,602
-318
-2,920
249
-44,029
137,962
93,933
67,144
7,869
1,683
-869
-1,497
1,655
-16,288
-1,127
-15,287
43,283
-6,865
4
-105,081
641
-111,301
-236
276
-2,402
-252
-2,614
-399
-71,031
207,901
136,870
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Rational AG published this content on 02 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 11:52:16 UTC.
