DGAP-News: RATIONAL AG
/ Key word(s): Half Year Report
Rational AG expects faster recovery after very good first half of 2021
- Sales revenues of 212 million euros in the second quarter of 2021 - slightly above pre-crisis level
- EBIT margin of 22 percent in the first six months - 25 percent in the second quarter of 2021
- 15 to 20 percent rise in sales revenues and EBIT margin of slightly more than 20 percent expected for 2021 in the positive scenario
- Surprisingly faster and stronger recovery throughout the industry - return to above pre-crisis level possible as early as 2022
Rational AG has published its half-year report for 2021 today with the complete business figures for the first six months of 2021. Ahead of the report, the company had already published its sales revenue and earnings situation and announced an improvement in its annual forecast for sales revenues and earnings in an ad-hoc announcement on 22 July 2021.
"After a weak start to the fiscal year with low new orders and relatively poor economic and political prospects, the industry and we were surprised at how quickly the trend was reversed throughout. We believe that three key special effects contributed to this positive development in the mass catering sector," as the CEO of Rational AG, Dr Peter Stadelmann, explains.
The following effects were decisive in the Executive Board's view.
1. Catch-up effects: the opening of the catering sector in most countries and the start of the tourist season prompted investments and led to the completion of projects launched earlier.
2. State aid programmes: in many cases, state aid measures were used for the investments. Due to the limited duration of these programmes, investments were brought forward in some countries.
3. Delivery times: because of the tight supply situation worldwide, dealers and customers bought appliances for stock to prevent being caught out by potential supply shortages in the coming months.
Sales revenues of 212 million euros in the second quarter of 2021 - slightly above pre-crisis level
Positive development in all regions - Asia already back up to pre-crisis level
EBIT margin of 22 percent in the first six months - 25 percent in the second quarter of 2021
"The EBIT margin benefited from the healthy sales revenue performance in combination with a continuing lower cost level," as Jörg Walter, Chief Financial Officer of Rational AG, explains. While sales revenues rose by 27 percent year-on-year, operating costs were only slightly up on the prior-year level. Total operating costs amounted to 131.1 million euros in the first half of 2021 (2020: 130.7 million euros).
Increase in the number of employees in the second quarter of 2021 for the first time since the crisis began
The Rational Group had 2,186 employees worldwide as at the end of June 2021, compared with 2,180 at the end of 2020. Around 1,200 people were employed in Germany as at the balance sheet date.
15 to 20 percent rise in sales revenues and EBIT margin of slightly more than 20 percent expected for 2021 in the positive scenario
Firstly, there is the question of whether tighter restrictions will once again be imposed on daily life in response to new coronavirus outbreaks. The second factor is the supply situation for primary products. The current situation in the global market is very tense, especially for electronics components, and considerable supply delays and volume restrictions may persist, leading to longer delivery times and later revenue recognition. What is more, the tense supply situation is in some cases leading to dramatic increases in component prices and shipping costs.
If the scenarios described above have a negative effect on business performance in the second half of the year, the Executive Board expects slower business growth with higher costs. Given the positive development of the first six months and the high level of orders on hand, it expects sales revenue to increase by a high single-digit percentage compared with the previous year, even in this less favourable scenario. If the above risks do not materialise, or only to a reduced extent, sales revenues are expected to rise by 15 to 20 percent in the 2021 fiscal year. "If the recovery trend continues, it could be feasible to already return, in full-year 2022, to sales revenue levels last seen in 2019," Dr Peter Stadelmann is confident. The company had previously expected this to not be until 2023. "Since costs are projected to move in line with sales revenues, the EBIT margin is forecast to be just above 20 percent, regardless of which scenario plays out," Chief Financial Officer Jörg Walter adds.
Stefan Arnold / Head of Investor Relations
The Rational Group is the global market and technology leader for thermal preparation of food in professional kitchens. Founded in 1973, the company employs around 2,200 people, over 1,200 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 always offer maximum customer benefit. 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.
Editorial closing date: 22 July 2021
05.08.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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|Phone:||0049 8191 327 2209|
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|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||1223896|
|End of News||DGAP News Service|