Profit

Rational AG increases revenue and profit forecast for 2022

RATIONAL AG / Keyword(s): Forecast Change
Rational AG increases revenue and profit forecast for 2022

29-Sep-2022 / 07:00 CET/CEST
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Rational AG increases revenue and profit forecast for 2022

Rational AG / keyword(s): evolution of the 2022 forecast
Landsberg am Lech, September 29, 2022

  • Material availability has improved since August

  • Higher production and sales volumes are expected in the remaining months

  • Price increases have an impact

  • Forecast for 2022: 23-28% revenue growth and an EBIT margin between 21.5-22.5% are possible with stable material availability

Improved revenue through improved material availability, price increases and positive currency effects

The greater availability of electronic components since August 2022 has led to increased production and sales volumes. Rational’s revenue and profit forecasts for the 2022 financial year are therefore more positive than previously announced.

In addition, the strong after-sales activity continues to contribute to this encouraging commercial development. The price increases that have come into effect and the relative strength of the foreign currencies involved are also increasing sales revenue.

After strong sales revenue in the first half, it looks like it will hit a record high again in the third quarter. The management board of Rational AG forecasts sales of around 270 million euros in the third quarter.

Reduced order book and delivery times

The order book is still well filled. Many orders were postponed to the first quarter ahead of April’s price increases. Order intake in recent months has therefore fallen as expected. Rational is currently succeeding in gradually reducing its order book and thus again shortening delivery times for dealers and customers. This trend will continue in the coming months if the availability of materials remains good.

Material sourcing and the general economic environment still harbor risks

The continuation of the company’s performance during the current financial year is marked by uncertainties and depends mainly on two factors. First, the material supply situation is much better, but still tight. On the supplier side, there are not only lockdowns due to the corona virus, as in China in the spring of 2022, but also the risk that production at suppliers will be impacted by rising energy costs or staff shortages. Moreover, it is currently difficult to predict how the economy as a whole will develop.

Rational’s board sees opportunities in current developments that higher energy costs and staffing shortages are encouraging the use of smart cooking systems, as they can partially offset these higher costs and bottlenecks of strangulation.

The positive scenario forecasts revenue growth of 23-28% and an EBIT margin of 21.5-22.5% in the current financial year

Depending on the development of the above risks, the company considers two realistic scenarios.

With the supply situation and business development remaining stable, a turnover of 23-28% in 2022 is realistic. At a similar cost base, Rational assumes that the increase in sales will also have a positive impact on the EBIT margin. In this scenario, the Board of Directors estimates that it should be between 21.5 and 22.5% at the end of the year.

If the described risks materialize, Rational expects revenue to grow by around 15% year-on-year and the EBIT margin to be at or slightly above the year-ago level.

Full details on the company’s performance in the third quarter of 2022 will be published in the quarterly press release dated November 3, 2022. In addition, a conference call will take place in the afternoon in English. The company will provide a forecast for the 2023 financial year with the publication of the 2022 annual report in March 2023.

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 distinctions testify to the quality of the work carried out by Rational employees year after year.

September 29, 2022 CET/CEST EQS distribution services include regulatory announcements, financial/corporate news and press releases.
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