08.11.2016
RATIONAL AG DE0007010803
DGAP-News: RATIONAL AG: succesful business performance in the first nine months of 2016 (news with additional features)
DGAP-News: RATIONAL AG / Key word(s): Quarterly / Interim Statement
RATIONAL AG: succesful business performance in the first nine months of 2016
(news with additional features)
08.11.2016 / 07:00
The issuer is solely responsible for the content of this announcement.
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RATIONAL AG - Statement on the first nine months of 2016
Landsberg am Lech, 8 November 2016
RATIONAL AG - succesful business performance in the first nine months of
2016
- RATIONAL presents new SelfCookingCenter(R)
- New compact class standard:
- SelfCookingCenter(R) XS
- Group-wide sales revenues increase by 8%
- Worldwide growth
- Gross margin of 62%
- EBIT margin of 27%
- 72% equity ratio
- 87 million euros in operating cash flow
- FRIMA sales grow by 23%
- 145 new employees in the first nine months
- Outlook confirmed
RATIONAL presents new SelfCookingCenter(R)
In the third quarter, RATIONAL successfully launched its new
SelfCookingCenter(R) in Europe. It will be rolled out in the overseas
markets by the end of the year.
Key new features are improved ease of use, a triple-glazed door for greater
energy efficiency, a bright LED-lit cooking cabinet and an oven door seal
that is twice as resilient.
New compact class standard: SelfCookingCenter(R) XS
In addition, the launch of the compact SelfCookingCenter(R) XS marks the
first time a product in this size category will be offered. Despite its
extremely small dimensions, it delivers the full RATIONAL performance and
cooking intelligence. It is the only compact appliance in the professional
market to feature a fresh steam generator. The smallest
SelfCookingCenter(R) matches the cooking quality, performance, precision
and economy of larger models in every way. It is perfect for use at food
stations in à-lacarte environments, supermarkets, service stations or
butchers' shops, and as a primary or back-up appliance in restaurants or in
mass catering.
Group-wide sales revenues increase by 8%
In the third quarter, the Landsberg-based company continued its successful
performance of the first six months, increasing sales revenues by 7% to
153.1 million euros (previous year: 143.0 million euros). RATIONAL's sales
revenues grew by 8% in the nine-month period compared to the previous year.
In total, sales revenues of 436.1 million euros were generated (previous
year: 403.5 million euros).
The currencies of relevance to RATIONAL fell on average against the euro
compared to the previous year. As a result, sales revenue performance in
the year to date has been negatively impacted by exchange rate
fluctuations. This has been mainly attributable to the weakness of the
pound sterling and of emerging market currencies. After exchange rate
adjustments, sales revenue growth after nine months stood at 10%.
Worldwide growth - FRIMA expands faster than average
The main growth drivers in the third quarter were the Asian and American
markets.
After a slow start to the year, which was attributable to, among other
factors, very strong growth in the previous year, the Asian market saw
impressive growth figures in the third quarter of this year. Particularly
in China, RATIONAL grew significantly as a result of a major contract from
a fast food chain. The additional good performance in India and Japan
helped Asia expand by 26% in the third quarter. After nine months, the
region's sales revenues were up 11% on the previous year.
In the Americas, the growth trend of the first six months continued (+15%).
All the individual markets contributed to this development, although the
USA was once again the largest individual market. Sales revenues in the
Americas also increased by 15% in the nine-month period. The weakness
against the euro of all relevant currencies in the region weighed on
performance. Adjusted for these factors, sales revenue growth in the
Americas stood at 23% in the third quarter, while the nine-month growth
rate was 18%.
Germany, our home market, performed well again, expanding by 8% in the
third quarter. This took growth for the nine-month period to 12% in the
German market.
In the rest of Europe, business performance was good in the third quarter,
with the exception of the Russian and UK markets. Performance in the
Russian market in the third quarter was down significantly in comparison
with the previous year's quarter. The reason for that was a high level of
orders in the prior-year quarter due to the price increase announced for
August 2015. However, sales revenues in the third quarter exceeded those of
the first two quarters of 2016, meaning that the recovery trend has not
been broken. In the UK, sales revenues were down significantly on the
previous year, mainly due to the weakness of the pound sterling. Adjusted
for these currency effects, they were similar to the previous year's.
Overall, sales revenue growth in Europe stood at 2% in the third quarter;
adjusted for the negative currency effects, the growth rate was 7%.
Europe's sales volume expanded by 6% in the nine-month period, or 9% after
exchange rate adjustments.
FRIMA's business again grew faster than average in the third quarter.
Segment revenues increased by 16% to 12.5 million euros (previous year:
10.8 million euros). For the nine-month period, FRIMA's sales revenues were
up 23% to 32.9 million euros (previous year: 26.8 million euros). An
important contributor to this development is the new VarioCooking Center(R)
112L. Launched in February, it is in great demand among customers. FRIMA's
growth was broad-based across all markets. After initial start-up
difficulties in the UK, sales of the VarioCooking Center(R) were positive.
Demand in Japan also continued to increase significantly.
Gross margin of 62%
In the first nine months of 2016, the company achieved gross profit on
sales of 269.5 million euros (previous year: 250.9 million euros). This
equates to an increase of 6% compared with the previous year. At 61.8%, the
gross margin remained at the high level of the previous year (62.2%). The
reason for the slight decline, by 0.4 percentage points, is firstly the
faster-than-average business growth in markets with lower margins and with
customers with lower price levels. Secondly, it was attributable to the
fact that, as expected, the compact appliance generated slightly lower
margins and incurred the normal startup costs stemming from the adjustment
of the production and logistics processes as part of the product
changeover.
EBIT margin of 27%
EBIT (earnings before interest and taxes) stood at 116.3 million euros,
slightly up on the previous year (116.1 million euros). An EBIT margin of
27% was achieved after nine months (previous year: 29%).
Operating costs rose significantly faster than earnings, by 16.7 million
euros or 12% to 151.3 million euros, compared with 134.7 million euros in
the first nine months of 2015. This increase was largely attributable to
sales and service, which saw a rise of 14% to 113.6 million euros (previous
year: 99.3 million euros).
The expenses incurred up to 30 September 2016 related primarily to the
launch of the new SelfCookingCenter(R) models and the SelfCookingCenter(R)
XS at 26 events throughout Europe. In addition, costs were incurred for
completely new and expanded marketing materials in up to 40 languages and
the new website with its integrated dealer portal. Further costs stem from
the boost enjoyed by the global sales and service organisation, which was
due to increases in capacity and support provided by the extension of
central marketing and service processes.
Research and development costs incurred for the continuous improvement of
products and services rose by 12% to 18.5 million euros in the nine-month
period, compared with 16.5 million euros in the prior-year period. The
capitalisation of development costs in the past few months affected both
periods in similar amounts (1.7 million euros in each case) and has no
noticeable impact on the year-on-year comparison.
After nine months, general administration expenses amounted to 19.2 million
euros, up 2% on the prior-year period (18.9 million euros).
EBIT was negatively impacted by translation effects on foreign currency
positions as of the reporting date. These effects account for a significant
portion of other operating expenses and income, reducing earnings by 2.1
million euros. In the prior-year period, the negative effect had only
amounted to 0.3 million euros. Adjusted for negative currency effects, EBIT
rose by 8%.
Net earnings stood at 88.8 million euros at the end of September (previous
year: 88.6 million euros), a year-on-year increase of 0.2 million euros.
The tax ratio was virtually unchanged at just under 24%.
72% equity ratio
At 72% (previous year: 74%) on 30 September 2016, the equity ratio was at
its customary high level. Cash and cash equivalents, at 240.9 million euros
(previous year: 232.5 million euros), represent 49% of total assets
(previous year: 53%).
87 million euros in operating cash flow
In the first nine months of the current fiscal year, our cash flow from
operating activities was 87.2 million euros (previous year: 97.0 million
euros). The year-on-year decline was mainly attributable to a slightly
higher increase in inventories and receivables compared with the previous
year.
The cash flow from investing activities includes investments in property,
plant and equipment and in intangible assets. In the nine-month period,
they amounted to 18.6 million euros, a year-on-year increase of 10 million
euros. The increase is primarily attributable to redevelopment and
renovation measures at the Landsberg location and in Wittenheim (FRIMA).
The cash flow from financing activities mainly reflects the dividend
distribution in May and the repayments of principal and interest payments
on outstanding loans up to the end of March; it amounted to -85.6 million
euros in the period under review (previous year: -81.6 million euros).
Good performance in both segments - FRIMA expands faster than average
The RATIONAL segment, which represents the production and sale of the
SelfCookingCenter(R) and the CombiMaster(R) Plus, grew its sales by 7% in
the first nine months of 2016, to 406.3 million euros (previous year: 379.6
million euros). Segment earnings amounted to 111.2 million euros, slightly
down on the previous year (111.4 million euros). After adjustment for the
aforementioned currency effects, the RATIONAL segment grew its sales
revenues by around 9% and its EBIT by 7%.
FRIMA produces and markets the VarioCooking Center(R). Segment sales in the
first nine months were 32.9 million euros, up 23% on the prior-year period
(26.8 million euros). Segment earnings amounted to 5.1 million euros for
the nine-month period, an increase of 13% compared with the previous year
(4.5 million euros). One major driver of this positive trend is the market
launch of the VarioCooking Center(R) 112L in February 2016. Currency
effects play only a minor role at FRIMA because its business is conducted
mainly in Europe.
145 new employees recruited
Around 150 new posts are to be created worldwide in fiscal year 2016. The
focus is, in particular, on further expanding the global sales and service
organisation. 145 new employees had been added as of the end of September
2016, almost half of them in Germany. Most of the new jobs are in sales,
sales-related functions and technical service.
Outlook confirmed
The vast majority of RATIONAL and FRIMA customers are so satisfied with the
products and services that they would buy them again at any time and also
recommend them to friends and colleagues. This rating was also confirmed in
relation to the launch of the new product range.
Given the aforementioned and based on the large market potential and the,
on balance, robust forecasts for the global economy, the Executive Board of
RATIONAL AG believes the company is well placed to continue on the growth
path of recent years. It confirms the growth forecast for fiscal year 2016,
given in the 2015 Annual Report.
Contact person:
RATIONAL Aktiengesellschaft
Stefan Arnold
Head of Investor Relations
Tel. +49 (0)8191 327-2209
Fax +49 (0)8191 327-722209
E-mail: [email protected]
www.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 around 1,700 people, around 900 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. Internally RATIONAL is committed to the principle of
sustainability, which is expressed in its policies on environmental
protection, leadership, job security and social responsibility. Numerous
international awards bear witness to the high quality of RATIONAL's work
year on year.
m EUR 9M 2016 9M 2015 Change in % Sales revenues 436.1 403.5 +8 Gross profit 269.5 250.9 +7 Gross margin in % 61.8 62.2 - EBIT 116.3 116.1 +0 EBIT margin in % 26.7 28.8 - Net income 88.8 88.6 +0 Earnings per share 7.81 7.79 +0 (in EUR) m EUR Q3 2016 Q3 2015 Change in % Sales revenues 153,1 143,0 +7 Gross profit 94,0 90,2 +4 Gross margin in % 61,4 63,1 - EBIT 42,7 42,2 +1 EBIT margin in % 27,9 29,5 - Net income 32,6 32,5 +0 Earnings per share 2,87 2,86 +0 (in EUR)Disclaimer This quarterly statement contains forward-looking statements that are based on assumptions and expectations at the time the statement is published. They are subject to risks and uncertainties and the actual results may differ significantly from those in the forward-looking statements. Many of these risks and uncertainties are determined by factors that are outside the influence of RATIONAL AG and cannot be assessed reliably at present. They include future market conditions and economic trends, the actions of other market players, and legal and political decisions. RATIONAL AG is also not obligated to publish revisions to these forward-looking statements in order to reflect events or circumstances that have occurred after they were published. --------------------------------------------------------------------------- Additional features: Document: http://n.eqs.com/c/fncls.ssp?u=NTBJDBMSLV Document title: RATIONAL AG - Statement on the first nine month of 2016 --------------------------------------------------------------------------- 08.11.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: RATIONAL AG Iglinger Straße 62 86899 Landsberg a. Lech Germany Phone: 0049 8191 327 2209 Fax: 0049 8191 327 722209 E-mail: [email protected] Internet: www.rational-online.com ISIN: DE0007010803 WKN: 701080 Indices: MDAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange End of News DGAP News Service --------------------------------------------------------------------------- 517403 08.11.2016
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