RATIONAL AG: sales revenues stabilise at lower level - reliable forecast not possible for fiscal year 2020
DGAP-News: RATIONAL AG
/ Key word(s): 9 Month figures
Corporate News Rational AG / keyword(s): 9-month figures RATIONAL AG generated sales revenues of 168.2 million euros in the third quarter of 2020, 21 percent less than in the prior-year quarter (213.2 million euros). Sales revenues increased significantly when compared with the second quarter of the current fiscal year (116.8 million euros, 43 percent down on the prior-year quarter). "The reasons are a relaxation of coronavirus restrictions in many markets, the positive trend of the summer business among many of our customers and not least the launch of the new product generations, iVario and iCombi", explains CEO Dr Peter Stadelmann. In the first nine months, this translated into sales revenues totalling 466.3 million euros (2019: 612.6 million euros), a year-on-year decline of 24 percent. In Latin America, sales revenues contracted by 48 percent in the first nine months, in North America there was a 29-percent decline. The best outcome after nine months was achieved in Asia, where sales revenues were 16 percent down on the previous year. Europe was 23 percent lower than in the previous year, while our home market of Germany contracted by 19 percent. Overall, the iVario product group was impacted to a lesser extent and contracted by 17 percent, while sales revenues for combi-steamers were 25 percent below the figure for the previous year. Following the sharp decline to 52.6 percent in the second quarter, the gross margin rose again to 55.9 percent in the third quarter. For operating costs, substantial savings were made especially in sales and service on trade fairs, travel expenses as well as personnel costs. EBIT amounted to 36.8 million euros in the third quarter (2019: 61.3 million euros). After nine months of the current fiscal year, EBIT was 64.4 million euros, 60 percent below the figure for the previous year (2019: 159.5 million euros). The EBIT margin was 13.8 percent (2019: 26.0 percent). Adjusted for currency effects, the EBIT margin after three months was 15.7 percent. In addition, the respective time frames for the pandemic and, of even more serious consequence, for the countermeasures remain unknown. In the autumn and winter season in Europe and North America, outdoor business for the hospitality industry will be discontinued or significantly scaled back. Given the continuing restrictions on venue occupancy and extensive hygiene measures, as well as the threat of tighter restrictions, which have been announced or already introduced in many countries, these are significant uncertainty factors for the fourth quarter of 2020. The potential for RATIONAL products was temporarily slightly reduced due to the crisis but, according to the CEO, remains at a high level. "Even if people consume less food in restaurants, on aeroplanes or in company canteens, they will still be hungry and want to eat. They will instead get deliveries or pick up hot meals on the go. The demand remains - the place and type of catering change", he explains. The crisis will lead to an increase in hygiene and efficiency requirements for professional kitchens, giving RATIONAL's technologies an even greater competitive advantage, and exacerbate shortages of skilled staff in the kitchen. The use of versatile, intelligent and efficient cooking technology will become even more important. Some customer segments are set to benefit from government assistance programmes. Investments in health care and education, as was the case after the financial crisis, lead to increased demand in the commercial kitchen industry. RATIONAL is currently working on numerous projects to use what it has learned from the crisis and improve process efficiency. "Our conservative way of doing and managing business guarantees us the freedom and independence to act in the crisis. Not all our competitors have this favourable starting point", says Stadelmann with confidence. Editorial note: Editorial closing date: 20 October 2020
27.10.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
Language: | English |
Company: | RATIONAL AG |
Siegfried-Meister-Straße 1 | |
86899 Landsberg am Lech | |
Germany | |
Phone: | 0049 8191 327 2209 |
Fax: | 0049 8191 327 722209 |
E-mail: | ir@rational-online.com |
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 |
EQS News ID: | 1142916 |
End of News | DGAP News Service |
|
1142916 27.10.2020