Press release
Rational AG: 650 million euros sales revenues and 16 percent EBIT margin
- Sales revenues of 650 million euros - EBIT of 107 million euros
- iCombi and iVario successfully launched - new distribution channels established
- Social responsibility for employees discharged
- Slight growth in sales revenues for 2021 and EBIT margin at prior-year level expected
- Return to payout ratio of around 70 percent - dividend of 4.80 euros proposed
Landsberg am Lech, 24 March 2021 Rational generated sales revenues of 650 million euros in fiscal year 2020. This equates to a decrease of 23 percent (2019: 844 million euros). The decline was due to coronavirus measures around the world, which had a negative impact on many customers. South America (-48 percent) and North America (-29 percent) were especially hit by the coronavirus crisis, while Asia (-15 percent) and Germany (-16 percent) fared better. The rest of Europe contracted by around 22 percent on average across the Group. The currency-adjusted decline in sales revenues was 22 percent.
The drop in sales revenues led to a significant decline in earnings before financial result and taxes (EBIT) in 2020, which amounted to 107 million euros (2019: 231 million euros). Although reduced expenses on items such as trade fairs, CookingLive, travel, dealer and employee bonuses resulted in a year-on-year decrease of 10 percent in operating expenses, they did not go down to the same extent as sales revenues. Cost of sales was at a higher level due to the product changeover and additional expenditure because of the crisis. This resulted in an EBIT margin of 16.4 percent (2019: 26.5 percent).
iCombi and iVario successfully launched - new distribution channels established
Dr Stadelmann believes that an even sharper fall in sales revenues was prevented by the complete renewal of the two generations of appliances. He is pleased that "despite the difficult situation, many customers choose to invest in appliances of the new series because of the many improvements they offer". With a drop in sales revenues of 7 percent, the figure for iVario shrank more slowly, which is also due to it being launched in new markets such as the USA and China. Sales revenues for combi-steamers fell by 25 percent.
The CEO is also satisfied with the digital distribution channels that have meanwhile been established. In many markets, the virtual sales events enjoyed a very good response.
Social responsibility for employees - only slight decline in employee numbers
As at the balance sheet date 31 December 2020, the total number of employees in the Group fell slightly to 2,180 (2019: 2.258). Of that figure, over 1,200 employees work in Germany.
Staff capacity was adjusted by imposing a recruitment freeze, exercising caution in filling vacancies and reducing the number of temporary workers as well as job cuts in markets particularly hard hit by the crisis. "When the market returns, we will need our wonderful U.i.U. entrepreneurs. This is why, wherever possible, we are using short-time working or similar tools," says Dr Stadelmann.
Slight growth in sales revenues for 2021 and EBIT margin at prior-year level expected
Due to the extension and tightening of the Corona measures in many countries, Rational remains cautious. The company sees catch-up effects of end customers in gastronomy and the hotel industry after the lockdown and the investment boost caused by government financial aid as opportunities. For 2021, the Executive Board expects a slight increase in sales revenues and an EBIT margin at approximately the prior-year level. "We currently expect sales revenue growth in the medium single-digit percentage range," explains Dr Stadelmann. The Executive Board anticipates that the margin will be roughly similar to the previous year.
For the first quarter of 2021, Dr Stadelmann assumes that sales revenues will be down by almost 10 percent compared with the prior-year quarter. That is encouraging, since sales revenues had still been at pre-crisis highs in the first two months of 2020. That is set to change from March onwards, since the crisis began to have an impact in March 2020. The first quarter's EBIT margin will be in line with full year expectations.
In the medium to long term, the company's management continues to regard Rational's situation as very good. As the effects of coronavirus tail off and the numerous financial aid packages take effect, market conditions will return to normal.
Dividend of 4.80 euros per share proposed
The Executive Board and Supervisory Board will submit a proposal to the General Meeting of Shareholders on 12 May 2021 to distribute a dividend of 4.80 euros per share, in other words, to make a total distribution of 54.6 million euros. This represents a payout ratio of 68 percent of consolidated net profit for the year at pre-crisis level. The 2021 General Meeting of Shareholders will again be conducted virtually without physical attendance by shareholders. Notice of the meeting will be sent out in the coming weeks.
Contact:
Rational Aktiengesellschaft
Stefan Arnold / Head of Investor Relations
Tel. +49 (0)8191 327-2209
Fax +49 (0)8191 327-72 2209
E-mail:
Editorial note:
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 offer maximum customer benefit at all times. 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.
| |
FY 2020 |
FY 2019 |
Percentage change |
| Sales revenues (m EUR) |
649.6 |
843.6 |
-23 |
| EBIT (m EUR) |
106.8 |
223.4 |
-52 |
| EBIT margin (percent) |
16.4 |
26.5 |
- |
| Earnings after taxes (m EUR) |
80.1 |
171.6 |
-53 |
| EPS (EUR) |
7.04 |
15.09 |
-53 |
24.03.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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