Press release
Rational AG: Fourth quarter with stable sales revenue performance - preliminary figures for fiscal year 2020
- Sales revenues of 183 million euros in the fourth quarter - strongest quarter of the year
- Sales revenues down by 23 percent in 2020 - currency-adjusted: 22 percent
- 107 million euros EBIT and 16 percent EBIT margin expected
- Well-positioned for the future
Landsberg, 4 February 2021 According to provisional calculations, Rational posted sales revenues of 650 million euros in the 2020 fiscal year. This equates to a decline of 23 percent or 194 million euros compared to the previous year (2019: 844 million euros). This negative development was due to the worldwide protection measures in connection with the coronavirus crisis, which had a negative impact on most customer groups. Following a significant decline in sales revenues in the second quarter of 43 percent compared with the prior-year quarter, the situation recovered perceptibly in the third and fourth quarters. "However, due to the continuing restrictions for our customers, our sales revenues remained around 21 percent below the figures for the previous year in both the third and fourth quarters," explained Dr Peter Stadelmann, CEO of Rational AG. The second lockdowns from November in many markets did not lead to a renewed fall in sales revenues.
The sales regions South America (-48 percent) and North America (-29 percent) were especially hard hit by the coronavirus crisis, while Asia (-15 percent) and Germany (-16 percent) fared better. Overall, performance in the rest of Europe (-22 percent) was in line with the group average. Here, however, figures range widely from a decline in sales revenues of around 10 percent in markets such as Scandinavia, Austria and Switzerland to a drop of more than 30 percent in Spain, the UK and many Eastern European markets. With a drop in sales revenues of just 7 percent, the figure for iVario shrank more slowly, which is also due to it being launched in new markets compared with the previous year. Sales revenues for combi-steamers fell by 25 percent. The currency-adjusted Group-wide decline in sales revenues was 22 percent.
EBIT margin expected to be well below previous year's level
In line with the negative sales revenue performance, RATIONAL expects earnings before financial result and taxes (EBIT) of just under 107 million euros (2019: 231 million euros). "Operating expenses fell by more than 10 percent year-on-year to around 245 million euros due to reduced expenditure in, for example, marketing (trade fairs, CookingLive) or travel expenses and to additional cost savings," says Dr Stadelmann. In addition, cost of sales was at a higher level due to the product changeover and additional expenditure because of the crisis. This resulted in a reduced EBIT margin of 16.4 percent (2019: 26.5 percent).
Employees
At the start of the coronavirus crisis, a hiring freeze was imposed. Vacant positions - where reasonable - were not refilled, some fixed-term contracts were not renewed and temporary staff were only employed in exceptional cases. "Our aim is to retain high achievers over the long term, which is why we are using short-time working or comparable tools in many areas. As a socially responsible company, we want to keep as many jobs as possible so that we are prepared for the upswing, which is certain to come. We are continuing to weigh up the not inconsiderable cost of laying off staff against the cost of subsequently replacing and training them," says Dr Stadelmann. 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).
Well-positioned for the future
Rational closely observes economic developments in its principal markets. The long-term positive trends in the catering and food service sector continue undiminished. Thanks to its broad focus on different customer groups, Rational can respond flexibly to changing market requirements. Due to the exceptionally healthy balance sheet, the good liquidity position, the strong position in the market and the newly launched cooking systems in 2020, the Executive Board believes that the company is well-placed to resume its successful growth path in fiscal year 2021. The company will publish a detailed outlook on expected business development, final group earnings for fiscal year 2020 and the proposed dividend on 24 March 2021.
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. 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 the work done by Rational's employees year for year.
Contact:
Stefan Arnold
Head of Investor Relations
Tel. 09
04.02.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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