RATIONAL AG — Earnings Release 2005

May 9, 2005

News Details

Ad-hoc | 9 May 2005 07:55

Rational AG: Results 1st Quarter 2005/RATIONAL AG on course for global success

Ad hoc announcement §15 WpHG Quarterly Report/1st Quarter 2005 Rational AG: Results 1st Quarter 2005/RATIONAL AG on course for global success Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— * Sales up 18 per cent * EBIT up 54 per cent Landsberg, May 9, 2005: Despite downward economic trends – particularly in Europe – RATIONAL AG has successfully continued its international growth in the first quarter of 2005. Sales revenues of 53.4 million euros represented an increase of 18 per cent compared to the previous year (45.2 million euros). This success is due not only to the new unique SelfCooking Center(R) but also to selective expansion of the global sales and marketing network. However, the high rate of growth in the first quarter is also based on comparatively moderate sales trends in the corresponding period the previous year, brought about by a certain consumer resistance in advance of the market launch of the SelfCooking Center(R). Europe the winner when it comes to growth In the first quarter of 2005 sales revenues in Europe (without Germany) rose by 26 per cent from 23.7 million euros to 29.9 million euros. Hence with a 75 per cent share in the company’s total growth in the first quarter of 2005, the European market is easily the winner when it comes to growth. Even in Germany, one of the most economically difficult and fiercely competitive sales markets, sales revenues of 8.6 million euros were achieved (previous year 7.4 million euros), equivalent to 17 per cent growth. However, steadily improving market penetration in countries such as the UK, France, Italy and Spain, in addition to the way in which new sales markets in Southern and Eastern Europe are now being tapped, has provided added impetus to growth. However, this growth in Europe, which has been sustained over many years, highlights the enormous reserves of growth overseas for RATIONAL. EBIT up by 54 per cent – earnings structure significantly improved once again Despite rising prices for raw materials, RATIONAL AG managed to cut the cost of sales further compared to last year. The gross yield margin improved significantly, from 56.7 per cent to 60.6 per cent. The improved margin is due to cost savings on major components of the new product technology, as well as the continually increasing productivity and efficiency of the entire production and supply process. Planned economic targets confirmed In consideration of the good business progress in the first quarter, coupled with the superiority of the SelfCooking Center(R) technology compared to its rivals and the market potential, 80 per cent of which is still unexploited, the management is optimistic that the annual plan for 10 per cent sales growth to 244 million euros and the planned rise in EBIT by 12 per cent to 60 million euros in 2005 will also be achieved. Rational AG Iglinger Straße 62 86899 Landsberg a. Lech Deutschland ISIN: DE0007010803 (SDAX) WKN: 701080 Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, München und Stuttgart End of ad hoc announcement (c)DGAP 09.05.2005 Issuer’s information/explanatory remarks concerning this ad hoc announcement: Contact: RATIONAL Aktiengesellschaft Dr. Günter Blaschke Tel. (08191) 327-364 Fax (08191) 327 272 E-mail: g.blaschke@rational-online.de http://www.rational-ag.com Information for editors: RATIONAL is the world market and technology leader for the thermal preparation of food in professional kitchens. The company, founded in 1973, employs around 750 people, over 500 of whom are in Germany. RATIONAL was floated on the German stock market in 2000 and is currently represented in the SDAX. Since the IPO in 2000, the price of RATIONAL shares has practically trebled, making them one of the leading German shares and one of the jewels in the SDAX crown. The company’s principal objective is to offer customers maximum benefit at all times. Internally RATIONAL is committed to the principle of sustainability, expressed in its policies on environmental protection, leadership and social responsibility. Numerous international awards bear witness year on year to the high level of RATIONAL’s work. In millions of euros Q1 2005 Q1 2004 Sales 53.4 45.2 EBIT 12.0 7.8 EBT 12.0 7.8 End of message (c)DGAP 090755 Mai 05