AI assistant
RATIONAL AG Interim / Quarterly Report 2024
345_10-q_2024-11-08_59e22262-e572-42e6-aa81-86bf3bda3f26.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
Statement on the first 9 months of 2024
50 years of RATIONAL 50 years of Innovations 50 years of Customer Benefit
02
02
02
02
02
02
02
02
Statement on the first nine months of 2024
Key Figures 04
RATIONAL: Successful first nine months of 2024 ..... 05
Sales revenues rose by $5 \%$ to 876 million euros ..... 05
Americas remain the major growth driver ..... 05
iVario sales revenues grow faster than group by $12 \%$ ..... 05
$58.9 \%$ gross margin ..... 06
226,6 million euros EBIT - 25.9\% EBIT margin ..... 06
207 million euros in operating cash flow ..... 06
Employee satisfaction once again at a very high level ..... 07
Forecast 2024 confirmed ..... 07
Statement of Comprehensive Income ..... 08
Balance Sheet ..... 09
Cash Flow Statement ..... 10
Statement of Changes in Equity ..... 11
Legal Notice and Disclaimer ..... 12
Key Figures
| In m EUR | 3rd quarter 2024 | 3rd quarter 2023 | Change absolute | Change in \% | 9 months 2024 | 9 months 2023 | Change absolute | Change in \% |
|---|---|---|---|---|---|---|---|---|
| Sales revenues by region | ||||||||
| Germany | 29.3 | 27.2 | +2.1 | +8 | 90.9 | 91.6 | $-0.7$ | $-1$ |
| Europe (excluding Germany) | 116.2 | 105.0 | +11.2 | +11 | 356.1 | 341.6 | +14.5 | +4 |
| North America | 77.4 | 69.4 | +8.0 | +12 | 211.0 | 195.3 | +15.7 | +8 |
| Latin America | 19.7 | 16.9 | +2.8 | +17 | 53.4 | 48.5 | +4.9 | +10 |
| Asia | 34.9 | 40.6 | $-5.7$ | $-14$ | 114.2 | 110.8 | +3.4 | +3 |
| Rest of the world | 16.8 | 13.2 | +3.6 | +27 | 49.9 | 45.2 | +4.7 | +10 |
| Sales revenues generated abroad (in \%) | 90 | 90 | +0 | - | 90 | 89 | +1 | - |
| Sales revenues by product group | ||||||||
| iCombi | 260.5 | 242.7 | +17.8 | +7 | 777.8 | 745.8 | +32.0 | +4 |
| iVario | 33.7 | 29.5 | +4.2 | +14 | 97.7 | 87.3 | +10.4 | +12 |
| Sales revenues and earnings | ||||||||
| Sales revenues | 294.2 | 272.3 | +21.9 | +8 | 875.5 | 833.1 | +42.4 | +5 |
| Cost of sales | 120.6 | 116.1 | +4.5 | +4 | 359.5 | 362.1 | $-2.6$ | $-1$ |
| Gross profit | 173.7 | 156.2 | +17.5 | +11 | 516.0 | 470.9 | +45.1 | +10 |
| in \% of sales revenues | 59.0 | 57.4 | +1.6 | - | 58.9 | 56.5 | +2.4 | - |
| Sales and service expenses | 64.7 | 63.3 | +1.4 | +2 | 197.0 | 189.7 | +7.3 | +4 |
| Research and development expenses | 16.6 | 12.6 | +4.0 | +32 | 47.3 | 37.3 | +10.0 | +27 |
| General administration expenses | 14.1 | 13.4 | +0.7 | +5 | 41.0 | 39.1 | +1.9 | +5 |
| Earnings before financial result and taxes (EBIT) | 77.6 | 65.9 | +11.7 | +18 | 226.6 | 201.9 | +24.7 | +12 |
| in \% of sales revenues | 26.4 | 24.2 | +2.2 | - | 25.9 | 24.2 | +1.7 | - |
| Profit or loss after taxes | 61.6 | 52.3 | +9.3 | +18 | 178.7 | 158.4 | +20.3 | +13 |
| Earnings per share (in EUR) | 5.42 | 4.60 | +0.8 | +18 | 15.72 | 13.93 | +1.79 | +13 |
| Return on capital employed (ROCE, \%) | 39.9 | 39.4 | +0.5 | +1 | ||||
| Cash flow | ||||||||
| Cash flow from operating activities | 83.8 | 69.8 | +14.0 | +20 | 206.7 | 197.4 | +9.3 | +5 |
| Cash-effective investments | 5.1 | 8.0 | $-2.9$ | $-36$ | 22.1 | 23.4 | $-1.3$ | $-6$ |
| Free cash flow ${ }^{1}$ | 78.7 | 61.8 | +16.9 | +27 | 184.6 | 174.0 | +10.6 | +6 |
| Balance Sheet | ||||||||
| Total equity and liabilities | 1,016.5 | 917.7 | +98.8 | +11 | ||||
| Equity | 764.5 | 681.1 | +83.4 | +12 | ||||
| Equity ratio in \% | 75.2 | 74.2 | +1.0 | - | ||||
| Number of employees as at 30 Septem- | 2,690 | 2,524 | +166 | +7 | ||||
| Key figures for RATIONAL shares | ||||||||
| Quarter-end closing price ${ }^{2}$ (in EUR) | 915.00 | 600.00 | +315.00 | +53 | ||||
| Market capitalisation ${ }^{2}$ | 10,403.6 | 6,822.0 | +3,581.6 | +53 |
1 Cash flow from operating activities less capital expenditures
2 Xetra
3 As of balance sheet date
RATIONAL: Successful first nine months of 2024
Sales revenues rose by $5 \%$ to 875 million euros as at the end of September 2024
Sales revenues in the third quarter up 8\% on the same quarter of the previous year
Americas remain the most important growth driver
EBIT of 226.6 million euros - EBIT margin at $25.9 \%$
$>2024$ forecast confirmed
Sales revenues rose by $5 \%$ to 875 million euros in the first nine months of 2024
At 294.2 million euros (2023: 272.3 million euros), sales revenues in the third quarter were $8 \%$ higher than in the pri-or-year quarter. In the first nine months of 2024, sales revenues rose by $5 \%$ to 875.5 million euros (2023: 833.1 million euros). Both periods benefited from strong sales revenues in non-appliance business and growing demand for iVario cooking systems. Despite economic and macroeconomic uncertainties, this positive trend underscores the unchanged high attractiveness of our cooking systems and services. Adjusted for exchange rate movements, growth amounted to around $6 \%$ compared with the previous year.
Americas remain the major growth driver
Sales revenue growth in North and South America was similarly strong at $+8 \%$ and $+10 \%$ respectively in the first three quarters of 2024. The United States, in particular, made the main contribution to this growth. Sales revenues in Europe (excluding Germany) grew by $4 \%$ compared to the prior-year period on the back of strong sales revenues in France, Switzerland and Southeastern Europe. In our home market of Germany, the recovery in sales revenues continued in the third quarter. As at the end of September, sales revenues were only slightly below the previous year's figure. Sales revenues in Asia grew by 3\%. After the exceptionally good performance of the previous quarters, sales revenues in the third quarter fell by around $14 \%$. In the nine-month period, sales revenues have stabilised at a high level. This was mainly attributable to partner business in China and Japan, with the prior-year quarter and the first two quarters of 2024 benefiting particularly from large additional orders from a chain customer in China. Sales revenues in the rest of the world increased by $10 \%$ in the first nine months.
iVario sales revenues grow faster than group by $12 \%$
In the iCombi product group, sales revenues were up 4\% year-on-year in the first nine months of 2024, at 777.8 million euros (2023: 745.8 million euros). In the iVario product group, we generated sales revenues of 97.7 million euros. In the first nine months of 2024, they were thus $12 \%$ above the previous year's figure of 87.3 million euros.
58.9\% gross margin
At 359.5 million euros, cost of sales in the first nine months was slightly below the level of 362.1 million euros achieved the previous year. The gross margin consequently improved by 2.4 percentage points to $58.9 \%$ (2023: 56.5\%), surpassing our expectations. The main reason for the higher gross margin is the stabilisation of the cost level; it already became apparent in the first half of the year that it would stabilise more strongly than expected. We still expect costs to be at the current level.
EBIT of 226.6 million euros - EBIT margin at $25.9 \%$
EBIT (earnings before financial result and taxes) for the first nine months was 226.6 million euros, $12 \%$ higher than in the previous year (2023: 201.9 million euros). The EBIT margin increased to $25.9 \%$ (2023: $24.2 \%$ ) Third-quarter EBIT was 77.6 million euros (2023: 65.9 million euros), which corresponds to an EBIT margin of $26.4 \%$,
The EBIT margin continued to benefit from the positive increase in gross profit. However, operating costs trended in the opposite direction, rising by $7 \%$, hence slightly faster than sales revenues, to 285.3 million euros (2023: 266.0 million euros). The trend for EBIT and the EBIT margin is thus returning to pre-coronavirus levels sooner than we originally expected.
Operating costs in the sales and service areas stood at 197.0 million euros in the first nine months (2023: 189.7 million euros), a year-on-year increase of $4 \%$. The rise in costs was due in particular to higher personnel costs in sales-related areas. Lower freight charges compared to those in the previous year reduced costs. Research and development expenses were $27 \%$ up on the previous year, at 47.3 million euros (2023: 37.3 million euros). The significant increase in the cur-
rent year results among other things from the capitalisation of development expenses in the previous year for the new products launched at the end of last year and at the beginning of this year. Development expenses had benefited from this capitalisation in the previous year. A total of 1.0 million euros was capitalised by the end of September 2024, compared with 5.4 million euros in the first nine months of the previous year. After adjusting for this effect, development expenses increased by around 13\%. Administration expenses went up by $5 \%$ to 41.0 million euros (2023: 39.1 million euros).
Net currency losses amounted to 5.7 million euros in the first three quarters (2023: 5.0 million euros). Adjusted for all exchange rate effects, the EBIT margin was around $27 \%$ at the end of September.
207 million euros in operating cash flow
In the first nine months, the operating cash flow amounted to 206.7 million euros (2023: 197.4 million euros). The slight increase in operating cash flow is mainly due to the higher profit after taxes. On the other hand, highertradereceivables and other assets and net interest were higher as at the balance sheet date. The cash flows from investing activities include investments in property, plant and equipment and in intangible assets. They amounted to 22.1 million euros in the first nine months of 2024 (2023: 23.4 million euros) and related mostly to the expansion and maintenance of the Landsberg and Wittenheim locations and the new production facility in China.
Financing activities led to a cash outflow of 162.8 million euros (2023: 162.3 million euros); this mainly reflects the dividend distribution of 153.5 million euros and payments for lease liabilities in accordance with IFRS 16 in an amount of 8.3 million euros.
Employee satisfaction once again at a very high level
As a socially responsible company with a long-term focus, the satisfaction of our employees (entrepreneurs in the company (U.i.U.s)), who work with dedication and commitment for our customers and our business, is a matter of great importance for us. We are therefore delighted that this year's employee satisfaction survey, U.i.U. Compass, confirmed our efforts. According to the survey, $90 \%$ are overall very satisfied or satisfied with their employment at RATIONAL. 88\% of our entrepreneurs in the company are proud to work at RATIONAL. To keep things that way, we are now working in workshops to improve ourselves further and to show that we are and will remain a top employer.
At the end of September 2024, the RATIONAL Group employed 2,690 U.i.U.s worldwide. Of this total, around 1,500 were employed in Germany.
Forecast confirmed
We continue to be optimistic about the future and confirm our growth forecast in the medium to upper single-digit percentage range. After updating our market assessments in recent weeks, we currently consider growth in the medium single-digit percentage range to be the most likely scenario.
On the earnings side, we expect the trends of the first nine months to solidify. Gross profit is benefiting from the stable cost levels, while operating costs are rising somewhat more slowly than originally assumed. With only three months remaining in the current fiscal year we expect an EBIT margin of around $26 \%$ and absolute EBIT close to current analyst estimates (Bloomberg Consensus: 305.2 million euros).
Statement of Comprehensive Income RATIONAL Group
| Period: 1 January - 30 September | 3rd quarter 2024 | 3rd quarter 2023 | 9 months 2024 | 9 months 2023 |
|---|---|---|---|---|
| Sales revenues | 294,236 | 272,288 | 875,482 | 833,076 |
| Cost of sales | $-120,568$ | $-116,097$ | $-359,492$ | $-362,134$ |
| Gross profit | 173,668 | 156,191 | 515,990 | 470,942 |
| Sales and service expenses | $-64,707$ | $-63,330$ | $-197,003$ | $-189,682$ |
| Research and development expenses | $-16,574$ | $-12,604$ | $-47,251$ | $-37,267$ |
| General administration expenses | $-14,059$ | $-13,376$ | $-41,031$ | $-39,058$ |
| Other operating income | 4,666 | 3,920 | 10,633 | 13,648 |
| Other operating expenses | $-5,410$ | $-4,907$ | $-14,764$ | $-16,659$ |
| Earnings before financial result and taxes (EBIT) | 77,584 | 65,894 | 226,574 | 201,924 |
| Interest income | 3,206 | 2,028 | 9,262 | 4,744 |
| Interest expenses | $-335$ | $-259$ | $-1,015$ | $-773$ |
| Other financial result | 454 | $-77$ | 198 | $-516$ |
| Gain or loss on the net monetary position in accordance with IAS 29 | 113 | 288 | 101 | 344 |
| Earnings before taxes (EBT) | 81,022 | 67,874 | 235,120 | 205,723 |
| Income taxes | $-19,446$ | $-15,612$ | $-56,429$ | $-47,317$ |
| Profit or loss after taxes | 61,576 | 52,262 | 178,691 | 158,406 |
| Items that may be reclassified to profit and loss in the future: | ||||
| Differences from currency translation | 809 | $-181$ | 879 | 328 |
| Differences from IAS 29 Hyperinflation | $-48$ | $-278$ | $-174$ | $-384$ |
| Items that will not be reclassified to profit and loss: | ||||
| Actuarial gains and losses from defined benefit obligations | $-1$ | 0 | 3 | 0 |
| Other comprehensive income | 760 | $-459$ | 708 | $-56$ |
| Total comprehensive income | 62,336 | 51,803 | 179,399 | 158,350 |
| Average number of shares (undiluted/diluted) | 11,370,000 | 11,370,000 | 11,370,000 | 11,370,000 |
| Earnings per share (undiluted / diluted) in euros, based on profit or loss after taxes and the number of shares | 5.42 | 4.60 | 15.72 | 13.93 |
Cash Flow Statement RATIONAL Group
| Period: 1 January - 30 September | 3rd quarter 2024 | 3rd quarter 2023 | 9 months 2024 | 9 months 2023 |
|---|---|---|---|---|
| Earnings before taxes (EBT) | 81,022 | 67,874 | 235,120 | 205,723 |
| Depreciation and amortisation | 9,624 | 8,178 | 27,328 | 23,936 |
| Other | $-2,231$ | 3,655 | $-259$ | 4,730 |
| Net interest | $-2,870$ | $-1,768$ | $-8,246$ | $-3,970$ |
| Changes in | ||||
| Inventories | 568 | $-1,041$ | $-90$ | 2,484 |
| Trade accounts receivable and other assets | 487 | $-3,803$ | $-18,515$ | $-3,027$ |
| Provisions | 15,580 | 15,830 | 17,978 | 17,374 |
| Trade accounts payable and other liabilities | $-3,382$ | 163 | 44 | 17 |
| Income taxes paid | $-14,986$ | $-19,276$ | $-46,703$ | $-49,839$ |
| Cash flow from operating activities | 83,812 | 69,812 | 206,657 | 197,428 |
| Capital expenditures in intangible assets and property, plant and equipment | $-5,149$ | $-8,015$ | $-22,086$ | $-23,433$ |
| Proceeds from asset disposals | 11 | 117 | 77 | 155 |
| Change in fixed deposits | $-83,932$ | $-63,145$ | $-53,721$ | $-94,795$ |
| Interest received | 1,328 | 904 | 8,994 | 3,526 |
| Cash flow from investing activities | $-87,742$ | $-70,139$ | $-66,736$ | $-114,547$ |
| Dividends paid | - | - | $-153,495$ | $-153,495$ |
| Repayment of liabilities to banks | - | $-236$ | - | $-708$ |
| Payments for lease liabilities | $-2,852$ | $-2,382$ | $-8,295$ | $-7,322$ |
| Interest paid | $-335$ | $-260$ | $-1,009$ | $-774$ |
| Cash flow from financing activities | $-3,187$ | $-2,904$ | $-162,799$ | $-162,299$ |
| Effects of exchange rate fluctuations in cash and cash equivalents | $-647$ | 529 | $-692$ | $-299$ |
| Change in cash and cash equivalents | $-7,764$ | $-2,702$ | $-23,570$ | $-79,717$ |
| Cash and cash equivalents as at 1 January | 122,156 | 130,886 | 137,962 | 207,901 |
| Cash and cash equivalents as at 30 September | 114,392 | 128,184 | 114,392 | 128,184 |
Statement of Changes in Equity RATIONAL Group
| In KEUR | Subscrib capital |
Capital re- serves |
Retained earnings | Other components of equity | Total | ||
|---|---|---|---|---|---|---|---|
| Differences from cur- rency translation |
Actuarial gains and losses | Other changes (e.g. acc. to IAS 29) | |||||
| Balance as at 1 Jan 2023 | 11,370 | 28,058 | 641,399 | $-5,278$ | 934 | $-243$ | 676,240 |
| Dividend | - | - | $-153,495$ | - | - | - | $-153,495$ |
| Profit or loss after taxes | - | - | 158,406 | - | - | - | 158,406 |
| Other comprehensive income | - | - | 328 | $-384$ | $-56$ | ||
| Balance as at 30 September 2023 | 11,370 | 28,058 | 646,310 | $-4,950$ | 934 | $-627$ | 681,095 |
| Balance as at 1 January 2024 | 11,370 | 28,058 | 703,666 | $-3,991$ | 116 | $-614$ | 738,605 |
| Dividend | - | - | $-153,495$ | - | - | - | $-153,495$ |
| Profit or loss after taxes | - | - | 178,691 | - | - | - | 178,691 |
| Other comprehensive income | - | - | - | 879 | 3 | $-174$ | 708 |
| Balance as at 30 September 2024 | 11,370 | 28,058 | 728,862 | $-3,112$ | 119 | $-788$ | 764,509 |
Publisher and contact
RATIONAL Aktiengesellschaft
Siegfried-Meister-Strasse 1
86899 Landsberg am Lech
Dr Peter Stadelmann
Chief Executive Officer
Phone +49 81913273309
Fax +49 8191327-272
E-mail [email protected]
Stefan Arnold
Head of Investor Relations
Phone +49 8191327-2209
Fax +49 8181 327-722209
E-mail [email protected]
Disclaimer
This quarterly statement contains forward-looking statements that are based on assumptions and expectations at the time the report went to press (4 November 2024). 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.