Rational AG continues to grow successfully

(PresseBox) ( Landsberg am Lech, )

Sales revenues up by 15 percent – by 16 percent after currency adjustments
27 percent EBIT margin
Dividend of 11.00 euros per share proposed
Growth expected to continue

Landsberg, 15 March 2018   Rational posted sales revenues of 702 million euros in the 2017 fiscal year. This equates to growth of 15 percent compared to the previous year (613 million euros). All regions contributed to this positive development. In particular the Americas and Asia regions were important growth markets. Frima expanded considerably with an increase in sales revenues of 22 percent, thus making a significant contribution to the success.

26.7 percent EBIT margin – negative currency effects

In 2017, operating costs rose somewhat more slowly than sales revenues. Due to higher commodity costs and negative currency effects, earnings before interest and taxes (EBIT) increased by 13 percent year-on-year, and thus slightly more slowly than sales revenues, to 188 million euros (2016: 167 million euros). This equates to an EBIT margin of 26.7 percent (2016: 27.2 percent).

The weakness of foreign currencies that are important for RATIONAL in relation to the euro – in particular the US dollar – had a significant negative impact on sales revenues and earnings performance. After exchange rate adjustments, sales revenues were up 16 percent on the previous year. Adjusted for the currency losses, the EBIT margin was just over 27 percent.

Dividend of 11.00 euros per share proposed

In view of the very successful business performance last year, the positive future prospects and good liquidity situation, the Supervisory Board and Executive Board will propose to the 2018 General Meeting of Shareholders the distribution of a dividend of 8.80 euros per share and a special dividend of 2.20 euros per share for fiscal year 2017.

Investments in the future

Rational invested 43.4 million euros in non-current assets in the past fiscal year. This includes investments in real estate and technical equipment of 37 million euros. On 19 July 2017, the foundation stone was laid for the expansion of Factory 3 in Landsberg am Lech. The production capacity will be increased significantly by adding space of 16,000 square metres. For 2018, the company is planning capital expenditure roughly in line with the amount spent in 2017.  “This is a sign of our great confidence in the future performance of the company and will form the basis for growth in the coming years”, explains the CEO of RATIONAL AG, Dr Peter Stadelmann.

More than 170 new jobs created

Rational created more than 170 new jobs around the world in 2017, thus investing in the company’s continued development. Over 70 of the new jobs were created in Germany. Sales and sales-related functions, in particular, were added. The company plans to create a similar number of new jobs in 2018.

Growth set to continue

The vast majority of customers are so satisfied with the products and services that they would buy them again at any time and also recommend them to friends. Against this backdrop, and in conjunction with the still very high market potential and the all in all solid forecasts for the global economy, the Executive Board of RATIONAL AG expects the company to be able to continue on the growth path of the past years.

“The successful performance of our more recent markets, the Americas and Asia, and that of our established markets as well as the unbroken growth in eating-out trends make us very confident that we will be able to continue on our expansion path with high single-digit growth rates and good profitability in 2018”, adds Dr Peter Stadelmann.
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