Corporate | 3 August 2016 07:00

RATIONAL AG continues to grow successfully worldwide

DGAP-News: RATIONAL AG / Key word(s): Half Year Results

2016-08-03 / 07:00
The issuer is solely responsible for the content of this announcement.

Press release

RATIONAL AG continues to grow successfully worldwide

– 9 percent sales revenues growth (currency-adjusted 11 percent)

– 26 percent EBIT margin (currency-adjusted 27 percent)

– Outlook confirmed

Landsberg am Lech, 3 August 2016 RATIONAL AG increased its sales revenues by 9 percent in the second quarter of the current fiscal year, thus continuing the growth that began in the first quarter. The result was an increase in sales revenues in the first six months of 2016 also of 9 percent to a total of 283.1 million euros. The commercial kitchen suppliers sales revenues were negatively impacted by the weakness of the pound sterling and of currencies in emerging countries. However, the resulting effect was less in the second quarter. After exchange rate adjustments, the increase in sales revenues was around 11 percent compared to the first six months of 2015.

Europe and America as growth drivers
The home market of Germany grew by 14 percent due to further market penetration and greater use of the combi-steamer by new customer groups, as well as the positive development of FRIMA. Sales revenues in the rest of Europe increased by 11 percent after exchange rate adjustments, in particular thanks to a slight recovery in the Russian market and a very good business performance by FRIMA in France. The Americas Region saw an increase in sales revenues of 19 percent after exchange rate adjustments, with our important market of the USA delivering an impressive rise of 18 percent. In particular, field business with small customers was again very successful there. After six months, sales revenues in the Asia region were up just 3 percent compared to the previous year. One of the reasons was a base effect in the first half of 2015, when China in particular boasted strong growth rates. Sales revenues in the “Rest of the world” region were down slightly in the first half of 2016, recording a year-on-year decline of 1 percent.

Positive development for both segments
In the first half of 2016, the RATIONAL segment increased its sales revenues by 7 percent or by
10 percent after adjustment to reflect negative currency effects.

The FRIMA segment grew sharply in the first half of 2016 by 27 percent. Currency effects played a minor role at FRIMA because its business focuses on Europe.

Currency-adjusted EBIT margin of 27 percent
Gross profit in the first six months of 2016 increased in proportion to sales by 9 percent to 175.5 million euros. The gross margin of 62 percent was at the high level of the previous year. Operating costs also rose in line with sales revenues by 9 percent compared to the first half of 2015, to 100.1 million euros (previous year: 91.5 million euros). After exchange rate adjustments, the increase was 11 percent. This is mainly due to an increase of 11 percent in sales and service expenses as a result of global expansion of the sales and service organisation.

EBIT (earnings before interest and taxes) stood at 73.6 million euros, at the level of the previous year (73.9 million euros). The six-month EBIT margin was 26 percent (previous year: 28 percent). Translation effects on our foreign currency positions in other operating expenses and income had a negative impact on our EBIT after six months, following a significant positive impact in the previous year. That was due in particular to the decline of the pound sterling against the euro. “Adjusted for this measurement effect, we generated an EBIT margin of 27 percent in both the first half of 2016 and 2015. Our company’s operating efficiency therefore remains high,” explains Dr Axel Kaufmann, CFO of RATIONAL AG.

95 new jobs created in the first half of 2016
The total number of employees in the Group rose from 1,530 to 1,625 in the first six months of the current fiscal year. Around half the new jobs were created in Germany.

Growth to date expected to continue
“The large majority of our customers is so satisfied with the products and services that they would be happy to purchase them again at any time and also recommend them to friends and colleagues. This has once again been confirmed by a TNS Infratest survey conducted in six countries,” says
Dr Peter Stadelmann, Chief Executive Officer of RATIONAL AG. Given that, the still very high market potential and the all in all solid forecasts for the global economy, the Executive Board of RATIONAL AG believes the company is well placed to keep on growing as in the past years.

“In view of the development in the sales regions to date, we confirm the growth outlook for fiscal year 2016 given in the Annual Report 2015,” states Dr Stadelmann.

Contact:
RATIONAL Aktiengesellschaft
Stefan Arnold
Head of Investor Relations
Tel. +49 (0)8191 327-2209
Fax +49 (0)8191 327-722209
E-mail: ir@rational-online.com
www.rational-online.com

Editorial note:

The RATIONAL Group is the global market and technology leader for thermal preparation of food in professional kitchens. The company, founded in 1973, employs around 1,600 people, about 900 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 SDAX.

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 RATIONAL’s work year on year.

	Q2 2016	Q2 2015	Change in percent
Sales (m EUR)	147.4	135.8	+9
EBIT (m EUR)	41.4	38.9	+6
EBIT-Margin (percent)	28.1	28.7	–
FX-adjusted EBIT (m EUR) 1)	40.6	40.2	+1
FX-adjusted EBIT-Margin (percent)	27.5	29.6	–
Net income (m EUR)	31.7	29.5	+7
EPS (EUR)	2.78	2.60	+7

	HY 2016	HY 2015	Change in percent
Sales (m EUR)	283.1	260.5	+9
EBIT (m EUR)	73.6	73.9	-0
EBIT-Margin (percent)	26.0	28.4	–
FX-adjusted EBIT (m EUR) 1)	75.4	69.3	+9
FX-adjusted EBIT-Margin (percent)	26.6	26.6	–
Net income (m EUR)	56.1	56.1	+0
EPS (EUR)	4.94	4.93	+0

1) Adjusted for the currency result from the revaluation of FX balance sheet positions included in other operating income and expenses

2016-08-03 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de

Language:	English
Company:	RATIONAL AG
	Iglinger Straße 62
	86899 Landsberg a. Lech
	Germany
Phone:	0049 8191 327 2209
Fax:	0049 8191 327 722209
E-mail:	ir@rational-online.com
Internet:	www.rational-online.com
ISIN:	DE0007010803
WKN:	701080
Indices:	SDAX
Listed:	Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange

End of News DGAP News Service