Rational AG fiscal year 2022: sales revenues grow by 31 percent to break the one billion euro mark for the first time – significant increase in EBIT margin to 23.2 percent

 Sales revenues rise by 31 percent year-on-year in 2022 to a new all-time high of one billion euros

• iVario sales revenues up by 57 percent – iCombi sales revenues by 28 percent
• Record EBIT of 237.5 million euros – EBIT margin up to 23.2 percent
• Forecast for 2023: high single-digit sales revenue growth and EBIT margin slightly below the previous year expected
• Rational AG plans local entry-level product for the Chinese market

Landsberg am Lech, 28 March 2023 Having already published its preliminary results for 2022 in January, Rational is now providing a more detailed look at its books with the publication of its annual report. “2022 was certainly no easy year. We experienced supply shortages, rising inflation and a war in Europe. We at RATIONAL are especially proud, that despite all unprecedented challenges, we were more successful in the last fiscal year than ever before. Our top scores in customer and employee satisfaction were key to the outstanding financial achievements. We also managed to once again improve the energy efficiency of our appliances,” says Dr Peter Stadelmann, CEO of Rational AG, looking back with satisfaction at 2022.

Sales revenues rose by 31 percent to over a billion euros for the first time
The fourth quarter of 2022 marked a new quarterly sales revenue record of 290 million euros, 50 percent above the same quarter of the previous year. In fiscal year 2022, the company generated total sales revenues of 1,022.3 million euros (2021: 779.7 million euros): That corresponds to year-on-year growth of 31 percent, with a 12 percent rise in the number of cooking systems sold. According to CFO Jörg Walter, various other effects also contributed alongside the higher unit sales: “Due to the sharp rise in costs, we were forced to raise the prices of our products responsibly, which is also reflected in sales revenue growth. In addition, the after-sales business and positive currency effects made an important contribution to the excellent sales revenue development.”

In regional terms, the Americas were particularly successful. With growth of 58 percent, the North America region further demonstrated its role as the number one growth market. At 62 percent, growth in sales revenues in Latin America was even slightly higher, albeit at a lower level in absolute terms. The core markets Europe and Germany also grew significantly, by 30 percent and 22 percent respectively. Asia was on a par with the previous year due to the special situation in China.

After a weak first half of the year due to the shortage of components, the iCombi posted sales revenue growth of 28 percent year-on-year thanks to the improved component availability in the second half of the year. The iVario was less affected by the material shortages for electronic components and achieved growth of 57 percent.

Record EBIT of 237.5 million euros – EBIT margin rises to 23.2 percent
Cost of sales increased more slowly than sales revenues by 30 percent to 457.3 million euros in 2022 (2021: 350.5 million euros). As a result, the gross margin increased slightly to 55.3 percent (2021: 55.1 percent). EBIT (earnings before financial result and taxes) climbed to a new record level of 237.5 million euros, up around 48 percent on the previous year (2021: 160.1 million euros). The EBIT margin in this period was 23.2 percent (2021: 20.5 percent). This was also due to positive currency effects.

Due to the pleasant result the Executive Board and Supervisory Board of Rational AG will submit a proposal to the General Meeting of Shareholders on 10 May 2023 to distribute a dividend of 11.00 euros per share, plus a special dividend of 2.50 euros per share. 

Rational AG plans local entry-level product for the Chinese market
Rational AG is currently developing a combi-steamer specifically tailored to customer needs in China’s lower-tier cities. These tier 3 and tier 4 cities, which are experiencing sustained income growth, are home to around 70 percent of China’s population or 980 million people. While wages there remain lower than in tier 1 cities such as Beijing and Shanghai, rental and real estate prices in these smaller cities are lower by Chinese standards, making more disposable income available. Growing prosperity is also fuelling growth in the restaurant and catering sector. Rational’s aim is to help shape the markets for fast food, restaurants and large-scale catering that are emerging there – and to offer customers in these up-and-coming regions the highest possible benefit in the long term.

To ensure a price-performance ratio in line with the market, the new entry-level unit will have a special local configuration with a smaller range of features than the iCombi Pro or iCombi Classic. In addition, it will be manufactured in China in the greater Shanghai area close to our China headquarters. Only this entry-level unit will be manufactured there. With this step, Rational will satisfy an additional and exclusively regional demand from customers in the lower tier cities, which can only be met cost-effectively through local production.

Peter Stadelmann emphasises, “We will continue to manufacture all combi-steamers in demand worldwide at the Landsberg am Lech site and the iVario at Wittenheim, Alsace. In Landsberg, we have invested over 100 million euros in recent years in larger production capacities, an international logistics centre and a new research centre, and have considerable growth and expansion reserves here.” Later this year, the company will open new facilities in Wittenheim. Over the past two years, more than 30 million euros have been invested in expanding production capacity, as well as in new training capacity for customers, offices and a new company restaurant. “We can and will continue to grow in Landsberg and Wittenheim. Setting up the production facility in China is just a regional addition,” Stadelmann continued. The first units are expected to be installed at customers in China as early as 2025. For competitive reasons, Rational is not disclosing any further forecasts or details on market entry at this time.

New record high for worldwide customer satisfaction despite long delivery times
Rational customer satisfaction was once again at a very high level last year despite the strained supply chains and the resulting long delivery times. In the 2022 customer satisfaction survey, the company once again surpassed the previous year’s score of 61 with a Net Promoter Score (NPS) of 64. “This means we were rated twice as high as companies in our peer group. In terms of customer satisfaction, we continue to be among the best companies overall, and that is our goal,” CEO Stadelmann is pleased to report.

Employee satisfaction consistently at a very high level
According to Rational, the U.i.U. culture (entrepreneurs within the enterprise) is an important factor in the company’s success. Through a high level of personal responsibility, high performance, and clear recognition by the U.i.U.s of their own contribution to the company’s success, it supports employee satisfaction. This was confirmed once again by an employee survey conducted worldwide in 2022. In these turbulent and challenging times, 87 percent of U.i.U.s. are proud to work for Rational. “We are aware of our social responsibility. Higher prices are putting an enormous strain on households, which is why we already increased salaries in Germany in July by over 5 percent. To further ease the financial burden on our employees, we have also paid out an inflation premium of 2,000 euros on average worldwide amounting to an average of 2,000 euros,” says the CEO. At the end of 2022, the Rational Group employed 2,401 people worldwide. Of these, around 1,390 were employed in Germany.

Forecast for 2023: Cautiously optimistic – high single-digit sales revenue growth and EBIT margin expected to be slightly below previous year’s level
Following the exceptionally high growth rates of the previous two years, Rational expects sales revenues growth in the high single-digit percentage range in 2023. For 2023, Rational expects positive follow-up effects from the price increases implemented last year. “In 2022, we have consciously increased spendings for sales measures and continue to see higher purchase prices due to inflation. In addition, we have made strategic investments and therefore expect EBIT to increase slightly slower than sales revenues,” explains CFO Walter. This results in an expected EBIT margin slightly below the 2022 figure.

2023 – 50 years of Rational – “When it tastes great, we all speak the same language”
This is the motto under which Rational is celebrating its fiftieth anniversary this year. Throughout the year, customers, partners, and employees will be thanked and shown appreciation with special events and communication measures. Rational will publish more information about this on its website.

Contact:

Rational Aktiengesellschaft

Stefan Arnold / Head of Investor Relations
Tel. +49 (0)8191 327-2209
Fax +49 (0)8191 327-72 2209

E-mail: ir@rational-online.com
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 some 2,400 people, around 1,390 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. Rational is committed to the principle of sustainability, which is expressed in its corporate 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.