Press release

Rational AG: sales revenues in fiscal year 2021 up by 20 percent to 780 million euros - EBIT margin of more than 20 percent

- Sales revenues of 780 million euros - up 20 percent

- EBIT of 160 million euros - EBIT margin of more than 20 percent

- Shortages of materials weigh on fourth quarter

- Positive outlook for the future
 

Landsberg am Lech, 3 February 2022      Based on preliminary figures, Rational generated sales revenues of 779.7 million euros in the 2021 fiscal year. This equates to growth of 20 percent compared to the previous year. Sales revenues were positively impacted by factors such as encouraging demand for the new iCombi and iVario, catch-up investments, government support programmes and orders brought forward in anticipation of shortages of materials. Due to supply bottlenecks for electronic components, it was not possible to meet the high customer demand in full.

Especially the last quarter of the year was negatively impacted by limited supply capabilities. "Despite record new orders, we were unable to continue the rapid recovery in the fourth quarter due to the global procurement crisis. We are now starting 2022 with an unprecedented level of orders on hand," reports Dr Peter Stadelmann, CEO of Rational AG. In the fourth quarter, Rational generated sales revenues of 193.5 million euros, an increase of 6 percent compared to 2020.

Based on preliminary figures, all regions significantly exceeded the previous year's sales revenues. Performance was particularly buoyant in Latin America (+47 percent), followed by North America (+25 percent) and Germany (+22 percent). There was also an encouraging rise in sales revenues of 20 percent in Asia. In Europe, sales revenues increased by 14 percent. Germany and Asia slightly exceeded pre-crisis levels again in 2021.

The iVario continued its successful growth story and, following a smaller-than-average decline in the previous year (-7 percent), achieved another record in sales revenues in 2021, with a jump of 18 percent. The iCombi, whose sales revenues were down by around a quarter in 2020, took a major step towards pre-crisis levels, growing by 20 percent.

EBIT margin well up on previous year's level
Thanks to the rise in sales revenues, Rational expects earnings before financial result and taxes (EBIT) of 160.1 million euros, which is significantly up on the previous year (106.8 million euros). "Operating costs increased by 11 percent, hence more slowly than sales revenues. These positive effects are reflected in the EBIT margin," explains CFO Jörg Walter. The EBIT margin improved by around 4 percentage points year-on-year, from 16.4 percent to 20.5 percent.

Shortages of materials put brakes on year-end spurt
Starting in September 2021, global supply bottlenecks came increasingly into focus. The supply situation worsened progressively, especially for electronic components. In combination with new record highs in new orders, this led to longer delivery times. In order to keep supply chains and production running as far as possible and to return delivery times in the overseas markets to Rational's customary level, some of the production output of the last term was completed, apart from the missing components, and dispatched to an overseas warehouse. "By dispatching partially assembled appliances, we are bridging the long shipping times on the freight routes. The electronic components will follow by air as soon as they are available. The appliances will then be finished by local engineers on site," reports Stadelmann. Rational expects the volatile situation in materials procurement to persist in 2022. The company continues to counter these challenges by taking timely countermeasures, such as the qualification of additional suppliers.

The significant rise in material costs was reflected in the margins in 2021. "We don't normally increase prices across the board, but rather locally in special situations. However, due to the considerable cost increases for commodities, primary products and logistics, we felt compelled to raise our price levels by an average of six percent worldwide," explains Stadelmann. The new prices have applied in the overseas markets since November 2021, while in some markets in Europe they will only come into effect in April 2022.

Employees
As a socially responsible company, Rational had made only minimal adjustments to the size of its workforce during the crisis. The improved market prospects and the company's financial strength enabled it to make new appointments in strategically important areas in the course of 2021. "Rational is and remains the market and technology leader worldwide. In order to get our company ready for the future, we are increasingly investing in software specialists for the expansion of our digital offering," comments CFO Walter. As at the balance sheet date (31 December 2021), the total number of employees in the Group had risen to 2,248 (2020: 2,180).

Rational optimistic about the future
With record orders on hand and a very high level of customer satisfaction, which was again confirmed in 2021, Rational starts 2022 with confidence. The company will publish an outlook on business development expected in 2022, final Group earnings for fiscal year 2021 and the proposed dividend when it publishes its annual report on 24 March 2022.

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
www.rational-online.com

Editorial note:
The Rational Group is the global market and technology leader for thermal preparation of food in professional kitchens. Founded in 1973, the company employs more than 2,200 people, over 1,200 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.