DGAP-Ad-hoc: RATIONAL AG / Key word(s): Quarter Results/Forecast Rational AG: 2020 overshadowed by the COVID-19 crisis - practically all customer groups under strain - preliminary key figures for the first quarter of 2020 - 7 percent drop in sales revenue in the first quarter - 14 percent EBIT margin - Slump in orders since March 2020 - Uncertain times - still no forecast possible for 2020 - In May 2020, RATIONAL will start into the "Innovation Journey" - Business model remains intact - positive long-term outlook Rational AG / keyword(s): provisional quarterly figures, forecast The Rational Group is currently severely impacted by the COVID-19 crisis. The stay-at-home restrictions make active market cultivation in street business - one of its strengths - nearly impossible. Many customers have been hit badly by imposed closures and will probably be reluctant to invest. The sales team is currently unable to visit customers in many places and unable to hold product demonstrations. There were 30 percent fewer CookingLive seminars than planned in the first quarter and 60 percent fewer just in March alone. 7 percent decline in sales revenues in the first quarter - EBIT margin of 14 percent The EBIT in the first three months reached 26.0 million euros, 44 percent less than the previous year (2019: 46.7 million euros). The EBIT margin was thus 14.3 percent (2019: 24.0 percent). Adjusted for currency effects, the EBIT margin after three months was 15.8 percent. The main reasons for this sharp fall were the lower gross profit margin amd the fact that - coupled with the decline in sales revenues - operating expenses were around 4 percent higher year on year at 72.5 million euros (2019: 70.0 million euros) Following one-off effects have led to higher costs: 1) COVID-19: In order to alleviate potential restrictions in the supply chain and thus ensure the availability of all components for production at all times numerous overtime hours, higher logistics costs and material prices as well as increased inventory levels were necessary. 2) Preparation and modification of the worldwide introduction of new device generations planned for March 2020 and postponed to May 2020: Because of the outbreak of the pandemic, numerous already complex and cost-intensive processes had to be revised or completely changed. The intensive preparation for the market launch and, above all, the time-consuming adaptation of the launch concepts, marketing documents and schedules led to a significantly increased workload for the employees. Another consequence of the upcoming product change was a warehouse build-up for components, but also for finished goods, especially for the overseas business. 3) Significantly negative currency result: Moreover, the fact that the currency result fell sharply to -2.9 million euros due to very weak emerging market currency developments was negatively affecting the EBIT. This compares to a positive figure of 2.2 million euros in the previous year. Slump in orders since March 2020 Uncertain times - currently no forecast possible for 2020 Many of the COVID-19 countermeasures have an impact on Rational customers as these measures threaten their existence and, the longer they last, will result in irreversible changes to the industry. Positive signs from customers from the supermarket sector and restaurant chains give the Executive Board confidence that the structural changes in the industry, alongside the obvious risks, will also offer opportunities in the short and medium term. These may be all the greater the more money from the record aid programmes reaches the restaurants. In May 2020, RATIONAL will start into the "Innovation Journey" The new ConnectedCooking platform was already presented in February. It offers greater customer benefits in its free basic version and, for a charge, new functions such as hygiene, asset and recipe management under the name ConnectedCooking Pro. Business model remains intact - positive long-term outlook The company will publish its detailed business figures for the first quarter of 2020 and further information on the introduction of new product generations in the coming months on Wednesday, May 6, 2020.
Contact: Rational Aktiengesellschaft
Stefan Arnold / Head of Investor Relations
E-mail ir@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 around 2,300 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.
30-Apr-2020 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. |
Language: | English |
Company: | RATIONAL AG |
Siegfried-Meister-Straße 1 | |
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: | MDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 1033925 |
End of Announcement | DGAP News Service |
1033925 30-Apr-2020 CET/CEST