EQS-News: Rational AG starts fiscal year 2025 with a successful first quarter

Rational AG starts fiscal year 2025 with a successful first quarter

• Sales revenues of 295 million euros
• Strong growth in North America and Europe
• iVario increases its sales revenues by 10 percent
• EBIT margin at 24.4 percent

Landsberg am Lech, 6 May 2025 “Despite the economic and political challenges, we have got off to a successful start in 2025. This shows once again that whoever focuses on customer benefit is less cyclical,” reports Rational CEO Dr Peter Stadelmann. The company, headquartered in Landsberg am Lech, published its figures for the first quarter of 2025 on the morning of 6 May 2025.

Sales revenues of 295 million euros in the first three months of 2025
At 295.3 million euros (2024: 286.4 million euros), Rational’s sales revenues in the first quarter of 2025 were 3 percent higher than in the prior-year quarter. “Sales revenues performed in line with our expectations. With the first quarter of 2025 we have once again set a new record for a first quarter. In addition to higher sales revenues generated with our cooking systems, the non-appliance business with cleaners, service parts and accessories also performed well,” adds CFO Jörg Walter. Regionally. North America grew successfully by 11 percent. The higher sales volume of the Rational cooking systems in the United States in particular contributed to this growth. In Europe (excluding Germany), the company exceeded the figure for sales revenues from the first quarter of the previous year by 7 percent. This was due to strong demand from the UK and Italy, but also Southern and Southeastern Europe. Rational increased its sales revenues by 2 percent year-on-year in its home market of Germany. Sales revenues in Latin America were on the high prior-year level (+1 percent), while in Asia they were down 20 percent on the first quarter of 2024. “In Asia, the prior-year quarter had still been positively impacted by the strong business in the region’s two largest markets, China and Japan. In China, we had benefited from a large additional one-time order from a chain customer in the previous year. The encouraging sales revenue trend in India and Korea was unable to offset these effects,” as Jörg Walter explains. The company continues to consider the potential of the Asia region extremely promising.

With an increase of 10 percent, the sales revenue trend in the iVario product group was particularly encouraging. According to Rational, this is due to strong demand from North and Latin America as well as the “Rest of the world” markets. The iCombi product group held on the high prior-year figure with slight growth of 2 percent.

EBIT of 72 million euros with an EBIT margin of 24.4 percent
In line with the positive sales revenue trend, Rational also recorded strong key earnings figures. While sales revenues increased by 3 percent year-on-year in the first quarter of 2025, cost of sales was up 1 percent in the same period, only slightly higher than the prior-year figure. This led to an improvement of 0.7 percentage points in the gross margin to 59.2 percent (2024: 58.5 percent). “The improvement in the gross margin is attributable to continued stable procurement costs as well as positive product mix effects and healthy demand from countries with a higher price level”, explains CFO Jörg Walter.

EBIT (earnings before financial result and taxes) stood at 72.1 million euros, slightly higher than the prior-year figure. “We strategically increased expenses in the areas of sales, service and product development. That guarantees that we continue to offer the best cooking systems and work in very close proximity to the customer,” says Dr Peter Stadelmann. Total operating costs at Rational rose by 10 percent. The EBIT margin was 24.4 percent in the first quarter of 2025.

Dividend of 15.00 euros per share proposed
Due to the positive earnings performance, the Executive Board and Supervisory Board will propose a dividend of 15.00 euros to the General Meeting of Shareholders on 14 May 2025. That equates to a total distribution of 170.6 million euros. Even after the distribution, Rational is confident that there will still be sufficient liquidity in the company. “We want to let our shareholders have an appropriate share of the company’s success. Our financial stability allows us to do so even in challenging economic times,” says CFO Jörg Walter to explain the situation. That places the distribution ratio of 68 percent of consolidated net profit roughly in line with the long-term average and the dividend yield at 1.8 percent based on the closing price on 31 December 2024.

Number of employees selectively increased
This year, Rational is once again counting on its employees, whom it refers to as “entrepreneurs in the company” (U.i.U.s). At the end of March 2025, the Rational Group employed 2,778 people worldwide, including over 1,500 in Germany. The increase in staff numbers in the first quarter (+42 compared to 31 December 2024) affected mainly the company’s sales organisations.

Forecast confirmed
“The results of the first quarter have met our expectations. We therefore remain confident and confirm our forecast for fiscal year 2025,” promises Jörg Walter. The company expects sales revenue growth in the mid-single-digit percentage range and an EBIT margin of around 26 percent. “Moreover, we anticipate a return to sales revenue seasonality, which is normal for us, with a rise in business volume in the coming quarters and a strong finish to the year’s business,” adds the CFO.

“We closely observing the volatile situation regarding the tariffs on goods imported to the United States. How the industry will deal with future tariffs remains to be seen,” reports Dr Peter Stadelmann, in response to the development in the United States. According to Stadelmann, Rational is generally trying to avoid price increases and to offset them through efficiency gains. “We differ from most competitors in this regard. The prices of kitchen equipment in the United States went up slightly even before the tariffs took effect,” he adds.

The close focus on food, which is a basic need, makes Rational’s business model more resilient than those of most companies in other industries. If the trade dispute leads to a recession in the United States and other key markets, Rational could also be affected. “The impact on the global economy of the tariffs imposed by the United States and of the countermeasures cannot be reliably quantified at present,” says the CEO, keeping the outlook open.

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:

Rational is the global market and technology leader for innovative cooking systems in commercial food preparation. Its customer base ranges from restaurants and hotels through company canteens, hospitals, schools, universities, military facilities, prisons and retirement homes, quick service restaurants, party services, supermarkets, bakeries and takeaway outlets, down to butchers’ shops, service stations and delivery services, including ghost kitchens, as they are known.

According to company estimates, the worldwide market potential for combi-steamers is 4.8 million customers, of whom around 75 percent are still using traditional cooking equipment. With intelligent cooking systems – the iCombi, the iVario and the iHexagon – all these appliances can be replaced. Customers will in this way improve the quality of their food and save hard cash. In addition, Rational offers a large variety of services for its customers, such as accessories, care products, spare parts, training and technical services.

Outcomes of the unique customer benefit philosophy are market leadership, growth, profitability and stability, which manifest in the following indicators for 2024: global market share of 50 percent, sales revenues of 1,194 million euros, EBIT of 314 million euros, EBIT margin of 26 percent, equity ratio of 78 percent.