- Wednesday, October 16, 2024
By Nina Kienle
Shares of Rational AG, the German manufacturer of kitchen equipment, saw a significant increase after the company announced its sales and earnings for 2023, which surpassed its initial forecast.
At 0937 GMT, shares rose by 6.9% to EUR711, signaling positive investor sentiment towards the company's performance.
Preliminary figures released on Thursday revealed that Rational witnessed a boost in sales for the fourth quarter, reaching 293 million euros ($321.6 million) compared to EUR290 million in the same period the previous year. This upward trend was driven by strong year-end business and an additional order from a chain customer in Asia.
Overall, the company achieved full-year revenue of EUR1.125 billion, marking a notable 10% growth compared to 2022.
Rational also reported an increase in earnings before interest and taxes (EBIT), reaching approximately EUR277 million, up from EUR237.5 million in the previous year. The expected EBIT margin for 2023 is projected to be around 24.5%, a significant improvement from 23.2% in 2022. These figures exceeded the company's expectations, as they initially anticipated a similar EBIT margin to that of the prior year.
The positive business performance can be attributed to price adjustments and a reduction in high-level order intake, thanks to improved part availability, according to Rational.
A detailed outlook for the future is set to be published along with the final fiscal 2023 results in late March, providing further insight into the company's plans.
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