EQS-News: Rational AG increases its sales revenues by 6 percent to 1.194 billion euros

Rational AG increases its sales revenues by 6 percent to 1.194 billion euros

• Sales revenues up by 6percent in 2024, reaching 1.194 billion euros
• Strong growth in North America and Europe
• EBlT margin rises to 26.3 percent
• Proposed dividend of 15.00 euros per share
• Outlook 2025: continued long-term growth with high profitability expected

Landsberg am Lech, 27 March 2025 “2024 reaffirmed that our financial success is driven by customer trust and satisfaction, not the other way round. Customer satisfaction is our most critical KPI. With a net promoter score of 60, we have once again set standards. This has led to financial success and profitable growth,” says Dr Peter Stadelmann, CEO of Rational. The company, headquartered in Landsberg am Lech, presented its 2024 annual report on the morning on 27 March 2025.

Sales revenues grow to 1.194 billion euros

Rational continued its successful growth in the fourth quarter. Sales revenues increased to 318.0 million euros, up 9 percent compared to the same quarter of the previous year (Q4 2023: 292.8 million euros). Full-year sales revenues for 2024 went up by 6 percent, or 68 million euros. The two largest regions, Europe (excluding Germany) and North America, made a particularly important contribution to growth with an increase in sales of around 7 per cent each. In North America, Rational successfully countered a weak market trend. In Latin America, sales revenues exceeded the previous year’s by as much as 17 percent though on a lower absolute level. After strong growth in the previous year, sales in Asia were slightly lower. Performance in the home market of Germany was very strong toward the end of the year, making a positive contribution to growth, especially in the fourth quarter.

With an increase of 16 percent, sales revenue growth in the iVario product group was particularly encouraging. The iCombi product group was up 5 percent on the prior-year figure. “In addition to a rise in the number of iCombi and iVario cooking systems sold, we benefited from strong demand in the after-sales business,” explains CFO Jörg Walter.

Stable cost level delivers encouraging earnings

In line with the positive revenue trend, Rational also recorded strong earnings figures. The gross margin improved in by 2.5 percentage points to 59.2 percent (2023: 56.7 percent). Commodity and logistics costs stabilised at a lower level, particularly for stainless steel, chemical and energy costs. “We have always been cautious about price increases, as they do not bring any customer benefit. To continue offering a good proposition to our customers, we are now passing on cost reductions for cleaning products to our customers,” says Dr. Peter Stadelmann. The company announced early in 2025 that it would cut the prices of selected cleaning products.

EBIT (earnings before financial result and taxes) went up by 13 percent year-on-year to 314 million euros. “As in the previous quarters, our year-end benefited from a stable cost level combined with encouraging revenue growth,” explains CFO Jörg Walter. “Positive effects, especially in procurement, strengthened our EBIT margin. At the same time, we continued to invest in the future of Rational by increasing our research and development expenditures,” adds the CFO.

Dividend proposal of 15.00 euros per share

Due to the positive earnings performance, the Executive Board and Supervisory Board will propose a dividend of 15.00 euro per share to the General Meeting of Shareholders on 14 May 2025. This amounts to a total distribution of 170.6 million euros. Even after this dividend payout, Rational is confident that sufficient liquidity will remain in the company. “We want to give our shareholders an appropriate share of the company’s success. Our financial stability, without bank debt, allows us to do so even in challenging economic times,” explains CFO Jörg Walter. The payout ratio of 68 percent of consolidated net profit is roughly in line with the long-term average, with a dividend yield at 1.8 percent based on the closing price on 31 December 2024.

 Global workforce exceeds 2,700 employees

“Rational’s success is built on our qualified and highly motivated personnel. Our sales function employs around 600 people. In order to continue to be there for our customers, we intend to expand our sales team once again,” promises CEO Stadelmann, adding that recruitment will focus particularly on sales and sales-related functions, while central functions are currently well-balanced. As of the balance sheet date (31 December 2024), the Rational Group employed 2,736 people, referred to as “entrepreneurs in the company” (U.i.U.s). Of this total, around 1,550 are employed in Germany.

Rational celebrates 25 years on the stock exchange

Rational shares were first listed on the stock exchange on 3 March 2000 at an issue price of 23 euros. When the shares were first traded, the price was already at 35 euros, 50 percent above the issue price. “At that time, RATIONAL was regarded as a part of the ‘old’ economy and was not taken seriously by many market participants, while there was a lot of hype around many technology stocks. It’s common knowledge that, after spectacular initial price gains, about three quarters of those stocks disappeared from the listings,” reports Stefan Arnold, Head of Investor Relations at Rational. A more detailed look at Rational AG’s history on the capital markets can be found on the company’s anniversary website under "rat.ag/share-25".

Outlook 2025

“The trends relevant to our business performance continue. In the long term, we expect growth in the mid to high single-digit percentage range. In light of current developments in Europe and in China, we consider sales revenue growth in the mid single-digit percentage range achievable for 2025,” forecasts CFO Jörg Walter, adding that no  worldwide price increases are planned. On the other hand, investments in strategic projects and the expansion of the sales structure will be driven forward. “We will keep costs that are not related to these projects or to sales as stable as possible,” adds the CFO. Overall, Rational plans to increase the Group’s operating costs slightly faster than consolidated sales revenue. The company therefore anticipates an EBIT margin of around 26 percent.

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 77 percent.