Significantly growing revenue and profitability

Rába Group increased its sales revenue by an outstanding 19 percent in the first three months of 2019, realizing a consolidated income of HUF 14.7 billion. In 2019 Q1 excellent cash-flow generation supported Rába’s business development, the last phases of the technology upgrade program to be concluded by the end of the year, and the acquisition agreement signed yesterday.

Rába achieved the solid financial results of 2019 Q1 in volatile key markets: the heavy truck segment continued to evince growth, while the global agri-machinery, the Russian bus, and the European passenger car markets showed lessening activity. The company offset the fluctuation of the external factors by customer driven, flexible operation, and stringent cost management.

Rába markedly improved its profitabilty: the group level operating profit, which all three business units contributed to with positive figures, with a 69-percent increase reached HUF 930 million as opposed to the base period’s HUF 550 million. The excellent cash generating potential of the company is manifest in the fact that despite the drastic price hike of raw materials and energy the efficiency on sales level exceeded the average of the industry reaching 9.8 percent, which corresponds to the strategic goal of 10 percent. The group level EBITDA profit amounted to HUF 1.5 million.

Rába Group retained its solid liquidity position in the first three months of 2019. As a result of the profitable and efficient operation, the company’s shareholders’ equity increased by 6.1 per cent compared to the base period.

"2019 marks a milestone at the company for more than one reason: the technology upgrade and capacity expansion investments, started in 2016, that establish the sustainable competitiveness of our key competence are to be completed later this year. Also this year, precisely yesterday, we signed an acquisition agreement with Rekard Group, for the first time since Rába went public in 1997. Buying a company supports our organic business development through making our product portfolio more extensive, and enriching our resources." – said István Pintér, Chairman-CEO of Rába Automotive Holding Plc.