Continuing revenue growth, solid profitability

Rába Group realized a consolidated, group-level revenue of nearly HUF 27.5 billion in the first half of 2019, which corresponds to a 12.9 percent increase in turnover compared to the base period. The company is looking forward to the completion of the investment program supporting its sustainable competitiveness at the end of the year while maintaining a solid profitability.

Out of Rába’s key markets the European and North American heavy truck segments showed significant growth in 2019 H1, while the global agrimachinery and the Russian markets were characterized by falling demand.

The company reacted to the volatility of the markets with flexible production, and, maintaining its profitability, Rába realized a group level operating profit of HUF 1.23 billion, which is a 17.7 percent increase. The excellent cash generating ability of Rába is manifest in the fact that the return on sales remained close to the industry’s average despite the high prices of raw materials, and the growing labour costs, and the group-level EBITDA profit amounted to HUF 2.27 billion. All three business units of the group contributed to the figures with positive EBITDA and operating profits.

Rába Group retained its solid liquidity position in the first half of 2019. As a result of the profitable and efficient operation, the company’s shareholders’ equity increased by 5.8 percent compared to the base period.

"The volatility of our key market segments and the increasing manufacturing costs posed challenges to the company in the first half of the year. The strategic investment program to be concluded in 2019 H2, and bringing state-of-the-art manufacturing technology and capacity expansion serves to further advance our strategic partnerships and develop new business relations." – said István Pintér, Chairman-CEO of Rába Automotive Holding Plc.