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Rational cooks up solid first quarter growth of 26% in North America

Rational

Rational has got its 2019 financial year off to a flying start with a 26% in North American revenues during the first three months of the year.

The combi oven manufacturer, which has its global base in Germany, has ramped up investment in the Americas and attributed its performance in Canada for much of the growth.

It reported that Canadian sales were “considerably above average” during the first quarter.

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The positive impact of the sharply higher US dollar and the higher Canadian dollar also served the company well, although even without currency effects the business still experienced growth of around 18%.

Latin America, where sales revenues increased by almost 7 percent, also made a positive contribution to business performance.

The region’s key growth driver was Mexico, where relatively moderate expansion in the previous year was followed by significant growth in the first three months of the current fiscal year.

On a global basis, Rational achieved a 12% increase in revenues during the first three months of the year.

The combi oven manufacturer generated total sales of € 194m ($217m) in the quarter, taking it above its own long-term growth targets.

Rational said the integration of its Frima business and a price adjustment in its home market of Germany helped fuel the growth, while positive currency effects had a significant positive impact on business.

Without the strong depreciation of the euro against almost all currencies relevant to Rational, its growth would have been 10% during the quarter.

The solid sales growth translated into EBITDA of €46.7m ($52.3m) during the quarter, a 14% improvement on the previous year.

The combi steamer product group, which represents the production and sale of Rational’s SelfCookingCenter and CombiMastr Plus products, accounted for the bulk of its business, generating sales of €179m ($200m), up 12% year-on-year.

The VarioCookingCenter product group, meanwhile, grew 17% to €15.7m ($17.5m).

Rational saw the strongest growth in Germany, where a 16% spike in sales was driven by customers making purchases ahead of a planned price rise at the beginning of April.

Elsewhere in Europe, sales increased 6%, with the company singling out its French and Italian subsidiaries for their performances.

Some 53 new staff were employed by the business during the quarter – half of them in Germany – bringing its total global headcount to 2,166.

Tags : combi ovenscombi steamersfinancialsRational
Andrew Seymour

The author Andrew Seymour