PRESS NEWS
2016.11.16
Record low net loan aids construction in next period

The Rába Group closed the first nine months of 2016 with consolidated revenues of nearly HUF 29 million. The company’s outstanding cash-flow generation and the net loan well below the usual industry level help achieve the goals of the new strategic period.

Rába managed to offset slow and inactive markets overseas by intensive business development and strengthened strategic partnerships in European and CIS commercial vehicle segments, thus having retained its profitability. Sustainable efficiency is proven by Rába Group’s operating profit exceeding HUF 801 million in 2016 Q1-Q3, while the seasonally underachieving third quarter saw an operating profit well surpassing that of the base period this time. In the nine months’ period gross profit decreased significantly less than sales turnover due to an improvement in efficiency. The decline in sales did not substantially hold back the EBITDA reflecting the cash-flow generating ability: the group generated an EBITDA of HUF 2.4 billion with an efficiency of 8.3 percent in 2016 Q1-Q3.
Rába’s net loan that had already reached a record low of HUF 3.3 billion by the end of last year, decreased further. Borrowing settled at the historic milestone amount of HUF 1.5 billion at the end of 2016 Q1-Q3 owing to continuing profitable operation, efficient cash generation and stringent working capital management.

„Rába’s net loan reached a level well below usual in the industry, it has never been this low. Our financial stability backs up our strategic investments already underway, which aim at ensuring our sustainable competitiveness and market positions through the enlargement and modernization of capacities. A sign of our corporate strategy and flexible operation is that we’ve been carrying out an intensive business development in Europe to offset the volatility of overseas markets, and by now the EU countries have become our primary sales market. Rába’s strategic investments are being realized ahead of plans in time, and we expect them to further strengthen our presence in Europe and in strategic markets”, noted István Pintér, Chairman-CEO of Rába Automotive Holding Plc.