The Rába Group closed the business year 2016, which proved to be a milestone for the company, with consolidated sales of HUF 42.6 billion. The extremely low level of net borrowing, supporting the group’s financial basis, helped launch investments of strategic importance last year.
Rába managed to offset the volatility of the global markets by optimizing its product portfolio, further developing strategic business relations, and increasing the flexibility of its operations. The Axle Unit registered an outstanding growth on the market of the CIS countries with a 79-percent increase, and it also expanded its presence on the European market, together with the group’s other two business units. Despite the decline in sales, retaining its leading position in the industry, the company realized an operating profit of HUF 2 billion with all three business units contributing to the positive result in the fourth quarter and in the aggregated period as well. The 9.7-percent level of EBITDA, reflecting the cash generating ability, once again surpassed the average of the industry in 2016 Q1-Q4.
Last year alongside the HUF 4 billion EBITDA generation, the net loan that had already been at a record low in the base period further declined by HUF 2.3 billion, thus settling at a mere HUF 1.1 billion at the end of the fourth quarter.
As a result of the profitable and efficient operation the company’s shareholder’s equity further increased by 9.2 percent in 2016.
"The key to ensuring our market position is that we react to the needs of our world-class customers in a timely manner, and we manage our product portfolio and capacities in accordance with the demands of the market. We started our investments program in 2016 in order to be able to manufacture our products with state-of-the-art automotive technology, meeting higher quality standards, and with a production capacity that serves our strategic goals. By this we strengthen our competitiveness and increase our market share. Further opportunities arise for the company from having expanded the investment program through the government’s support, thus having included the forward looking development of all three business units in the project", noted István Pintér, Chairman-CEO of Rába Automotive Holding Plc.