PRESS NEWS
2017.08.23
Growing revenue and profitability - European markets in focus

The Rába Group closed a successful 2017 H1 with consolidated sales of HUF 21.6 billion, which is a 5.4 percent increase compared to the base period. The company’s solid financial position is shown by spending twice last year’s amount on developments in the large-scale investment program in 2017, while keeping the net loan at a low level.

Rába’s business developments and strategic partnerships in Europe have significantly contributed to offsetting the volatility of the automotive markets. The flexible, customer driven production is also an important factor in the successful operation of the company, which is manifested by the growing revenue and the outstanding profitability in the first half of this year. With a 27.7 percent rise Rába realized an operating profit of HUF 993 million with all three business units contributing to the positive result in 2017 H1.

The efficiency of cash-flow generation was outstanding: the amount of EBITDA exceeded that of last year’s H1 by 7.1 percent, and the level of EBITDA is at 9.2 percent surpassing the average of the industry in the first six months of 2017. Alongside the growing expenditures of the strategic investments the amount of the net loan was kept at HUF 2.1 billion which corresponds to the figure of the base period owing to the continued profitable operation, efficient cash generation and the stringent equity management. The company’s shareholders’ equity increased by 7.4 percent.

"The excellent figures of the first half of this year prove that the financial base of our ongoing strategic investments continues to be solid. In accordance with our expectations the industry segments showing increase are the ones involved in our already launched investments. These market trends have manifested themselves in increased sales contributing to the expected utilisation of the developments to be completed. All this provides a solid base for us to explore new areas with further major investments, thus assisting the next phase in our strategic change", noted István Pintér, Chairman-CEO of Rába Automotive Holding Plc.