Improving profitability, ongoing modernisation

Closing another successful business year, the Rába Group realized a consolidated revenue of HUF 43.8 billion in 2017, which corresponds to a 2.8 percent surge in turnover. Alongside continuing excellent cash generation in 2017, the company has been implementing its large-scale investment program to cater to the demands of the key markets.

In accordance with Rába’s expectations the growing segments last year were the ones that the ongoing technology development program mainly involves: the expanding needs of the European, Russian and American truck markets, as well as those of the global agricultural vehicles segment were met by flexible production on Rába’s part in 2017.

In terms of profitability the company performed outstandingly las year: with a 7.3-percent growth year-on-year it produced a group-level operative profit of HUF 2.15 billion, all three business units contributing to it with profits. Rába’s excellent financial situation is reinforced by the fact that the company retained an EBITDA-level profitability corresponding to the average of the industry despite the rise in the price of raw materials. The EBITDA profit amounted to HUF 4.1 billion, which is a 9.3-percent efficiency on sales.

The Rába Group was characterised by stable liquidity in 2017. Net loan continued to be kept low, it only reached HUF 3.3 billion at the end of 2017 Q4 despite the substantial resources devoted to the investment program. As a result of the profitable and efficient operation, the company’s shareholders’ equity increased by 6.9 per cent compared to the base period.

"The recovering strategic market segments pose a new challenge to the automotive industry, since after a long period the rise in the stable steel prices and the labour market barriers have put a renewed focus on productivity improvement and business management. Favourably, we meet this challenge at a time when our financial stability enables us to develop new businesses, and further improve our manufacturing technologies in accordance with Industry 4.0, while speeding up the ongoing investment programs", said István Pintér, Chairman-CEO of Rába Automotive Holding Plc.