Continuing sales growth, ongoing market recovery

Rába Group realized a consolidated, group-level revenue of nearly HUF 25 billion in the first half of 2018, which corresponds to a 13.2 percent increase in turnover compared to the base period. The successful operation of the company was supported by its now consistently outstanding cash flow generation in the first six months of this year.

In line with the positive expactations there has been a significant, in some segments two-digit, growth on Rába’s key European and overseas markets, which validates Rába’s strategic goals and the focal points of the company’s modernization investment that is being carried out as scheduled.

Rába reacted to the market recovery with flexible operation, retaining the company’s productivity in 2018 Q1-Q2: with a 5 percent rise the group-level operating profit exceeded HUF 1 billion. The excellent cash generating ability of Rába is manifest in the fact that despite a price increase of raw materials the company realized a 8.4 percent return on sales, and the group-level EBITDA profit amounted to HUF 2 billion. All three business units of the group contributed to the excellent figures with positive EBITDA and operating profits.

Rába Group retained its solid liquidity position in the first six months of this year. The level of the net borrowing remained below the industry’s average in 2018 H1. As a result of the profitable and efficient operation, the company’s shareholders’ equity increased by 6.2 percent compared to the base period.

"Rába’s sales continue to grow on the recovering markets, and we have successfully managed to meet the productivity and efficiency demands relying on our solid finances and customer driven production. We mostly focus on our strategic markets, but our constantly evolving manufacturing technology and capacity enable us to exploit further business opportunities." – said István Pintér, Chairman-CEO of Rába Automotive Holding Plc.