Green steps upon record sales for a sustainable future

With consolidated sales of HUF 56 billion in Q1-Q3 of 2023, the Rába group achieved the highest sales revenue of the past 20 years. Through the positive operating result of all business divisions, the group of companies succeeded in increasing its profitability as well, thus contributing to the strategic and sustainability efforts defined in the Rába Modernisation Programme 2025.

In Q1-Q3 of 2023, all subsidiaries of the group of companies contributed sales turnovers amounting to billions to the record high consolidated sales revenue. During the period Q1-Q3 of 2023, the sales revenue amounted to HUF 56.0 billion through an increase by 22.1 per cent. In spite of the summer down times, in Q1-Q3 of 2023, the Rába group managed to maintain an operating profit for the cumulative period that far exceeds the figure for the previous year. All business divisions contributed through positive operating results to the group-level operating profit of HUF 1,927 million, achieved through a 77.6 per cent increase. The group also outperformed the base period in terms of cash generation, EBITDA amounted to HUF 3,853 million, which shows a cash generation exceeding the base period by 28.6 per cent.

Although the steel raw material and energy prices became somewhat more moderate compared to the record high levels, purchase prices remain very high. Labour costs are also increasing steadily as a result of the labour shortages and high inflation. All these factors exert substantial pressures on the group of companies, but the increase in customer demand, further increase in the flexibility of production activities, the renewal of production technology and structure and stringent cost controls provided a solid basis to increase profitability. In terms of future market trends, though, the decline in orders in an increasing number of segments is considered a new phenomenon.

As part of the Rába Modernisation Programme 2025, the group of companies continues to put great emphasis on technology development capital expenditures of strategic importance in order to foster long-term competitiveness, profitability and sustainability. The installation of the new machining centres, state-of-the art tooth cutting, tool making, shot blasting and fabric cutting machines are all crucial elements of the modernisation process.

The solar panel park to be established in H2 of 2023 at the Győr and Sárvár plants aims to increase energy efficiency, reduce energy costs and propmote sustainability by providing a considerable amount of green energy for the production activity.

The amount of shareholders’ equity increased by 17.2 per cent compared to the same period of last year. The value of equity per share was HUF 1,817/ share.

„Rába continues to successfully and consistently pursue the principles and goals defined in the Rába Modernisation Programme 2025, focusing on investing in sustainability and in machinery and property promoting modernisation. Our own renewable energy generation can offer an environmentally friendly and sustainable solution to hectically changing and extraordinarily high energy prices. The Company is committed to securing and developing our qualified staff, the basis for which lies in our partnership with educational institutions. Rába is building a career path for young specialists and supports them in acquiring superior, complex knowledge and skills ranging from university lectures to professional practice”, said Béla Hetzmann, Chairman-Chief Executive Officer of Rába Automotive Holding Plc.