RÁBA Plc’s HUF 72.8 billion in consolidated sales revenue achieved in 2023 showed a sub-stantial increase over the previous year, primarily as a result of the increase in market de-mand. At the same time, the fourth quarter of the year brought a slow-down and decline in orders, as well as in market activity. These trends are likely to continue in 2024 as well, which may pose additional challenges for the company.
Although unfavourable market trends had visible signs on the sales revenue during the fourth quar-ter of the year, for the full year, the company managed to maintain the highest sales result of the past 20 years. During the period in review, maintaining cash generating efficiency meant a chal-lenge due to the increasing pressure on both the customer and the supplier side. Additionally, the increasing cost of producion and the decline in market activity also had an impact on EBITDA-level profitability, which remained 15.8 per cent below the level of the previous year.
Shareholder’s equity increased by 5.2 per cent compared to the same period of last year. The value of equity per share was HUF 1,781/share.
In Q4, we saw a substantial decline in demand in our key market segments, caused by external, global economic trends. In consequence, sales revenues declined considerably at some of our sub-sidiaries, including Rába Axle Ltd. and REKARD LLC. The decline in commercial performance is likely to continue in 2024, as well.
Changes in exchange rates also had a major impact on the operation of the Company, especially in the fourth quarter of the year. The strengthening of the Hungarian Forint against the Euro and the Dollar had a negative effect on net exports and operating results, while increasing market pressures and challenging competitiveness.
The financial situation remained stable throughout the year and the level of net borrowings declined through the increase in operating profits. The result of financial operations was favourable and the total aggregate income and the year both proved profitable, Stability of the labour market and inflationary pressures continued to pose challenges for the com-pany in 2023. The continuous increase in wages represented a substantial burden, while improving operating efficiency remained of key importance in order to maintain competitiveness.
Stability of the labour market and inflationary pressures continued to pose challenges for the com-pany in 2023. The continuous increase in wages represented a substantial burden, while improving operating efficiency remained of key importance in order to maintain competitiveness. Within the Rába Modernisation Programme 2025, the group of companies continues to pay special attention to technological developments of strategic importance, in order to foster longterm com-petitiveness, profitability and sustainability. The establishment of new machining centres and the acquisition of state-of-the-art machinery support the production of strategic components. The solar panel farms established at the Győr and Sárvár sites within the Factory Salvage Programme (Gyármentő Program), will generate considerable amounts of green energy for our production ac-tivity, contributing to our efforts to increase energy efficiency and to reduce the costs of energy consumption. Additionally, the refurbishment of the roof structure of a sqm 67 000 hall2 is one of our next priority steps further strengthening the long-term stability and development of the company.
“The fourth quarter was unfavourable but for the year as a whole, we managed to maintain the sales performance and high quality we set for ourselves. The company is committed to maintaining competitiveness and profitability, while exploring further growth opportunities. Our dedication to sustainability and green energy continues to be our priority. We are particularly proud that last year we successfully started developing our solar panel farms that will provide substantial green energy for our production activities. Rába’s commitment to sustainability remains of paramount importance. We see the use of sustainable energy and the development of modern and sustainable production processes as the keys to our future,“ said Béla Hetzmann, Chairman-Chief Executive Officer of RÁBA Automotive Holding Plc.