In H1 of 2024, the Rába group once again navigated successfully on the turbulent market and concluded the period with group-level operating profits of HUF 564 million. The Com-pany proactively seeks opportunities, even in the negative industry environment character-istic for nearly a year now, through which it can secure its market position. The global au-tomotive industry is experiencing difficult months now and fast positive changes are not expected to replace the negative market trends. Through the modernisation programme launched earlier (including, among others, the production optimisation of new and old ma-chinery, the construction of solar panel parks) and steps taken to open towards new mar-kets (including projects obtained in the context of electric vehicles, or the foundation of Gidrán Armoured Vehicles Ltd., in order to increase involvement in the defence industry), the group of companies can partly offset the negative impacts of the decline in demand, at the same time rapid measures were also needed, which can assist the company, already in the short-run, to remain successful in the sector full of market challenges.
The Rába Modernisation Programme continues to play a key role in the company’s strategy and aims to allow the group to respond proactively to the challenges of the sector and to ensure its fu-ture competitiveness. The solar power station project of the group of companies launched in Győr and Sárvár is progressing well, contributing to the sustainable operation of the site and to the in-crease in energy efficiency. As part of the programme, new production machinery is arriving, ma-chinery no longer used is being dismantled and old equipment is being refurbished. Following the reorganisations that have taken place at the Győr site, one section of the production hall will serve the production needs of Gidrán Armoured Vehicles Ltd., thus providing the conditions necessary for advanced defence production. Additionally, the group of companies is continuously searching for new business opportunities and development directions, among others, cooperations in the context of electromobility also offer promising opportunities for the future: in this field Rába has already im-plemented specific capital expenditures related to deals awarded.
The growth trends experienced earlier in the automotive industry turned into decline starting from H2 of 2023. This was continuously and drastically tangible in almost all geographical and product seg-ments in H1 of 2024 as well, and this industry-specific market trend seems to continue during the coming period as well. All these, compounded by difficulties in the global market, have hit Rába hard as well. The most significant decline occurred in the agricultural segment, which cut substan-tially into the turnover of both Rába Axles Ltd., and REKARD Kft, thus exerting pressure on the op-erating profit.
Group-level sales in Q2 of 2024 amounted to HUF 14.4 billion, which is 26.9 per cent lower than the figure for the same period of last year and the level of operating profit also declined significantly, to which the individual subsidiaries contributed to varying degrees. The sales revenue of the first half of 2024 amounted to HUF 31.4 billion, which is 21.6 per cent below the same period of last year. In spite of the industry-specific negative factors and the difficult market environment, as a result of the diverse management measures aimed at cost control and efficiency improvement, the group-level operating profit remained positive in H1 of 2024 and amounted to HUF 564 million. Even amongst market challenges, the main goal of the Rába group remains to ensure long-term stability, to main-tain market positions and to increase efficiency.
The shareholder’ equity during the review period is 6.7 per cent below the level of the previous year. The value of equity per share was HUF 1,748/share.
The market environment suggests decline for the future as well, especially in the areas of agricul-tural machinery, the market of vehicles serving freight transport by road and passenger car trade. The management of the company continuously monitors these general industry trends. The mod-ernisation programme currently under way, stringent cost control and rapid efficiency improvement measures allow Rába to significantly mitigate the financial impacts caused by the market recession. The financial impact of some of the measures already taken will yield in full the desired result in the coming period, including price negotiations, labour force management, stock and capacity optimisa-tion and cost reduction, all of which have a somewhat delayed effect on the declining demand.
The current challenging market environment underscores the effectiveness of the modernisation programme, since without the programme the company would not be able to respond to the chal-lenges caused by the market shocks with short-term measures alone. Rába’s long-term strategy continues to aim to secure growth and sustainability even amongst the challenges and to prepare for the demand to stabilise at this lower level possibly in the longer term.
“Although the current economic environment pauses challenges for all actors in the industry, it is precisely in these times that we need to build solid foundations and take the right steps towards the future. The Rába group reacted to market difficulties in an exemplary manner, adapting quickly and efficiently to changing conditions. Through our modernisation projects and technological develop-ments we have managed to stabilise our market positions and our stringent cost control and other short-term measures mitigate the financial impacts of market decline. We are still committed to supporting our customers through innovative solutions and high-standard services, thus ensuring long-term growth and stability”, said Béla Hetzmann, Chairman-Chief Executive Officer of RÁBA Automotive Holding Plc.