Race against change: Rába’s successful business response to challenges

RÁBA group’s operating profit and EBITDA level profit achieved in Q1 of 2024, both repre-sented outstanding results compared to the same period of the previous year. Dynamic re-sponse to market challenges and adjustment to the business environment are key factors in maintaining competitiveness. Rába continues to be committed to the use of renewable en-ergy, digitalisation and to modern and sustainable production processes.  

The technology development capital expenditure and reorganisation activities of strategic signifi-cance implemented within the Rába Modernisation Programme have yielded substantial results already visible in 2024. As part of the programme, additional key steps were taken in the field of digitalisation, as well and as part of network development, the new optical backbone network of the Győr site was completed, and following a preparatory period, as the closing element of the quarter, the old corporate management system has been replaced and the use of a new, state-of-the-art, cloud-based system is now live.

As part of our efforts on the sustainability front, in line with the plans, the construction works of the Győr and Sárvár solar panel parks have been concluded and test operations have started. These major investments provide large vol-umes of green energy for our production activities, contributing to reducing the environmental foot-print of the group of companies and to our energy self-sufficiency.

The technology development capital expenditure and reorganisation activities of strategic signifi-cance implemented within the Gidrán Armored Vehicles Ltd., the owners of the company mobilised major resources to prepare the infrastructural ad structural background of the assembly activity in Győr and the work is progressing as planned. Recently, the Turkish-Hungarian joint venture attended several major trade exhibitions, beginning its positioning as a new actor on the domestic and international defence markets.

The group of companies continues to be committed to increasing its competitiveness and sustaina-bility, as a result of our efforts, our operation is stable and profitable amidst the current market chal-lenges, as well.

The growth trends manifest earlier on the market of commercial vehicles turned into decline from H2 of 2023, and a further clear decline in demand is expected during the remainder of the year, as well. The market trend specific for the industry had a negative impact on the sales revenue of al-most the entire Rába group, the group-level sales revenue of HUF 17 billion showed a 16.3 per cent decline compared to the same period of the previous year. The main reason for this is the decline in the sales turnover of the Axle business and the Drive business producing for the agricultural market. Although forecasts show no considerable improvement in industry-specific factors for the remain-der of the year either, rapid and effective response to challenges and adjustment to market condi-tions are key, as shown by the group-level operating profit of HUF 558 million with an EBITDA-level profit of HUF 1,182 million, upon a 9.7 per cent increase in Q1 of 2024, owing to the stringent cost control and the diverse management measures aimed at efficiency improvement. The revaluation of loans resulting from exchange rate changes appears as a loss in the financial profit/loss line, this, however, is an unrealised item, not an indicator of the actual performance of the group of compa-nies.

The value of equity per share was HUF 1,767/share.

“The Rába group consistently demonstrates that it can successfully adapt to changing market conditions and economic challenges. Our cost control and efficiency improvement measures introduced during the last quarter, together with the strategic capital expenditures implemented within the Rába Modernisation Programme, contributed to the stable operation in the long-run. The successful launch of our new joint venture, Gidrán Armored Vehicles Ltd., the commissioning of the solar panel parks and our digitalisation measures are the latest proofs of our company’s commitment to investing in the future and to sustainable development. We are proud that our group of companies has been a reliable partner for both our customers and investors for more than 127 years now, and we will continue to work in the same spirit”, said Béla Hetzmann, Chairman-Chief Executive Officer of RÁBA Automotive Holding Plc.