Rába’s Crisis Management Measures Bear Fruit

RÁBA Plc. concluded the first 6 months of 2022 with consolidated sales revenues of HUF 30 billion, which corresponds to an increase by 27 per cent over the figure for the base period of a year earlier. Following the first quarter, loss-making due to the energy-crisis, the Győr-based company managed to achieve considerable operating profits once again, resulting, in addition to passing on to the customers of the increased production costs, also from increasing the flexibility of production and from consistent efficiency improvements and systematically applied, stringent cost management. The company concluded the first half of the year with a total of HUF 750 million in operating profits.

Responding flexibly to positive opportunities resulting from the market, the Rába Group achieved the highest sales revenue of the past decade during both the first six months and the second quarter of the year. In the second quarter of 2022, all business divisions achieved a remarkable, 30+ per cent increase in sales, as a result of which the group-level turnover reached HUF 16.7 billion through a 36 per cent increase.

The strategic markets of the Rába Group continue to be characterised by active demand. Demand has been livelier on the key commercial vehicle markets, whereas the passenger vehicle market, more sensitive to disturbances in the supply chain has shown serious decline. Inflationary pressure has had a record impact on the activity of automotive manufacturers: purchase prices of energy and steel have reached unprecedented levels. In addition to being attuned to customer demands and offering flexible services, the company has made major efforts to pass on the increased costs resulting from the increases in energy prices, thus ensuring that profit generation is maintained. In the second quarter of 2022, the operating profit exceeded the HUF 1.2 billion level, thus contributing to a HUF 750 million operating profit at group level during the first half of the year.

Demonstrating stable cash generating capabilities in the economic environment full of extraordinary challenges, the EBITDA of the Rába Group during the first half of 2022 was nearly HUF 2,0 billion. The value of shareholder’s equity per share amounted to HUF 1 533/share.

“The accumulating challenges of the most recent period result in increasingly tense situations for economic actors. It has become clear to everyone that we have to come to terms with and adjust in the longer term to difficulties such as the European energy price crisis, supply disturbances or a prolonged war. In this extraordinarily uncertain situation we have been making considerable efforts to adapt to the challenges in a flexible manner. We continue to stand by our main target set at the beginning of the year, to maintain Rába’s operating stability. We continue to exercise stringent cost control and focus consistently on the renewal of our production activities and invest heavily in passing on the additional burdens resulting from the energy costs, which increase further in the third quarter, ”, said Béla Hetzmann, Chairman-Chief Executive Officer of Rába Automotive Holding Plc.