RATIONAL (RAA) Q2 2024 earnings summary

Executive summary

• Achieved record H1 2024 sales of over €581 million, up 4% year-over-year, and EBIT of €149 million, up 10%, marking the best half-year result to date.

• Customer satisfaction remains high, with a Net Promoter Score of 60–64, though slightly lower than previous years due to increased participation from newer markets.

• Strong growth in Asia (up 13–28%) and North America (up 2–50%), while Europe showed mixed results and Germany declined by 3–4% in H1.

• Net income for H1 2024 was €117.1 million, up 10% year-over-year; EPS increased to €10.30.

• Celebrated 50th anniversary, highlighting long-term innovation and customer benefit.

Financial highlights

• Q2 2024 sales revenue grew 6% year-over-year to €294.8 million, setting a new quarterly record.

• Gross margin improved by 2.8 percentage points to 58.9%, driven by successful price increases and easing input costs.

• EBIT margin reached 25.6% in H1 2024, surpassing pre-pandemic levels.

• Cash flow from operating activities was €122.8 million in H1 2024.

• Equity ratio stood at 75% as of 30 June 2024, with over €350 million in net financial assets.

Outlook and guidance

• 2024 expected to see mid- to high single-digit percentage sales growth, with no planned price increases.

• EBIT margin forecasted at 25.6%, slightly above last year, with EBIT expected to grow faster than sales.

• Gross margin expected to remain at Q2 levels in H2 2024.

• Most growth anticipated in H2, especially from iVario and overseas markets.

• Operating costs projected to rise slightly faster than sales revenues.