RATIONAL (RAA) Q4 2015 earnings summary

Executive summary

• FY2015 sales reached €564.2m, up 14% reported and 10% after currency adjustment; growth was led by the Americas and Asia.

• EBIT rose 10% to €160.2m; net income increased 11% to €121.8m, while the EBIT margin eased to 28.4% from 29.2%.

• Strong cash generation and a 73.8% equity ratio supported continued investment in international sales capacity and a proposed €7.50-per-share dividend.

Financial highlights

• Revenue was €564.2m versus €496.7m in 2014; Q4 revenue rose 12% YoY to €160.7m.

• Gross profit rose 15% to €349.2m; gross margin reached 61.9%, up from 61.2%.

• EBIT increased 10% to €160.2m; excluding positive currency effects, EBIT was €148.3m and the margin was 27%.

• Net income grew 11% to €121.8m; EPS increased 11% to €10.71.

• Operating cash flow rose 27% to €143.0m and free cash flow increased 29% to €123.6m.

Outlook and guidance

• For 2016, moderate growth in sales volume, revenue and EBIT was expected to continue; FRIMA was forecast to deliver disproportionately high volume and revenue growth.

• Gross margin was forecast slightly above 60%; EBIT margin was expected at 26%–28% as operating costs rise slightly faster than revenue.

• The 2016 outlook assumed neutral currency and commodity-price effects; average DSO was expected slightly above 2015 levels.

• Planned 2016 investment was ~€21m, with ~150 new jobs worldwide and around 10% growth in CookingLive seminar participants.