Outstanding Growth of Income at Rába

Hungarian vehicle and automotive components manufacturer Rába Plc. closed the first six months of 2021 with a consolidated, group-level sales revenue of HUF 23.7 billion, which corresponds to a significant, 23.4% increase compared to the base period.

A statement released by the company says the profitable operation, which was already restored by the end of last year, gained new momentum in the first half of 2021 thanks to the ongoing recovery of the markets and the efficient, flexible operation of the company.

All of Rába's key markets were characterized by an increase in demand due to the global economic recovery and the growth of road transport needs, and the high transport volume means a positive outlook for the rest of the year. At the same time, the procurement of base materials and energy, as well as the cost of labor, placed an increasing burden on the company during the review period.

In addition to the outstanding increase in turnover, Rába's performance indicators also clearly show the success of the recovery from the crisis. All three business units of the company contributed to the markedly rising operating profit with positive results. The operating profit of HUF 1.8 billion achieved in the first half of 2021 contrasts with the loss of HUF 1.1 billion in the base period. The sale of real estate in the second quarter also contributed to the positive result-generating effect of the operating result at the group level.

The company’s cash generating efficiency also increased exponentially from last year, improving by 12.4 percentage points to 12.7%, and even excluding the impact of the real estate sale, it exceeds the 9% accepted as an industry benchmark. All three business units contributed to the generated EBITDA-level profit of more than HUF 3 billion with efficient operation.

Despite the COVID-19 epidemic and the challenges posed by the subsequent recovery phase, the financial position of the Rába Group is characterized by a stable liquidity position. The shareholder’s equity increased by 12.6% compared to the same period of the previous year.

As Chairman-CEO of Rába Automotive Holding Plc., Béla Hetzmann ”the first six months of this year saw significant recovery in our most important markets, and Rába could take advantage of it with flexible and efficient production, based on its strategic partnerships.  Owing to this we closed a very successful half-year, and our expectations are positive for the rest of the year as well. Our successful adaptation to the difficulties caused by the crisis was based on cost optimization and technological development, thus, once again, it has been proven that in order to increase our competitiveness and keep our key customers, we need the most modern infrastructure and machinery, which means continuous improvement. To this end, we will replace the current stabilization strategy – that has proven to be effective – with a modernization strategy, which focuses on modernizing our technology, equipment and real estate and strengthening our international technology partnerships. Our vision is a 21st century manufacturing company with the product portfolio, operation and efficiency required by our markets.”