Rational AG, the German manufacturer of kitchen appliances, reports a decrease in aftertax profit for the third quarter. Sales decline marginally, costs rise, and the company's EBIT falls. However, full-year sales growth is still forecasted.
Troy D. Hanson
November 07, 2023
By Helena Smolak
Rational AG, the German manufacturer of kitchen appliances, has announced a decrease in aftertax profit for the third quarter. The company reported an aftertax profit of 52.3 million euros ($56.1 million), compared to EUR53.8 million in the same period last year.
Sales Decline Marginally, Costs Rise
Rational AG experienced a slight decline in sales for the third quarter, with a decrease of 0.7% to EUR272.3 million. While there was growth in North America, Asia, and Latin America, this was offset by declines in Germany and the rest of Europe.
EBIT Falls, Operating Expenses Increase
The company's Earnings before Interest and Taxes (EBIT) also saw a decrease, falling from EUR70.3 million to EUR65.9 million. Despite lower freight charges and materials costs, Rational AG faced higher operating expenses, particularly in areas such as research and development.
As a result, the company's EBIT margin dropped to 24.2%, down from 25.6% in the same period last year.
Full-Year Sales Growth Forecast
Rational AG has confirmed its forecast for full-year sales growth to be in the high single-digit percentage range. However, the company expects fourth-quarter sales to be slightly lower than those in the third quarter.