Rational booked more orders in the first quarter of this year than at any other three-month period in its history – and said the unprecedented demand was linked to four major factors.
The manufacturer received €300m (£253m) worth of orders for combi ovens and multifunctional cooking systems between January and March, setting a “new record” for the business.
CFO Jorg Walter said the strong demand it had experienced during 2021 had continued “unabated” in Q1. “This represents year-on-year growth of 70%,” he revealed.
Mr Walter said the company had identified four distinct reasons for the rise.
Firstly, it benefitted from “catch-up effects” as customers resumed buying activity following the pandemic. Secondly, government support programmes kicked in, thirdly operators are seeking to mitigate long delivery times by getting orders in early and, lastly, customers rushed to place orders before price increases came into effect in April.
The influx of orders comes as Rational bids to get on top of industry-wide electronic component supply issues which have impacted catering equipment production globally.
Supply delays have caused its assembly plant to experience production stoppages, sometimes at short notice.
CEO Dr Peter Stadelmann said the shortage of computer chips eased considerably in the first quarter due to increased deliveries from its primary supplier as well as initial deliveries from its secondary supplier.
However, he warned there could be further turbulence ahead due to factors outside of its control: “We see the supply situation worsening again significantly. We may possibly not be able to assess the full extent of the fall-out from the Ukraine crisis and the lockdowns in China until later on this year.”
Despite this, Mr Stadelmann said its prospects “generally look promising” on the back of a record-breaking quarter for the business.
Sales during Q1 reached €225m (£189m), the second best quarterly performance in its history. The only time its quarterly revenues were higher was in the final quarter of 2019, before the pandemic.
Germany was the regional frontrunner in terms of revenue during Q1, posting a rise of almost 70%, followed by Europe (43%), Latin America (41%) and North America (26%). Sales in Asia held steady.
Rational’s costs increased 39% during the quarter, which saw gross margin slip by 1.5 percentage points year-on-year.
“We are seeing increases in the costs of commodities, primary products and logistics across the board, and this is reflected in our gross margin,” said Mr Walter. “The price increases we have announced help counteract the rising costs. But for as long as the price increases are not fully effective, the gross margin may nevertheless be below the usual good level.”
Rational said it is still anticipating revenue growth of 10% to 15% for the full year. “Orders on hand are very high and our customers are satisfied with our products,” said Mr Stadelmann.
Rational on chip supply, price increases and a £230m order book
