Rába report: decreasing turnover and net loan

Last year's outstanding cash flow generation continued and the value of Rába Group's EBITDA exceeded HUF 2.1 billion in the third quarter of 2014.

The company declares a positive operating result of HUF 452 million in the first nine months of 2014 despite a decline in sales compared to the exceptional base period. The company’s EBITDA results signal that Rába has retained its financial efficiency in spite of a seasonally slowing market demand characteristic of third quarters.

The driver of business was the performance of the domestic markets: the company's domestic sales grew thanks to the launch of new vehicles and the market success of cars manufactured by Rába’s strategic partners. The unfavourable market trends that influence the performance of the group's key business have been partly offset by new contracts and an increasing market share.

The continuing strong cash flow generation decreased the company's net loan to HUF 7.7 billion, which is markedly less than the HUF 9.8 billion from last year's base period or the HUF 8.9 billion in 2013 Q4. Together with this, Rába's other various group level figures show that the company is bound to fulfil its goals set for 2014. Rába is increasing its level sales revenue, concluded several new business development agreements and its annual EBITDA is expected to reach HUF 4.1 billion.

"Rába has been focusing on business development this year in a bid to counteract the volatile nature of the markets. On the group level our company still boasts an EBITDA margin that exceeds the industry average, and thanks to our excellent cash flow management we are able to keep on decreasing Rába’s net loan. Furthermore we have successfully started the market diversification of the Vehicle and Components Units."- emphasized István Pintér, chairman and CEO of the Rába Group.