LANDSBERG AM LECH (dpa-AFX) - Rational was able to be more profitable operationally than previously expected for the year as a whole due to problems with recruitment. In addition, the headwind from exchange rates is not as strong as the company had previously thought. If the effects persist, the profit margin before interest and taxes could be slightly higher than in the previous year, said Rational CFO Jorg Walter on Tuesday in Landsberg am Lech, according to a press release. The management of the commercial kitchen equipment supplier had previously expected it to be at the previous year's level or slightly below. In the third quarter, Rational still benefited from the reduction of its large order book, but the effect is leveling off. The share price fell.

The MDax-listed stock was down 0.8 percent on Tuesday morning. In recent weeks, the share has been unable to maintain the price gains made since the beginning of the year up to the end of August and is now trading at the level seen at the start of 2023.

The commercial kitchen equipment supplier's third quarter was characterized by a stabilization of the order situation to a normal level, wrote analyst Peter Rothenaicher from Baader Bank in a study. Meanwhile, profitability remains very high.

Rational's operating margin (EBIT) was 23.2 percent last year and 24.2 percent after nine months of the current year. The Group confirmed its forecast for sales growth in 2023. According to this, revenue is expected to increase in the high single-digit percentage range. After nine months, growth stands at 14%. For the fourth quarter, the company expects turnover to be slightly below the level of the previous quarter.

In the three months to the end of September, turnover was one percent down on the same period last year at just over 272 million euros. Earnings before interest and taxes (EBIT) amounted to just under 66 million euros, six percent less than a year earlier. After taxes, Rational earned 52.3 million euros - three percent less than a year ago.

In order to drive growth, Rational is continuing to invest money in expanding its business. The Group now employs more than 2500 people. However, the company is not making as much progress as it would like in recruiting staff. Rational also has quality problems that are leading to project delays. According to analyst Sebastian Kuenne from the Canadian bank RBC, this is due to difficulties with the concrete quality at the new plant in Wittenheim, France./lew/mis/stk