Rába Earnings Fall as Margins Squeezed
After-tax profit of Hungarian automotive industry company Raba fell 27% to HUF 1.2 billion in 2023 as costs climbed, an earnings report released after the closing bell on Wednesday shows.
Revenue rose 13% to HUF 72.8 bln, but higher costs dragged gross profit lower and EBITDA fell 16% to HUF 3.9 bln.
EBITDA-level profitability was impacted by a clear decline in market activity, the increase in production costs, and the price sensitivity of the customer side, Rába said.
It added that retaining and maintaining cash-generating capacity had become an "increasing challenge" because of building pressure from both customers and suppliers.
Chairman-CEO Béla Hetzmann said Rába was "committed to maintaining competitiveness and profitability while exploring further growth opportunities".
State-owned N7 National Defence Industry Innovation Company holds 54.34% of Rába's shares. The foundation that runs Széchenyi István University owns a 20% stake in the company.
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