Refractories manufacturer RATH increases Group revenue once again in 2023

Vienna, April 8, 2024

The wars in Ukraine and the Middle East, increasing global geopolitical tensions, high costs for raw materials and energy, and rising interest rates as well as persistently high inflation - the industry continued to face strong headwinds in 2023. Despite all of this, the internationally active refractories manufacturer RATH has remained on a very good course and topped the revenue achieved in 2022, which had previously been the highest in the company’s more than 130-year history.

RATH Group's consolidated revenue increased by 4% year-on-year to EUR 121.8 million in 2023 (previous year EUR 117.6 million). EBITDA increased to EUR 16.4 million (previous year EUR 11.6 million). At 14%, the EBITDA margin (previous year 10%) is at a very high level. EBIT doubled to EUR 9.9 million (previous year EUR 5 million), bringing the EBIT margin to 8% (previous year 4 %). "2023 was a challenging year, partly because the industry is in a state of upheaval across the globe, with both the markets and our customers' needs undergoing rapid change. Nevertheless, we were able to achieve our goals in 2023 and have been growing profitably," summarizes Andreas Pfneiszl, Speaker of the Executive Board, RATH Group.

Entry into the booming Indian market
With its investment in a joint venture in India, completed in February 2024, RATH Group is tapping into an important future market. "Together with our partner Avanee Refsol India, we are currently setting up a production facility in Visakhapatnam. This will also enable us to access larger production capacities beyond our current production sites in the future. It’s an investment that will enable us to reach the Asian growth market better and faster," says Andreas Pfneiszl.
 

Expansion of the Executive Board: Alexandra Rester is new CFO
On June 1, 2023, Mag. Alexandra Rester (53) took over the role of CFO from Andreas Pfneiszl at RATH Aktiengesellschaft, headquartered in Vienna. This is against a backdrop of increased future requirements in the Group (e.g. ESG & EU taxonomy), developments in international markets and the company’s targeted growth course, factors that have necessitated a change in corporate management. The Executive Board now comprises three officers - Alexandra Rester is serving as CFO alongside Andreas Pfneiszl, who acts as the Speaker of the Executive Board, and Ingo Gruber, COO/CTO. Alexandra Rester is a certified public accountant, tax advisor and CPA and has 25 years of experience as an auditor/partner in one of the “Big Four” accounting firms, most recently as an independent auditor.

Difficult start to 2024 
The markets are still changing, with an increasing number of –  primarily Asian – market competitors pushing harder than ever into both the European and US markets.
"For 2024, we are assuming a sideways movement in turnover, with a slight fall in profitability due to tighter markets and increased competition," says Andreas Pfneiszl, Speaker of the Executive Board. The elections in the USA in November 2024 will also be a key indicator for further global economic development.
"We will continue to do everything we can to win over our customers with our competitive and attractive mix of high-quality services and premium products. We are focusing strongly on the resource-conserving use of energy sources and are working intensively to make production even more sustainable," says Andreas Pfneiszl.

Dividend distribution planned
At the upcoming Annual General Meeting (on May 13, 2024), the Executive Board and the Supervisory Board will propose a dividend distribution of EUR 1.00 per share for the 2023 financial year, i.e. a total of EUR 1.5 million from retained earnings, and carry forward the remaining amount to a new account.