Refractories manufacturer Rath achieved record financial results in 2023, despite difficult conditions.
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 this, the Rath Group topped the revenue it achieved in 2022, which had previously been the highest in the company’s history.
The Rath Group's consolidated revenue increased by 4% year-on-year to €121.8 million in 2023 (previous year €117.6 million).
EBITDA increased to €16.4 million (previous year €11.6 million), and at 14%, the EBITDA margin (previous year 10%) is at a high level.
EBIT doubled to €9.9 million (previous year €5 million), bringing the EBIT margin to 8% (previous year 4%).
Andreas Pfneiszl, Speaker of the Executive Board, said: “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.”
With its investment in a joint venture in India, completed in February 2024, the Rath Group is tapping into an important future market.
Mr Pfneiszl said: “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.”
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,” Mr Pfneiszl added.
The elections in the USA in November 2024 will also be a key indicator for further global economic development.