May the 8th, 2024 – The remarkable Rimac Group headed by Croatian entrepreneur Mate Rimac has boasted of its assets which exceed a staggering one billion euros recently.
As Poslovni Dnevnik/Josipa Ban writes, all of the companies headed by Mate Rimac – Rimac Group, Rimac Technology and Bugatti Rimac – made significant progress in achieving the company’s long-term goals last year. These goals included building a strong and competitive company on a global level, and that was Rimac Group’s comment on the financial results published on portal of the Financial Agency (Fina) recently.
According to them, one company (Rimac Technology) achieved revenue growth, while the other two experienced a decline.
an incomplete picture of things
Rimac Technology, Rimac’s largest company that deals with the development and production of technology and components for car manufacturers, earned 99 million euros in 2023. That was 33 percent more compared to 2021. The net loss of the company, which was separated from Rimac Group at the beginning of 2022 (which was a continuation of the company’s restructuring process) was reduced by almost 7 percent, to 60.8 million euros.
The revenues of Rimac Group (formerly Rimac Automobili, and today a holding company that manages the companies in which it has shares) fell by 23 percent, to 9.6 million euros. The enterprise’s net loss decreased by 29 percent, dropping down to 12.7 million euros. The revenues of Bugatti Rimac, on the other hand, amounted to 150.4 million euros, which is a drop of 20 percent compared to 2022.
The net loss of this company therefore stood at 16.1 million euros. However, Rimac Group has warned that the information obtained through the GFI (annual financial reports that companies are legally required to submit to Fina) doesn’t provide a complete picture of their operations. According to them, this is “because they only show data from individual companies, without subsidiary companies, or consolidation”.
“As such, the results of Bugatti Automobiles in France, which is 100 percent owned by Bugatti Rimac, are missing in the figures for Bugatti Rimac. The consolidated revenue of Bugatti Rimac amounted to 319 million euros last year”, they revealed from Rimac Group. The income of this company is therefore actually 113 percent higher than what Fina has claimed.
For a clearer picture of the business, however, we’ll have to wait for the publication of all of the revised data. In addition to that, according to Fina, all three companies employed a total of 1,711 people in 2023. However, with related companies, the total number of employees actually rose to 2,184, they stated from Rimac Group. “In 2023, we invested significant funds in increasing the number of employees, recording a 13 percent increase in the number of employees compared to the previous year,” they pointed out.
the kerestinec campus
At the same time, they noted that Rimac Group has so far collected over 800 million euros of direct investments through several rounds of financing. In 2022 alone, they received 550 million euros in capital from Porsche, Softbanka, Goldman Sachs, Investindustrial, and previously the Hyundai Motor Group.
“The funds collected in this way are used for investments in research and development activities, the professionalisation of the company and processes at all levels, the financing of working capital, industrialisation and the increase of production capacities. That also regards the construction of the Rimac Campus, which will be worth more than 300 million euros upon completion. Until now, it’s all been fully financed with the company’s own funds, without the need for any loans”, stated Rimac’s company.
They also added that their focus remains on growth and innovation. “As can be seen when looking at our balance sheets, our companies have over one billion euros in assets and negligible debt. That enables us to finance our growth and investments with our own funds,” they noted.
This year, however, the opening of the Campus in Kerestinec is expected, which will enable the company to contract much larger jobs. One such has already been agreed with the BMW Group for whose vehicles Rimac Technology will produce high-voltage battery systems. Rimac called this deal potentially the biggest contract in the history of Croatia. During the recent announcement of this partnership, he also announced that they are negotiating other large-scale projects.
