Q4 Sales & fy 2023 Results
|
Q4 SALES & FY 2023 RESULTSRecord
sales, adjusted Ebita margin1 and
free cash flowUpgraded full-year guidance fully
achieved, with Ebita in the upper end of the
rangeStrong free cash flow generation,
demonstrating the strength and resilience of Rexel's
model |
→ FY 23 sales of €19,153.4m, up +4.3% on
a same-day basis
- Positive
volume and price contributions: +2.0% and +2.3% respectively
- Boosted
by electrification trends in Europe, mainly in H1, and commercial
& industrial projects in North America
→ Sales of €4,725.3m in Q4 2023, down (1.4)% on a same
day basis, on the back of a challenging base effect in
electrification in Europe and lower demand in some end-markets
→ Digital penetration rate at 30% of
sales in Q4 23, up +269bps
→ FY 23 adjusted EBITA margin of 6.8%,
in the upper end of guidance, driven by growth in
electrification trends in H1 and good execution of action plans
leading to market share gains in H2
→ Recurring net income in FY 23 at
€823.3m, compared to €911.8m in 2022, on a high comparable
base as last year's earnings benefited from all-time high
inflation tailwind on non-cable products
→ Record Free cash flow
generation, demonstrating the strength and resilience of
our model
- Highest-ever FCF
before interest and tax, at close to €1bn
- FCF conversion
(EBITDAaL into FCF before I&T) significantly above guidance at
73%
→ Proposed dividend for 2023 to
be maintained at record level of 1.20€ per
share
→ Executing our capital allocation strategy with
a healthy balance sheet: indebtedness ratio at 1.33x
- Share
buyback: €134m of shares repurchased in 2023; €200m since mid-2022
launch of plan
-
Acquisitions: €800m of acquired sales in 2023
→ 2024 outlook: Stable to
slightly positive same-day sales growth, adjusted EBITA margin
between 6.3% and 6.6% and conversion of free cash flow before
interest and tax above 60%
→ During our June 7 CMD, we will present the
initiatives implemented under the Power Up 2025 plan and share our
updated mid-term prospects
Guillaume TEXIER, Chief Executive Officer,
said: “Rexel had an outstanding year 2023,
resulting in record annual sales, profit margin and free cash flow
generation. This performance once again reinforces the strength and
resilience of our business model. Results, fully in line with our
upgraded guidance, were driven both by supportive electrification
trends, which grew at four times the pace of traditional electric
distribution sales, and by the excellent execution of our action
plans. I am proud of these results and wish to thank our teams in
all our geographies. It is their hard work, dedication and
commitment that have made Rexel a more agile, more digital and more
profitable company. Rexel’s enhanced resilience allows us to target
an Adjusted Ebita margin of between 6.3% and 6.6% in 2024, even in
a more mixed environment. Through our Power Up 2025 action plans,
we have established a new baseline of performance and will continue
to deliver superior service to our customers and superior returns
to our shareholders.”
|
1 Excluding non-recurring items in 2022
FINANCIAL REVIEW FOR THE PERIOD ENDED DECEMBER 31,
2023 |
- This
press release presents Rexel's consolidated financial statements
for the year ended December 31, 2023. The audit procedures by the
Statutory Auditors are in progress and their report on the
consolidated financial statements for the year ended December 31,
2023 will be issued on February 15, 2024.
- Full-year 2023
financial report was authorized for issue by the Board of Directors
on February 14, 2024.
- The
following terms: Reported EBITA, Adjusted EBITA, EBITDA, EBITDAaL,
Recurring net income, Free Cash Flow and Net Debt are defined in
the Glossary section of this document.
- Unless
otherwise stated, all comments are on a constant and adjusted basis
and, for sales, at same number of working days.
Key
figures1 (€m) -
Actual |
FY 2023 |
YoY change |
Change excl. non recurring items |
Sales on
a reported basis |
19,153.4 |
+2.4 % |
|
On a constant and
actual-day basis |
|
+4.2 % |
|
On a constant and same-day basis |
|
+4.3 % |
|
Adjusted EBITA2 |
1,300.1 |
(5.7) % |
|
As a percentage
of sales |
6.8 % |
-71 bps |
-3 bps |
Reported EBITA |
1,285.9 |
(4.4) % |
|
Operating income |
1,216.6 |
(9.4) % |
|
Net income |
774.7 |
(16.0) % |
|
Recurring net income |
823.3 |
(9.7) % |
|
FCF before interest and tax |
996.4 |
+14.1 % |
|
FCF conversion3 |
73 % |
|
|
Net debt at end of period |
1,961.5 |
€503m increase |
|
1 See definition in the Glossary section of this
document 2 Change at comparable scope of
consolidation 3 EBITDAaL
into FCF before interest and tax
SALES
FY sales were up +2.4% year-on-year on a
reported basis and +4.3% on a constant and same-day
basis.
Key
figures (€m) |
Q4 2023 |
YoY change |
FY 2023 |
YoY change |
Sales on
a reported basis |
4,725.3 |
(1.6) % |
19,153.4 |
+2.4 % |
On a constant and
actual-day basis |
|
(1.1) % |
|
+4.2 % |
On a constant and same-day basis |
|
(1.4) % |
|
+4.3 % |
In FY 2023, Rexel posted sales of €19,153.4m, up
+2.4% on a reported basis, boosted by the combination of
organic growth and our acquisition strategy. They
include:
- Constant and
same-day sales growth of +4.3%, including positive contributions
from volume of +2.0% and selling price on non-cable products of
+3.2% and a negative impact of (0.9)% from the change in
copper-based cable prices (vs a positive impact of +1.2% in FY
2022)
- An overall stable
calendar effect of (0.1)%
- A positive net
scope effect of +0.5%, resulting from the acquisitions of
Buckles-Smith, Horizon and LTL in North America as well as Trilec
and Wasco in Benelux, which contributed for +2.7% to sales growth,
more than offsetting the disposals of businesses including Rexel's
activities in Spain, Portugal and Norway
- A negative currency
effect of (2.2)%, mainly due to the depreciation of the US and
Canadian dollars against the euro
- The four product
categories related to electrification (Solar, Electric Vehicle
charging infrastructure, HVAC and Industrial Automation),
represented 22%1 of sales and grew by 10.8% in 2023, more than 4
times faster than the growth in traditional ED.
In Q4, sales were down (1.6)%
year-on-year on a reported basis and (1.4)% on a constant and
same-day basis.
In the fourth-quarter, Rexel posted sales of
€4,725.3m, down (1.6)% on a reported basis, including:
- Constant
and same-day sales evolution of (1.4)%
- A
positive calendar effect of +0.3%
- A positive net
scope effect of +2.1% resulting from the net effect between recent
acquisitions (mainly Wasco in the Netherlands and Buckles-Smith
& LTL in North America) and divestments in Europe (Rexel Spain,
Portugal and Norway).
- A negative currency
effect of (2.7)%, mainly due to the depreciation of the US and
Canadian dollars against the euro
In Q4 2023, sales were down (1.4)% on a constant
and same-day basis (or (1.1)% on a constant and actual-day basis).
More specifically:
- The four product
categories related to electrification (Solar, Electric Vehicle
charging infrastructure, HVAC and Industrial Automation),
represented 23%1 of sales and decreased by (2)% in Q4 as a result
of a challenging comparable base, negative price effect in solar
panels and lower demand, especially on Solar activity in Europe,
where low electricity prices have temporarily reduced the immediate
payback from installing photovoltaic solutions. Conversely,
electrification trends in North America remain positive, with an
increasing contribution of re-shoring trends in several industrial
sectors.
- The pricing
environment for non-cable products (0.5% contribution in the
quarter) was favorable for the majority of our offer and more than
offset some deflation on limited categories of non-cable products
(photovoltaic panels, piping & conduits in North America and
some Industrial Automation products in China)
- The copper-based
cable price evolution was a negative (0.4)% contribution in Q4
2023, largely in North America
- We posted further
growth in digitalization in all three geographies, with digital
sales now representing 30% of sales in Q4 2023, up +269bps compared
to Q4 2022. Europe reached 40% of digital sales (up +234bps), North
America is now above 20% (at 21% up +359bps) and Asia-Pacific is at
9% of sales, up +314bps.
1 Including positive scope effect and added
product categories (notably in HVAC segment)
Europe (52% of Group sales): (2.8)% in
Q4 and +5.1% in FY on a constant and same-day basis
In the fourth-quarter, sales in Europe decreased
by (0.7)% on a reported basis, including:
- Constant and
same-day sales evolution of (2.8)%, with overall positive trends in
Industry. This includes a negative volume contribution of (4.1)%,
reflecting the high comparable base from electrification
categories. The selling price increases contributed positively for
+1.3% (+1.4% on non-cable products and flat on copper-based
cable).
- A negative calendar
effect of (0.3)%
- A positive net
scope effect of +2.7%, resulting from the recent acquisition of
Wasco in the Netherlands, offsetting the disposals of businesses
including Rexel's activities in Spain, Portugal and Norway.
- A negative currency
effect of (0.2)%, mainly due to the depreciation of the Swedish
Krona against the euro
Key
figures (€m) |
Q4 2023 |
YoY change |
FY 2023 |
YoY change |
Europe |
2,444.4 |
(2.8) % |
9,619.1 |
+5.1% |
France |
927.2 |
(0.6) % |
3,668.7 |
+5.5% |
Benelux |
430.9 |
(5.6) % |
1,364.1 |
+2.3% |
Germany |
244.2 |
(2.0) % |
1,076.7 |
+10.8% |
Nordics |
216.5 |
(10.6) % |
925.9 |
+1.2% |
UK |
189.2 |
(3.7) % |
813.0 |
+2.0% |
Switzerland |
185.5 |
+5.0% |
693.0 |
+8.4% |
- Sales in
France (38% of the region’s sales) decreased
slightly by (0.6)%, including several effects:
- Solid and resilient
commercial and industrial activities
- Lower demand in
residential and HVAC markets
- Market share gains
driven by numerous initiatives aiming at providing valuable and
differentiated services to our customers
- In particular,
ramp-up of our new decarbonized two-hour delivery offer, which
allowed us to progress substantially in urban areas, especially
Paris
- Continuous
progression of digital penetration, reaching 32% in Q4 23 and
crossing the €1bn sales mark in FY 23
-
Benelux (18% of the region’s sales) was down
(5.6)%, with a very high base effect in Q4 22 in solar activity in
the Netherlands. The integration of Wasco progressed well with very
good top line and cost synergy potential.
- Sales in
Germany (10% of the region’s sales) decreased by
(2.0)%, with demand normalizing in solar and lower demand in
industry and residential. We continued to gain market share and
opened a new automated distribution center in the Frankfurt area to
provide enhanced and differentiated service to customers in this
region.
- Sales in
the Nordics (9% of the region’s sales) dropped by
(10.6)%, similar to Q3 23 trends, reflecting a high base effect on
solar and the more difficult environment in the construction
sector, especially in residential activity.
- In
the UK (8% of the region’s sales), sales were down
(3.7)%, due to lower commercial activity and on a difficult
comparable base, as a sizeable contract from 2022 was not repeated
(negative impact of 320bps). Our new automated distribution center
opened in 2023 in the London area, allowing us to substantially
improve our promise to customers and also enabling future
progression in digital sales.
- Sales in
Switzerland (8% of the region's sales) were up
5.0%, further outperforming the market and developing particularly
well in industrial solutions, lighting solutions and
electrification solutions.
North America (42% of Group sales):
+0.4% in Q4 and +4.0% in FY on a constant and same-day
basis
In the fourth-quarter, sales in North America
were down (1.7)% on a reported basis due to the currency effect,
including:
- Constant
and same-day sales growth of +0.4%, including a positive volume
contribution of +1.7%, and a negative price effect of (1.3)%
((0.4)% on non-cable products and (0.9)% on copper-based
cable)
- A positive calendar
effect of +1.3%
- A positive net
scope effect of +1.8%, resulting from the acquisition of
Buckles-Smith in the US, and, to a lesser extent, LTL in
Canada.
- A negative currency
effect of (5.1)%, mainly due to the depreciation of the US and
Canadian dollars against the euro
Key
figures (€m) |
Q4 2023 |
YoY change |
FY 2023 |
YoY change |
North America |
1,965.8 |
+0.4% |
8,231.6 |
+4.0% |
United States |
1,607.3 |
(0.1) % |
6,737.1 |
+3.4% |
Gulf Central |
|
+5.6% |
|
+17.5% |
Mountain Plains |
|
+5.5% |
|
+10.3% |
Florida |
|
+1.1% |
|
+4.0% |
Southeast |
|
-% |
|
(0.2) % |
Northwest |
|
(1.1) % |
|
(3.0) % |
Midwest |
|
(3.3) % |
|
+7.8% |
California |
|
(4.8) % |
|
+4.5% |
Northeast |
|
(6.6) % |
|
(2.8) % |
Canada |
358.5 |
+2.9% |
1,494.5 |
+7.0% |
In North America, the overall
good performance was driven by our capacity to capture reshoring
trends and to enhance backlog execution.
- Electrification categories were up
mid-single digit in Q4
- Positive volumes
were mitigated by deflation on commodity-related products, notably
conduits
- The backlog, still
equivalent to 2.7 months of sales, remains at a high level, with
good execution in the quarter.
- In the
US (82% of the region’s sales), stable same-day sales
evolution at (0.1)% in Q4 2023.
- By
market: Strong resilience in commercial and industrial automation
activities. Demand in residential improved sequentially.
- By
region: Mountain Plains & Gulf Central grew mid-single digits,
outperforming the market
- By
business: Project activity driven by strong backlog execution.
- In
Canada (18% of the region’s sales), sales grew by
+2.9% on a same-day basis, notably thanks to industrial and
commercial activities.
Asia-Pacific (6% of Group sales): (1.4)% in Q4 and
(0.1)% in FY on a constant and same-day basis
In the fourth-quarter, sales in Asia-Pacific
were down (7.6)% on a reported basis due to the negative currency
effect, including:
- Constant and
same-day sales evolution of (1.4)%, including a stable volume
contribution, and a negative price effect of (1.5)% on non-cable
products
- An overall stable
calendar effect of (0.1)%
- A negative currency
effect of (6.2)%, mainly due to the depreciation of Australian
dollar and the Chinese Renminbi against the euro.
Key
figures (€m) |
Q4 2023 |
YoY change |
FY 2023 |
YoY change |
Asia-Pacific |
315.2 |
(1.4) % |
1,302.7 |
(0.1) % |
Australia |
145.0 |
+1.0% |
584.6 |
+4.5% |
China |
126.8 |
(0.1) % |
525.2 |
(3.5) % |
- In the Pacific
(54% of the region’s sales), sales decreased by (2.4)% on a
constant and same-day basis:
-
In Australia (86% of Pacific’s sales), sales were
up +1.0%, driven by residential and commercial end-markets.
- In New
Zealand (14% of Pacific's sales), sales dropped by (18.8)%
in Q4 23 in a recessionary environment for the past three
quarters.
- In Asia (46%
of the region’s sales), sales growth was stable at (0.2)% on a
constant and same-day basis:
- In
China (87% of Asia’s sales), sales growth was
stable at (0.1)%, reflecting more positive momentum compared to Q3
23, helped by a favorable base effect, offset by price deflation in
industrial automation products from temporary oversupply.
- In
India (13% of Asia's sales), sales were up
+3.4%
PROFITABILITY
Adjusted EBITA margin at 6.8% in 2023,
down -71 bps compared to 2022 or stable excluding non-recurring
items that benefited 2022
FY 2023
(€m) |
Europe |
North America |
Asia Pacific |
Group |
Sales |
9,619 |
8,232 |
1,303 |
19,153 |
On a constant and
actual-day basis |
+4.5% |
+4.4% |
+0.1% |
+4.2% |
On a constant and same-day basis |
+5.1% |
+4.0% |
(0.1) % |
+4.3% |
Adj. EBITA |
695 |
610 |
39 |
1,300* |
% of sales |
7.2% |
7.4% |
3.0% |
6.8% |
Change in bps as a % of sales |
-80 bps |
-79 bps |
109 bps |
-71 bps |
*Including €(44)m for Corporate costs in FY
23
The 4.2% actual sales growth in FY 2023
translated into an adjusted EBITA margin of 6.8%.
Adjusted EBITA margin improved by +13bps from
6.7% in 2022 to 6.8% in 2023, restated for the non-recurring items
from inventory price inflation on non-cable products, net of higher
performance-linked bonuses, with :
- A
positive effect of 16bps from portfolio management, notably
resulting from the accretive effect of the Wasco acquisition and
the disposal of our activities in Norway
- A stable
evolution on a comparable basis, which can be explained as follows:
- An opex
inflation impact of -79bps due to overall inflation of +3.9%,
including +5.4% from wage increases and +2.3% from other opex.
- A
positive impact from our action plans of +76bps, from robust
activity notably in H1 and productivity initiatives in H2 23
1 One-off 2022 at scope and rate 2023 stands at -68bps
By half-year period, this stable adjusted EBITA
evolution at 6.8% results from:
- A +15bps
appreciation in H1 23, boosted by strong volume from
electrification trends
- A limited -24 bps
contraction in H2 23 at 6.4% thanks to cost optimization actions in
a lower growth environment. This demonstrates our ability to
maintain higher profitability than historically and reflects the
effect of our transformation.
By geography, the stable evolution of our
Adjusted EBITA margin can be explained as follows:
-
Europe:
- FY 2023
adjusted EBITA margin stood at 7.2% of sales, down -80 bps.
Restated for non-recurring items, the profit margin, down -11bps,
reflecting opex inflation mitigated by the improvement of gross
margin and our cost control initiatives.
- North
America:
- FY 2023
adjusted EBITA margin stood at 7.4% of sales, down -79 bps.
Restated for non-recurring items, the adjusted EBITA margin was
down -11bps resulting from opex inflation offset by positive
operating leverage and productivity gains.
-
Asia-Pacific:
- FY 2023
adjusted EBITA margin stood at 3.0% of sales, up +109 bps or up
+159bps restated for non-recurring items, reflecting improved
profitability in Asia on internal actions and credit control.
- At corporate
level, adjusted EBITA amounted to €(44)m vs €(32)m in 2022
as a result of higher long term incentives.
As a result, adjusted EBITA stood at €1,300.1m
(vs. €1378.2m in 2022 comparable base) and reported EBITA stood at
€1,285.9 million (including a negative one-off copper effect of
€(14.2) million).
Focus on the bridge from EBITDA to Reported
EBITA:
- EBITDA
margin was down -46 bps at 8.5%
-
Depreciation of Right of Use stands at €(233.3) million
- Other
depreciation and amortization stood at €(113.8) million, implying
0.6% of sales
Key
figures (€m) |
FY 2022 |
FY 2023 |
YoY change |
EBITDA |
1,680.8 |
1,633.0 |
(2.8) % |
% EBITDA
margin |
9.0 % |
8.5 % |
|
Depreciation
Right of Use (IFRS 16) |
(220.5) |
(233.3) |
|
Other
depreciation and amortization |
(115.4) |
(113.8) |
|
Reported EBITA |
1,344.8 |
1,285.9 |
(4.4) % |
NET INCOME
Net income of €774.7 million in FY 2023
and recurring net income of
€823.3 million
Operating income in the year stood at €1,216.6
million (vs €1,343.0 million in 2022).
- Amortization of
intangible assets resulting from purchase price allocation amounted
to €(24.3) million (vs. €(13.9) million in 2022)
- Other income and
expenses amounted to a net charge of €(45.1) million (vs. a net
income of €12.1 million in 2022) and included:
- €(10.0) million
from capital losses on disposal
- €(10.3)
million from goodwill impairment
- €(14.1) million in
acquisition & integration costs
- €(12.9)
million in restructuring costs
Net financial expenses in the year amounted to
€(167.7) million (vs. €(119.4) million in 2022), and can be broken
down as follows:
- €(112.0) million in
2023 from financial costs compared to €(72.9) million in 2022,
reflecting higher interest rates and Gross Debt, notably post
Sustainability-Linked Bond issuance.
- The
effective interest rate increased to 3.66% in 2023 compared to
2.29% in 2022, reflecting the rise in interest rates.
- €(55.6)
million from interest on lease liabilities in 2023 vs €(46.5)
million in 2022.
Income tax in the year represented a charge of
€(274.2) million (vs. €(301.2) million in 2022)
- Effective tax rate stood at 26.1% in
2023 compared to 25.7% excluding one-offs in 2022.
Net income in the year was €774.7 million (vs.
€922.3 million in 2022).
Recurring net income amounted to €823.3 million
in 2023, down (9.7)% compared to 2022, on a high comparable base as
2022 earnings benefited from a record-high inflation tailwind on
non-cable products (Appendix 3).
FINANCIAL STRUCTURE
Free cash-flow before interest and tax
of €996.4 million in 2023
Indebtedness ratio of 1.33x at December
31, 2023
In 2023, free cash flow before interest and tax was an inflow of
€996.4 million (vs. €873.3 million in 2022), representing a
free cash flow conversion rate (EBITDAaL into FCF before interest
and taxes) of 73%, above guidance (> 60%). It
included:
- EBITDAaL of
€1,356.4 million of which €(276.7) million of lease payments in
2023;
- An
outflow of €(187.1) million from change in working capital
(compared to an outflow of €(391.8) million in 2022). The change in
trade working capital stood at €(82.9) million, combined with an
outflow of €(104.1) million from the change in non-trade working
capital, notably explained by the cash-out of 2022 performance
linked-bonuses and commissions.
- On a
constant basis, trade WCR was at 14.1% of sales in 2023, stable
compared to the prior year (14.2% in 2022).
- A higher level of
net capital expenditure (i.e. €(153.3) million vs. €(125.4) million
in 2022). Gross capex represented 0.8% of sales, similar to 2022,
with continued investment in automated supply chain solutions and
digital, in line with the Power Up 2025 strategy.
Below FCF before interest and tax, the cash flow
statement took into account:
- €(101.3) million in
net interest paid in 2023 (vs €(59.9) million paid in 2022);
- €(327.4) million in
income tax paid in the year, compared to €(310.8) million paid in
2022;
- €(561.0) million in
financial investment, corresponding to the net effect between
cash-out for the acquisitions and proceeds from the disposals;
- €(362.2) million in
dividends paid in 2023 based on 2022 earnings (€1.20 per
share);
- €(134.0) million in
share buybacks;
- €10.4 million in
positive currency effects during the year (vs a negative €(51.5)
million in 2022).
At December 31, 2023:
- Net financial
debt increased by €503.1 million year-on-year at €1,961.5 million
(vs €1,458.4 million at December 31, 2022), resulting from active
capital allocation (notably M&A, dividend payment and share
buyback).
- The
indebtedness ratio (Net financial debt/EBITDAaL), as calculated
under the Senior Credit Agreement terms, stood at 1.33x.
On January 23rd, 2024, Rexel signed a new Senior
Credit Agreement (SCA), with the following terms:
- The
amount stands at €700 million
- The
maturity stands at five years with the option to extend it twice by
one year
- The
covenant remains unchanged
- The
credit margin is linked to our corporate rating (vs indebtedness
ratio), similar to most investment grade companies
- Our core
banks remained in the banking pool
This new SCA reflects the trust of Rexel’s core
banks in its management, strategy and prudent financial
profile.
Taking into consideration the
recently-renegotiated SCA, Group liquidity stood at €1.5bn at
end-December 2023.
PROPOSED DIVIDEND FOR 2023 TO BE MAINTAINED AT RECORD LEVEL
OF 1.20€ PER SHARE |
Rexel will propose to shareholders to maintain
the dividend at a record level of 1.20€ per share, to be paid fully
in cash. This represents a payout of 43% of the Group’s recurring
net income, in line with Rexel’s policy of paying out at least 40%
of recurring net income.
This dividend, payable in cash on May 17, 2024
(detachment date on May 16th), will be subject to approval at the
Annual Shareholders’ Meeting to be held in Paris on April 30,
2024.
ON TRACK TO ACHIEVE OUR POWER UP 2025
OBJECTIVES |
In June 2022, we unveiled our Power up 2025
strategy during a Capital Markets Day in Zurich. Our record 2022
and 2023 achievements put us well on track to achieve the 2022-2025
four-year objectives. That includes our financial targets as well
as our business ambitions and capital allocation.
Power Up
2025 |
2022 achievements |
2023 achievements |
4% to 7% organic
growth over 4 years |
14.1% |
4.3% |
6.5% to 7% adj.
Ebita margin in 2025 |
7.3%1 |
6.8% |
FCF conversion above 60% each year |
61% |
73% |
40% of digital sales in 2025 |
24%2 of sales |
28% of sales(30% of digital sales in Q4 23) |
x3 the number of
automatized DC |
63 automated DC |
9 automated DC |
Sales growth in Electrification: x2 the pace of our traditional ED
business |
2.1x |
c. 4.3x |
Share buyback of €400m over 4 years |
17% completed |
50% completed |
M&A
contribution to sales up to €2bn in 4 years |
c. €250m |
c. €1bn cumulated |
Divestments of between €200m & €500m of sales |
c. €480m completed |
c. €480m completed |
-
including 66bps of non-recurring items
- Restated from
the disposal of Norway in 2023 (25% on a reported basis)
- Excluding the
automatized DC in Norway that had been disposed
During our June 7 CMD, we will present the
initiatives implemented under Power Up 2025 and share our updated
mid-term prospects.
We expect 2024 end-markets to evolve as follows:
- Commercial
construction (40% exposure) should be globally dynamic, especially
in North America, with some sub-segments, however, affected by
interest rates
- Industry (30%
exposure) should remain solid, with support from re-shoring trends
and stimulus plans
- Residential
renovation (20% exposure) started being impacted by construction
cycles, a trend that can be partly offset by positive energy
renovation trends
- And new residential
(10% exposure) should remain weak in all European countries
In addition, while backlog execution in North
America will still be a tailwind for 2024, we will continue to face
a strong comparable base on electrification categories in H1.
In this environment, we target to deliver
resilient profitability thanks to our optimization efforts.
We will further capitalize on the past 2 years’
structural changes and more specifically:
- Portfolio
management, in order to focus on growing, profitable segments and
countries
- Digital ramp-up, to
increase internal efficiency and productivity
- Customer targeting
and value added through services, driving market share and
volume
- Excellent ability
to pass-through price increases
- Very strong cost
and cash discipline
At the same time, we also see potential for more
profitability improvement:
- Further progression
in less profitable countries
- Logistics
optimization
- IA efficiency
acceleration
We anticipate for 2024, at comparable scope of
consolidation and exchange rates:
- Stable to slightly
positive same-day sales growth, with a high comparable base in
H1
- Adjusted EBITA1
margin of between 6.3% and 6.6%
- Free cash flow
conversion2 above 60%
1 Excluding (i) amortization of PPA and (ii) the non-recurring
effect related to changes in copper-based cable prices. 2 FCF
Before interest and tax/EBITDAaL
NB: The estimated impacts per quarter of (i) calendar effects by
geography, (ii) changes in the consolidation scope and (iii)
currency fluctuations (based on assumptions of average rates over
the rest of the year for the Group's main currencies) are detailed
in appendix 6
April 30,
2024 First-quarter
2024 salesApril 30,
2024 Annual
Shareholders’ Meeting May 16,
2024 Detachment date
of the dividendMay 17,
2024 Dividend
paymentJune 7,
2024 Capital Markets
DayJuly 30, 2024 H1
2024 results
Full-year 2023 financial report is available on
the Group’s website (www.rexel.com).A slideshow of the
fourth-quarter sales and full-year 2023 results publication is also
available on the Group’s website.
Rexel, worldwide expert in the multichannel
professional distribution of products and services for the energy
world, addresses three main markets: residential, commercial, and
industrial. The Group supports its residential, commercial, and
industrial customers by providing a tailored and scalable range of
products and services in energy management for construction,
renovation, production, and maintenance. Rexel operates through a
network of more than 1,950 branches in 19 countries, with more than
27,000 employees. The Group’s sales were €19.2 billion in 2023.
Rexel is listed on the Eurolist market of Euronext Paris
(compartment A, ticker RXL, ISIN code FR0010451203). It is included
in the following indices: CAC Next 20, SBF 120, CAC Large 60, CAC
40 ESG, CAC SBT 1.5 NR, CAC AllTrade, CAC AllShares, FTSE EuroMid,
and STOXX600. Rexel is also part of the following SRI indices:
FTSE4Good, Dow Jones Sustainability Index Europe, Euronext Vigeo
Europe 120 and Eurozone 120, STOXX® Global ESG Environmental
Leaders, and S&P Global Sustainability Yearbook 2022, in
recognition of its performance in terms of Corporate Social
Responsibility (CSR). For more information, visit
www.rexel.com/en.
FINANCIAL ANALYSTS / INVESTORS
Ludovic
DEBAILLEUX |
+33 1 42 85 76
12 |
ludovic.debailleux@rexel.com |
PRESS
Brunswick: Thomas
KAMM |
+33 1 53 96 83
92 |
tkamm@brunswickgroup.com |
REPORTED EBITA (Earnings Before
Interest, Taxes and Amortization) is defined as operating income
before amortization of intangible assets recognized upon purchase
price allocation and before other income and other expenses.
ADJUSTED EBITA is defined as
Reported EBITA excluding the estimated non-recurring net impact
from changes in copper-based cable prices.
EBITDA (Earnings Before
Interest, Taxes, Depreciation and Amortization) is defined as
operating income before depreciation and amortization and before
other income and other expenses.
EBITDAaL is defined as EBITDA
after deduction of lease payment following the adoption of
IFRS16.
RECURRING NET INCOME is defined
as net income restated for non-recurring copper effect, other
expenses and income, non-recurring financial expenses, net of tax
effect associated with the above items.
FREE CASH FLOW is defined as
cash from operating activities minus net capital expenditure.
NET DEBT is defined as
financial debt less cash and cash equivalents. Net debt includes
debt hedge derivatives.
For appendix, please open the pdf file by clicking on the link
at the end of the press release.
The Group is exposed to fluctuations in copper
prices in connection with its distribution of cable products.
Cables accounted for approximately 15% of the Group's sales and
copper accounts for approximately 60% of the composition of cables.
This exposure is indirect since cable prices also reflect copper
suppliers' commercial policies and the competitive environment in
the Group's markets. Changes in copper prices have an estimated
so-called "recurring" effect and an estimated so called
"non-recurring" effect on the Group's performance assessed as part
of the monthly internal reporting process of the Rexel Group: i)
the recurring effect related to the change in copper-based cable
prices corresponds to the change in value of the copper part
included in the sales price of cables from one period to another.
This effect mainly relates to the Group’s sales; ii) the
non-recurring effect related to the change in copper-based cable
prices corresponds to the effect of copper price variations on the
sales price of cables between the time they are purchased and the
time they are sold, until all such inventory has been sold (direct
effect on gross profit). Practically, the non-recurring effect on
gross profit is determined by comparing the historical purchase
price for copper-based cable and the supplier price effective at
the date of the sale of the cables by the Rexel Group.
Additionally, the non-recurring effect on EBITA corresponds to the
non-recurring effect on gross profit, which may be offset, when
appropriate, by the non-recurring portion of changes in the
distribution and administrative expenses.The impact of these two
effects is assessed for as much of the Group’s total cable sales as
possible, over each period. Group procedures require that entities
that do not have the information systems capable of such exhaustive
calculations to estimate these effects based on a sample
representing at least 70% of the sales in the period. The results
are then extrapolated to all cables sold during the period for that
entity. Considering the sales covered. the Rexel Group considers
such estimates of the impact of the two effects to be
reasonable.This document may contain statements of future
expectations and other forward-looking statements. By their nature,
they are subject to numerous risks and uncertainties, including
those described in the Universal Registration Document registered
with the French Autorité des Marchés Financiers (AMF) on March 9,
2023 under number D.23-0078. These forward-looking statements are
not guarantees of Rexel's future performance, Rexel's actual
results of operations, financial condition and liquidity as well as
development of the industry in which Rexel operates may differ
materially from those made in or suggested by the forward-looking
statements contained in this release. The forward-looking
statements contained in this communication speak only as of the
date of this communication and Rexel does not undertake, unless
required by law or regulation, to update any of the forward-looking
statements after this date to conform such statements to actual
results to reflect the occurrence of anticipated results or
otherwise.The market and industry data and forecasts included in
this document were obtained from internal surveys, estimates,
experts and studies, where appropriate, as well as external market
research, publicly available information and industry publications.
Rexel, its affiliates, directors, officers, advisors and employees
have not independently verified the accuracy of any such market and
industry data and forecasts and make no representations or
warranties in relation thereto. Such data and forecasts are
included herein for information purposes only. This document
includes only summary information and must be read in conjunction
with Rexel’s Universal Registration Document registered with the
AMF on March 9, 2023 under number D.23-0078, as well as the
financial statements and consolidated result and activity report
for the 2022 fiscal year which may be obtained from Rexel’s website
(www.rexel.com).
Rexel (TG:E7V)
Historical Stock Chart
From May 2024 to Jun 2024
Rexel (TG:E7V)
Historical Stock Chart
From Jun 2023 to Jun 2024