Rexel: Q2 sales & H1 2024 results
|
Q2 SALES & H1 2024 RESULTS
Sequential organic sales improvement between Q1 and
Q2
Resilient profitability and record FCF generation in H1 24,
supported by strong discipline and self-help plans
2024 outlook confirmed - in the lower end of the
range |
→ Q2 24 sales up +1.8% on a reported basis,
driven by our M&A strategy in Europe and North
America
→ H1 24 sales of €9,629.7m, down (3.5)% on a
same-day basis, with a gradual improvement in the period:
- Q2 24
down (2.4)% after (4.6)% in Q1 24, notably from easier base effect
on electrification
-
Improving activity month after month
→ Ramp-up of digital sales, to 31% of
sales in Q2 24, up +290bps, fostering future productivity
gains
→ H1 24 adjusted EBITA margin resilience
at 6.0%, supported by our productivity gains and cost
initiatives
→ H1 24 operating income of
€576.8 million (vs €660.0 million in H1 23)
and recurring net income of €340.8 million
(vs €455.1 million in H1 23)
→ Record Free cash flow
generation, demonstrating the strength and resilience of
our model
- FCF
before Interest and tax reached an all-time high for a first half
at €335.5 million, representing a 53% conversion rate
(EBITDAaL into FCF before I&T)
→ Active capital allocation in the first
half:
-
Completion of the acquisition of Talley, in the US and
agreement signed to acquire Itesa in France, subject to
antitrust approval, reinforcing Rexel's position in the security
& communication businesses
-
Agreement signed on July 10 to acquire Electrical Supplies
Inc in the US, reinforcing Rexel's footprint in Florida,
adding circa USD60m of sales
- Share
buyback for c. €50m
→ 2024 outlook confirmed - In a
more complex environment, notably marked by political uncertainties
and a more competitive market, Rexel confirms its
guidance, with same-day sales growth and adjusted Ebita
margin expected in the lower end of the initial range
Guillaume TEXIER, Chief Executive Officer,
said:
"In a more challenging environment, Rexel demonstrated in the
first half the strength and resilience of its business model,
delivering solid profitability and record-high free cash flow. The
Rexel teams successfully activated new levers of our Power Up
strategy:
- Very strong
cost and cash discipline, with digital, automation and data driving
efficiency at all levels
- Organic growth
market outperformance, thanks to a differentiated value proposition
including digital and advanced services
- M&A
contribution, in particular from the previously-announced
acquisitions of Talley in the US and Wasco in the
Netherlands
Our Q2 sales marked a positive sequential evolution over Q1,
notably for volumes, supported by a gradually improving comparable
base throughout the year in Europe and by such active verticals in
the US as infrastructure projects and datacenters. Going forward,
while remaining cautious about the market's evolution in the second
half, especially in Europe, we are confident in our ability to
accelerate self-help action plans to deliver our 2024
guidance." |
Key
figures1 (€m) -
Actual |
H1 2024 |
YoY change |
Sales on
a reported basis |
9,629.7 |
(1.4) % |
On a constant
and actual-day basis |
|
(3.9) % |
On a constant and same-day basis |
|
(3.5) % |
Adjusted EBITA2 |
574.2 |
(21.6) % |
As a percentage
of sales |
6.0 % |
-134 bps |
Reported EBITA |
596.4 |
(14.3) % |
Operating income |
576.8 |
(12.6) % |
Net income |
353.0 |
(17.6) % |
Recurring net income |
340.8 |
(25.1) % |
FCF before interest and tax |
335.5 |
+38.5% |
FCF conversion3 |
53 % |
|
Net debt at end of period |
2,669.4 |
€768m 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
Financial review for the period ended June 30,
2024 |
- Half-year 2024
financial report was authorized for issue by the Board of
Directors on July 29, 2024. It has been
subjected to a limited review by statutory
auditors.
- 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.
SALES
H1 sales down (1.4)% year-on-year on a
reported basis and (3.5)% on a constant and same-day
basis
Key
figures (€m) |
Q2 2024 |
YoY change |
H1 2024 |
YoY change |
Sales on
a reported basis |
4,922.3 |
+1.8 % |
9,629.7 |
(1.4) % |
On a constant
and actual-day basis |
|
(1.9) % |
|
(3.9) % |
On a constant and same-day basis |
|
(2.4) % |
|
(3.5) % |
In H1 2024, Rexel posted sales of €9,629.7m,
down (1.4)% on a reported basis. They include:
- Constant
and same-day sales evolution of (3.5)%, including a (2.0)%
contribution from volume and negative selling price of (0.6)% on
non-cable products and (0.9)% on cable products
- A calendar effect
of (0.5)%, which will reverse in the second half
- A positive net
scope effect of +2.8%, mainly resulting from the acquisitions of
Wasco in the Netherlands, completed in September 2023, and Talley
in the US, completed in June 2024
- An overall stable
(0.1)% currency effect.
Q2 sales up +1.8% year-on-year on a
reported basis and down (2.4)% on a constant and same-day
basis
In the second quarter 2024, Rexel posted sales
of €4,922.3m, up +1.8% on a reported basis, supported by
the positive contribution of our M&A strategy. They
include:
- Constant
and same-day sales evolution of (2.4)%, including a (0.9)%
contribution from volume and a negative selling price of (1.1)% on
non-cable products and (0.4)% on cable products
- A positive calendar
effect of +0.5%
- A positive net
scope effect of +3.4%, mainly resulting from the acquisitions of
Wasco and Talley
- A positive +0.3%
currency effect, mainly due to the appreciation of the US dollar
against the euro
(in
contrib.) |
% mix 2024 |
SD sales growth |
ow price |
ow volume |
Core
ED1 |
78 % |
(0.4) % |
(0.6) % |
+0.2% |
Electrification |
22 % |
(2.0) % |
(0.9) % |
(1.1) % |
Total |
100 % |
(2.4) % |
(1.5) % |
(0.9) % |
1 Including cable
On a constant and same-day basis, sales were
down (2.4)% (or (1.9)% on a constant and actual-day basis),
improving compared to (4.6)% in Q1 24. More specifically:
- The
strong resilience in North America market offset more challenging
European activity
- North America was
driven by backlog execution of diversified projects
- Europe's sequential
improvement was driven by the easier base effect in
electrification, in an overall environment that remains
challenging
- The four product
categories related to electrification (Solar, Electric Vehicle
charging infrastructure, HVAC and Industrial Automation),
represented 22% of sales and decreased by (8.5)% in Q2
(contribution: -200bps), marking an improvement over Q1 24
- Pricing for
non-cable products was down (1.1)%, mainly due to deflation in
solar panels across geographies, piping in North America and
industrial automation in China.
- The cable price
contribution stood at (0.4)% in Q2 2024, benefiting from more
supportive copper prices than at the beginning of the year
- Overall, same-day
sales improved in Q2 24 at (2.4)% compared to Q1 24 at (4.6)%,
notably thanks to Europe ((4.5)% in Q2 24 vs (6.9)% in Q1 24) and
APAC (+4.1% in Q2 24 vs (7.7)% in Q1 24) while North America
remained very resilient ((0.9)% in Q2 24 vs (1.1)% in Q1 24).
- We posted further
growth in digitalization in all three geographies, with digital
sales now representing 31% of sales in Q2 2024, up +290bps compared
to Q2 2023. Europe reached 43% of digital sales (up +404bps), North
America was at 22% (up +195bps) and Asia-Pacific was at 12%, up
+373bps
Europe (50% of Group sales): (4.5)% in
Q2 and (5.7)% in H1 on a constant and same-day basis
In the second quarter, sales in Europe increased
by +2.1% on a reported basis, including:
- Constant and
same-day sales evolution of (4.5)%. This includes a negative volume
and price contribution of respectively (2.8)% and (1.6)% (non-cable
products for (1.5)% and broadly stable at (0.1)% on cable
products)
- A positive calendar
effect of +0.9%
- A positive net
scope effect of +5.8%, resulting from the acquisition of Wasco in
the Netherlands
-
A slightly positive currency effect of +0.2%, mainly due to the
appreciation of the British pound against the euro
Key
figures (€m) |
% of the region's sales |
Q2 2024 |
YoY change |
H1 2024 |
YoY change |
Europe |
|
2,449.5 |
(4.5) % |
4,875.1 |
(5.7) % |
ow France |
38% |
928.2 |
(1.7) % |
1,869.0 |
(1.8) % |
DACH1 |
24% |
577.9 |
(3.7) % |
1,137.9 |
(5.4) % |
Benelux |
16% |
404.1 |
(11.2) % |
813.7 |
(10.9) % |
Nordics |
9% |
222.6 |
(5.8) % |
416.1 |
(12.9) % |
UK |
8% |
198.9 |
(3.5) % |
409.2 |
(4.9) % |
1 Germany, Switzerland & Austria
More specifically:
- Core ED business,
including cable, was down a limited (1.1)% in contribution,
improving compared to Q1 24, down 2.9% in contribution. The market
was impacted by economic and political conditions
- Electrification
categories were down (14.4)% (contributing for -340bps), notably
explained by solar activity. The improved electrification trends
compared to Q1 24 were supported by an easier base effect
- By market,
- Non-residential and
industry were resilient
- Residential
segments (both new and renovation) continued to be weak, notably
due to high interest rates and low activity in the solar
business
By country and cluster:
- Sales in
France decreased slightly by (1.7)%, recording
further market outperformance in a challenging market environment.
More specifically in electrification, we benefited from positive
momentum on solar, mitigating lower demand in HVAC, which was
impacted by the lack of visibility on regulation and a difficult
base effect
- Same day
sales evolution in the DACH region (Germany,
Austria, Switzerland) stood at (3.7)% and Nordics
were down (5.8)% in the quarter. Both regions benefited from
sequential improvement on an easier base effect, notably in solar
activity
-
Benelux was down (11.2)%, with similar conditions
compared to the first quarter on both electrification and core
ED
- In
the UK, sales were down (3.5)%, or down a limited
(2.5)%, restated for the contribution of a large public project
with the Department of Education (DofE) in 2023
North America (43% of Group sales):
(0.9)% in Q2 and (1.0)% in H1 on a constant and same-day
basis
In the second quarter, sales in North America
were up +1.2% on a reported basis, including:
- Constant
and same-day sales evolution of (0.9)%, including a positive volume
contribution of +0.2%, and negative pricing contribution of (0.4)%
on non-cable products and (0.7)% on cable products
- An overall stable
calendar effect of +0.1%
- A positive +1.3%
net scope effect, mainly resulting from the Talley acquisition in
the US, completed in June 2024
- A positive currency
effect of +0.7%, mainly due to the appreciation of the US dollar
against the euro
Key
figures (€m) |
% of the region's sales |
Q2 2024 |
YoY change |
H1 2024 |
YoY change |
North America |
|
2,128.7 |
(0.9) % |
4,124.5 |
(1.0) % |
ow United States |
82% |
1,746.4 |
(1.0) % |
3,380.6 |
(1.3) % |
Canada |
18% |
382.3 |
(0.5) % |
743.9 |
+0.3% |
In North America:
- The
overall good performance was notably driven by our good backlog
execution
- Core ED business,
including cables, was broadly flat with positive volume
-
Electrification categories were down (4.6)% (contributing for
-100bps), from lower demand in solar (down 34%, contributing for
-100bps in the US), mostly in California
Specifically, in our 2 countries:
- In
the US, slight same-day sales decline at (1.0)% in
Q2 2024
- By
market: Resilience in non-residential and industrial automation
offsetting lower ED in industrial buildings. Residential (7% of
sales) started showing signs of improvement
- By
region: Further momentum in Southeast region (incl. Mayer) and in
Florida
- By
business: Project activity continued to be driven by strong backlog
execution
- US
backlog was up 1% vs Q1 24, notably driven by datacenters and
water/wastewater
- In
Canada, sales were down (0.5)% on a same-day
basis. The performance remained driven by project activity in
non-residential and specific industrial segments (manufacturing and
automotive)
- Backlog
improved by more than 4% vs March 24
On July 10, post-close of the first-half, Rexel
signed an agreement to acquire Electrical Supplies Inc in the US,
reinforcing its position in Florida. The acquisition adds circa
USD60m of sales, 3 branches and 93 FTE. This acquisition will be
integrated under the Mayer banner, expanding its footprint.
Asia-Pacific (7% of Group sales): +4.1%
in Q2 and (1.6)% in H1 on a constant and same-day
basis
In the second quarter, sales in Asia-Pacific
were up +3.5% on a reported basis, including:
- Constant and
same-day sales growth of +4.1%, including a strong positive volume
contribution of +6.7% and a negative price effect of (2.6)% ((2.5)%
on non-cable products and a broadly stable contribution of (0.1)%
on cable products)
- A positive calendar
effect of +0.5%
- A negative currency
effect of (1.1)%, mainly due to the depreciation of the Chinese
Renminbi against the euro.
Key
figures (€m) |
% of the region's sales |
Q2 2024 |
YoY change |
H1 2024 |
YoY change |
Asia-Pacific |
|
344.1 |
+4.1% |
630.0 |
(1.6)% |
ow Australia |
45% |
155.4 |
+4.4% |
291.6 |
+2.9% |
China |
41% |
141.9 |
+8.9% |
245.4 |
(5.4)% |
- In the
Pacific, sales increased by +2.9% on a constant and same-day basis:
-
In Australia, sales were up +4.4%, driven by
residential and non-residential end-markets. The country further
focused on digital sales, almost reaching the 20% threshold.
Backlog remained solid, leveraging improved customer services.
- In New
Zealand, sales declined by (4.8)% in Q2 24 in a difficult
macro environment.
- In Asia, sales
posted solid +5.5% growth on a constant and same-day basis:
- In
China, sales grew by +8.9%, reflecting the more
favorable volume trend in industrial automation while the temporary
oversupply situation remains unchanged.
- In
India, sales were down (13.2)% with industrial
demand temporarily affected by the general election, which took
place over 6 weeks
PROFITABILITY
Adjusted EBITA margin at 6.0% in H1
2024, down -134 bps compared to H1 2023
H1 2024
(€m) |
Europe |
North America |
Asia Pacific |
Group |
Sales |
4,875 |
4,125 |
630 |
9,630 |
On a constant
and actual-day basis |
(6.1) % |
(1.7) % |
(1.8) % |
(3.9) % |
On a constant and same-day basis |
(5.7) % |
(1.0) % |
(1.6) % |
(3.5) % |
Adj. EBITA |
296 |
281 |
11 |
5741 |
% of
sales |
6.1% |
6.8% |
1.8% |
6.0% |
Change in bps as a % of sales |
-197 bps |
-79 bps |
-45 bps |
-134 bps |
1 Including €(15)m for
Corporate costs in H1 24
In a context of a (3.9)% actual-day sales
decline in H1 2024, profitability was resilient, with an adjusted
EBITA margin of 6.0%, compared to 7.3% in H1 2023. This strong
performance was achieved amid a more challenging top line
environment, combined with more pricing pressure. This was achieved
thanks to specific plans in most countries, notably focusing
on:
- Gross
margin optimization through price, mix and purchasing
-
Productivity initiatives, with headcount reduction broadly in line
with volume decrease in H1 24
- Internal
actions on opex, exceeding the decrease in volume
- A
reduction of more than 2% of opex (excluding depreciation) in H1
despite 2.3% inflation
More specifically, the evolution on a comparable
base can be explained as follows:
-
Operating deleverage of -58bps reflecting the (3.9)% sales decline
in actual days
- Gross
margin at 25.0%, down -84 bps versus H1 23, which was exceptionally
high (boosted by +5.7% selling price increase in non-cable products
in H1 23)
- On par
with the exit rate of 2023 (Gross margin at 25.2% in H2 23).
- Active
opex management, with our own actions offsetting the inflation
impact
- Opex
inflation impact of -45bps due to overall inflation of +2.3%,
including +3.9% from wage increases and +1.3% from other opex
- Positive
impact from our action plans of +52bps, including cost savings and
productivity initiatives in H1 24
[For the graphic, open the PDF file by clicking on the link at
the end of the press release].
By geography, the change in adjusted EBITA
margin in H1 24 can be explained as follows:
- Europe was
down -197 bps at 6.1% of sales
-
North America was down -79 bps at 6.8% of
sales
-
Asia-Pacific was down -45 bps at 1.8% of
sales
-
Corporate level adjusted Ebita amounted to €(15)m
vs €(19)m in H1 2023
As a result, adjusted EBITA stood at €574.2m
(vs. €732.6m in H1 2023 on a comparable base) and reported EBITA
stood at €596.4m (including a positive one-off copper effect of
€22.2 million).
Focus on the bridge from EBITDA to Reported
EBITA :
- EBITDA margin was
down 80bps at 8.1%
- Depreciation of
Right of Use stood at €(125.0) million
- Other depreciation
and amortization stood at €(58.7) million, implying 0.6% of
sales
Key
figures (€m) |
H1 2023 |
H1 2024 |
YoY change |
EBITDA |
865.3 |
780.1 |
(9.9) % |
% EBITDA
margin |
8.9% |
8.1% |
|
Depreciation
Right of Use (IFRS 16) |
(113.4) |
(125.0) |
|
Other
depreciation and amortization |
(56.4) |
(58.7) |
|
Reported EBITA |
695.5 |
596.4 |
(14.3) % |
NET INCOME
Net income of €353.0 million in H1
2024 and recurring net income of
€340.8 million
Operating income in the half-year stood at
€576.8 million (vs €660.0 million in H1 2023).
- Amortization of
intangible assets resulting from purchase price allocation amounted
to €(14.0) million (vs. €(10.5) million in H1 2023)
- Other income and
expenses amounted to a net charge of €(5.6) million (vs. a net
charge of €(25.1) million in H1 2023) and notably included:
- €6.8 million from
capital gain on disposals
- €(7.3) million in
acquisition & integration costs
- €(3.9) million in
restructuring costs
Net financial expenses in the half-year amounted
to €(96.0) million (vs. €(75.7) million in H1 2023), and
can be broken down as follows:
- €(65.1) million
from financial costs compared to €(49.0) million in H1 2023,
reflecting higher interest rates and gross debt
- The
effective interest rate increased to 4.26% in H1 2024 compared to
3.38% in H1 2023, reflecting the rise in interest rates
- €(30.9)
million from interest on lease liabilities in H1 2024 vs €(26.7)
million in H1 2023
Income tax in the half-year represented a charge
of €(127.8) million (vs. €(155.9) million in H1 2023)
- Effective tax rate stood at 26.6% in H1
2024 similar to 26.7% in H1 2023.
As a result, net income in the half-year stood
at €353.0 million (vs. €428.4 million in H1 2023) and
recurring net income amounted to €340.8 million in H1 2024 (vs
€455.1 million in H1 2023) - See appendix 3.
FINANCIAL STRUCTURE
Record free cash-flow before interest
and tax of €335.5 million in H1 2024
Indebtedness ratio of 1.92x at June 30,
2024
In the half-year, free cash flow before interest
and tax reached an all-time-high level for the period of
€335.5 million (vs. €242.3m in H1 2023), representing
a free cash flow conversion rate (EBITDAaL into FCF before interest
and taxes) of 53%. It
included:
- EBITDAaL of
€628.7 million of which €(151.4) million of lease
payments in H1 2024
- An
outflow of €(227.5) million from change in working capital
(compared to an outflow of €(402.7) million in H1 2023). The
change in trade working capital was an outflow of
€(149.9) million, benefiting from our strong responsiveness in
inventory management, adapting fast to lower demand. This variation
was also combined with an outflow of €(77.6) million from the
change in non-trade working capital, notably explained by the
cash-out of 2023 performance linked-bonuses and commissions.
- On a
constant basis, trade WCR stood at 15.2% of sales in H1 2024,
stable compared to the prior year (15.1% in H1 2023).
- A lower level of
net capital expenditure (i.e. €(56.9) million vs.
€(74.5) million in H1 2023). Gross capex represented 0.6% of
sales, similar to H1 2023, with continued investment in automated
supply chain solutions and digital, in line with the Power Up
strategy.
Below FCF before interest and tax, the cash flow
statement took into account:
-
€(58.9) million in net interest paid in H1 2024 (vs
€(44.4) million paid in H1 2023);
-
€(159.2) million in income tax paid in the half, compared to
€(184.2) million paid in H1 2023;
-
€(412.6) million in financial investment;
-
€(357.2) million in dividends paid in H1 2024 based on 2023
earnings (€1.20 per share);
- c. €(50.0) million
in share buybacks;
- €(1.6) million
in currency effects during the half (vs a positive
€12.6 million in H1 2023).
At June 30, 2024:
- Net financial
debt increased by €767.8 million year-on-year to
€2,669.4 million (vs €1,901.6 million at June 30, 2023),
resulting from our 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
1.92x1.
1. Including the effect of Talley
acquisition
In a more complex environment, notably marked by
political uncertainties and a more competitive market,
Rexel confirms its guidance, with same-day sales
growth and adjusted Ebita margin expected in the lower end of the
initial range1 :
- Stable
to slightly positive same-day sales growth, with a high comparable
base in H1
- Adjusted
EBITA2 margin between 6.3% and 6.6%
- Free cash flow
conversion3 above 60%
1 At comparable scope of
consolidation and exchange rates
2 Excluding (i) amortization of PPA and
(ii) the non-recurring effect related to changes in copper-based
cable prices.
3 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
October 30,
2024 Q3 2024
sales
February 13,
2025 FY 2024
results
First-half 2023 financial report is available on
the Group’s website (www.rexel.com).
A slideshow of the second-quarter sales and H1
2024 results 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
26,500 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: MSCI World, 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 11, 2024 under
number D.24-0096. 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 11, 2024 under number D.24-0096,
as well as the financial statements and consolidated result and
activity report for the 2023 fiscal year which may be obtained from
Rexel’s website (www.rexel.com).
- PR - Q2 sales H1 2024 results
Rexel (EU:RXL)
Historical Stock Chart
From Sep 2024 to Oct 2024
Rexel (EU:RXL)
Historical Stock Chart
From Oct 2023 to Oct 2024