PARIS — Today, Rexel released its 2024 fourth-quarter sales and full-year results.
Guillaume TEXIER, Chief Executive Officer, said:
In softer 2024 conditions than anticipated, especially in Europe, the Rexel teams seized the opportunity to demonstrate how the transformation of the last few years could positively impact the business by deploying advanced services, digital penetration and value solutions to customers, resulting in market share gains in several countries.
We leveraged our increased presence in North America, a region with solid prospects in which we have expanded through organic growth and active M&A with 9 acquisitions completed since 2021. We quickly adapted our cost base across the Group, allowing us to deliver resilient profitability and record high free cash flow conversion.
We are entering 2025 with good momentum on three aspects: market share gains, strong exposure to the positive North American market, and optimization projects. This acceleration of our transformation allows us to be confident that we are on track to reach our medium-term ambitions.
Sales & Ebita margin in line with revised guidance 2024; FCF conversion exceeding objective
Positive North America momentum balancing softer environment in Europe
Transformation actions gaining momentum throughout 2024 – to be further amplified in 2025
→ FY 24 sales at €19,285.1m, up +0.7% on a reported basis
- Same-day sales down (2.4)% in FY 2024; improving trends quarter after quarter
- Q4 sales of €4,893.1m, down (0.5)% on a same-day basis (up +1.0% on an actual-day basis) thanks to positive momentum in North America, up +3.6%
- Continued market share gains boosted by best-in-class services which includes digitalization
- Active acquisitions strategy contributing for +2.9% to FY 24 sales growth
→ FY 24 current adjusted EBITA margin at 5.9%, demonstrating resilience in a difficult macro environment
- Structural cost actions combined with rapid cost adaptation (FTE down (2.7)% versus volume down (1.5)% yoy), to mitigate impact of sales decline on our profitability
→ Digital sales penetration at 32% of sales in Q4 24, up +232bps
- Digital sales now above €6bn in 2024, making Rexel one of the largest digital BtB players
- Digital sales growth contributed to outperformance and productivity gains
→ FY 24 operating income of €845.9 million (vs €1,216.6 million in FY 23), including exceptional items (French Competition Authority fine for €124m against which Rexel has lodged an appeal, Goodwill impairment, acquisitions costs); net income of €341.0 million
→ Free cash flow conversion well above guidance at 76%, confirming our cash-generative model
→ Attractive return to shareholders: proposed dividend for 2024 of 1.20€ per share, for a 54% payout ratio, based on recurring net income of €662.3 million in 2024 (vs €823.3 million in 2023)
→ Executing our capital allocation strategy with a healthy balance sheet: indebtedness ratio at 1.83x
- Share buyback: €100m shares repurchased in 2024; €300m since mid-2022
- M&A: more than €500m of value creative acquisitions completed in 2024
- Portfolio management: disposal of Rexel business in New Zealand, signed on February 1st, as a result of the continuous strategic review of our portfolio
→ 2025 outlook: Stable to slightly positive same-day sales growth, current adjusted EBITA margin at c. 6% and free cash flow conversion at c. 65% (excluding the €124m fine from the French Competition Authority to be paid in 2025)
→ Confirmation of Rexel’s medium-term ambitions, driven by solid electrification trends, market outperformance, further transformation of the business model and acceleration of savings programs
The full earnings report can be found here.
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