PARIS — Rexel’s 2023 first-quarter earnings report for the period ending March 31 shows an 8.7% increase in sales, including +4.6% from volume growth and +4.1% from price effect (including 1.7% contribution from copper-based cable prices in the quarter). Globally, Rexel’s same-day sales were up 10.1% for the quarter. As a result of the positive start to the year, Rexel is maintaining its guidance for the rest of the year.
“Rexel has gotten off to a good start this year, with double-digit growth in sales, driven by positive trends in all geographies and solid increases both in volumes and in prices, reflecting the excellent work of our teams across the Group,” Guillaume Texier, CEO of Rexel said in the company’s press release. “Growth was also supported by powerful electrification trends. We continue to see high and growing demand in all geographies for energy efficiency and electricity generation solutions, electrification usages and industrial automation. These trends are supported by several drivers, including government stimulus plans and regulations, corporate energy transition agendas and general concerns from our customers over the price of energy and its availability. This strong and resilient electrification tailwind allows us to confirm our full-year 2023 guidance.”
In the first quarter, sales in North America increased by +17.4% on a reported basis, including:
- A positive currency effect of +3.3%, or €58.0 million ($63.61 million U.S. dollars), due to the appreciation of the US dollar against the euro
- A positive scope effect of +4.4%, or €76.9 million ($84.34 million U.S. dollars), from the acquisition of Horizon Solutions and Buckles-Smith in the US as well as LTL in Canada.
In North America, electrification trends continued to support our growth, with our four product families (solar, EV charging infrastructure, HVAC and industrial automation) growing by c.+19% (contributing for 370bps of same-day sales growth in North America in Q1 23) and representing c. 22% of sales.
- In the US (82% of the region’s sales), sales posted solid +8.6% growth on a same-day basis, driven by robust demand in our diversified Commercial and Industrial end-markets, offsetting the declining trend in residential activity and the more difficult base effect in the Southeast.
- Rexel’s Industrial automation business grew in double digits
- Rexel was awarded a multi-year U.S. Postal Service contract for the supply of up to 41,500 electric vehicle charging stations.
- In Canada (18% of the region’s sales), sales grew by +9.3% on a same-day basis. The robust growth in Q1 was largely driven by diversified industrial segments such as mining, transportation, OEM, farm & food, sawmills…
- Stable backlogs in North America at end-March 2023 compared to end-December 2022, reflecting good project execution and robust underlying order intake in the quarter.
- Smooth integration of recently-acquired companies: Buckles-Smith and Horizon in the US as well as LTL in Canada.
Rexel reported total sales of €4,927.9m in Q1 2023 ($5.404 million U.S. dollars), up +10.1% on a same-day basis, which includes:
- Positive trends in all geographies, benefiting from strong demand in energy transition activities
- Electrification products represented c.22% of Group revenues and grew by c.+31% in the quarter, c.560bps contribution to Group sales
- Same-day sales growth supported by both volume increase (410bps contribution) and increased selling prices (604bps including -60bps on copper-based cable products)
- Sales up +12.6% on reported basis, benefiting from a favorable calendar effect (+1.0%) and scope effect (+0.5%) with positive impact from acquired companies more than offsetting disposal effects
- Digital sales represented 27.4% of total sales in Q1, up +320 bps