Distributors

Rexel Reports Record Third Quarter Results

PARIS — Rexel today released its third quarter 2022 earnings report:

→ Sales of €4,816.6m in Q3 2022, up +16.3% on a same-day basis, accelerating after a robust start to the year

→ Record quarter driven by acceleration in volume growth (c. 750bps contribution in Q3 2022 vs +60bps in Q2 2022), demonstrating our ability to fully capture the boost in electrification, notably in Europe

→ Strong selling price increase on non-cable products in all geographies (900bps contribution), reflecting pass-through of the rise in production costs

→ Robust growth in our three end-markets with Residential, Commercial and Industrial up double digits

→ Double-digit growth in all three geographiesStrong momentum in the US reflecting good underlying demand and internal transformation

→ Strategic focus on organic growth and M&A translating into +35.5% reported sales growth in Q3 2022

→ Digital penetration up c. +240bps, representing c. 25% of Group revenues in Q3 2022, with +467bps improvement in the US, now at c. 18% of digital sales

→ FY 2022 guidance upgraded for same-day sales growth and adjusted Ebita margin

→ Share buyback with €60m completed (c. 3.7 million shares)

Rexel benefited in the third quarter from solid underlying markets as well as accelerating demand for electrification, driven by the high price of energy, especially in Europe. These results and trends enable us to upgrade our full-year targets for 2022, which should be another record year, both in sales and profitability.

Our strong third quarter is also an excellent illustration of how our new strategy, Power Up 2025, allows us to tap into high growth segments of the electrical materials market, driven by powerful and resilient mega trends such as sustainability, energy transition or resource and labor scarcity.

These trends, combined with a very strong backlog and our relentless focus on efficiency and digital, position us well for the future, in an economic environment that continues to offer little visibility.

Guillaume Texier, Chief Executive Officer of Rexel

FY 2022 OUTLOOK

Following stronger than projected activity, Rexel is upgrading its FY 22 guidance for the second time.

  • It now anticipates for 2022, at comparable scope of consolidation and exchange rates:
  • Same-day sales growth of c. 12% (vs 7%-9% previously)
  • An adjusted EBITA1 margin of c. 7.2%, including 70bps of non-recurring items (vs 6.7%, including 50bps of non-recurring items)
  • Free cash flow conversion2 above 60% (unchanged)
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 2.
Tagged with , ,

Comment on the story

Your email address will not be published.