Third-quarter and nine-month 2017 results
ACCELERATING SAME-DAY SALES IN Q3, UP 5.2%
IMPROVING PROFITABILITY IN Q3 WHILE INVESTING IN THE US
FULL YEAR TARGETS CONFIRMED
SALES OF €3.239bn IN Q3, UP 1.4% ON A REPORTED BASIS
- Organic growth of 4.1% including -1.1% from calendar and +1.5% from copper
- On a constant and same-day basis, sales up 5.2% of which:
- Europe: +6.5%, benefiting from accelerating sales across most European countries
- North America: +3.3%, supported by Proximity business in the US
- Asia-Pacific: +5.1%, driven by China and Australia
ADJUSTED EBITA MARGIN OF 4.2% IN Q3
- Solid gross margin, up 18 bps at 24.1%, driven by North America
- EBITA margin up 17bps, while accelerating investments in the US
STRONG INCREASE BOTH IN ADJUSTED EBITA (+8.5%) AND IN RECURRING NET INCOME (+28.8%) IN Q3
ALL THREE FULL-YEAR FINANCIAL TARGETS CONFIRMED, WITH ADJUSTED EBITA INCREASE AT THE LOW END OF THE FEBRUARY GUIDANCE
Patrick BERARD, Chief Executive Officer, said:
“Rexel’s sales growth in the third quarter accelerated for the fourth consecutive quarter, thanks notably to positive trends in France, the Nordic countries and the US. We are clearly seeing the benefits of our first strategic actions implemented in the US in terms of logistics organization and branch network expansion.
Our gross margin and adjusted EBITA margin improved year-on-year despite cost inflation in the UK and costs related to investments in future growth in the US, as presented at our Capital Markets Day in February.
Based on our performance over the first nine months of the year and our expectations for the last quarter, we confirm our full-year financial targets, with adjusted EBITA increase at the low end of the February guidance.
Looking ahead, we remain focused on our key priorities: investment in the US, IT and digitalization, turnaround in Germany and execution of the divestment program.”