2009 Half year results
RESILIENT MARGINS IN A TOUGH ECONOMIC ENVIRONMENT THROUGH ACCELERATED COST ADJUSTMENT
STRONG DEBT REDUCTION AND RENEGOTIATED COVENANT
– Sales of €5.6 billion (-17.9% organic same-day) reflecting tough economic environment
– EBITA1 of €184.5 million; resilient margin at 3.3%, drop contained to 190 bps through:
• gross margin improvement: +40bps
• efficient cost reduction of 10%: €126 million
– Cost savings objective for 2009 raised to €210 million (from €170 million previously)
– Net debt reduced by €224 million supported by robust free cash flow
– Financial flexibility improved through amendment to Senior Credit Agreement
Jean-Charles Pauze, Chairman of the Management Board and CEO, said:
“Our first half results demonstrate our ability to increase our gross margin, continuously adapt our cost base and generate solid cash-flow in a particularly challenging economic environment. The improvement in performance in the second quarter over the first, notably in EBITA margin, attests to the robustness of our business model.
Moreover, we have proactively renegotiated the covenant to our Senior Credit Agreement which improves our financial flexibility over the medium term and will allow us to enhance our business while consolidating our market share through the current economic downturn. The unanimous support of our lenders demonstrates their endorsement of Rexel’s strategy and strong fundamentals.
Through further efforts to seize market opportunities, cut costs and reduce debt, Rexel will deliver resilient performance in the second half and continue to leverage its leadership position.”