Q1 2016 Results

---

Q1 2016 RESULTS (unaudited)

SEQUENTIAL IMPROVEMENT IN SALES

RESILIENT PROFITABILITY

FULL-YEAR FINANCIAL TARGETS CONFIRMED

 

→ SEQUENTIAL IMPROVEMENT IN SALES

• Sequential improvement in organic same-day sales in all three geographies
• Organic same-day sales broadly stable (-0.2%), excluding the 1.2 percentage point negative copper effect
• Resumption of growth in organic same-day sales in Europe, notably in France and The Netherlands, as well as in the Pacific region, notably in Australia

→ RESILIENT PROFITABILITY WITH ADJUSTED EBITA MARGIN AT 3.9% OF SALES

• Solid gross margin in Europe
• Strong reduction of opex in North America, mainly driven by the USA
• Slight sequential improvement in profitability in Asia-Pacific

→ FULL-YEAR FINANCIAL TARGETS CONFIRMED

 

Rudy PROVOOST, Chairman of the Board of Directors and CEO, said:

“In Q1, we saw a sequential improvement in organic same-day sales in all three of our geographies. Both Europe and Asia-Pacific returned to growth, with positive trends in several key markets, notably France and Australia. In North-America, sales continued to reflect decline in the Oil & Gas market and pressure on related industrial segments. Sales in this region should improve over the next quarters, as the Oil & Gas impact, which began in the second quarter of last year, will gradually lessen.

Our profitability was in line with our expectations for the quarter, reflecting the beneficial effects of the action plans implemented in recent years. Our gross margin was broadly stable, sustained by solid margin in Europe, demonstrating the effectiveness of our pricing initiatives. Solid cost control in North America, particularly a strong reduction in opex in the USA, also contributed to delivering a resilient adjusted EBITA margin of 3.9% of sales.

While the market environment remains challenging, particularly in some industrial segments, Rexel is well positioned to seize opportunities related to construction in Europe, notably in France, where the incipient construction recovery augurs well for our activity in the second half. In this context, we confirm our full-year financial targets.”