First-Quarter 2020 Sales
GOOD START TO THE YEAR UNTIL SHARP DETERIORATION FROM MID MARCH
UNPRECEDENTED COVID-19 CHALLENGES: PRIORITY ON EMPLOYEE AND CUSTOMER HEALTH AND SAFETY
FOCUS ON LIQUIDITY AND COST REDUCTION
→ SALES OF €3.225bn IN Q1 2020, REFLECTING A SOLID START TO THE YEAR UNTIL COVID-19-RELATED DISRUPTION FROM MID-MARCH
- On a constant and same-day basis, sales down 3.3% after a strong start to the year
- Same-day sales through February up 0.9%, or 2.0% restated for China
- Same-day sales down 27.8% in the week of March 23, when North America started entering lockdown, and down 27.7% in the first 15 days of April
→ REAL-TIME ADAPTATION TO AN UNPRECEDENTED MIX VARIATION, WITH A FOCUS ON LIQUIDITY AND OPEX MANAGEMENT
→ 2020 GUIDANCE SUSPENDED ON MARCH 25
→ 20% CUT IN CEO AND BOARD MEMBER COMPENSATION AS OF APRIL
→ 2019 DIVIDEND CANCELLED; SUFFICIENT AVAILABLE LIQUIDITY TO NAVIGATE THE CURRENT TURMOIL
“Rexel had a strong start to 2020 with solid sales growth. This changed abruptly in mid-March with the spread of the COVID-19 pandemic to virtually all of the markets in which we operate, resulting in government-imposed lockdowns. We swiftly implemented crisis measures to protect our people, our relationships with customers and suppliers as well as the company as a whole. Our business continuity plans are keeping our branches and distribution centers operating with all the necessary social distancing and sanitary measures in place. Leveraging the digital journey on which we embarked in 2017, we had the platform in place to enable a significant part of our business to be transacted online, operating customer interfaces from thousands of remote locations using digital and telephone links. We’ve also taken strong actions to adjust operating expenses, preserve cash and protect liquidity. I would like to thank all of our employees for their hard work, flexibility and dedication. It is their responsiveness and commitment that allows Rexel to cope with this unprecedented situation. It is too early to quantify the full impact or length of this crisis, but I am confident in Rexel’s proven ability to adjust to whatever business situation we face when normal activity resumes.”
Patrick Berard, Chief Executive Officer