First-Quarter 2024 Sales

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Q1 same-day sales down (4.6)%, in line with expectations, mostly from high comparable base

Resilient core ED business; positive contribution from acquisitions

FY 24 guidance confirmed

 

→ Q1 24 sales stood at €4,707.4m, down (4.6)% on a same-day basis, in line with expectations, on high electrification comparable base, notably in solar activity in Europe

• Restated for electrification (22% of sales, down c.(12)%) and cable, core ED activity remained resilient, with a limited decline of (0.8)%
• Stable non-cable pricing and price increase in our core products. Restated for electrification, non-cable pricing rose by +0.7%
• Cable pricing at (1.5)% from high copper prices in Q1 23 and continued price normalization in North America beginning at end-Q2 23

→ Resilience of our non-residential market and industrial automation business, especially in North America

 

→ Further market share gains in our key countries (including France, Germany and Switzerland) demonstrating the solidity of our model

 

→ Improvement in backlogs in North America, providing visibility

 

→ Digital penetration rate at 31% of sales in Q1 24, up +273bps

 

→ Continued focus on margin resilience, leveraging the key initiatives of the Power Up 2025 plan

 

→ Active capital allocation in the quarter

• Solid M&A pipeline
  • End-April, Rexel reached an agreement to acquire Itesa, reinforcing its position in the security & communication business in France

 

• Share buyback for €23m in the quarter, or €223m on a cumulative basis since the launch of the plan

 

→ 2024 outlook confirmed: Stable to slightly positive same-day sales growth with high comparable base in H1 2024, adjusted EBITA margin between 6.3% and 6.6% and conversion of free cash flow before interest and tax above 60%

 

Guillaume TEXIER, Chief Executive Officer, said:  “Rexel delivered a solid performance in the first quarter, amidst an anticipated more challenging environment. Our core electrical distribution business, excluding electrification categories and cables, was resilient, supported by healthy demand in non-residential markets and industrial automation as well as positive pricing on non-cable products. Electrification activities were impacted as expected by a high 2023 comparable base but continued to grow by double digits over two years. The start of the year is in line with our expectations and demonstrates the solidity and resilience of our model, allowing us to confirm our 2024 guidance. We are also announcing an acquisition in France focused on the datacom/security space. Rexel continues to focus on value-enhancing acquisitions to strengthen its growth profile and increase its exposure to secular trends.”