Fourth-Quarter Sales & Full-Year 2019 Results
Targets achieved for third consecutive year; adjusted EBITA up +5.1% in FY 2019 and recurring net income up 7.5%; free cash flow conversion back to normative level at 62.5%
→ FULL YEAR 2019 TARGETS ACHIEVED IN A VOLATILE YEAR, ILLUSTRATING OUR ABILITY TO NAVIGATE IN A MORE ADVERSE ENVIRONMENT
- Sales of €13.7bn, up 1.4% on a constant and same day basis
- Adjusted EBITA of €685.1m, up 5.1%
- Indebtedness ratio of 2.47x, improving by 20 bps
- FCF before Interest & Tax conversion of 62.5% (of EBITDAaL)
→ SALES OF €3.521bn IN Q4, DOWN 0.5% ON A CONSTANT AND SAME-DAY BASIS, OF WHICH EUROPE at +0.3%, NORTH AMERICA AT -1.8% and ASIA-PACIFIC AT +0.3%
→ ADJUSTED EBITA UP 5.1% IN FY 2019, THANKS TO A MORE EFFICIENT ORGANIZATION
→ NET INCOME UP 50.3% IN FY 2019 AND RECURRING NET INCOME UP 7.5%
→ INCREASE IN PROPOSED DIVIDEND TO €0.48 PER SHARE, UP 9.0%, PAYABLE IN CASH
→ 2020 GUIDANCE: IN AN ENVIRONMENT OF LOW SALES GROWTH, WE TARGET ADJUSTED EBITA GROWTH OF BETWEEN 2% AND 5%
“Rexel’s 2019 performance was fully in line with our guidance, making it the third consecutive year of solid results. These results demonstrate that the business model changes initiated in 2017, more focused on customers and organic development, have resulted in value creation through continued sales and earnings growth. Confronted with a more volatile environment in 2019, we took actions to protect our profitability without compromising continued investments in our digital transformation. Investment in digital is showing very promising results both in terms of digital sales and adoption of analytical tools. We are ready for a more challenging macro-environment in 2020 and will further capitalize on self-help measures, leverage strategic initiatives and continue investing in our digital transformation to further improve profitability.”
Patrick Berard, Chief Executive Officer