Fourth-Quarter Sales & Full-Year 2023 Results
Record sales, adjusted Ebita margin1 and free cash flow
Upgraded full-year guidance fully achieved, with Ebita in the upper end of the range
Strong free cash flow generation, demonstrating the strength and resilience of Rexel’s model
→ FY 23 sales of €19,153.4m, up +4.3% on a same-day basis
• Positive volume and price contributions: +2.0% and +2.3% respectively
• Boosted by electrification trends in Europe, mainly in H1, and commercial & industrial projects in North America
→ Sales of €4,725.3m in Q4 2023, down (1.4)% on a same day basis, on the back of a challenging base effect in electrification in Europe and lower demand in some end-markets
→ Digital penetration rate at 30% of sales in Q4 23, up +269bps
→ FY 23 adjusted EBITA margin of 6.8%, in the upper end of guidance, driven by growth in electrification trends in H1 and good execution of action plans leading to market share gains in H2
→ Recurring net income in FY 23 at €823.3m, compared to €911.8m in 2022, on a high comparable base as last year’s earnings benefited from all-time high inflation tailwind on non-cable products
→ Record Free cash flow generation, demonstrating the strength and resilience of our model
• Highest-ever FCF before interest and tax, at close to €1bn
• FCF conversion (EBITDAaL into FCF before I&T) significantly above guidance at 73%
→ Proposed dividend for 2023 to be maintained at record level of 1.20€ per share
→ Executing our capital allocation strategy with a healthy balance sheet: indebtedness ratio at 1.33x
• Share buyback: €134m of shares repurchased in 2023; €200m since mid-2022 launch of plan
• Acquisitions: €800m of acquired sales in 2023
→ 2024 outlook: Stable to slightly positive same-day sales growth, adjusted EBITA margin between 6.3% and 6.6% and conversion of free cash flow before interest and tax above 60%
→ During our June 7 CMD, we will present the initiatives implemented under the Power Up 2025 plan and share our updated mid-term prospects
Guillaume TEXIER, Chief Executive Officer, said:
“Rexel had an outstanding year 2023, resulting in record annual sales, profit margin and free cash flow generation. This performance once again reinforces the strength and resilience of our business model. Results, fully in line with our upgraded guidance, were driven both by supportive electrification trends, which grew at four times the pace of traditional electric distribution sales, and by the excellent execution of our action plans. I am proud of these results and wish to thank our teams in all our geographies. It is their hard work, dedication and commitment that have made Rexel a more agile, more digital and more profitable company. Rexel’s enhanced resilience allows us to target an Adjusted Ebita margin of between 6.3% and 6.6% in 2024, even in a more mixed environment. Through our Power Up 2025 action plans, we have established a new baseline of performance and will continue to deliver superior service to our customers and superior returns to our shareholders.”
