Second-Quarter Sales and Half-Year 2023 Results
Strong start to the year – Volumes supported by electrification trends – Delivering on Power Up 2025 roadmap – FY 23 guidance upgraded
→ Strong first-half performance with solid volumes and sustained high profitability
→ H1 23 sales of €9,763.0m, up +8.1% on a same day basis, driven by positive volumes and prices
- Q2 23 sales of €4,835.1m, up +6.2% on a constant and same-day basis
- Solid volumes, up +3.3% after +4.1% in Q1
- Positive pricing contribution from both non-cable and cable, up +2.8% but slowing sequentially, as anticipated
- Market share gains in key countries, capitalizing on operational excellence, digital and additional services offering
→ Electrification trends contributing strongly, especially in Europe – growing c. 5x times faster than the rest of the business in H1 and representing 22% of our sales
→ H1 23 adjusted EBITA of €702.3m, implying a 7.2% adj EBITA margin up +16bps from record-high level, restated for non-recurring items from inventory price inflation on non-cable products in H1 2022. This progression results from strong activity and good execution of our action plans
→ Recurring net income in H1 23 at €455.1m, down (3.4)%, on high base effect as 2022 earnings benefited from all-time high inflation tailwind on non-cable products
→ Positive Free Cash Flow before interest and tax of €242.3m in H1 2023 (vs €231.6m in H1 2022). Indebtedness ratio at 1.26x
→ Power Up 2025 strategic action plans now in place and delivering, resulting in higher growth, sustained high profitability and disciplined capital allocation
→ Acquisition of Wasco in the Netherlands, further enhancing Rexel’s exposure to fast growing markets
→ FY 23 guidance upgraded, continued focus on our action plans to focus on growing market segments and boost profitability, in a supportive but more contrasting environment
“I’m extremely proud of Rexel’s solid performance in the first half of 2023 as it proves that the company is able to deliver very strong results even in a more uncertain economic environment. Our exposure to several fast-growing and resilient segments, notably those linked to electrification, allowed us to more than offset the softness in a limited number of end-markets. Our relentless focus on efficiency allowed us to maintain a record-high level of profitability. In addition, our refocused portfolio, with well-targeted acquisitions and divestments, is now contributing strongly to our performance. This set of results makes us very confident in our ability to reach our 2023 guidance, which has been upgraded, and puts us well on track to achieve our 2025 ambitions.”
Guillaume Texier, Chief Executive Officer of Rexel