Second-Quarter Sales & Half-Year 2021 Results
Same-day sales growth up +32.3% in Q2, accelerating after an already robust Q1
H1 Adj. EBITA margin at 5.6%, driven by sales growth and digital transformation
Recently upgraded FY 21 guidance confirmed thanks to robust growth drivers
→ Sales of €3,726.6m in Q2 2021, leveraging our capacity to ensure business continuity for our customers in an environment marked by strong price increases and product scarcity
- On a constant and same-day basis, sales were up +32.3% in Q2 2021 vs Q2 2020 and up +9.6% compared to Q2 2019; sequential acceleration vs Q1 2021 (+5.4% vs Q1 2019)
- Same-day sales growth of +32.3% driven by strong volume recovery (contribution: +22.1%), and positive pricing on both cable (contribution: +6.5%) and non-cable products (contribution: +3.6%)
- Market outperformance in key countries, including in the US where organic sales are back to their 2019 level
→ H1 21 adj. EBITA margin up +232 bps at 5.6% (above H1 19 margin of 4.7%) from digital penetration (22.6% of sales in Q2 21, up +123, bps including 33.2% of sales in Europe), price increase management and operational excellence. It demonstrates the result of our profound transformation over the last 5 years.
→ Recurring net income of €241.7m up +192.9% in H1 2021, from all-time high EBITA performance and optimized balance sheet
→ Positive Free Cash Flow before interest and tax of €116.3m in H1 2021 (€-17.3m in H1 2019) from robust operational results and active management of Working Capital
→ Rapid deleveraging thanks to strong FCF, bolstering our confidence in reaching an indebtedness ratio of 1.5x to 2x in FY 21 depending on M&A opportunities
→ Confirmation of the recently upgraded FY 21 guidance, with strong upside potential in all geographies, notably in North America where volumes (excluding inflation) are still 15% below pre-crisis level
“After having demonstrated our resilience during the acid test of the pandemic, our H1 results confirm that the profound transformation initiated five years ago has made Rexel a more agile company. This allows us to fully capture the incipient recovery and adapt to the current environment, marked by price increases and growing product scarcity. Rexel’s journey since 2017 has resulted in a stronger and more digital business model, for the benefit of all its stakeholders. With Rexel well positioned to continue its growth trajectory, I am pleased to pass on the baton to Guillaume Texier on September 1 to execute the strategic plan presented at our last Capital Market Day, which aims to deliver a historically high level in terms of sales and profitability by continuously improving customer service.”
Patrick BERARD, CEO of Rexel