Third-Quarter & Nine-Month 2016 Results
- Organic sales down 4.3% in Q3 in a persistently challenging environment
- Solid gross margin in Q3, adjusted EBITA margin impacted by lower sales and one-offs
- Full-year financial targets confirmed, at the low-end of the February guidance
- New Executive Committee with an increased representation of Country/Region Managers
SALES OF €3.194bn IN Q3
- Down 4.3% on an organic basis, including -0.6% from calendar and -0.9% from copper
- Down 5.6% on a reported basis, including -1.6% from currency
ADJUSTED EBITA MARGIN OF 4.0% IN Q3
- Solid gross margin of 23.9%, improvement in all three geographies
- Adj. EBITA margin down 51bps, of which 21bps due to one-off effects and 30bps mainly reflecting the impact of lower sales on opex as a percentage of sales
FULL-YEAR FINANCIAL TARGETS CONFIRMED, AT THE LOW-END OF THE FEBRUARY GUIDANCE
NEW EXECUTIVE COMMITTEE WITH AN INCREASED REPRESENTATION OF COUNTRY/REGION MANAGERS
Patrick BERARD, Chief Executive Officer, said:
“Rexel’s sales in the third quarter were impacted by a persistently challenging environment, particularly in the US, the UK and China.
Nevertheless, our gross margin improved in all geographies, while adjusted EBITA margin was down year-on-year, reflecting the impact of lower sales on operating costs as a percentage of sales, as well as non-recurring effects.
We confirm our guidance for the current year, at the low-end of the range given in February, on the basis of our performance over the first nine months of the year and our expectations for the last quarter.
We are actively pursuing the measures that will enable Rexel to improve structurally its sales momentum and operational efficiency. To this end and as a first step in our transformation program, we have appointed a new Executive Committee, with an increased representation of country/region managers.
As stated last July, we will present an update on Rexel’s strategy and ambitions on February 13, 2017, at a meeting to be held in Paris.”