Third Quarter and Nine-Month 2018 Results
Sales growth for the 8th consecutive quarter, samed-day sales up 3.4%, Adjusted EBITA up +9.2% and recurring net income up 20% in Q3, strong momentum in North America
→ SALES OF €3.313bn IN Q3, UP IN EVERY GEOGRAPHY
- On a constant and same-day basis, sales up 3.4%, of which:
- Europe: +0.8%, supported by key countries; transformation in Germany completed
- North America: +7.3%, driven by both the US and Canada
- Asia-Pacific: +3.3%, benefiting from sales growth across most countries
- Organic actual-day growth of 3.8%, including +0.4% from calendar and +0.3% from copper
- Reported sales growth up 2.4%, including unfavorable currency (0.6%) and scope (0.7%) effects
→ ADJUSTED EBITA UP A STRONG 9.2% IN Q3 WITH MARGIN UP 22bps YEAR-ON-YEAR AT 4.4%
- Gross margin down 13bps at 24.2%,
- EBITA margin up 22bps, mainly driven by North America
→ NET INCOME UP 15.4% IN Q3 AND RECURRING NET INCOME UP 20%.
→ POSITIVE FREE CASH FLOW BEFORE INTEREST AND TAX OF €56.6m IN THE 9 MONTHS
→ FULL-YEAR FINANCIAL TARGETS CONFIRMED
“Rexel’s performance in Q3 shows that the company is now in a position to capture growth opportunities in the US and gain market share in key regions. This represents a major advance after several years of underperformance and confirms that the strategy we have been implementing consistently for the past 18 months is starting to bear fruit. I am also pleased to see Canada progressing well.
At the same time, France posted a robust performance and we are making good progress in our European transformation. The restructuring in Germany, refocusing the company on the attractive industrial market, is now completed, and we expect to benefit from this in coming quarters.
Based on our performance over the first nine months and our expectations for the final quarter, we confirm our full-year financial targets.“
Patrick BERARD, Chief Executive Officer