Rexel Half-Year Report 2024

Guillaume TEXIER, Chief Executive Officer, said: “In a more challenging environment, Rexel demonstrated in the first half the strength and resilience of its business model, delivering solid profitability and record-high free cash flow. The Rexel teams successfully activated new levers of our Power Up strategy:

• Very strong cost and cash discipline, with digital, automation and data driving efficiency at all levels
• Organic growth market outperformance, thanks to a differentiated value proposition including digital and advanced services
• M&A contribution, in particular from the previously-announced acquisitions of Talley in the US and Wasco in the Netherlands

Our Q2 sales marked a positive sequential evolution over Q1, notably for volumes, supported by a gradually improving comparable base throughout the year in Europe and by such active verticals in the US as infrastructure projects and datacenters. Going forward, while remaining cautious about the market’s evolution in the second half, especially in Europe, we are confident in our ability to accelerate self-help action plans to deliver our 2024 guidance.” 

Highlights

• Q2 24 sales up +1.8% on a reported basis, driven by our M&A strategy in Europe and North America
• H1 24 sales of €9,629.7m, down (3.5)% on a same-day basis, with a gradual improvement in the period:
• Q2 24 down (2.4)% after (4.6)% in Q1 24, notably from easier base effect on electrification
• Improving activity month after month
• Ramp-up of digital sales, to 31% of sales in Q2 24, up +290bps, fostering future productivity gains
• H1 24 adjusted EBITA margin resilience at 6.0%, supported by our productivity gains and cost initiatives
• H1 24 operating income of €576.8 million (vs €660.0 million in H1 23) and recurring net income of €340.8 million (vs €455.1 million in H1 23)
• Record Free cash flow generation, demonstrating the strength and resilience of our model
• FCF before Interest and tax reached an all-time high for a first half at €335.5 million, representing a 53% conversion rate (EBITDAaL into FCF before I&T)
• Active capital allocation in the first half:
• Completion of the acquisition of Talley, in the US and agreement signed to acquire Itesa in France, subject to antitrust approval, reinforcing Rexel’s position in the security & communication businesses
• Agreement signed on July 10 to acquire Electrical Supplies Inc in the US, reinforcing Rexel’s footprint in Florida, adding circa USD60m of sales
• Share buyback for c. €50m