Rexel Sales Up 5.8% In 2012
Robust Profitability in Q4 2012, Despite Challenging Environment
- Challenging macroeconomic conditions impacted sales in most geographies
- Adj. EBITA margin stable at 6.0%, despite 4.7% drop in sales on a constant and same-day basis
- Reported sales up 5.8% to EUR13.4bn, boosted by sustained acquisition strategy
- Reported EBITA up 6.2% to EUR767m
- Adj. EBITA margin up 10bps to 5.7%, despite 1.8% drop in sales on a constant and same-day basis
- Strong free cash-flow generation of EUR627m before int. and tax, up 4.4% year-on-year
- 2013: Adj. EBITA margin of 5.7% and free cash-flow before int. & tax above EUR600m
- 2015: Adj. EBITA margin above 6.5% and free cash-flow after int. & tax above EUR500m
Rudy Provoost, Chairman of the Management Board and CEO, said:
"2012 marked an important step forward for Rexel. In a very challenging market environment, Rexel demonstrated the robustness of its business model as well as its ability to generate solid profitability and substantial cash flow, enabling the Group to meet its full-year targets. Rexel also stepped up its investments in external growth, strengthening its market position in the United States with two strategic acquisitions, further expanding in fast-growing economies, notably in Latin America, and continuing to make tactical acquisitions in Europe. Moreover, Rexel launched its ambitious "Energy in Motion" plan, which aims at accelerating our growth in promising market segments such as energy efficiency and international projects with large industrial or commercial customers and improving our organizational effectiveness. Thanks to focused resources allocation, enhanced partnerships with strategic suppliers and continuous commitment to excellence in serving customers around the world, I am confident that Rexel will create significant value in 2013 and beyond."
- Financial review for the period ended December 31, 2012 Unless otherwise stated, all comments are on a constant and adjusted basis and, for sales, at same number of working days
- Reported sales: +2.9% in Q4 and +5.8% in the FY, supported by solid contribution from acquisitions and a positive currency effect
- Constant and same-day sales evolution: -4.7% in Q4, reflecting continued challenging macroeconomic conditions; -1.8% in the FY
In the fourth quarter, Rexel recorded sales of EUR3,439.8 million, up 2.9% on a reported basis and down 4.7% on a constant and same-day basis. Excluding the negative 0.1 percentage point impact due to the change in copper-based cable prices, sales were down 4.6% on a constant and same-day basis.
The 2.9% rise in sales on a reported basis included:
- A positive currency effect of EUR104.5 million (mainly due to the appreciation of the US, Canadian and Australian dollars and the British Pound against the euro),
- A positive effect of EUR197.9 million from acquisitions, of which EUR93.7m due to the consolidation of Platt as from July 1 and of Munro as from December 1,
- A negative calendar effect of 1.0 percentage point.
On a constant and same-day basis, sales continued to reflect increasingly challenging conditions in Rexel's end-markets:
- Slowing momentum from industry,
- Persistently low level of residential construction,
- Weak activity in the commercial end-market, impacted by postponement of projects.
In the full-year, Rexel recorded sales of EUR13,449.2 million, up 5.8% on a reported basis and down 1.8% on a constant and same-day basis. Excluding the negative 0.7 percentage point impact due to the change in copper-based cable prices, sales were down 1.1% on a constant and same-day basis.
The 5.8% rise in sales on a reported basis included:
- A positive currency effect of EUR515.0 million (mainly due to the appreciation of the US, Canadian and Australian dollars and the British Pound against the euro),
- A net positive effect of EUR479.2 million from changes in the scope of consolidation (acquisitions: EUR544.1 million minus divestments: EUR64.9 million),
- A slightly negative calendar effect of 0.1 percentage point.
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