Rexel’s 2013 performance once again confirmed the strength of its business model in a persistently challenging environment, as well as its structural ability to generate solid cash flow throughout the cycle. Despite a 3% decline in organic sales, Rexel delivered resilient profitability, driven by gross margin discipline and strict cost control.
Highlights from the 2013 results:
RESILIENT PERFORMANCE IN A CHALLENGING ENVIRONMENT
• Sales of €13.012bn, down 3.3% on a reported basis and down 2.7% on a constant and same-day basis ; sales sequentially improved in Q4 (-0.9% on a constant and same-day basis after -2.7% in Q3)
• Adj. EBITA1 margin of 5.4%, down 26bps year-on-year, in line with the Group’s operating efficiency ratio
SOLID CASH FLOW GENERATION AND SIGNIFICANT DEBT REDUCTION
• Free cash flow of €601m before interest and tax and €337m after interest and tax, in line with the Group’s EBITDA conversion rate
• Net debt reduced by €407m or 16% year-on-year; improved indebtedness ratio at 2.72x EBITDA
FULL-YEAR 2014 OUTLOOK
• Sales in a range of around 1% below to around 2% above 2013 sales, on a constant and same-day basis
• Adjusted EBITA margin in a range of around 10bps below to around 20bps above the 2013 margin, consistent with targeted annual operating efficiency ratio of around 10bp change in adjusted EBITA margin for each percentage point change in sales
• Solid free cash-flow, consistent with targeted conversion rate of at least 75% of EBITDA, before interest and tax, and of around 40% of EBITDA, after interest and tax
Rudy PROVOOST, Chairman of the Management Board and CEO, said:
“In line with our policy of paying out at least 40% of recurring net income, we will propose to our shareholders to maintain the 2014 dividend at last year’s level of €0.75 per share.
"With respect to 2014, the evolution of our sales and margin will be closely tied to the speed and magnitude of the recovery in Europe and the US non-residential end-market. In this context, we will continue to focus on further developing our high-growth initiatives, enhancing cash generation and increasing operating efficiency through margin discipline and cost control.
"Given Rexel’s strong positions across the globe, its robust business model and engaged teams, we remain committed to our medium-term ambitions and are confident we will drive sustained value creation for all stakeholders.”
To see the full results, you can download the report here: Download (pdf 657 Kb).