Rexel revises its targets (again) upwards

Rexel revises its targets (again) upwards

Rexel announces record sales, up +16.3% on a like-for-like basis with an acceleration in volume growth driven by electrification and new price increases. Sales thus amounted to 4,816.6 ME in Q3 2022, accelerating after already a solid start to the year. What to adjust the 2022 objectives which are raised for the second consecutive time.
The acceleration in volume growth is therefore confirmed (contribution of around 750bps in Q3 22 vs +60bps in Q2 22), demonstrating the group’s ability to fully capture the increase in demand for electrification, particularly in Europe.

Management highlights the strong price increases of non-cable products in all geographies (contribution of 900bps), reflecting the impact of the increase in production costs and the double-digit growth of Rexel’s three end markets: residential, commercial and industrial, as well as double-digit growth in all three geographies with strong momentum in the United States, reflecting good underlying demand and our internal transformation.

Digital sales were up by around +240bps, representing 25% of group sales in Q3, with an increase of +467bps in the United States (18% of digital sales).

Following this stronger than expected activity, the group is therefore raising its objectives for the year 2022 for the second time and we are now anticipating, for 2022, at comparable scope and exchange rates:
Same-day sales growth of around 12% (vs. 7%-9% previously);
An adjusted EBITA margin of 7.2%, including 70bps of non-recurring items (vs. 6.7% including 50bps of non-recurring items);
Free cash flow conversion above 60% (unchanged).

CALENDAR

February 16, 2023 Results for the year 2022
April 20, 2023 Q1 2023 sales
April 20, 2023 Annual General Meeting.