Rexel Sa · EURONEXT:RXL
Rexel Sa — Rexel Sa Ord — Q3 2024 Earnings Presentation
15 slides from Rexel Sa's earnings presentation, Oct 15, 2024
Slide 1: Third-quarter 2024 sales
Third-quarter 2024 sales Paris, October 15, 2024
Slide 2: Key highlights
Key highlights
Slide 3: Solid performance in a tougher-than-expected market environment
Solid performance in a tougher-than-expected market environment • Same-day sales down 2.1% in Q3 24 after a soft • Rexel performed solidly in this challenging summer environment • More difficult macroeconomic conditions • Positive evolution in the US, despite weather especially in Central and Northe
Slide 4: Taking resolute actions to maintain profitability
Taking resolute actions to maintain profitability • Organization in “plan B” mode since beginning of 2024: headcount control, overhead, travel & expenses • Aggressively managing workforce evolution to make it 100% variable according to volumes • Reduction of 437 FTE compared to end of Q3 23 • Additi
Slide 5: Q3 2024 sales review
Q3 2024 sales review
Slide 6: Q3 reported sales up +2.1%, supported by significant M&A contribution
Q3 reported sales up +2.1%, supported by significant M&A contribution +3.1% €4,796m +1.4% €4,762m €4,665m -2.1% -0.3% • Q3 24 reported sales up +2.1%: • +3.1% contribution from Wasco, Talley & Electrical Supplies Inc. acquisitions, which more than offset organic decline Actual-day evolution -0.7% Q3
Slide 7: Core ED pricing returning to positive territory in Q3 24
Core ED pricing returning to positive territory in Q3 24 Q1 2024 Q2 2024 Q3 2024 % mix SD sales o/w o/w SD sales o/w o/w SD sales o/w o/w (in contrib.) 2024 evolution Price Volume evolution Price Volume evolution Price Volume Core ED1 78% -1.8% -1.0% -0.7% -0.4% -0.6% +0.2% +0.3% +0.3% 0.0% Electrif
Slide 8: North America back to growth and mixed performance in Europe
North America back to growth and mixed performance in Europe Group Q1 Q2 Q3 Europe (48% Group sales) -2.1% North America Asia Pacific -2.4% (45% Group sales) Q1 Q2 Q3 (7% Group sales) Q1 Q2 Q3 -4.6% Q1 Q2 Q3 +4.1% +0.2% -4.4% -0.9% -4.5% Selling price evolution -1.1% -6.9% -0.9% Non-cable: Cable: -0
Slide 9: Mixed picture in Europe in Q3 24
Mixed picture in Europe in Q3 24 By country By product category • Further market share gains in France in a challenging market environment. • Sales in core ED1 business down 1.8% in contribution • Improving momentum in September in • Electrification categories, especially solar, still construction e
Slide 10: North America: Back in positive territory in Q3 24
North America: Back in positive territory in Q3 24 By country/region By product category • United States: • Sales in core ED1 business up, contributing for • Favorable trends in residential, broadly stable +2.9% activity in non-residential & slight decline in industry • Lower demand in electrificati
Slide 11: High backlogs, providing visibility
High backlogs, providing visibility US Canada c. 2.5 months of sales c. 4 months of sales • High level of backlogs, combining good backlog execution and 222 228 strong order intake 288 210 253 263 165 • Backlog remains well above pre- 144 100 95 pandemic level 100 96 12.2019 12.2020 12.2021 12.2022
Slide 12: Outlook
Outlook a world of energy
Slide 13: Guidance adjusted to reflect more challenging environment
Guidance adjusted to reflect more challenging environment Rexel’s full-year 2024 guidance reflects a more challenging trading environment over the summer, notably resulting from: • A more difficult macroeconomic environment in Europe • Further deterioration of electrification categories, especially
Slide 14: Continuously raising the bar towards medium-term ambition
Continuously raising the bar towards medium-term ambition 2 > 7% 5.0% 6.7% 6.8% 4.8% 5.8% c.5.9% 4.4% Adj. Ebita margin 4.2% 4.2% (%) excl. one-off 1 1 2016 2017 2018 2019 2020 2021 2022 2023 2024 Mid-term ambition Same-day 1 -1.9% +3.5% +3.5% +1.4% -6.5% +15.6% +14.1% +4.3% -2.5% / -2% sales growth
Slide 15: Disclaimer
Disclaimer The Group is exposed to fluctuations in copper prices in connection with its distribution of cable products. Cables accounted for approximately 15% of the Group's sales and copper accounts for approximately 60% of the composition of cables. This exposure is indirect since cable prices als