Scienza e Tecnologia
FIRST-QUARTER 2022 SALES
→ Sales of €4,377.4m in Q1 2022, up +16.0% on a same-day basis
→ Sales up +19.1% on an actual-day basis, benefiting from a favorable calendar effect (+3.1%) largely due to specific US accounting rules (reversal expected in Q4 22)
→ Continued supply chain tensions and resource scarcity, further impacted by the lockdown in China
→ Digital revenue in Q1 2022 represented 23.6% of total sales, up +177bps and 25.5% excl. Mayer, up +201bps
→ Q1 2022 also marked by the disposal of our Russian business
→ FY 2022 guidance confirmed, in a context of growing geopolitical and macroeconomic uncertainties
SALES
In Q1, sales were up +31.4% year-on-year on a reported basis and +16.0% on a constant and same-day basis, reflecting positive momentum in all three geographies.
In the first quarter Rexel posted sales of €4,377.4m, up +31.4% on a reported basis, including:
On a constant and same-day basis, sales were up +16.0%, as a result of:
In the quarter, the tensions on the supply chain remained unchanged and we don't expect any improvement before the second part of the year, as visibility remains low (lockdown in China, Russia/Ukraine war). This “scarcity environment” continues to be an opportunity for Rexel, as we continue to help our customers deal with product shortages and labor availability to unlock productivity gains.
Europe (52% of Group sales): +13.6% in Q1 on a constant and same-day basis
In the first quarter, sales in Europe increased by +15.6% on a reported basis, including a positive currency effect of +0.6%, or €12.1m, mainly due to the appreciation of the British pound and the Swiss Franc against the euro and a negative scope effect of (0.2)%, or €(4.9)m, from the disposals of our activity in Russia in March 2022 and a small business in France in Q1 2021. On a constant and same-day basis, sales were up +13.6%.
Overall in Europe, activity remained robust, still driven by proximity and renovation activities. Acceleration in volume and price increases on non-cable products drove the good performance in Q1 22, despite continuing limitations caused by supply chain tensions. More specifically, in our larger countries:
Disposal of our Russian activity
With circa €10m of revenues generated in 2021, Rexel had limited exposure to Russia (below 0.1% of Group sales).
Following recent events in the region, Rexel took the decision to fully dispose this activity through a Management Buy Out (MBO) that was completed on March 23, 2022.
North America (40% of Group sales): +21.6% in Q1 on a constant and same-day basis
In the first quarter, sales in North America increased by +67.5% on a reported basis, including a positive currency effect of +7.4%, or €78.1m, due to the appreciation of the US & Canadian dollars against the euro, a positive scope effect of +23.7%, or €249.8m, from the acquisition of Mayer in the US, as well as a positive calendar effect of +6.1%. On a constant and same-day basis, sales were up +21.6%, driven by the US and Canada.
In line with the Q4 21 trend, North America further recovered, benefiting from better volume and non-cable price increases. Backlogs further increased in the quarter.
Asia-Pacific (8% of Group sales): +5.5% in Q1 on a constant and same-day basis
In the first quarter, sales in Asia-Pacific were up +9.1% on a reported basis, including a positive currency effect of +4.7%, or €14.2m, mainly due to the appreciation of the Chinese renminbi against the euro and a negative scope effect of (1.7)%, or €(5.0)m, related to the disposal of Rexel Saudi Arabia in Q4 2021. On a constant and same-day basis, sales were up +5.5%.
We remain confident we will achieve our 2022 objectives despite geopolitical and macroeconomic uncertainties.
Leveraging our transformation and enhanced efficiency, we target for 2022, at comparable scope of consolidation and exchange rates*:
* Assuming no severe deterioration of the sanitary environment
An updated strategic roadmap, will be presented at a Capital Markets Day to be held at our Group's biggest branch in Zurich on June 16, 2022.
Excluding ( i ) amortization of PPA and (ii) the non-recurring effect related to changes in copper-based cable prices.
FCF Before interest and tax/ EBITDAaL
NB: The estimated impacts per quarter of ( i ) calendar effects by geography, (ii) changes in the c onsolidation scope and (iii) currency fluctuations (based on assumptions of average rates over the rest of the year for the Group's main currencies) are detailed in appendix 2.
June 3, 2022 Ex-dividend date
June 7, 2022 Dividend Payment of €0.75 per share (issue premium)
June 16, 2022 Capital Markets Day
July 28, 2022 First-half 2022 results
A slideshow of the first quarter 2022 sales is available on the Group's website.
Rexel, worldwide expert in the multichannel professional distribution of products and services for the energy world, addresses three main markets: residential, commercial, and industrial. The Group supports its residential, commercial, and industrial customers by providing a tailored and scalable range of products and services in energy management for construction, renovation, production, and maintenance. Rexel operates through a network of over 1,900 branches in 24 countries, with more than 26,000 employees. The Group's sales were €14.7 billion in 2021.
Rexel is listed on the Eurolist market of Euronext Paris (compartment A, ticker RXL, ISIN code FR0010451203). It is included in the following indices: CAC Next 20, SBF 120, CAC Large 60, CAC AllTrade, CAC AllShares, FTSE EuroMid, and STOXX600. Rexel is also part of the following SRI indices: FTSE4Good, Dow Jones Sustainability Index Europe, Euronext Vigeo Europe 120 and Eurozone 120, STOXX® Global ESG Environmental Leaders, and S&P Global Sustainability Yearbook 2022, in recognition of its performance in terms of Corporate Social Responsibility (CSR).
For more information, visit www.rexel.com/en
FINANCIAL ANALYSTS / INVESTORS
PRESS
REPORTED EBITA (Earnings Before Interest, Taxes and Amortization) is defined as operating income before amortization of intangible assets recognized upon purchase price allocation and before other income and other expenses.
ADJUSTED EBITA is defined as Reported EBITA excluding the estimated non-recurring net impact from changes in copper-based cable prices.
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is defined as operating income before depreciation and amortization and before other income and other expenses.
EBITDAaL is defined as EBITDA after deduction of lease payment following the adoption of IFRS16.
RECURRING NET INCOME is defined as net income restated for non-recurring copper effect, other expenses and income, non-recurring financial expenses, net of tax effect associated with the above items.
FREE CASH FLOW is defined as cash from operating activities minus net capital expenditure.
NET DEBT is defined as financial debt less cash and cash equivalents. Net debt includes debt hedge derivatives.
For appendix, please open the pdf file by clicking on the link at the end of the press release.
The Group is exposed to fluctuations in copper prices in connection with its distribution of cable products. Cables
accounted for approximately 17% of the Group's sales and copper accounts for approximately 60% of the composition of cables. This exposure is indirect since cable prices also reflect copper suppliers' commercial policies and the competitive environment in the Group's markets. Changes in copper prices have an estimated so-called "recurring" effect and an estimated so called "non-recurring" effect on the Group's performance assessed as part of the monthly internal reporting process of the Rexel Group:
i ) the recurring effect related to the change in copper-based cable prices corresponds to the change in value of the copper part included in the sales price of cables from one period to another. This effect mainly relates to the Group's sales; ii) the non-recurri ng effect related to the change in copper-based cable prices corresponds to the effect of copper price variations on the sales price of cables between the time they are purchased and the time they are sold, until all such inventory has been sold (direct ef fect on gross profit). Practically, the non-recurring effect on gross profit is determined by comparing the historical purchase price for copper-based cable and the supplier price effective at the date of the sale of the cables by the Rexel Group. Addition ally, the non-recurring effect on EBITA corresponds to the non-recurring effect on gross profit, which may be offset, when appropriate, by the non-recurring portion of changes in the distribution and administrative expenses.
The impact of these two effects is assessed for as much of the Group's total cable sales as possible, over each period. Group procedures require that entities that do not have the information systems capable of such exhaustive calculations to estimate these effects based on a sample rep resenting at least 70% of the sales in the period. The results are then extrapolated to all cables sold during the period for that entity. Considering the sales covered. the Rexel Group considers such estimates of the impact of the two effects to be reason able.
This document may contain statements of future expectations and other forward-looking statements. By their nature, they are subject to numerous risks and uncertainties, including those described in the Universal Registration Document registered with
the French Autorité des Marchés Financiers (AMF) on March 10, 2022 under number D.22-0083.These forward-looking statements are not guarantees of Rexel's future performance, Rexel's actual results of operations, financial condition and liquidity as well as development of the industry in which Rexel operates may differ materially from those made in or suggested by the forward-looking statements contained in this release. The forward-looking statements contained in this communication speak only as of the date of this communication and Rexel does not undertake, unless required by law or regulation, to update any of the forward-looking statements after this date to conform such statements to actual results to reflect the occurrence of anticipated results or other wise.
The market and industry data and forecasts included in this document were obtained from internal surveys, estimates, experts and studies, where appropriate, as well as external market research, publicly available information and industry publications . Rexel, its affiliates, directors, officers, advisors and employees have not independently verified the accuracy of any such market and industry data and forecasts and make no representations or warranties in relation thereto. Such data and forecasts are
included herein for information purposes only.
This document includes only summary information and must be read in conjunction with Rexel's Universal Registration Document registered with the AMF on March 10, 2022 under number D.22-0083, as well as the fi nancial statements and consolidated result and activity report for the 2021 fiscal year which may be obtained from Rexel's website (www.rexel.com).
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