First-quarter 2024 sales
April 30, 2024
Key highlights
Q1 2024 highlights
- Q1 24 sales down (4.6)% on a same-day basis at €4,707.4m, in line with expectations
- Resilience of our non-residential markets and industrial automation activity, especially in North America
- High base effect on electrification in Europe, notably solar
- Non-cableselling prices, excluding electrification, up +0.7%
- Further market share gains in our key countries (notably France, Germany and Switzerland) demonstrating the solidity of our model
- Further growth in digital sales, now representing 31% of sales in Q1 24, up +273bps
3
Core ED business: Resilience with positive pricing
% Mix | SD sales | ow Price | ow Volume | |
2024 | growth | |||
Core ED | 63% | -0.8% | +0.7% | -1.5% |
Electrification | 22% | -11.7% | -1.9% | -9.8% |
Cable | 15% | -8.2% | -9.4% | +1.2% |
Total | 100% | -4.6% | -1.5% | -3.1% |
- Resilient core ED business, down a limited 0.8%
- Positive pricing contribution
- Positive volume in non-residential and industrial automation in North America
- Electrification, representing 22% of sales, down 11.7% in the quarter. Price deflation limited to temporary situation in China and solar panels
- Positive volumes on cable
4
Electrification: Continued medium-term momentum but short-term slowdown; quarter impacted by strong base effect
- Electrification affected by
- High comparable base effect: Peak of demand in electrification in H2 2022 & Q1 2023, up circa +30% and contributing for almost 50% of Group sales growth
- Lack of visibility on pricing, energy prices and government regulations in some countries: temporary "wait and see" effect
- Short term impact in industrial automation in China (oversupply situation)
- Easier electrification base effect in H2
- Longer term growth drivers remain intact, driven by net zero agendas and government policies: double-digitgrowth over two years
Same-day sales growth in electrification
+31% | -12% | |||||
+16% | ||||||
+5% | ||||||
-2% | ||||||
Q1 23 | Q1 24 | Q2 23 | Q3 23 | Q4 23 | ||
Q1 | Q2 | Q3 | Q4 |
5
Further leveraging our transformation
- Continued focus on margin resilience, leveraging the key initiatives of the Power Up 2025 plan
- Focus on customer targeting and value-addedthrough services, driving market share and volume gains
- Excellent ability to pass through price increases
- Increased digital penetration driving improved internal efficiency
- Very disciplined cost management, with focus on temp employees and staff adaptation, strict cost control
- 2024 outlook confirmed
6
Active capital allocation deployment
- Executing our capital allocation strategy
- In line with our objectives to acquire up to €2bn of sales, Rexel completed end-April the signing of the acquisition of Itesa, reinforcing its position in the attractive security & communication business in France
- €78m of sales 2023 through a network of 15 branches
- Specialized in Video & Alarm activities
- EPS-accretivein year 1 & value creation in year 2
- €23m shares repurchased in Q1 24
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Q1 2024 sales review
Q1 sales supported by significant M&A contribution
+3.0% | €5,010m | ||||
€4,928m | |||||
-0.8% | |||||
-0.5% | €4,707m | ||||
-4.6% | |||||
-1.5% | |||||
Actual-day evolution | |||||
-6.0% |
Q1 2023 | Forex | Acquisitions Disposals | Q1 2023 | Organic | Calendar | Q1 2024 |
comparable | same-day |
Q1 24 reported sales down 4.5%:
- Negative forex and same-day sales growth
- Positive contribution from Wasco acquisition
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Stable non-cable selling prices;
volume resilience in North America in the quarter
Group
-4.6%
5,010 | 4,707 |
Q1 23 | Q1 24 |
Selling price evolution
Non-cable: | Cable: |
0.0% | -1.5% |
Non-cable price up +0.7% ex. electrification (mostly PV panels & Ind Automation in China)
North America
(42% Group sales)
-1.1% | |
2,049 | 1,996 |
Q1 23 | Q1 24 |
Europe
(52% Group sales)
-6.9% | |
2,648 | |
2,426 | |
Q1 23 | Q1 24 |
Asia Pacific
(6% Group sales)
-7.7%
313 | 286 |
Q1 23 | Q1 24 |
NB: Sales in €m are presented on a comparable basis
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Rexel SA published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2024 05:05:00 UTC.