SALES OF €3,323m, UP 5.1% ON A REPORTED BASIS
ADJUSTED EBITA OF €135m, UP 9.3%
STRONG INCREASE IN REPORTED EBITA, UP 27% AND NET INCOME, UP 62%
FULL-YEAR FINANCIAL TARGETS CONFIRMED
|Key figures 1||Q1 2017||YoY change|
|On a reported basis||+5.1%|
|On a constant and actual-day basis||+4.8%|
|On a constant and same-day basis||+0.6%|
|As a percentage of sales||4.1%|
|Change in bps as a % of sales||+17bps|
|Recurring net income||€67.7m||+19.3%|
|FCF before interest and tax||€(206.6)m||vs. €(194.9)m|
|Net debt at end of period||€2,433.4m||-2.5%|
1 See definition in the Glossary section of this document
In Q1, sales were up 5.1% year-on-year on a reported basis ; they increased by 4.8% on a constant and actual-day basis, including a strong positive calendar effect of 4.1% and a return to organic growth in the US (+2.1%)
In the first quarter, Rexel posted sales of €3,323.1 million, up 5.1% on a reported basis and 0.6% on a constant and same-day basis.
The 5.1% increase in reported sales included:
Europe (55% of Group sales): +1.2% in Q1 on a constant and same-day basis
In the first quarter , sales in Europe increased by 1.8% on a reported basis, including a positive calendar effect of 3.6%, a negative net scope effect of 1.6% (for €29.3m) and a negative currency effect of 1.2% (for €22.1m, mainly due to the depreciation of the British pound against the euro). On a constant and same-day basis, sales were up 1.2%.
Sales in most of our markets were in positive territory:
However, sales dropped in three markets:
North America (36% of Group sales): +1.2% in Q1 on a constant and same-day basis
In the first quarter , sales in North America were up 11.8% on a reported basis, including a positive calendar effect of 5.6%, a positive currency effect of 4,3% (for €46.0m, due to the simultaneous appreciation of the American and Canadian dollars against the euro).
This is the first quarter of growth on a constant and same-day basis for the region since Q4 2014, driven by encouraging signs of sales recovery in the US.
Asia-Pacific (9% of Group sales): -4.8% in Q1 on a constant and same-day basis
In the first quarter , sales in Asia-Pacific were up 1.3% on a reported basis, including a positive calendar effect of 1.8% and a positive currency effect of 4.4% (for €13.3m, mainly due to the appreciation of the Australian and New Zealand dollars against the euro). On a constant and same-day basis, sales were down 4.8%, reflecting contrasting situations:
Solid gross margin at 24.8% of sales
Adjusted EBITA margin improved at 4.1% of sales vs. 3.9% of sales in Q1 2016
Reported EBITA up 27.0% year-on-year
In the first quarter, gross margin was stable year-on-year at 24.8% of sales, with sequential improvement vs. Q4 2016 in all three geographies.
In the first quarter, distribution and administrative expenses (including depreciation) stood at 20.7% of sales vs. 20.9% of sales in Q1 2016. This year-on-year improvement was driven by improved performance in Europe, which posted a 29 basis-point improvement at 21.6% of sales, and North America, which posted a 2 basis-point improvement at 19.5% of sales, reflecting the net result of a slight improvement in the US while Canada was broadly stable. Conversely, in Asia-Pacific, distribution and administrative expenses (including depreciation) rose by 6.0% and represented 19.1% of sales vs. 17.4% of sales in Q1 2016. They increased by 3.3 million euros year-on-year, including a significant increase in bad debt in Asia (from €1.0 million in Q1 2016 to €2.4 million in Q1 2017) and the impact of recent investment in sales force in Australia.
As a result, adjusted EBITA margin in the first quarter stood at 4.1% of sales vs. 3.9% in Q1 2016. This net improvement reflected:
In the first quarter, reported EBITA stood at €144.5 million, up 27.0% year-on-year.
Strong 62% increase in net income
Operating income in the quarter stood at €129.8 million, up 39.6% year-on-year.
Net financial expenses in the quarter amounted to €33.7 million (vs. €33.2 million in Q1 2016). Q1 2017 included a one-off charge related to refinancing operations of €(6.7)million. Excluding that impact, net financial expenses stood at €27.0 million vs. €33.2 million in Q1 2016. This decrease largely reflected a lower average effective interest rate on gross debt of 3.23% (vs. 3.81% in Q1 2016).
Income tax in the quarter represented a charge of €33.3 million (vs. €20.9 million in Q1 2016). The increase is mainly due to higher profit before tax. The effective tax rate stood at 34.7% (vs. 35.0% in Q1 2016).
Reported net income in the quarter was up 61.6%, at €62.8 million (vs. €38.8 million in Q1 2016).
Recurring net income in the quarter amounted to €67.7 million, up 19.3% from €56.7 million in Q1 2016 (see appendix 2).
Free cash-flow generation impacted by traditional seasonality
Slight decrease in net debt year-on-year
In the first quarter, free cash-flow before interest and tax was an outflow of €206.6 million, reflecting the traditional seasonality of the business (vs. an outflow of €194.9 million in Q1 2016). This net outflow included:
At March 31, 2017, net debt stood at €2,433.4 million (vs. €2,495.6 million at March 31, 2016). Net debt was reduced by €62.1 million. It took into account:
The first-quarter performance was in line with our expectations and allows us to confirm our annual financial targets, as announced on February 13:
NB: The estimated impacts per quarter of (i) calendar effects by geography, (ii) changes in the consolidation 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 5.
May 23, 2017 Annual shareholders' meeting
July 31, 2017 Second-quarter and half-year results
October 27, 2017 Third-quarter and nine-month results
The financial report for the period ended March 31, 2017 is available on the Group's website ( www.rexel.com ), in the "Regulated information" section, and has been filed with the French Autorité des Marchés Financiers .
A slideshow of the first-quarter 2017 results is also available on the Group's website.
Rexel, a leader in the professional distribution of products and services for the energy world, addresses three main markets - residential, commercial and industrial. The Group supports its customers to be at their best in running their business, by providing a broad range of sustainable and innovative products, services and solutions in the field of technical supply, automation and energy management. Rexel operates through a network of some 2,000 branches in 32 countries, with more than 27,000 employees. The Group's sales were €13.2 billion in 2016.
Rexel is listed on the Eurolist market of Euronext Paris (compartment A, ticker RXL, ISIN code FR0010451203). It is included in the following indices: SBF 120, CAC Mid 100, CAC AllTrade, CAC AllShares, FTSE EuroMid, STOXX600. Rexel is also part of the following SRI indices: FTSE4Good, STOXX® (STOXX® Global ESG Impact, STOXX® Low Carbon indices Global, Europe et EURO), Ethibel Sustainability Index Excellence Europe and Dow Jones Sustainability Index Europe, in recognition of its performance in corporate social responsibility (CSR). For more information, visit Rexel's web site at www.rexel.com
FINANCIAL ANALYSTS / INVESTORS
|Marc MAILLET||+33 1 42 85 76 firstname.lastname@example.org|
|Florence MEILHAC||+33 1 42 85 57 email@example.com|
|Elsa LAVERSANNE||+33 1 42 85 58 firstname.lastname@example.org|
|Brunswick: Thomas KAMM||+33 1 53 96 83 email@example.com|
For appendices, please open the PDF file by clicking on the link at the end of the press release.
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 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.
RECURRING NET INCOME is defined as net income adjusted 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.