Rexel (RXL) CMD 2024 summary

Strategic transformation and growth drivers

• Achieved 13% top-line growth in 2022 and 2023, driven by electrification, digitalization, pricing power, and M&A, with turnover rising to nearly €20 billion.

• Reduced operational footprint from 38 to 19 countries, focusing on market leadership and excellence in core geographies.

• EBITA/EBITDA margin improved by 180 basis points since 2019, with gains from gross margin optimization, productivity, digitalization, and supply chain automation.

• Consistently met or exceeded financial and strategic targets, with upgraded 2025 goals and a strong track record of market share gains.

• M&A is a key value-creation lever, with 14 acquisitions adding €2.7 billion in sales at attractive multiples and strong ROCE, focusing on North America and adjacencies.

Digital, AI, and operational excellence

• Digital sales surpassed 30% in 2023, with a clear path to 50% mid-term, supported by investments in AI, automation, and supply chain modernization.

• AI investments drive commercial prioritization, inventory optimization, and advanced pricing, with generative AI boosting sales and efficiency.

• Over 26,500 employees engaged, with 98% receiving strategic upskilling and new global learning platforms launched.

• Advanced services portfolio expanded across non-residential, industrial, and residential markets, supporting customer productivity, energy efficiency, and electrification.

• Supply chain modernization includes 15+ automated distribution centers and 500+ robots as a medium-term target.

Customer-centric value proposition

• Expanded service portfolio addresses evolving customer needs, including electrification expertise, training, and sustainability solutions.

• Advanced logistics, digital tools, and tailored solutions for various client segments drive productivity and market share.

• Targeting 70% of customers using additional services and 20% using advanced services, up from 50% and 11% respectively.

• Medium-term goal to increase the share of clients purchasing advanced services from 11% to 20%.

• Services growth is primarily organic, with small targeted acquisitions for expertise; large-scale service M&A not planned.