Rexel (RXL) CMD 2024 summary

Strategic progress, transformation, and growth drivers

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

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

• Consistently met or exceeded financial and strategic targets, with strong market share gains and upgraded 2025 targets.

• EBITA/EBITDA margin improved by 180 basis points since 2019, now targeted above 7% midterm, driven by self-help, digitalization, and supply chain automation.

• ROCE reached close to 14%, reflecting disciplined capital allocation and M&A criteria.

Digital, AI, and operational excellence

• Digital sales surpassed 30% in 2023, with a target of 50% mid-term, supported by omni-channel investments, AI, and automation.

• AI-driven tools deliver measurable sales and efficiency gains, including churn prediction, inventory optimization, and advanced pricing.

• Supply chain modernization includes plans to double automated distribution centers and robot count, targeting 15+ centers and 500+ robots.

• Employee engagement and training prioritized, with 98% receiving strategic upskilling and new global learning platforms launched.

• Over 26,500 employees engaged in delivering on the strategic roadmap.

Services, sustainability, and M&A

• Expanded service portfolio across non-residential, industrial, and residential markets, with ambitions to double advanced service penetration to 20%.

• Sustainability integrated into strategy, with SBTi-validated net zero targets by 2050, 100,000 products labeled for sustainability, and tools for carbon tracking.

• On track to reduce Scope 1 & 2 emissions by 60% and Scope 3 by 45% by 2030, with strong ESG ratings and sustainability-linked bonds.

• M&A focused on consolidation and adjacencies, adding €2.7 billion in sales over three years, with strict value creation and synergy criteria, especially in North America.

• Services drive customer stickiness, margin resilience, and incremental revenue.