Rexel (RXL) H1 2024 earnings summary

Executive summary

• H1 2024 sales reached €9.6 billion, with Q2 sales up 1.8% year-over-year, offsetting a Q1 decline; North America and APAC showed resilience while Europe remained weak.

• Adjusted EBITA/EBITDA margin was 6.0% in H1, down from 7.3% in H1 2023, reflecting challenging markets and cost control efforts.

• Free cash flow before interest and tax hit a record €335 million, with a 53% conversion rate.

• Digital sales rose to 31% of total sales, with Europe leading at 42.3%.

• Major acquisitions included Talley (US), Wasco (Netherlands), and Electrical Supplies Inc. (US), strengthening datacom and core business.

Financial highlights

• Q2 reported sales were €4.9–€5.0 billion, up 1.8% year-over-year, driven by acquisitions offsetting organic decline.

• Adjusted EBITA was €574 million, margin at 6.0%, down from 7.3% in H1 2023.

• Recurring net income was €341 million, down from €455 million in H1 2023; net income fell 17.6%.

• CapEx to sales ratio was 0.6%, in line with last year.

• Net financial expenses increased to €96 million, mainly due to higher interest rates and gross debt.

Outlook and guidance

• 2024 guidance confirmed at the lower end of the range for same-day sales growth and adjusted EBITA margin.

• Same-day sales growth expected to be stable to slightly positive; adjusted EBITA margin targeted at 6.3%-6.6%.

• Free cash flow conversion expected above 60%.

• No sequential recovery assumed in Europe; North America expected to remain resilient.