Rexel (RXL) H2 2024 earnings summary

Executive summary

• FY 2024 sales reached €19,285.1 million, up 0.7% reported, with same-day sales down 2.4% year-over-year, reflecting a challenging macro environment and sequential improvement.

• Current adjusted EBITA margin was 5.9%, down from 6.8% in 2023, showing resilience amid headwinds; net income was €341 million, down 56% year-over-year.

• Free cash flow conversion reached 76%, a record high, supported by digitalization and cost initiatives.

• Major acquisitions included Talley (US), Itesa (France), and ESI; New Zealand operations were divested.

• €124 million fine from the French Competition Authority, under appeal, and goodwill impairments in Germany and UK impacted results.

Financial highlights

• FY 2024 sales were €19.3 billion, up 0.7% reported, with Q4 sales at €4.9 billion, up 3.6% reported; same-day sales declined 2.4% for the year.

• Recurring net income was €662 million, down from €823 million in 2023; net income was €341 million, impacted by fines and impairments.

• Free cash flow before interest and tax was €917 million, with a 76% conversion rate.

• Dividend proposed at €1.20 per share, 54% payout ratio, 4.6% yield.

• Net financial debt increased to €2,484 million, with an indebtedness ratio of 1.83x.

Outlook and guidance

• 2025 guidance: stable to slightly positive same-day sales growth, adjusted EBITA margin around 6%, and free cash flow conversion at about 65% (excluding €124m fine to be paid in 2025).

• Medium-term targets reaffirmed: 5–8% same-day sales growth, adjusted EBITA margin above 7%, and high single-digit EPS growth.

• North America expected to accelerate, while Europe remains soft in H1 2025 with potential rebound in H2; cost reduction actions to continue.

• Free cash flow conversion target set at ~65%, excluding exceptional payments.