Rexel (RXL) H2 2024 earnings summary

Executive summary

• 2024 was a challenging year with macroeconomic and political headwinds, especially in Europe, but resilient performance was delivered, with a 5.9% EBITA margin and strong free cash flow conversion of 76%.

• North America outperformed, offsetting European softness, while digital transformation, AI initiatives, and acquisitions supported operational efficiency and market share gains.

• Transformation actions and portfolio management, including acquisitions and a disposal, are set to be amplified in 2025.

• Outperformed markets in key countries, especially France and the US, and increased exposure to positive North American trends.

Financial highlights

• FY 2024 sales reached €19.3bn, up 0.7% reported, with same-day sales down 2.4%; Q4 sales were €4.9bn, up 3.6% reported.

• Current adjusted EBITA margin was 5.9%, down from 6.8% in 2023; recurring net income was €662m, down from €823m in 2023.

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

• Dividend proposed at €1.20/share, 54% payout ratio.

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

Outlook and guidance

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

• North America expected to accelerate, while Europe remains cautious with potential rebound in H2; pricing environment slightly supportive.

• Medium-term ambitions reaffirmed: 5–8% same-day sales growth, adjusted EBITA margin above 7%, and c.65% FCF conversion.