Rexel (RXL) H2 2024 earnings summary

Executive summary

• 2024 sales reached €19,285.1 million, up 0.7% reported, but down 2.4% same-day, reflecting a challenging macro environment; North America showed strong momentum, offsetting European softness.

• Current adjusted EBITA margin was 5.9%, down from 6.8% in 2023, with net income at €341 million, a 56% decrease year-over-year; recurring net income was €662.3 million.

• Free cash flow conversion was strong at 76%, exceeding guidance and historical averages; digital sales penetration increased to 32%.

• Major acquisitions included Talley (US), Itesa (France), and ESI; €124 million fine from the French Competition Authority, goodwill impairments, and restructuring costs impacted results.

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

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.

• Current adjusted EBITA was €1,131.7 million, down 16% year-over-year; operating income was €845.9 million, down 30.5%.

• Gross margin for FY 2024 was 24.8%, down 68bps; opex/sales ratio was 19.0%, deteriorating by 30bps.

• Free cash flow before interest and tax was €917 million, with a CapEx to sales ratio of 0.7%.

• Dividend proposed at €1.20 per share, maintaining a 54% payout ratio.

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).

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

• North America expected to accelerate, while Western Europe remains soft in H1 2025; cost reduction and savings actions to continue.

• Pricing environment slightly supportive for 2025, with US tariffs impact uncertain.