Rexel (RXL) H1 2024 earnings summary

Executive summary

• H1 2024 sales reached €9.6 billion, with Q2 sales up 1.8% year-over-year, driven by M&A and strong North America and APAC performance, offsetting weaker Europe.

• Adjusted EBITA margin held at 6.0% in H1 2024, supported by cost control and operational initiatives despite challenging markets.

• Record free cash flow before interest and tax reached €335 million, with a 53% conversion rate, reflecting strong operational discipline.

• Digital sales increased to 31% of total, supporting productivity gains and up from 28.4% a year earlier.

• Major acquisitions included Talley (US), Wasco (Netherlands), Electrical Supplies Inc. (US), and agreement to acquire Itesa (France), strengthening core and growth segments.

Financial highlights

• Q2 2024 sales were €4.9–€5.0 billion, up 1.8% reported, with acquisitions contributing +3.2–3.4% and offsetting organic decline.

• Adjusted EBITA margin was 6.0% in H1 2024, down from 7.3% in H1 2023, mainly due to operating deleverage and negative price evolution.

• Gross margin for H1 was 25.0%, down 84bps year-over-year.

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

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

Outlook and guidance

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

• Guidance: stable to slightly positive same-day sales growth, adjusted EBITA margin between 6.3% and 6.6%, and free cash flow conversion above 60%.

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

• Margin improvement in H2 expected from self-help actions, cost reductions, and easing deflationary effects.