FIRST-QUARTER 2022 SALES Strong start to the year with sales up +16.0%, driven by strong inflation and positive volumes Volumes continue to improve in Backlogs increasing in our main countries on sustained demand, acceleration in electrification trends and supply chain tensions |
→ Sales of €4,377.4m in Q1 2022, up +16.0% on a same-day basis
- Positive trends in all geographies, confirming increasing demand for electrical products and the key role of distributors in the energy transition
- Growth supported by both volume increase (283bps contribution) and high selling prices (405bps contribution in cable and 910bps in non-cable products)
- Acceleration in
North America , up +21.6%, driven by both volume recovery and further price increases - High selling price increases in Q1 2022. Pricing contribution from carryover effect expected to ease in coming quarters on difficult base effects on both cable and non-cable products
→ Sales up +19.1% on an actual-day basis, benefiting from a favorable calendar effect (+3.1%) largely due to specific US accounting rules (reversal expected in Q4 22)
→ Continued supply chain tensions and resource scarcity, further impacted by the lockdown in
→ Digital revenue in Q1 2022 represented 23.6% of total sales, up +177bps and 25.5% excl. Mayer, up +201bps
→ Q1 2022 also marked by the disposal of our Russian business
→ FY 2022 guidance confirmed, in a context of growing geopolitical and macroeconomic uncertainties
Key figures (€m) | Q1 2022 | YoY change |
Sales on a reported basis | 4,377.4 | +31.4% |
On a constant and actual-day basis | +19.1% | |
On a constant and same-day basis | +16.0% | |
Same-day sales growth by geography | ||
2,284.8 | +13.6% | |
865.5 | +10.4% | |
Scandinavia | 278.5 | +12.5% |
Benelux | 257.5 | +16.8% |
226.5 | +17.0% | |
223.4 | +18.0% | |
1,764.6 | +21.6% | |
US | 1,432.3 | +23.2% |
332.3 | +14.9% | |
328.0 | +5.5% | |
145.5 | +4.8% | |
131.3 | +4.1% |
Guillaume TEXIER, Chief Executive Officer, said: “Rexel’s strong start to the year demonstrates that we continue to benefit from solid underlying demand and electrification trends, which should accelerate in the current environment. It also highlights our ability to transform supply chain tensions into an opportunity to help customers navigate product shortages, while ensuring pass-through of supplier price increases. In this context, notwithstanding the current geopolitical and economic uncertainties, we are confident that we will achieve our 2022 objectives. We will present our medium-term roadmap at our Capital Markets Day on June 16.” |
SALES REVIEW FOR THE PERIOD ENDED |
- Unless otherwise stated, all comments are on a constant and adjusted basis and, for sales, at same number of working days.
SALES
In Q1, sales were up +31.4% year-on-year on a reported basis and +16.0% on a constant and same-day basis, reflecting positive momentum in all three geographies.
Key figures (€m) | Q1 2022 | YoY change |
Sales on a reported basis | 4,377.4 | +31.4% |
On a constant and actual-day basis | +19.1% | |
On a constant and same-day basis | +16.0% |
In the first quarter
- A positive currency effect of €104.3m (i.e. +3.1% of Q1 2021 sales), mainly due to the appreciation of the US & Canadian dollars against the euro
- A positive net scope effect of €240.0m (i.e. +7.2% of Q1 2021 sales) mainly due to Mayer acquisition in the US
- A positive calendar effect of +3.1%, largely resulting from specific US accounting rules.
On a constant and same-day basis, sales were up +16.0%, as a result of:
- An excellent performance in
North America , with further recovery, and strong resilience inEurope on more difficult base effects, offsetting lower growth inAsia-Pacific as business recovered from the pandemic earlier than in other geographies - Strong underlying trends from electrification and growing demand for energy efficiency solutions in a context of rising energy costs, as illustrated by growth of product categories such as PV, EV or HVAC at rates above Group average
- A favorable pricing environment for both cable (4.1% contribution in Q1 2022 vs 2.9% in Q1 2021) and non-cable (9.1% contribution in the quarter) products, resulting from a carryover effect of price increases passed in 2021 and an additional rise recorded in 2022
- Further growth in digitalization in all three geographies, with digital sales now representing 25.5% of Group sales excluding Mayer, up +201bps compared to Q1 2021, or 23.6% of sales, up +177bps including Mayer, considering its low digital penetration. Trends were positive in
Europe (up to 35.0% of sales, an increase of +166bps),North America (up to 12.4% of sales, an increase of +304bps including Mayer) andAsia-Pacific (4.6% of sales, up +72bps).
In the quarter, the tensions on the supply chain remained unchanged and we don’t expect any improvement before the second part of the year, as visibility remains low (lockdown in
In the first quarter, sales in
Key figures (€m) | Q1 2022 | YoY change |
2,284.8 | +13.6% | |
865.5 | +10.4% | |
Scandinavia | 278.5 | +12.5% |
Benelux | 257.5 | +16.8% |
226.5 | +17.0% | |
223.4 | +18.0% | |
145.3 | +5.6% | |
129.3 | +16.7% | |
85.8 | +21.9% |
Overall in
- Sales in
France (38% of the region’s sales) were up +10.4%, with similar progression in all 3 end-markets. The quarter was marked by significant market outperformance and increased digital penetration (28.4% of sales, up 328bps). Service and EV activities contributed positively to the overall performance. - Sales in Scandinavia (12% of the region’s sales) were up +12.5%, with a slow start to the year, notably in
Sweden , due to the pandemic. Trends significantly accelerated in March. Q1 sales growth was largely driven by the residential & commercial markets and boosted by PV activity. - Benelux (11% of the region’s sales) grew by +16.8%, with strong demand in the residential market in Belux, boosted by robust growth from green products, now representing 10% of sales. Growth in
the Netherlands was also boosted by renewable energy products (PV/EV/HVAC up c. 40% yoy), in a context of rising energy prices. - Sales in
Germany (10% of the region’s sales) posted strong +17.0% growth, supported by residential & industrial markets. Residential was boosted by PV demand (up 190%, contributing for 550bps). Industrial demand was driven by metal, energy & water markets offsetting low demand in automotive. - In the
UK (10% of the region’s sales), sales increased by +18.0%, with a strong demand in residential and commercial markets. The pipeline is robust in all 3 markets.
Disposal of our Russian activity
With circa €10m of revenues generated in 2021,
Following recent events in the region,
In the first quarter, sales in
Key figures (€m) | Q1 2022 | YoY change |
1,764.6 | +21.6% | |
Total US | 1,432.3 | +23.2% |
Mayer | +27.5% | |
US excl. Mayer | +22.1% | |
Gulf Central | +42.0% | |
Mountain Plains | +33.9% | |
Northwest | +24.6% | |
+23.0% | ||
Southeast | +16.4% | |
+14.3% | ||
Midwest | +12.8% | |
Northeast | (0.6) % | |
332.3 | +14.9% |
In line with the Q4 21 trend,
- In the US (81% of the region’s sales), sales posted solid +23.2% growth on a same-day basis, with positive trends in all regions including the Northwest, despite a difficult base effect, and significant recovery in the Mountain Plains (robust demand in
Las Vegas andDenver ) and Gulf Central (recovery in Oil & Gas sector) regions. By market, all three end-markets grew at a similar pace with further positive development in commercial and residential and recovery from a lower base in industry. The backlog remains healthy, up +63% at end ofMarch 2022 yoy. Mayer is progressing well, up +27.5%, and the integration process is occurring smoothly. We are on track to achieve our upgraded synergy ambitions presented inFebruary 2022 . - In
Canada (19% of the region’s sales), sales grew by +14.9% on a same-day basis, Q1 performance was driven by the industrial end-market up c. 20%, contributing for c. 900bps notably boosted by robust demand in oil & gas and mining.
In the first quarter, sales in
Key figures (€m) | Q1 2022 | YoY change |
328.0 | +5.5% | |
131.3 | +4.1% | |
145.5 | +4.8% |
- In the Pacific (49% of the region’s sales), sales were up +5.5% on a constant and same-day basis. More specifically:
- In
Australia (82% of Pacific’s sales), sales increased by +4.1%, boosted by price increases, offsetting a slow start to the year, impacted by difficult weather conditions notably in the New South Wales & Queensland regions as well as Covid-related staff shortages.
- In
- In
Asia (51% of the region’s sales), sales increased by +5.5% on a constant and same-day basis:- In
China (86% of Asia’s sales), sales were up +4.8%. The acceleration was supported by demand from municipalities, renewables and infrastructure & transportation, offsetting the lack of demand in automotive and food & beverage as a result of chip shortages as well as the continuing pandemic situation. The quarter benefited from selling price increases. Orders are growing significantly. We anticipate the coming quarter to be impacted by the recent local lockdowns that took place in large cities.
- In
FY 2022 OUTLOOK |
We remain confident we will achieve our 2022 objectives despite geopolitical and macroeconomic uncertainties.
Leveraging our transformation and enhanced efficiency, we target for 2022, at comparable scope of consolidation and exchange rates*:
- Same-day sales growth of between 4% and 6%
- An adjusted EBITA1 margin above 6%
- Free cash flow conversion2 above 60%
* Assuming no severe deterioration of the sanitary environment
An updated strategic roadmap, will be presented at a Capital Markets Day to be held at our Group's biggest branch in
1 Excluding (i) amortization of PPA and (ii) the non-recurring effect related to changes in copper-based cable prices.
2 FCF Before interest and tax/EBITDAaL
NB: The estimated impacts per quarter of (i) calendar effects by geography, (ii) changes in the consolidation scope and (iii) currency fluctuations (based on assumptions of average rates over the rest of the year for the Group's main currencies) are detailed in appendix 2.
CALENDAR |
July 28, 2022 First-half 2022 results
FINANCIAL INFORMATION |
A slideshow of the first quarter 2022 sales is available on the Group’s website.
ABOUT REXEL GROUP |
For more information, visit www.rexel.com/en
CONTACTS |
FINANCIAL ANALYSTS / INVESTORS
Ludovic DEBAILLEUX | +33 1 42 85 76 12 | ludovic.debailleux@rexel.com |
PRESS
Sara DU REAU | +33 6 60 31 77 72 | sara.dureau@rexel.com |
Brunswick: Thomas KAMM | +33 1 53 96 83 92 | tkamm@brunswickgroup.com |
GLOSSARY |
REPORTED EBITA (Earnings Before Interest, Taxes and Amortization) is defined as operating income before amortization of intangible assets recognized upon purchase price allocation and before other income and other expenses.
ADJUSTED EBITA is defined as Reported EBITA excluding the estimated non-recurring net impact from changes in copper-based cable prices.
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is defined as operating income before depreciation and amortization and before other income and other expenses.
EBITDAaL is defined as EBITDA after deduction of lease payment following the adoption of IFRS16.
RECURRING NET INCOME is defined as net income restated for non-recurring copper effect, other expenses and income, non-recurring financial expenses, net of tax effect associated with the above items.
FREE CASH FLOW is defined as cash from operating activities minus net capital expenditure.
NET DEBT is defined as financial debt less cash and cash equivalents. Net debt includes debt hedge derivatives.
APPENDIX |
For appendix, please open the pdf file by clicking on the link at the end of the press release.
DISCLAIMER |
The Group is exposed to fluctuations in copper prices in connection with its distribution of cable products. Cables accounted for approximately 17% of the Group's sales and copper accounts for approximately 60% of the composition of cables. This exposure is indirect since cable prices also reflect copper suppliers' commercial policies and the competitive environment in the Group's markets. Changes in copper prices have an estimated so-called "recurring" effect and an estimated so called "non-recurring" effect on the Group's performance assessed as part of the monthly internal reporting process of the
The impact of these two effects is assessed for as much of the Group’s total cable sales as possible, over each period. Group procedures require that entities that do not have the information systems capable of such exhaustive calculations to estimate these effects based on a sample representing at least 70% of the sales in the period. The results are then extrapolated to all cables sold during the period for that entity. Considering the sales covered. the
This document may contain statements of future expectations and other forward-looking statements. By their nature, they are subject to numerous risks and uncertainties, including those described in the Universal Registration Document registered with the French Autorité des Marchés Financiers (AMF) on
The market and industry data and forecasts included in this document were obtained from internal surveys, estimates, experts and studies, where appropriate, as well as external market research, publicly available information and industry publications.
This document includes only summary information and must be read in conjunction with Rexel’s Universal Registration Document registered with the AMF on
Attachment
- PR - First-quarter 2022 Sales
Source:
2022 GlobeNewswire, Inc., source