Organic sales down 4.3% in Q3 in a persistently challenging environment
Solid gross margin in Q3, adjusted EBITA margin impacted by lower sales and one-offs
Full-year financial targets confirmed, at the low-end of the February guidance
New Executive Committee with an increased representation of Country/Region Managers
SALES OF €3.194bn IN Q3
Down 4.3% on an organic basis, including -0.6% from calendar and -0.9% from copper
Down 5.6% on a reported basis, including -1.6% from currency
ADJUSTED EBITA MARGIN OF 4.0% IN Q3
Solid gross margin of 23.9%, improvement in all three geographies
Adj. EBITA margin down 51bps, of which 21bps due to one-off effects and 30bps mainly reflecting the impact of lower sales on opex as a percentage of sales
FULL-YEAR FINANCIAL TARGETS CONFIRMED, AT THE LOW-END OF THE FEBRUARY GUIDANCE
NEW EXECUTIVE COMMITTEE WITH AN INCREASED REPRESENTATION OF COUNTRY/REGION MANAGERS
Patrick BERARD, Chief Executive Officer, said:
'Rexel's sales in the third quarter were impacted by a persistently challenging environment, particularly in the US, the UK and China.
Nevertheless, our gross margin improved in all geographies, while adjusted EBITA margin was down year-on-year, reflecting the impact of lower sales on operating costs as a percentage of sales, as well as non-recurring effects.
We confirm our guidance for the current year, at the low-end of the range given in February, on the basis of our performance over the first nine months of the year and our expectations for the last quarter.
We are actively pursuing the measures that will enable Rexel to improve structurally its sales momentum and operational efficiency. To this end and as a first step in our transformation program, we have appointed a new Executive Committee, with an increased representation of country/region managers.
As stated last July, we will present an update on Rexel's strategy and ambitions on February 13, 2017, at a meeting to be held in Paris.'
Rexel SA published this content on 28 October 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 28 October 2016 05:41:09 UTC.
Original documenthttp://www.rexel.com/en/medias/press-releases/third-quarter-nine-month-2016-results/
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Rexel is the world's leading professional distributor of electrical equipment. Present in 19 countries, the Group offers electrical products and solutions to professionals for buildings and for residential, industrial, and tertiary infrastructures, through a multi-brand network of 1,972 outlets. The products and solutions marketed by the group are in response to demands for electrical equipment, lighting, security, climate control, communication, industrial automation, and energy savings. The activity is organized around 3 markets:
- tertiary: malls, sports facilities, hospitals, airports, etc.;
- industry: system integrators, production site builders and equipment producers;
- residential: comfort, security, and home automation.
Net sales are distributed geographically as follows: Europe (50.2%), North America (43%) and Asia/Pacific (6.8%).