(AOF) – Rexel (-4.83% to 25.05 euros) is relegated among the biggest decliners in the SBF 120 following the downward revision of its 2024 objectives. The specialist in professional distribution of products and services for the world of energy took into account “the negative evolution of the environment during the summer, resulting in particular from a more difficult macro-economic environment in Europe; and the continued deterioration of families of electrification, particularly photovoltaics. He points the finger at central and northern Europe (Germany, Austria, Benelux).
Rexel now has an adjusted Ebita margin of around 5.9% whereas it previously targeted the lower end of an adjusted Ebita margin of between 6.3% and 6.6%. The group specifies that “cost reduction actions implemented quickly” make it possible to “partially mitigate the effect of lower sales volume and pressure on the margin”.
Constant day sales are expected to decline by between 2% and 2.5% whereas they were previously expected to be stable at worst and slightly growing at best. Rexel mentions “stable trends in North America and a drop of around 5% in Europe”.
Free cash flow conversion is now expected above 65% compared to the previous target of 60%.
Medium-term objectives unchanged
Rexel’s sales are up 2.1% in published data in the third quarter of 2024 to 4.76 billion euros “thanks to the 3.1% contribution from acquisitions, notably Wasco in Europe, and Talley and Electrical Supplies Inc in North America”. The market anticipated 4.86 billion euros. On the other hand, they fell by 2.1% on a constant number of days.
Rexel’s medium-term objectives remain unchanged. The specialist in the professional distribution of products and services for the energy world is targeting sales growth of between 5% and 8%, including 2% to 3% from targeted acquisitions. Rexel also expects an adjusted Ebita margin of more than 7%.
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