Rexel not only released results that lined up with guidance, but it also provided an update on its strategy and medium-term ambitions (below).
Full-Year 2016 Performance in Line with Guidance
- Sales of €13.2bn (USD $13.96bn), down 1.9% on a constant and same-day basis, including negative effects from copper (-0.9%) and Oil & Gas (-0.9%)
- Adjusted EBITA margin of 4.2%, down 27bps year-on-year
- Solid cash-flow at 69% of EBITDA before interest and tax and 42% of EBITDA after interest and tax
Organic Sales Stabilized in Q4, with Improvement in All Three Geographies
- Europe back to growth (+1.7% in Q4), mainly driven by France
- Sequential improvement in North America (-2.0% in Q4 after -6.0% in Q3), driven by the USA, and Asia-Pacific (-1.9% in Q4 after -5.6% in Q3), mainly driven by China
Strong 58% Increase in New Income from Continuing Operations
Stable Proposed Dividend of €0.40 (USD $0.42) Per Share Payable in Cash
Patrick BERARD, Chief Executive Officer, said:
"Our performance in 2016 was in line with guidance, despite an environment that remained challenging throughout most of the year.
"In the last quarter of the year, Rexel posted stable organic sales after three quarters of decline. Sales improved sequentially in all three geographies, mainly driven by France, reflecting improved activity in all end-markets; the USA, where Oil & Gas started to show signs of stabilization while construction activity remained solid; and China, thanks to improving industrial activity.
"This sequential improvement in sales trends and the strategic orientations that we will present today at our Capital Markets Day augur well for 2017. The outlook for the year, fully consistent with the medium-term ambitions that we will detail during the Capital Markets Day, targets a resumption of organic growth, with sales up in the low single digits, and a mid to high single-digit increase in adjusted EBITA, both on a constant and adjusted basis.
"We will propose a cash dividend of €0.40 (USD $0.42) per share, stable compared to last year and in line with our pay-out policy."
Visit Rexel's website to download a pdf release of FY 2016 results.
Rexel held a Capital Markets Day this week in Paris to provide an update on its strategy and medium-term ambitions:
"With a strong footprint in key geographies, a broad and valuable base of customers and key partnerships with global manufacturers, Rexel is well positioned to seize opportunities in the fast-changing world of energy.
"The strategy that we will implement in the coming years will focus on three priorities: accelerate organic growth to gain market share, increase selectivity in capital allocation and reduce indebtedness and, lastly, improve operational and financial performance.
"Together with my new Executive Committee and committed teams, we will make Rexel a more focused, stronger and more profitable company that delivers growth and creates value for all stakeholders."
Visit Rexel's website to download a pdf release of strategy announcements at 2017 Capital Markets Day.