REXEL :Third-Quarter & 9-month 2014 results (unaudited)
(Thomson Reuters ONE) -
THIRD-QUARTER & 9-MONTH 2014 RESULTS (unaudited)
SOLID SALES GROWTH IN Q3
Q3 ADJUSTED EBITA MARGIN AT 5.0% OF SALES
FULL-YEAR 2014 TARGETS CONFIRMED
SOLID SALES GROWTH IN Q3, NOTABLY IN NORTH AMERICA
* Reported sales up 2.2% in the quarter to ?3.3bn
* Strong sequential improvement in constant and same-day sales, up 2.2% in the
quarter (vs. +0.6% in Q2), of which:
* Europe up 1.3% (vs. flat in Q2): broadly stable in France (vs. -3.4% in
Q2) and rest of Europe up 2.0% (vs. +1.8% in Q2)
* North America up 5.5%: strong sequential improvement in the USA (up
5.7% vs. +2.8% in Q2) and continued recovery in Canada (up 4.7% vs.
+3.5% in Q2)
Q3 ADJUSTED EBITA MARGIN AT 5.0% OF SALES
* Continued unfavorable geographic and project mix effects on gross margin
* Impact of transition costs linked to business transformation and increased
investments to accelerate profitable growth
FULL-YEAR 2014 TARGETS CONFIRMED
-------------------------------------+--------------------+--------------------
Key figures(1) | Q3 2014 YoY change| 9m 2014 YoY change
-------------------------------------+--------------------+--------------------
Sales |?3,325.6m |?9,613.2m
| |
On a reported basis | +2.2%| -1.1%
| |
On a constant and actual-day basis | +1.8%| +0.8%
| |
On a constant and same-day basis | +2.2%| +1.1%
-------------------------------------+--------------------+--------------------
Adjusted EBITA | ?165.0m -8.6%| ?469.2m -5.9%
| |
As a percentage of sales | 5.0% | 4.9%
| |
Change in bps as a % of sales | -50bps | -30bps
-------------------------------------+--------------------+--------------------
Reported EBITA | ?167.9m -5.7%| ?465.8m -6.0%
-------------------------------------+--------------------+--------------------
Operating income | ?148.1m -8.6%| ?380.5m -1.1%
-------------------------------------+--------------------+--------------------
Net income | ?67.1m -14.4% | ?157.5m +5.2%
-------------------------------------+--------------------+--------------------
Free cash flow before interest and| ?26.0m n/m| ?36.2m n/m
tax | |
-------------------------------------+--------------------+--------------------
Net debt at end of period |?2,654.8m +0.4%|?2,654.8m +0.4%
-------------------------------------+--------------------+--------------------
(1) See definition in the Glossary section of this document
Rudy PROVOOST, Chairman and CEO, said:
"Rexel's third quarter sales showed positive momentum, particularly in North
America, while the operating margin was impacted by unfavorable mix effects on
gross margin, transition costs related to the implementation of our business
transformation program and increased investments to accelerate profitable growth
in strategic areas.
Our year-to-date performance puts us on track to achieve the full-year targets
defined in our July outlook and we remain determined to realize our medium-term
goals and implement our strategy focused on improving commercial effectiveness,
enhancing customer centricity, driving operational excellence and strengthening
our business portfolio."
FINANCIAL REVIEW FOR THE PERIOD ENDED SEPTEMBER 30, 2014
4. Financial statements as of September 30, 2014 were authorized for issue by
the Board of Directors held on October 28, 2014.
5. Financial statements as of September 30, 2013 have been restated for changes
in accounting policies, following the adoption of IFRIC Interpretation 21
"levies"; this restatement represented a decrease of respectively ?1.8
million and ?1.2 million in operating income and net income. This impact
results from the timing difference in the liability recognition of certain
levies and reverses over the next quarter to fade over the full fiscal year.
6. The following terms: EBITA, Adjusted EBITA, EBITDA, Free Cash Flow and Net
Debt are defined in the Glossary section of this document.
7. Unless otherwise stated, all comments are on a constant and adjusted basis
and, for sales, at same number of working days.
SALES
In Q3 2014, Rexel posted sales growth of 2.2% on a constant and same-day basis,
representing a strong sequential improvement over the 0.6% recorded in Q2. This
improvement was driven by better performance in the Group's two largest regions,
Europe and North America.
On a reported basis, sales were also up by 2.2%, as the currency effect, which
was negative in Q1 and Q2, was broadly flat in Q3 and the positive net scope
effect offset the negative calendar effect.
In Q3 2014, Rexel posted sales of ?3,325.6 million, up 2.2% both on a constant
and same-day basis and on a reported basis.
Excluding the 0.3% negative impact due to the change in copper-based cable
prices, sales were up 2.4% on a constant and same-day basis, vs. 1.3% in the
previous quarter.
The 2.2% rise in sales on a reported basis included:
* A very limited negative currency effect of ?2.6 million (-0.1% of sales),
compared to the significant negative effect recorded in Q1 (-3.6%) and Q2 (-
3.3%),
* A positive net effect of ?13.9 million from changes in the scope of
consolidation (+0.4% of sales), mainly reflecting last year's acquisitions
of Lenn International in Singapore and Quality Trading in Thailand and this
year's acquisition of Elevite in Switzerland,
* A slightly negative calendar effect of 0.4 percentage points.
In 9m 2014, Rexel posted sales of ?9,613.2 million, up 1.1% on a constant and
same-day basis and down 1.1% on a reported basis.
Excluding the 0.7% negative impact due to the change in copper-based cable
prices, sales were up 1.7% on a constant and same-day basis.
The 1.1% drop in sales on a reported basis reflected:
* A negative currency effect of ?223.8 million (mainly due to the depreciation
of the US, Canadian and Australian dollars against the euro),
* A positive net effect of ?38.1 million from changes in the scope of
consolidation (+0.4% of sales), mainly reflecting last year's acquisitions
of Lenn International in Singapore and Quality Trading in Thailand and this
year's acquisition of Elevite in Switzerland,
* A slightly negative calendar effect of 0.3 percentage points.
Europe (55% of Group sales): up 1.3% in Q3 and up 1.0% in 9m on a constant and
same-day basis
In the third quarter, sales in Europe were up 1.3% on a constant and same-day
basis.
* In France, sales were broadly stable in the quarter (-0.2%). This represents
a significant sequential improvement over the 3.4% drop posted in Q2, which
was impacted by very weak activity in May (notably in cables). Rexel's Q3
performance represents solid outperformance of the French market and
reflects continued resilience in a very challenging environment. It is
largely driven by large projects and successful implementation of the multi-
energy offer. In the nine months, sales were down by 1.3% on a constant and
same-day basis.
* In the UK, sales grew by 1.7% in the quarter, in line with the 1.8% increase
posted in Q2. Excluding the impact of branch restructuring, constant and
same-day sales increased by 2.9% year-on-year. In the nine months, sales
were up 1.4% on a constant and same-day basis and up 3.3%, excluding the
impact of branch restructuring.
* In Germany, sales were broadly stable in the quarter (-0.3% after a 1.2%
drop in Q2). In the nine months, sales were also broadly stable (-0.1%) on a
constant and same-day basis.
* In Scandinavia, sales grew by 6.8% in the quarter (after a 6.1% increase in
Q2), reflecting solid growth in the three countries: Sweden was up 4.6%,
Norway up 7.6% and Finland up 9.8%. In the nine months, sales were up 6.6%
on a constant and same-day basis.
* In Belgium, sales were slightly up (+0.4%) in the quarter, despite a sharp
20% drop in photovoltaic sales. Excluding photovoltaic sales, constant and
same day growth was 1.1%. In the nine months, sales were up 2.7% on a
constant and same-day basis and up 4.8%, excluding photovoltaic sales.
* In the Netherlands, sales were down 7.3% in the quarter (after -9.4% in Q2).
In the nine months, sales were down 5.7% on a constant and same-day basis.
* Switzerland and Austria posted sales growth of respectively 1.5% and 1.9%.
In the nine months, the two countries posted sales growth of respectively
1.6% and 2.3% on a constant and same-day basis.
* Southern European countries were up 3.7% in the quarter (slightly above the
3.2% growth posted in Q2). Spain posted a 6.6% increase, mainly driven by
export activity, and Portugal grew by a solid 12.4%, while Italy dropped by
3.5%. In the nine months, Southern European countries posted slight growth
of 0.5% on a constant and same-day basis.
North America (34% of Group sales): up 5.5% in Q3 and up 2.1% in 9m on a
constant and same-day basis
In the third quarter, sales in North America were up 3.7% on a reported basis
including a currency effect that remained slightly negative over the quarter (a
limited ?15.5m in Q3, after ?62.7m in Q1 and ?72.9m in Q2) but they were up
5.5% on a constant and same-day basis. This 5.5% growth represented a strong
sequential improvement over the 3.0% increase recorded in Q2 and this sequential
improvement was reflected both in the US (+5.7% after +2.8% in Q2) and in Canada
(+4.7% after +3.5% in Q2). In the nine months, sales were up 2.1% on a constant
and same-day basis.
* In the US (c. 75% of the region's sales), sales increased by 5.7% in the
quarter, reflecting solid project sales led by large contractors and a
strong increase in photovoltaic sales, which doubled year-on-year (from
?10.3 million in Q3 2013 to ?20.9 million in Q3 2014).
* In Canada (c. 25% of the region's sales), sales were up 4.7% in the quarter,
also driven by the gradual recovery in project activity.Excluding sales to
the mining industry, which dropped year-on-year by 14%, constant and same-
day sales in the quarter grew by 6.0%.
Asia-Pacific (9% of Group sales): down 2.6% in Q3 and down 0.9% in 9m on a
constant and same-day basis
In the third quarter, sales in Asia-Pacific were up 2.4% on a reported basis,
including a positive effect of ?3.7m from currencies (primarily attributable to
the appreciation of the Australian and New Zealand dollars against the euro and
that compares to negative effects of ?30.0m in Q1 and ?24.3m in Q2) and a
positive effect of ?14.3m from the acquisition of Lenn International in
Singapore and Quality Trading in Thailand. On a constant and same-day basis,
sales were down 2.6%.
* In Australia (c. 45% of the region's sales), sales were down 5.0% in the
quarter, still impacted by challenging macroeconomic conditions and branch
closures, but nevertheless posting a sequential improvement over the two
previous quarters (-7.3% in Q1 and -7.9% in Q2). Excluding the impact of
branch closures, sales were down 2.7%. In the nine months, sales were down
6.7% on a constant and same-day basis and down 5.1%, excluding the impact of
branch closures.
* In China (c. 35% of the region's sales), sales were down 3.7% in the
quarter, after a 25.9% increase in Q1 and flat sales in Q2. Rexel's strong
exposure to project activity and industrial automation and very limited
exposure to the residential end-market contribute to more volatile quarterly
performances. In addition, this quarter's performance faced a more
comparable challenging base, as Q3 2013 saw strong double-digit sales growth
(+15.2%). In the nine months, sales were up 5.1% on a constant and same-day
basis.
* In South-East Asia (c. 10% of the region's sales), sales increased by 6.1%
in the quarter.
* In New Zealand (c. 10% of the region's sales), sales were down 3.5% in the
quarter.
Latin America (2% of Group sales): down 7.0% in Q3 and down 3.7% in 9m on a
constant and same-day basis
In the third quarter, sales in Latin America were down 9.8% on a reported basis,
including a negative currency effect of ?2.2m (mainly attributable to the
depreciation of the Chilean peso against the euro). On a constant and same-day
basis, sales decreased by 7.0%, reflecting mixed performance:
* In Brazil (c. 60% of the region's sales), sales were down 7.4% in the
quarter (after -16.9% in Q2, which was significantly impacted by lower
activity during the World Cup). This poor performance reflects the slowdown
in the Brazilian economy. In the nine months, sales were down 9.3% on a
constant and same-day basis.
* In Chile (c. 30% of the region's sales), sales were down 10.6% in the
quarter, reflecting a more challenging comparable base than in the previous
quarters (Q3 2013 recorded sales growth of 5.4%, while Q1 and Q2 2013 saw
declines of 20.3% and 25.0% respectively). Excluding sales to the mining
industry, which dropped by 42% year-on-year, constant and same-day sales in
the quarter grew by 5.3%.
* In Peru (c. 10% of the region's sales), sales increased by 8.4% in the
quarter and by 11.7% in the nine months, driven by solid economic growth and
project activity.
PROFITABILITY
Adjusted EBITA of ?165.0 million in Q3, at 5.0% of sales, down 50bps year-on-
year
Adjusted EBITA of ?469.2 million in 9m, at 4.9% of sales, down 30bps year-on-
year
Performance in Q3 and over the 9 months consistent with adjusted EBITA margin
target of at least 5.0% of sales in the full-year
In the third quarter, adjusted EBITA margin stood at 5.0%, down 50 basis points
year-on-year.
* Adjusted gross margin was down 50 basis points, from 24.3% in Q3 2013 to
23.8% in Q3 2014, reflecting continued unfavorable geographic and project
mix effects,
* Distribution and administrative expenses (including depreciation) as a
percentage of sales were flat at 18.8% of sales, reflecting solid cost
control and including a positive one-off effect of ?4.8 million from a
change impacting health and life insurance costs in the USA, effective on
January 1(st), 2015.
In the nine months, adjusted EBITA margin stood at 4.9%, down 30 basis points
year-on-year.
* Adjusted gross margin was down 30 basis points, from 24.7% in 9m 2013 to
24.4% in 9m 2014,
* Distribution and administrative expenses (including depreciation) as a
percentage of sales were flat at 19.5% of sales.
Rexel's performance in Q3 and over the nine months puts it on track to achieve
this full-year target of an adjusted EBITA margin of at least 5.0% of sales, as
announced on July 30.
Reported EBITA stood at ?167.9 million in the third quarter, down 5.7% year-on-
year, and at ?465.8 million in the nine months, down 6.0% year-on-year.
NET INCOME
Reported net income of ?157.5 million in the nine months, up 5.2% year-on-year
In the nine months, operating income stood at ?380.5 million, down 1.1% year-on-
year.
* Amortization of intangibles resulting from purchase price allocation
amounted to ?11.9 million (vs. ?15.8 million in 9m 2013).
* Other income and expenses amounted to a net charge of ?73.4 million (vs. a
net charge of ?94.8 million in 9m 2013). They included ?36.0 million of
restructuring costs (vs. ?44.0 million in 9m 2013) and ?30.2 million of
goodwill impairment (vs. ?44.0 million in 9m 2013), mainly related to
Brazilian operations.
In the nine months, net financial expenses amounted to ?138.5 million (vs.
?163.5 million in 9m 2013 that included a one-off cost of ?23.5 million relating
to refinancing operations). The average effective interest rate was reduced
year-on-year from 5.6% of gross debt in 9m 2013 to 5.0% in 9m 2014.
In the nine months, income tax represented a charge of ?84.4 million. The
effective tax rate was 34.9% (vs. 32.5% in 9m 2013), in line with the effective
tax rate in the first six months of the year.
As a result of the reduced restructuring and financial expenses and lower
goodwill impairment, partly offset by the rise in tax rate, net income in the
nine months was up 5.2%, at ?157.5 million (vs. ?149.7 million in 9m 2013).
NET DEBT
Broadly stable net debt year-on-year (?2,655 million at September 30, 2014 vs.
?2,644 million at September 30, 2013)
In the nine months, free cash flow before interest and taxwas an inflow of ?36.2
million, of which ?26.0 million was generated during Q3. The 9-month net inflow
included:
* Gross capital expenditure of ?68.1 million (vs. ?67.8 million in 9m 2013),
* An outflow of ?363.9 million from change in working capital (vs. an outflow
of ?257.1 million in 9m 2013).
At September 30, net debt stood at ?2,654.8 million, broadly stable (+0.4%)
year-on-year (vs. 2,643.9 million at September 30, 2013).
It took into account:
* ?115.5 million of net interest paid,
* ?68.4 million of income tax paid,
* ?31.9 million of net financial investments,
* ?65.6 million of dividend paid in July (the 2014 dividend was paid 30% in
cash and 70% in shares),
* ?117.3 million of unfavorable currency effect, of which ?99.5 million in Q3.
ACQUISITION OF "4 KNIGHTS INTERNATIONAL" IN THAILAND, REINFORCING POSITION IN
OIL & GAS AND IN SOUTH-EAST ASIA
Rexel announces today the acquisition of the Thai company "4 Knights
International", reinforcing the Group's position in the key Oil & Gas segment,
in line with the Group's high-growth initiatives, and strengthening Rexel
presence in South-East Asia.
"4 Knights International" was founded in 2005, with headquarters in Bangkok,
and holds a leading position in the downstream Oil & Gas onshore segment. With
2 branches in Bangkok and Rayong, regions that concentrate most of the Oil & Gas
onshore activities, "4 Knights International" generated annual sales of c. ?10
million in 2013 and posted profitability above Group average. This is Rexel's
second acquisition in Thailand, following that of Quality Trading, a lighting
specialist, at the end of 2013.
FULL-YEAR 2014 TARGETS CONFIRMED
Rexel's third-quarter performance puts it on track to achieve its full-year
targets, as presented on July 30:
* Broadly stable sales year-on-year, on a constant and same-day basis,
* Adjusted EBITA margin of at least 5.0% of sales,
* Solid free cash-flow:
* Of at least 75% of EBITDA, before interest and tax,
* Of around 40% of EBITDA, after interest and tax.
In addition, Rexel confirms its cash allocation policy of paying out a dividend
representing at least 40% of recurring net income, while further improving the
balance sheet and investing in targeted acquisitions.
CALENDAR
February 12, 2015 Fourth-quarter and full-year 2014
results
FINANCIAL INFORMATION
The financial report for the period ended September 30, 2014 is available on the
Group's website (www.rexel.com), in the "Regulated information" section, and has
been filed with the French Autorité des Marchés Financiers.
A slideshow of the third-quarter & 9-month 2014 results is also available on the
Group's website.
ABOUT REXEL GROUP
Rexel, a global leader in the professional distribution of products and services
for the energy world, addresses three main markets - industrial, commercial and
residential. The Group supports customers around the globe, wherever they are,
to create value and run their businesses better. With a network of some 2,300
branches in 38 countries, and c. 30,000 employees, Rexel's sales were ?13
billion in 2013.
Rexel is listed on the Eurolist market of Euronext Paris (compartment A, ticker
RXL, ISIN code FR0010451203). It is included in the following indices: SBF 120,
CAC Mid 100, CAC AllTrade, CAC AllShares, FTSE EuroMid, STOXX600. Rexel is also
part of the following SRI indices: DJSI Europe, FTSE4Good Europe & Global, EURO
STOXX Sustainability, Euronext Vigeo Europe 120 and ESI Excellence Europe.
Finally, Rexel is included on the Ethibel EXCELLENCE Investment Registers in
recognition of its performance in corporate social responsibility (CSR). For
more information, visit Rexel's web site at www.rexel.com
CONTACTS
FINANCIAL ANALYSTS / INVESTORS
Marc MAILLET +33 1 42 85 76 12 marc.maillet(at)rexel.com
Florence MEILHAC +33 1 42 85 57 61 florence.meilhac(at)rexel.com
PRESS
Pénélope LINAGE +33 1 42 85 76 28 penelope.linage(at)rexel.com
Brunswick: Thomas KAMM +33 1 53 96 83 92 tkamm(at)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 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.
RECURRING NET INCOME is defined as net income adjusted 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.
APPENDICES
Appendix 1: Segment reporting - Constant and adjusted basis*
* Constant and adjusted = at comparable scope of consolidation and exchange
rates, excluding the non-recurring effect related to changes in copper-based
cables price and before amortization of purchase price allocation; the non-
recurring effect related to changes in copper-based cables price was, at the
EBITA level:
- a loss of ?2.7 million in Q3 2013 and a profit of ?2.9 million in Q3 2014,
- a loss of ?13.3 million in 9m 2013 and a loss of ?3.4 million in 9m 2014.
GROUP
+--------------------------+-------+-------+-------+---------+---------+-------+
| Constant and |Q3 2013|Q3 2014|Change | 9m 2013 | 9m 2014 |Change |
| adjusted basis (?m) | | | | | | |
+--------------------------+-------+-------+-------+---------+---------+-------+
|Sales |3,266.4|3,325.6| +1.8%| 9,538.0| 9,613.2| +0.8%|
| | | | | | | |
| on a constant basis | | | | | | |
| and same days | | | +2.2%| | | +1.1%|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Gross profit | 795.1| 790.3| -0.6%| 2,360.3| 2,346.8| -0.6%|
| | | | | | | |
| as a % of sales | 24.3%| 23.8%| -50bps| 24.7%| 24.4%| -30bps|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Distribution & adm. | | | | | | |
|expenses (incl. | | | | | | |
|depreciation) |(614.5)|(625.3)| +1.8%|(1,861.5)|(1,877.6)| +0.9%|
+--------------------------+-------+-------+-------+---------+---------+-------+
|EBITA | 180.5| 165.0| -8.6%| 498.8| 469.2| -5.9%|
| | | | | | | |
| as a % of sales | 5.5%| 5.0%| -50bps| 5.2%| 4.9%| -30bps|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Headcount (end of period) | 30,216| 29,855| -1.2%| | | |
+--------------------------+-------+-------+-------+---------+---------+-------+
EUROPE
+--------------------------+-------+-------+-------+---------+---------+-------+
| Constant and |Q3 2013|Q3 2014|Change | 9m 2013 | 9m 2014 |Change |
| adjusted basis (?m) | | | | | | |
+--------------------------+-------+-------+-------+---------+---------+-------+
|Sales |1,750.7|1,764.6| +0.8%| 5,230.7| 5,272.6| +0.8%|
| | | | | | | |
| on a constant basis | | | | | | |
| and same days | | | +1.3%| | | +1.0%|
| | | | | | | |
|o/w France | 565.3| 554.4| -1.9%| 1,775.6| 1,752.0| -1.3%|
| | | | | | | |
| on a constant basis | | | | | | |
| and same days | | | -0.2%| | | -1.3%|
| | | | | | | |
| United Kingdom | 263.1| 267.5| +1.7%| 751.0| 761.5| +1.4%|
| | | | | | | |
| on a constant basis | | | | | | |
| and same days | | | +1.7%| | | +1.4%|
| | | | | | | |
| Germany | 211.4| 210.8| -0.3%| 602.1| 596.8| -0.9%|
| | | | | | | |
| on a constant basis | | | | | | |
| and same days | | | -0.3%| | | -0.1%|
| | | | | | | |
| Scandinavia | 208.8| 223.0| +6.8%| 620.0| 659.5| +6.4%|
| | | | | | | |
| on a constant basis | | | | | | |
| and same days | | | +6.8%| | | +6.6%|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Gross profit | 463.3| 465.9| +0.5%| 1,420.0| 1,426.3| +0.4%|
| | | | | | | |
| as a % of sales | 26.5%| 26.4%| -5bps| 27.1%| 27.1%| -10bps|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Distribution & adm. | | | | | | |
|expenses (incl. | | | | | | |
|depreciation) |(349.2)|(356.7)| +2.1%|(1,092.1)|(1,103.0)| +1.0%|
+--------------------------+-------+-------+-------+---------+---------+-------+
|EBITA | 114.1| 109.2| -4.3%| 327.9| 323.2| -1.4%|
| | | | | | | |
| as a % of sales | 6.5%| 6.2%| -30bps| 6.3%| 6.1%| -15bps|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Headcount (end of period) | 16,847| 16,682| -1.0%| | | |
+--------------------------+-------+-------+-------+---------+---------+-------+
NORTH AMERICA
+--------------------------+-------+-------+-------+---------+---------+-------+
| Constant and |Q3 2013|Q3 2014|Change | 9m 2013 | 9m 2014 |Change |
| adjusted basis (?m) | | | | | | |
+--------------------------+-------+-------+-------+---------+---------+-------+
|Sales |1,115.6|1,176.2| +5.4%| 3,204.2| 3,257.3| +1.7%|
| | | | | | | |
| on a constant basis | | | | | | |
| and same days | | | +5.5%| | | +2.1%|
| | | | | | | |
|o/w United States | 814.6| 861.1| +5.7%| 2,358.0| 2,400.8| +1.8%|
| | | | | | | |
| on a constant basis | | | | | | |
| and same days | | | +5.7%| | | +2.4%|
| | | | | | | |
| Canada | 300.9| 315.1| +4.7%| 846.2| 856.5| +1.2%|
| | | | | | | |
| on a constant basis | | | | | | |
| and same days | | | +4.7%| | | +1.2%|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Gross profit | 251.0| 250.2| -0.3%| 711.8| 706.3| -0.8%|
| | | | | | | |
|as a % of sales | 22.5%| 21.3%|-120bps| 22.2%| 21.7%| -50bps|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Distribution & adm. | | | | | | |
|expenses (incl. | | | | | | |
|depreciation) |(188.0)|(192.6)| +2.4%| (541.6)| (557.0)| +2.8%|
+--------------------------+-------+-------+-------+---------+---------+-------+
|EBITA | 63.0| 57.6| -8.6%| 170.1| 149.3| -12.2%|
| | | | | | | |
| as a % of sales | 5.6%| 4.9%| -70bps| 5.3%| 4.6%| -70bps|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Headcount (end of period) | 8,644| 8,544| -1.2%| | | |
+--------------------------+-------+-------+-------+---------+---------+-------+
ASIA-PACIFIC
+--------------------------+-------+-------+-------+---------+---------+-------+
| Constant and |Q3 2013|Q3 2014|Change | 9m 2013 | 9m 2014 |Change |
| adjusted basis (?m) | | | | | | |
+--------------------------+-------+-------+-------+---------+---------+-------+
|Sales | 330.0| 319.5| -3.2%| 903.9| 892.0| -1.3%|
| | | | | | | |
| on a constant basis | | | | | | |
| and same days | | | -2.6%| | | -0.9%|
| | | | | | | |
|o/w China | 107.9| 102.4| -5.1%| 272.1| 283.0| +4.0%|
| | | | | | | |
| on a constant basis | | | | | | |
| and same days | | | -3.7%| | | +5.1%|
| | | | | | | |
| Australia | 150.3| 142.8| -5.0%| 430.3| 401.3| -6.7%|
| | | | | | | |
| on a constant basis | | | | | | |
| and same days | | | -5.0%| | | -6.7%|
| | | | | | | |
| New Zealand | 34.1| 32.9| -3.5%| 94.7| 92.3| -2.5%|
| | | | | | | |
| on a constant basis | | | | | | |
| and same days | | | -3.5%| | | -2.5%|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Gross profit | 65.1| 60.3| -7.3%| 181.8| 171.9| -5.4%|
| | | | | | | |
| as a % of sales | 19.7%| 18.9%| -85bps| 20.1%| 19.3%| -85bps|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Distribution & adm. | | | | | | |
|expenses (incl. | | | | | | |
|depreciation) | (50.5)| (50.9)| +0.9%| (144.7)| (146.3)| +1.1%|
+--------------------------+-------+-------+-------+---------+---------+-------+
|EBITA | 14.6| 9.4| -35.5%| 37.1| 25.6| -30.9%|
| | | | | | | |
| as a % of sales | 4.4%| 2.9%|-150bps| 4.1%| 2.9%|-125bps|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Headcount (end of period) | 2,914| 2,942| 1.0%| | | |
+--------------------------+-------+-------+-------+---------+---------+-------+
LATIN AMERICA
+--------------------------+-------+-------+-------+---------+---------+-------+
| Constant and |Q3 2013|Q3 2014|Change | 9m 2013 | 9m 2014 |Change |
| adjusted basis (?m) | | | | | | |
+--------------------------+-------+-------+-------+---------+---------+-------+
|Sales | 70.1| 65.2| -7.0%| 199.2| 191.1| -4.0%|
| | | | | | | |
| on a constant basis | | | -7.0%| | | -3.7%|
| and same days | | | | | | |
| | | | | | | |
|o/w Brazil | 42.4| 38.6| -8.8%| 122.6| 110.0| -10.2%|
| | | | | | | |
| on a constant basis | | | -7.4%| | | -9.3%|
| and same days | | | | | | |
| | | | | | | |
| Chile | 21.4| 19.7| -7.9%| 59.7| 62.2| +4.2%|
| | | | | | | |
| on a constant basis | | | -10.6%| | | +3.1%|
| and same days | | | | | | |
| | | | | | | |
| Peru | 6.4| 6.9| +8.4%| 16.9| 18.9| +11.7%|
| | | | | | | |
| on a constant basis | | | +8.4%| | | +11.7%|
| and same days | | | | | | |
+--------------------------+-------+-------+-------+---------+---------+-------+
|Gross profit | 15.7| 13.8| -11.7%| 46.8| 42.2| -9.8%|
| | | | | | | |
| as a % of sales | 22.3%| 21.2%|-120bps| 23.5%| 22.1%|-140bps|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Distribution & adm. | | | | | | |
|expenses (incl. | (15.5)| (15.1)| -2.6%| (45.5)| (44.2)| -2.9%|
|depreciation) | | | | | | |
+--------------------------+-------+-------+-------+---------+---------+-------+
|EBITA | 0.1| (1.3)| n.a.| 1.3| (2.0)| n.a.|
| | | | | | | |
| as a % of sales | 0.2%| -2.0%|-220bps| 0.6%| -1.1%|-170bps|
+--------------------------+-------+-------+-------+---------+---------+-------+
|Headcount (end of period) | 1,583| 1,430| -9.7%| | | |
+--------------------------+-------+-------+-------+---------+---------+-------+
Appendix 2: Extract of Financial Statements
Consolidated Income Statement
+----------------------------+-------+-------+------+---------+---------+------+
| Reported basis (?m) |Q3 2013|Q3 2014|Change| 9m 2013 | 9m 2014 |Change|
+----------------------------+-------+-------+------+---------+---------+------+
|Sales |3,255.1|3,325.6| +2.2%| 9,723.8| 9,613.2| -1.1%|
+----------------------------+-------+-------+------+---------+---------+------+
|Gross profit | 783.9| 793.2| +1.2%| 2,376.0| 2,343.0| -1.4%|
| | | | | | | |
| as a % of sales | 24.1%| 23.9%| | 24.4%| 24.4%| |
+----------------------------+-------+-------+------+---------+---------+------+
|Distribution & adm. expenses| | | | | | |
|(excl. depreciation) |(586.0)|(604.8)| +3.2%|(1,822.1)|(1,816.8)| -0.3%|
+----------------------------+-------+-------+------+---------+---------+------+
|EBITDA | 198.0| 188.5| -4.8%| 554.0| 526.1| -5.0%|
| | | | | | | |
| as a % of sales | 6.1%| 5.7%| | 5.7%| 5.5%| |
+----------------------------+-------+-------+------+---------+---------+------+
|Depreciation | (20.0)| (20.5)| | (58.6)| (60.4)| |
+----------------------------+-------+-------+------+---------+---------+------+
|EBITA | 178.0| 167.9| -5.7%| 495.4| 465.8| -6.0%|
| | | | | | | |
| as a % of sales | 5.5%| 5.0%| | 5.1%| 4.8%| |
+----------------------------+-------+-------+------+---------+---------+------+
|Amortization of intangibles | | | | | | |
|resulting from purchase | | | | | | |
|price allocation | (3.8)| (4.0)| | (15.8)| (11.9)| |
+----------------------------+-------+-------+------+---------+---------+------+
|Operating income bef. other | | | | | | |
|inc. and exp. | 174.1| 163.9| -5.9%| 479.5| 453.9| -5.3%|
| | | | | | | |
| as a % of sales | 5.3%| 4.9%| | 4.9%| 4.7%| |
+----------------------------+-------+-------+------+---------+---------+------+
|Other income and expenses | (12.2)| (15.8)| | (94.8)| (73.4)| |
+----------------------------+-------+-------+------+---------+---------+------+
|Operating income | 162.0| 148.1| -8.6%| 384.8| 380.5| -1.1%|
+----------------------------+-------+-------+------+---------+---------+------+
|Financial expenses (net) | (46.3)| (45.0)| | (163.5)| (138.5)| |
+----------------------------+-------+-------+------+---------+---------+------+
|Share of profit (loss) in | | | | | | |
|associates | 0.3| 0.0| | 0.4| 0.0| |
+----------------------------+-------+-------+------+---------+---------+------+
|Net income (loss) before | | | | | | |
|income tax | 116.0| 103.1|-11.2%| 221.6| 242.0| +9.2%|
+----------------------------+-------+-------+------+---------+---------+------+
|Income tax | (37.7)| (36.0)| | (71.9)| (84.5)| |
+----------------------------+-------+-------+------+---------+---------+------+
|Net income (loss) | 78.3| 67.1|-14.4%| 149.7| 157.5| +5.2%|
+----------------------------+-------+-------+------+---------+---------+------+
|Net income (loss) attr. to | | | | | | |
|non-controlling interests | 0.3| (0.3)| | 0.4| (0.3)| |
+----------------------------+-------+-------+------+---------+---------+------+
|Net income (loss) attr. to | | | | | | |
|equity holders of the parent| 78.0| 67.3|-13.8%| 149.3| 157.8| +5.6%|
+----------------------------+-------+-------+------+---------+---------+------+
Bridge Between Operating Income Before Other Income And Other Expenses And
Adjusted EBITA
+----------------------------------------------+-------+-------+-------+-------+
|in ?m |Q3 2013|Q3 2014|9m 2013|9m 2014|
+----------------------------------------------+-------+-------+-------+-------+
|Operating income before other income and other| | | | |
|expenses | 172.1| 163.9| 481.3| 453.9|
+----------------------------------------------+-------+-------+-------+-------+
|Adoption of IFRIC 21 | 2.0| | -1.8| |
| | | | | |
|Change in scope effects | 0.5| | 1.4| |
| | | | | |
|Foreign exchange effects | -0.6| | -11.3| |
| | | | | |
|Non-recurring effect related to copper | 2.7| -2.9| 13.3| 3.4|
| | | | | |
|Amortization of intangibles resulting from PPA| 3.8| 4| 15.8| 11.9|
+----------------------------------------------+-------+-------+-------+-------+
|Adjusted EBITA on a constant basis | 180.5| 165.0| 498.8| 469.2|
+----------------------------------------------+-------+-------+-------+-------+
Recurring Net Income
+---------------------------+-------+-------+------+-------+-------+------+
| In millions of euros|Q3 2013|Q3 2014|Change|9m 2013|9m 2014|Change|
+---------------------------+-------+-------+------+-------+-------+------+
|Reported net income | 78.3| 67.1|-14.4%| 149.7| 157.5| +5.2%|
| | | | | | | |
|Non-recurring copper effect| 2.7| -2.9| | 13.4| 3.4| |
| | | | | | | |
|Other expense & income | 12.2| 15.8| | 94.8| 73.4| |
| | | | | | | |
|Financial expense | 0.2| 0.0| | 21.3| 0.0| |
| | | | | | | |
|Tax expense | -4.3| -3.0| | -24.5| -12.4| |
| | | | | | | |
|Recurring net income | 89.1| 77.0|-13.7%| 254.9| 222.0|-13.0%|
+---------------------------+-------+-------+------+-------+-------+------+
Sales And Profitability By Segment
+---------------------+-------+-------+------+-------+-------+------+
| Reported basis (?m)|Q3 2013|Q3 2014|Change|9m 2013|9m 2014|Change|
+---------------------+-------+-------+------+-------+-------+------+
|Sales |3,255.1|3,325.6| +2.2%|9,723.8|9,613.2| -1.1%|
| | | | | | | |
| Europe |1,736.6|1,764.6| +1.6%|5,225.6|5,272.6| +0.9%|
| | | | | | | |
| North America |1,134.2|1,176.2| +3.7%|3,358.4|3,257.3| -3.0%|
| | | | | | | |
| Asia-Pacific | 312.0| 319.5| +2.4%| 914.8| 892.0| -2.5%|
| | | | | | | |
| Latin America | 72.3| 65.2| -9.8%| 225.0| 191.1|-15.0%|
+---------------------+-------+-------+------+-------+-------+------+
|Gross profit | 783.9| 793.2| +1.2%|2,376.0|2,343.0| -1.4%|
| | | | | | | |
| Europe | 454.2| 469.2| +3.3%|1,398.4|1,423.9| +1.8%|
| | | | | | | |
| North America | 252.3| 249.8| -1.0%| 738.2| 704.7| -4.5%|
| | | | | | | |
| Asia-Pacific | 61.7| 60.3| -2.2%| 187.2| 171.9| -8.2%|
| | | | | | | |
| Latin America | 15.8| 13.8|-12.2%| 52.3| 42.3|-19.2%|
+---------------------+-------+-------+------+-------+-------+------+
|EBITA | 178.0| 167.9| -5.7%| 495.4| 465.8| -6.0%|
| | | | | | | |
| Europe | 112.6| 112.4| -0.2%| 318.2| 321.0| +0.9%|
| | | | | | | |
| North America | 63.0| 57.3| -9.1%| 176.0| 148.0|-15.9%|
| | | | | | | |
| Asia-Pacific | 13.6| 9.4|-31.1%| 37.7| 25.6|-32.1%|
| | | | | | | |
| Latin America | 0.0| (1.3)| n.a.| 1.1| (1.9)| n.a.|
+---------------------+-------+-------+------+-------+-------+------+
Consolidated Balance Sheet(1)
+-----------------------------------------+-----------------+------------------+
|Assets (?m) |December 31, 2013|September 30, 2014|
+-----------------------------------------+-----------------+------------------+
|Goodwill | 4,111.2| 4,242.3|
| | | |
|Intangible assets | 1,038.3| 1,073.2|
| | | |
|Property, plant & equipment | 278.1| 282.5|
| | | |
|Long-term investments | 51.7| 48.7|
| | | |
|Deferred tax assets | 161.6| 139.8|
+-----------------------------------------+-----------------+------------------+
|Total non-current assets | 5,640.9| 5,786.5|
+-----------------------------------------+-----------------+------------------+
|Inventories | 1,389.5| 1,489.9|
| | | |
|Trade receivables | 2,062.8| 2,431.2|
| | | |
|Other receivables | 486.1| 514.7|
| | | |
|Assets classified as held for sale | 3.4| 3.8|
| | | |
|Cash and cash equivalents | 957.8| 623.7|
+-----------------------------------------+-----------------+------------------+
|Total current assets | 4,899.7| 5,063.3|
+-----------------------------------------+-----------------+------------------+
|Total assets | 10,540.5| 10,849.8|
+-----------------------------------------+-----------------+------------------+
+-----------------------------------------+-----------------+------------------+
|Liabilities (?m) |December 31, 2013|September 30, 2014|
+-----------------------------------------+-----------------+------------------+
|Total equity | 4,227.1| 4,330.1|
+-----------------------------------------+-----------------+------------------+
|Long-term debt | 2,908.2| 3,003.3|
| | | |
|Deferred tax liabilities | 172.1| 158.0|
| | | |
|Other non-current liabilities | 351.4| 414.5|
+-----------------------------------------+-----------------+------------------+
|Total non-current liabilities | 3,431.7| 3,575.8|
+-----------------------------------------+-----------------+------------------+
|Interest bearing debt & accrued interests| 216.8| 296.7|
| | | |
|Trade payables | 2,009.9| 2,009.4|
| | | |
|Other payables | 655.1| 637.8|
+-----------------------------------------+-----------------+------------------+
|Total current liabilities | 2,881.7| 2,943.9|
+-----------------------------------------+-----------------+------------------+
|Total liabilities | 6,313.4| 6,519.7|
+-----------------------------------------+-----------------+------------------+
|Total equity & liabilities | 10,540.5| 10,849.8|
+-----------------------------------------+-----------------+------------------+
1 Net debt includes Debt hedge derivatives for ?25.1m at December 31, 2013 and
?(16.0)m at September 30, 2014. It also includes accrued interest receivables
for ?(5.4)m at September 30,2014.
Change in Net Debt
+---------------------------------------+-------+-------+-------+-------+
|?m |Q3 2013|Q3 2014|9m 2013|9m 2014|
+---------------------------------------+-------+-------+-------+-------+
|EBITDA | 198.0| 188.5| 554.0| 526.1|
+---------------------------------------+-------+-------+-------+-------+
|Other operating revenues & costs((1)) | (18.0)| (18.2)| (60.5)| (54.2)|
+---------------------------------------+-------+-------+-------+-------+
|Operating cash flow | 180.0| 170.3| 493.5| 471.9|
+---------------------------------------+-------+-------+-------+-------+
|Change in working capital((2) ) | (83.1)|(119.8)|(257.1)|(363.9)|
| | | | | |
|Net capital expenditure, of which: | (23.4)| (24.5)| (48.3)| (71.9)|
| | | | | |
| Gross capital expenditure| (23.9)| (25.5)| (67.8)| (68.1)|
| | | | | |
| Disposal of fixed assets & other| 0.5| 1.0| 19.5| (3.8)|
+---------------------------------------+-------+-------+-------+-------+
|Free cash flow before interest and tax | 73.6| 26.0| 188.1| 36.2|
+---------------------------------------+-------+-------+-------+-------+
|Net interest paid / received((3) ) | (40.4)| (39.3)|(128.9)|(115.5)|
| | | | | |
|Income tax paid | (22.9)| (17.2)| (80.7)| (68.4)|
+---------------------------------------+-------+-------+-------+-------+
|Free cash flow after interest and tax | 10.3| (30.5)| (21.5)|(147.7)|
+---------------------------------------+-------+-------+-------+-------+
|Net financial investment | (2.3)| (22.7)| (4.4)| (31.9)|
| | | | | |
|Dividends paid | (53.0)| (65.5)| (53.1)| (65.6)|
| | | | | |
|Other | (0.6)| (30.2)| (28.9)|(100.3)|
| | | | | |
|Currency exchange variation | 30.6| (99.5)| 63.2|(117.3)|
+---------------------------------------+-------+-------+-------+-------+
|Decrease (increase) in net debt | (15.1)|(248.4)| (44.8)|(462.8)|
+---------------------------------------+-------+-------+-------+-------+
|Net debt at the beginning of the period|2,628.9|2,406.4|2,599.2|2,192.0|
+---------------------------------------+-------+-------+-------+-------+
|Net debt at the end of the period |2,643.9|2,654.8|2,643.9|2,654.8|
+---------------------------------------+-------+-------+-------+-------+
1 Includes restructuring outflows of ?45.8m in 9m 2013 and ?37.7m in 9m 2014
2 Working Capital adjustment to reflect supplier's payments scheduled on Dec.
31, 2013 and executed only on Jan. 2nd, 2014 for ?51.9m
3 Excluding settlement of fair value hedge derivatives
Appendix 3: Working Capital Analysis
+-----------------------------------+--------------------+--------------------+
| Constant basis | September 30, 2013 | September 30, 2014 |
+-----------------------------------+--------------------+--------------------+
| Net inventories | | |
| | | |
| as a % of sales 12 rolling months | 11.0% | 11.1% |
| | | |
| as a number of days | 50.7 | 50.2 |
+-----------------------------------+--------------------+--------------------+
| Net trade receivables | | |
| | | |
| as a % of sales 12 rolling months | 17.9% | 18.8% |
| | | |
| as a number of days | 58.1 | 59.6 |
+-----------------------------------+--------------------+--------------------+
| Net trade payables | | |
| | | |
| as a % of sales 12 rolling months | 14.6% | 15.0% |
| | | |
| as a number of days | 58.5 | 58.9 |
+-----------------------------------+--------------------+--------------------+
| Trade working capital | | |
| | | |
| as a % of sales 12 rolling months | 14.4% | 14.9% |
+-----------------------------------+--------------------+--------------------+
| Total working capital | | |
| | | |
| as a % of sales 12 rolling months | 13.4% | 14.2% |
+-----------------------------------+--------------------+--------------------+
Appendix 4: Headcount and branches by geography
+-----------------------+------------+------------+------------+--------------+
| FTEs at end of period | | | | Year-on-Year |
| | 30/09/2013 | 31/12/2013 | 30/09/2014 | Change |
| comparable | | | | |
+-----------------------+------------+------------+------------+--------------+
| Europe | 16,847 | 16,804 | 16,682 | -1.0% |
+-----------------------+------------+------------+------------+--------------+
| USA | 6,277 | 6,234 | 6,180 | -1.5% |
+-----------------------+------------+------------+------------+--------------+
| Canada | 2,367 | 2,379 | 2,364 | -0.1% |
+-----------------------+------------+------------+------------+--------------+
| North America | 8,644 | 8,613 | 8,544 | -1.2% |
+-----------------------+------------+------------+------------+--------------+
| Asia-Pacific | 2,914 | 2,883 | 2,942 | 1.0% |
+-----------------------+------------+------------+------------+--------------+
| Latin America | 1,583 | 1,552 | 1,430 | -9.7% |
+-----------------------+------------+------------+------------+--------------+
| Other | 227 | 232 | 258 | 13.7% |
+-----------------------+------------+------------+------------+--------------+
| Group | 30,216 | 30,083 | 29,855 | -1.2% |
+-----------------------+------------+------------+------------+--------------+
+-----------------------+------------+------------+------------+--------------+
| Branches | | | | Year-on-Year |
| | 30/09/2013 | 31/12/2013 | 30/09/2014 | Change |
| comparable | | | | |
+-----------------------+------------+------------+------------+--------------+
| Europe | 1,318 | 1,307 | 1,301 | -1.3% |
+-----------------------+------------+------------+------------+--------------+
| USA | 398 | 401 | 393 | -1.3% |
+-----------------------+------------+------------+------------+--------------+
| Canada | 217 | 216 | 210 | -3.2% |
+-----------------------+------------+------------+------------+---
Unternehmensinformation / Kurzprofil:
Datum: 29.10.2014 - 07:32 Uhr
Sprache: Deutsch
News-ID 347730
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