REXEL :Q1 2015 RESULTS (unaudited)
(Thomson Reuters ONE) -
Q1 2015 RESULTS (unaudited)
SALES UP 7.1% ON A REPORTED BASIS
AND BROADLY STABLE ON A CONSTANT AND SAME-DAY BASIS
RESILIENT GROSS MARGIN OF 24.7%
ADJUSTED EBITA MARGIN OF 4.0%
EARLY REDEMPTION OF THE 7% EUR SENIOR NOTES DUE DEC. 2018
DIVESTMENT OF OPERATIONS IN LATIN AMERICA
FULL-YEAR 2015 TARGETS CONFIRMED
SALES OF ?3,286.2m
* Up 7.1% on a reported basis, boosted by a positive currency effect of 8.0%
* Broadly stable on a constant and same-day basis (-0.4% including negative
copper effect; stable excluding negative copper effect)
RESILIENT GROSS MARGIN OF 24.7%
* Down 10bps year-on-year
ADJUSTED EBITA MARGIN OF 4.0%
* Down 45bps year-on-year: solid profitability in Europe while the results in
North America continued to be impacted by the ongoing business
transformation program in the US
EARLY REDEMPTION OF THE 7% EUR SENIOR NOTES DUE DEC. 2018
DIVESTMENT OF OPERATIONS IN LATIN AMERICA
FULL-YEAR 2015 TARGETS CONFIRMED
--------------------------------------------------------------------
Q1 2015 key figures(1) YoY change
--------------------------------------------------------------------
Sales ?3,286.2m
On a reported basis +7.1%
On a constant and actual-day basis -1.0%
On a constant and same-day basis -0.4%
--------------------------------------------------------------------
Adjusted EBITA ?130.1m -11.2%
As a percentage of sales 4.0%
Change in bps as a % of sales -45bps
--------------------------------------------------------------------
Reported EBITA ?125.7m -6.3%
--------------------------------------------------------------------
Operating income ?103.9m -6.7%
--------------------------------------------------------------------
Net income ?20.7m -52.0%
--------------------------------------------------------------------
Recurring net income ?50.0m -14.7 %
--------------------------------------------------------------------
Free cash flow before interest and tax ?(148.7)m vs. ?(82.7)m
--------------------------------------------------------------------
Net debt at end of period ?2,652.5m +10.3%
--------------------------------------------------------------------
(1) See definition in the Glossary section of this document
Rudy PROVOOST, Chairman of the Management Board and CEO, said:
"In the first quarter, Rexel's sales grew by 7.1%, supported by a strong
positive currency effect. On a constant and same-day basis, sales were broadly
stable. In this context, Rexel posted solid profitability in Europe while the
results in North America continued to be impacted by the ongoing business
transformation program in the US.
Moreover, we further optimized our financing, leading to a reduction of our
financial expenses through the early redemption of senior notes carrying a high
coupon. Regarding the full year, we are confirming our 2015 financial targets,
despite the challenging environment.
We are also announcing today the first step in our portfolio rationalization
program, announced on February 12, with the decision to divest our businesses in
Latin America and refocus on our three main geographies, Europe, North America
and Asia-Pacific."
FINANCIAL REVIEW FOR THE PERIOD ENDED MARCH 31, 2015
4. Financial statements as of March 31, 2015 were authorized for issue by the
Board of Directors on April 29, 2015. They are not audited by statutory
auditors.
5. The following terms: EBITA, Adjusted EBITA, EBITDA, Free Cash Flow and Net
Debt are defined in the Glossary section of this document.
6. Unless otherwise stated, all comments are on a constant and adjusted basis
and, for sales, at same number of working days.
SALES
In Q1 2015, Rexel posted stable sales on a constant and same-day basis,
excluding copper effect
In the first quarter, Rexel posted sales of ?3,286.2 million, up 7.1% on a
reported basis and down 0.4% on a constant and same-day basis. Excluding the
0.4% negative impact due to the change in copper-based cable prices, sales were
stable on a constant and same-day basis.
The 7.1% increase in sales on a reported basis reflected:
* A positive currency effect of ?245.3 million (mainly due to the appreciation
of the US dollar against the euro),
* A positive effect of ?6.5 million from recent acquisitions (Elevite in
Switzerland, 4 Knights in Thailand, Beijing Ouneng and Shanghai Maxqueen in
China),
* A negative calendar effect of 0.6 percentage points.
Europe (54% of Group sales): -0.1% on a constant and same-day basis
In the first quarter, sales in Europe increased by 1.5% on a reported basis and
were broadly stable on a constant and same-day basis (-0.1%).
* In France (33% of the region's sales), sales continued to reflect a
challenging environment. They were down 3.6% year-on-year, impacted by a
strong drop in cable sales (-5.9%). Excluding cables, sales were down 3.3%.
Over 2 years, sales improved sequentially: Q1 2015 vs. Q1 2013 was down only
4.0% while Q4 2014 vs. Q4 2012 was down 5.1%.
* In the UK (15% of the region's sales), sales were down 1.2% on a constant
and same-day basis, impacted by a strong 24% drop in sales of photovoltaic
equipment. Excluding this impact, sales were broadly stable (-0.2%). Over 2
years, sales improved sequentially: Q1 2015 vs. Q1 2013 was down only 0.5%
while Q4 2014 vs. Q4 2012 was down 3.6%.
* In Germany (11% of the region's sales), sales returned to positive territory
(+0.2%). Over 2 years, sales improved sequentially: Q1 2015 vs. Q1 2013 was
up 1.4% while Q4 2014 vs. Q4 2012 was down 5.7%.
* In Scandinavia (12% of the region's sales), sales continued to post solid
growth of 7.6% year-on-year.
* In other European countries, performance was as follows:
* Sales in Belgium and Austria were up 3.1% and 3.3% respectively year-on-
year,
* Spain posted double-digit growth (+24.3% year-on-year), thanks to strong
domestic and export activity,
* In Switzerland, sales were down 2.1%, impacted by lower pricing due to
the evolution of the Swiss franc while volumes were slightly up.
* In Italy and in the Netherlands, conditions remained difficult with
sales down 7.6% and 13.2% respectively year-on-year.
North America (34% of Group sales): -0.2% on a constant and same-day basis
In the first quarter, sales in North America were up 16.1% on a reported basis
including a significant positive currency effect of ?175.9m (mainly due to the
appreciation of the American dollar against the euro). On a constant and same-
day basis, sales were broadly stable (-0.2%), significantly impacted by lower
cable prices. Excluding cables, sales were up 0.4%.
* In the US (76% of the region's sales), sales were up 0.2% year-on-year,
reflecting the differing situation in the 3 end-markets:
* The industrial end-market was impacted by commodity deflation, export
headwinds due to the strength of the USD and weakness in the Oil & gas
sector as from March, mainly in upstream applications,
* The residential end-market was impacted by softening housing starts,
* Underlying trends in the non-residential end-market remain healthy.
* In Canada (24% of the region's sales), sales were down 1.5% year-on-year,
reflecting:
* The slowdown in Western Canada as from February, especially in Alberta,
due to weakness in the Oil & Gas sector,
* A weak economy in the province of Quebec, including a drop in sales to
the mining industry as a large project ended at the start of Q2 2014,
* And a strong drop in sales of photovoltaic equipment which dropped by
60% ; excluding this impact, sales in Canada were up 0.4%
Asia-Pacific (10% of Group sales): -2.5% on a constant and same-day basis
In the first quarter, sales in Asia-Pacific were up 12.7% on a reported basis,
including a significant positive effect of ?34.3m from currencies (primarily the
Chinese Yuan against the euro) and a positive effect of ?9.8m from the
acquisitions of 4 Knights International in Thailand and Beijing Ouneng and
Shanghai Maxqueen in China. On a constant and same-day basis, sales were down
2.5%.
* In Asia (51% of the region's sales), sales were up 2.5%:
* In China (67% of Asia), sales were down 5.0% due to a challenging base
effect (Q1 2014 sales posted 25.9% growth) and a 49% drop in wind sales
; excluding wind sales, sales were down only 2.5%.
* In South-East Asia (23% of Asia), sales were up 6.2%, driven by
mainstream business and lighting projects, offsetting pressure on sales
to the Oil & Gas industry,
* In the Middle-East (6% of Asia), sales almost tripled to ?9.1m.
* In the Pacific (49% of the region's sales), sales were down 7.3%:
* In Australia (81% of Pacific), sales were down 7.5%, reflecting
continuing low sales to the mining industry, lower project activity and
the impact of branch closures. Excluding the impact of branch closures,
sales were down 4.3%,
* In New Zealand (19% of Pacific), sales were down 6.5%, mainly
attributable to weak performance in Upper North Island and a branch
closure.
Latin America (2% of Group sales): -1.1% on a constant and same-day basis
In the first quarter, sales in Latin America were up 2.7% on a reported basis,
including a positive currency effect of ?2.4m (mainly due to the appreciation of
the Chilean peso against the euro).
On a constant and same-day basis, sales decreased by 1.1%, reflecting diverging
performance from country to country:
* In Brazil (56% of the region's sales), sales were down 0.3%.
* In Chile (31% of the region's sales), sales were down 11.9% in the quarter,
reflecting a challenging base effect (sales in Q1 2014 were up 14.7%), the
continued impact of low commodity prices on sales to the mining industry and
an exceptional flooding disaster in Northern Chile.
* In Peru (13% of the region's sales), sales increased by 32.4% thanks to
increased customer penetration.
PROFITABILITY
Resilient Gross margin of 24.7%
Adjusted EBITA of ?130.1m, at 4.0% of sales, down 45bps year-on-year, mainly
impacted by ongoing transformational project in the US
In the first quarter, gross margin stood at 24.7%, down 10 basis points year-on-
year. Europe and North America proved resilient, both with limited drops of 6
basis points, while Asia-Pacific and Latin America were mainly impacted by poor
sales performance in Australia and in Chile respectively.
Adjusted EBITA margin stood at 4.0% in the first quarter, down 45 basis points
year-on-year. By geography, the drop in adjusted EBITA margin can be broken down
as follows:
* In Europe, adjusted EBITA margin was stable at 5.9%, reflecting the region's
solid profitability,
* In North America, adjusted EBITA margin stood at 2.7%, down 77 basis points,
representing around 55% of the 45 basis-point drop at Group level, still
impacted by ongoing transformational projects in the US,
* In Asia-Pacific, adjusted EBITA margin stood at 2.0%, down 68 basis points,
mainly impacted by poor sales performance in the Pacific region,
* In Latin America, adjusted EBITA margin was negative at 2.4%, down 185 basis
points, impacted by reduced gross margin in Chile and lag in operating
expense adjustment.
In the first quarter, reported EBITA stood at ?125.7 million, down 6.3% year-on-
year.
NET INCOME
Reported net income at ?20.7m, mainly impacted by one-off costs from financing
optimization
Operating income stood at ?103.9 million, down 6.7% year-on-year.
* Amortization of intangibles resulting from purchase price allocation
amounted to ?4.4 million (vs. ?4.1 million in Q1 2014).
* Other income and expenses amounted to a net charge of ?17.4 million (vs. a
net charge of ?18.7 million in Q1 2014). They included ?15.3 million of
restructuring costs (vs. ?13.7 million in Q1 2014).
Net financial expenses amounted to ?72.2 million in the quarter (vs. ?46.3
million in Q1 2014) and included a one-off cost of ?19.6 million, due to the
early redemption of the 7.000% EUR Senior notes due December 2018. The average
effective interest rate decreased by 50 basis points year-on-year: it stood at
4.5% on gross debt (vs. 5.0% in Q1 2014).
Income tax represented a charge of ?11.0 million. The effective tax rate was
34.7% (vs. 33.7% in Q1 2014).
Net income was down 52.0%, at ?20.7 million (vs. ?43.2 million in Q1 2014).
Recurring net income amounted to ?50.0 million, down 14.7% year-on-year (see
appendix 2).
FINANCIAL STRUCTURE
Net debt impacted by an unfavorable currency effect of ?182.6m
In the quarter, free cash flow before interest and taxwas an outflow of ?148.7
million (vs. an outflow of ?82.7 million in Q1 2014). This net outflow included:
* Gross capital expenditure of ?27.0 million (vs. ?18.2 million in Q1 2014),
* An outflow of ?246.2 million from change in working capital (vs. an outflow
of ?192.6 million in Q1 2014) on a reported basis.
At March 31, 2015, net debt stood at ?2,652.5 million, up 10.3% year-on-year
(vs. 2,405.3 million at March 31, 2014).
It took into account:
* ?41.4 million of net interest paid,
* ?34.0 million of income tax paid,
* ?182.6 million of unfavorable currency effect.
Active balance-sheet management
Rexel actively manages its balance sheet in order to continuously optimize its
financial structure and further reduce its financial expenses.
On March 16, Rexel redeemed its 7.000% EUR Senior notes due Dec. 2018 for a
nominal amount of ?488.8m. A net charge of ?19.6m was recognized in Q1 2015
financial expenses, taking into account:
* A charge of ?25.4m from the "Make whole" premium,
* A charge of ?3.9m from the accelerated amortization of the remaining
financing fees,
* A profit of ?9.7m from fair value adjustments.
This step will allow savings on financial expenses of c. ?34m per annum from
2016 to 2018 and its Net Present Value (NPV) is ?100m.
Market conditions permitting, Rexel envisions redeeming its 6.125% USD Senior
notes due Dec. 2019 and replacing them by a new financing at improved terms. The
Senior notes represented an outstanding amount of ?466.0m as of March 31, 2015
and are callable as from Dec. 2015. The contemplated refinancing should
generate a gain in Net Present Value.
ACQUISITION
Rexel enters the datacenter market in China and strengthens its building
automation value proposition with the acquisition of Shanghai Maxqueen
In February, Rexel acquired 60% of Shanghai Maxqueen, a leading distributor of
building automation systems and related value-added services in China. Based in
Shanghai, this company distributes data communication/cabling solutions, power
management and cooling system mainly serving the banking, public and commercial
building end-markets. With c.130 employees, 7 branches and 4 warehouses,
Shanghai Maxqueen posted sales of c.?20 million in 2014.
DIVESTMENT
Rexel divests its operations in Latin America
Rexel announced today, in a separate press release, the sale of its operations
in Latin America to Sonepar for an enterprise value of USD51m (c. ?47m at latest
exchange rate).
This divestment is part of the disposal plan announced on February 12, 2015 and
represents about 40% of the total plan, which should be completed by end 2016.
In 2014, Latin America contributed ?256.8m to Rexel's consolidated sales (down
3.8% organically year-on-year) and a ?3.3m loss to Rexel's adjusted EBITA (vs. a
profit of ?0.8m in 2013).
Based on full-year 2014 consolidated accounts, the divestment of Latin America
would have the following financial impacts:
* A reduction of 2% in the Group's consolidated sales,
* A positive contribution of 8bps to the Group's adjusted EBITA margin,
* A slight increase in the Group's free cash flow before interest and tax.
This transaction should represent an estimated loss of about 70 million euros,
before tax.
Through this divestment, Rexel will refocus its resources and management efforts
on its three main geographies (Europe, North America and Asia-Pacific) and
continue its targeted acquisition policy in these regions.
The transaction remains subject to approval by the relevant anti-trust
authorities.
OUTLOOK
In an environment that remains challenging, Rexel confirms its full-year 2015
financial targets (at 2014 constant structure):
* Organic sales growth of between -2% and +2% (on a constant and same-day
basis),
* Adjusted EBITA margin of between 4.8% and 5.2% (vs. 5.0% recorded in 2014),
* Solid free cash flow of:
* At least 75% of EBITDA before interest and tax,
* Around 40% of EBITDA after interest and tax.
At its shareholders' meeting to be held on May 27:
* Rexel will propose a dividend of ?0.75 per share:
* Stable vs. dividend paid in 2014, reflecting Rexel's confidence in its
structural ability to generate strong cash-flow throughout the cycle
* In line with the Group's policy to pay out at least 40% of recurring net
income
* Rexel will propose to maintain:
* The principle of "One share = One vote"
* Board neutrality in a takeover situation
CALENDAR
May 27, 2015 Shareholders' Meeting in Paris
July 29, 2015 Second-quarter and Half-year
results
October 29, 2015 Third-quarter and 9-month results
FINANCIAL INFORMATION
The financial report for the period ended March 31, 2015 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 first-quarter 2015 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 2,200
branches in 38 countries, and c. 30,000 employees, Rexel's sales were ?13.1
billion in 2014.
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 Q1 2014 and a loss of ?4.4 million in Q1
2015.
GROUP
+-----------------------------------------------+-------+-------+------+
| Constant and adjusted basis (?m) |Q1 2014|Q1 2015|Change|
+-----------------------------------------------+-------+-------+------+
|Sales |3,319.1|3,286.2| -1,0%|
| | | | |
| on a constant basis and same days | | | -0,4%|
+-----------------------------------------------+-------+-------+------+
|Gross profit | 824,3| 812.7| -1.4%|
| | | | |
| as a % of sales | 24.8%| 24.7%|-10bps|
+-----------------------------------------------+-------+-------+------+
|Distribution & adm. expenses (incl. | | | |
|depreciation) |(677,8)|(682.6)| +0.7%|
+-----------------------------------------------+-------+-------+------+
|EBITA | 146.4| 130.1|-11,2%|
| | | | |
| as a % of sales | 4.4%| 4.0%|-45bps|
+-----------------------------------------------+-------+-------+------+
|Headcount (end of period) | 30,079| 29,804| -0.9%|
+-----------------------------------------------+-------+-------+------+
EUROPE
+-----------------------------------------------+-------+-------+------+
| Constant and adjusted basis (?m) |Q1 2014|Q1 2015|Change|
+-----------------------------------------------+-------+-------+------+
|Sales |1,791.5|1,785.5| -0.3%|
| | | | |
| on a constant basis and same days | | | -0.1%|
| | | | |
|o/w France | 611.3| 589.0| -3.6%|
| | | | |
| on a constant basis and same days | | | -3.6%|
| | | | |
| United Kingdom | 279.7| 276.2| -1.2%|
| | | | |
| on a constant basis and same days | | | -1.2%|
| | | | |
| Germany | 197.7| 194.9| -1.4%|
| | | | |
| on a constant basis and same days | | | +0.2%|
| | | | |
| Scandinavia | 204.8| 220.4| +7.6%|
| | | | |
| on a constant basis and same days | | | +7.6%|
+-----------------------------------------------+-------+-------+------+
|Gross profit | 492.5| 489.7| -0.6%|
| | | | |
| as a % of sales | 27.5%| 27.4%| -6bps|
+-----------------------------------------------+-------+-------+------+
|Distribution & adm. expenses (incl. | | | |
|depreciation) |(387.7)|(385.1)| -0.7%|
+-----------------------------------------------+-------+-------+------+
|EBITA | 104.8| 104.6| -0.1%|
| | | | |
| as a % of sales | 5.9%| 5.9%| +1bps|
+-----------------------------------------------+-------+-------+------+
|Headcount (end of period) | 16,554| 16,198| -2.2%|
+-----------------------------------------------+-------+-------+------+
NORTH AMERICA
+-----------------------------------------------+-------+-------+------+
| Constant and adjusted basis (?m) |Q1 2014|Q1 2015|Change|
+-----------------------------------------------+-------+-------+------+
|Sales |1,145.1|1,128.5| -1.4%|
| | | | |
| on a constant basis and same days | | | -0.2%|
| | | | |
|o/w United States | 872.7| 860.1| -1.4%|
| | | | |
| on a constant basis and same days | | | +0.2%|
| | | | |
| Canada | 272.4| 268.4| -1.5%|
| | | | |
| on a constant basis and same days | | | -1.5%|
+-----------------------------------------------+-------+-------+------+
|Gross profit | 255.1| 250.8| -1.7%|
| | | | |
|as a % of sales | 22.3%| 22.2%| -6bps|
+-----------------------------------------------+-------+-------+------+
|Distribution & adm. expenses (incl. | | | |
|depreciation) |(214.8)|(219.8)| +2.3%|
+-----------------------------------------------+-------+-------+------+
|EBITA | 40.3| 31.0|-23.0%|
| | | | |
| as a % of sales | 3.5%| 2.7%|-77bps|
+-----------------------------------------------+-------+-------+------+
|Headcount (end of period) | 8,508| 8,621| 1.3%|
+-----------------------------------------------+-------+-------+------+
ASIA-PACIFIC
+-----------------------------------------------+-------+-------+------+
| Constant and adjusted basis (?m) |Q1 2014|Q1 2015|Change|
+-----------------------------------------------+-------+-------+------+
|Sales | 317.0| 307.6| -2.9%|
| | | | |
| on a constant basis and same days | | | -2.5%|
| | | | |
|o/w China | 110.3| 104.8| -5.0%|
| | | | |
| on a constant basis and same days | | | -5.0%|
| | | | |
| Australia | 131.7| 121.8| -7.6%|
| | | | |
| on a constant basis and same days | | | -7.5%|
| | | | |
| New Zealand | 30.5| 28.5| -6.5%|
| | | | |
| on a constant basis and same days | | | -6.5%|
+-----------------------------------------------+-------+-------+------+
|Gross profit | 62.1| 58.7| -5.4%|
| | | | |
| as a % of sales | 19.6%| 19.1%|-49bps|
+-----------------------------------------------+-------+-------+------+
|Distribution & adm. expenses (incl. | | | |
|depreciation) | (53.5)| (52.5)| -1.9%|
+-----------------------------------------------+-------+-------+------+
|EBITA | 8.5| 6.2|-27.3%|
| | | | |
| as a % of sales | 2.7%| 2.0%|-68bps|
+-----------------------------------------------+-------+-------+------+
|Headcount (end of period) | 3,218| 3,340| 3.8%|
+-----------------------------------------------+-------+-------+------+
LATIN AMERICA
+-----------------------------------------------+-------+-------+-------+
| Constant and adjusted basis (?m) |Q1 2014|Q1 2015|Change |
+-----------------------------------------------+-------+-------+-------+
|Sales | 65.3| 64.6| -1.1%|
| | | | |
| on a constant basis and same days | | | -1.1%|
| | | | |
|o/w Brazil | 36.5| 36.4| -0.3%|
| | | | |
| on a constant basis and same days | | | -0.3%|
| | | | |
| Chile | 22.5| 19.9| -11.9%|
| | | | |
| on a constant basis and same days | | | -11.9%|
| | | | |
| Peru | 6.3| 8.3| +32.4%|
| | | | |
| on a constant basis and same days | | | +32.4%|
+-----------------------------------------------+-------+-------+-------+
|Gross profit | 14.4| 13.5| -6.6%|
| | | | |
| as a % of sales | 22.1%| 20.8%|-122bps|
+-----------------------------------------------+-------+-------+-------+
|Distribution & adm. expenses (incl. | (14.8)| (15.0)| +1.6%|
|depreciation) | | | |
+-----------------------------------------------+-------+-------+-------+
|EBITA | (0.4)| (1.6)| n.a.|
| | | | |
| as a % of sales | -0.6%| -2.4%|-185bps|
+-----------------------------------------------+-------+-------+-------+
|Headcount (end of period) | 1,564| 1,382| -11.6%|
+-----------------------------------------------+-------+-------+-------+
Appendix 2: Extract of Financial Statements
Consolidated Income Statement
+-----------------------------------------------------+-------+-------+------+
| Reported basis (?m) |Q1 2014|Q1 2015|Change|
+-----------------------------------------------------+-------+-------+------+
|Sales |3,067.3|3,286.2| +7.1%|
+-----------------------------------------------------+-------+-------+------+
|Gross profit | 764.1| 808.0| +5.7%|
| | | | |
| as a % of sales | 24.9%| 24.6%| |
+-----------------------------------------------------+-------+-------+------+
|Distribution & adm. expenses (excl. depreciation) |(610.1)|(660.3)| +8.2%|
+-----------------------------------------------------+-------+-------+------+
|EBITDA | 154.0| 147.7| -4.1%|
| | | | |
| as a % of sales | 5.0%| 4.5%| |
+-----------------------------------------------------+-------+-------+------+
|Depreciation | (19.8)| (22.0)| |
+-----------------------------------------------------+-------+-------+------+
|EBITA | 134.2| 125.7| -6.3%|
| | | | |
| as a % of sales | 4.4%| 3.8%| |
+-----------------------------------------------------+-------+-------+------+
|Amortization of intangibles resulting | | | |
|from purchase price allocation | (4.1)| (4.4)| |
+-----------------------------------------------------+-------+-------+------+
|Operating income bef. other inc. and exp. | 130.1| 121.3| -6.8%|
| | | | |
| as a % of sales | 4.2%| 3.7%| |
+-----------------------------------------------------+-------+-------+------+
|Other income and expenses | (18.7)| (17.4)| |
+-----------------------------------------------------+-------+-------+------+
|Operating income | 111.3| 103.9| -6.6%|
+-----------------------------------------------------+-------+-------+------+
|Financial expenses (net) | (46.3)| (72.2)| |
+-----------------------------------------------------+-------+-------+------+
|Net income (loss) before income tax | 65.1| 31.7|-51.3%|
+-----------------------------------------------------+-------+-------+------+
|Income tax | (21.9)| (11.0)| |
+-----------------------------------------------------+-------+-------+------+
|Net income (loss) | 43.2| 20.7|-52.0%|
+-----------------------------------------------------+-------+-------+------+
|Net income (loss) attr. to non-controlling interests | 0.1| (0.4)| |
+-----------------------------------------------------+-------+-------+------+
|Net income (loss) attr. to equity holders of the | | | |
|parent | 43.1| 21.1|-51.0%|
+-----------------------------------------------------+-------+-------+------+
Bridge Between Operating Income Before Other Income And Other Expenses And
Adjusted EBITA
+---------------------------------------------------------+---------+---------+
| in ?m | Q1 2014 | Q1 2015 |
+---------------------------------------------------------+---------+---------+
| Operating income before other income and other expenses | 130.1 | 121.3 |
+---------------------------------------------------------+---------+---------+
| Change in scope of consolidation | 0.5 | |
| | | |
| Foreign exchange effects | 9.1 | |
| | | |
| Non-recurring effect related to copper | 2.7 | 4.4 |
| | | |
| Amortization of intangibles assets resulting from PPA | 4.1 | 4.4 |
+---------------------------------------------------------+---------+---------+
| Adjusted EBITA on a constant basis | 146.4 | 130.1 |
+---------------------------------------------------------+---------+---------+
Recurring Net Income
+-----------------------------+---------+---------+--------+
| In millions of euros | Q1 2014 | Q1 2015 | Change |
+-----------------------------+---------+---------+--------+
| Reported net income | 43.2 | 20.7 | -52.0% |
| | | | |
| Non-recurring copper effect | 2.7 | 4.4 | |
| | | | |
| Other expense & income | 18.7 | 17.4 | |
| | | | |
| Financial expense | 0.0 | 19.6 | |
| | | | |
| Tax expense | -5.9 | -12.0 | |
| | | | |
| Recurring net income | 58.6 | 50.0 | -14.7% |
+-----------------------------+---------+---------+--------+
Sales And Profitability By Segment
+-------------------------+---------+---------+--------+
| Reported basis (?m) | Q1 2014 | Q1 2015 | Change |
+-------------------------+---------+---------+--------+
| Sales | 3,067.3 | 3,286.2 | +7.1% |
| | | | |
| Europe | 1,759.4 | 1,785.5 | +1.5% |
| | | | |
| North America | 972.0 | 1,128.5 | +16.1% |
| | | | |
| Asia-Pacific | 272.9 | 307.6 | +12.7% |
| | | | |
| Latin America | 62.9 | 64.6 | +2.7% |
+-------------------------+---------+---------+--------+
| Gross profit | 764.1 | 808.0 | +5.7% |
| | | | |
| Europe | 480.9 | 486.9 | +1.3% |
| | | | |
| North America | 215.2 | 248.8 | +15.6% |
| | | | |
| Asia-Pacific | 53.9 | 58.7 | +9.0% |
| | | | |
| Latin America | 14.0 | 13.5 | -3.5% |
+-------------------------+---------+---------+--------+
| EBITA | 134.2 | 125.7 | -6.3% |
| | | | |
| Europe | 101.0 | 102.0 | +1.0% |
| | | | |
| North America | 33.4 | 29.2 | -12.5% |
| | | | |
| Asia-Pacific | 7.0 | 6.2 | -12.0% |
| | | | |
| Latin America | (0.4) | (1.5) | n.a. |
+-------------------------+---------+---------+--------+
Consolidated Balance Sheet(1)
+-----------------------------------------+-----------------+--------------+
|Assets (?m) |December 31. 2014|March 31. 2015|
+-----------------------------------------+-----------------+--------------+
|Goodwill | 4,243.9| 4,447.9|
| | | |
|Intangible assets | 1,084.0| 1,132.0|
| | | |
|Property. plant & equipment | 287.1| 298.5|
| | | |
|Long-term investments | 24.8| 36.1|
| | | |
|Deferred tax assets | 175.2| 168.7|
+-----------------------------------------+-----------------+--------------+
|Total non-current assets | 5,815.0| 6,083.2|
+-----------------------------------------+-----------------+--------------+
|Inventories | 1,487.2| 1,589.4|
| | | |
|Trade receivables | 2,206.0| 2,349.7|
| | | |
|Other receivables | 508.7| 519.1|
| | | |
|Assets classified as held for sale | 3.7| 3.8|
| | | |
|Cash and cash equivalents | 1,159.8| 478.7|
+-----------------------------------------+-----------------+--------------+
|Total current assets | 5,365.4| 4,940.8|
+-----------------------------------------+-----------------+--------------+
|Total assets | 11,180.4| 11,024.0|
+-----------------------------------------+-----------------+--------------+
+-----------------------------------------+-----------------+--------------+
|Liabilities (?m) |December 31. 2014|March 31. 2015|
+-----------------------------------------+-----------------+--------------+
|Total equity | 4,343.4| 4,481.8|
+-----------------------------------------+-----------------+--------------+
|Long-term debt | 2,995.9| 2,518.3|
| | | |
|Deferred tax liabilities | 196.9| 181.1|
| | | |
|Other non-current liabilities | 437.9| 496.1|
+-----------------------------------------+-----------------+--------------+
|Total non-current liabilities | 3,630.7| 3,195.5|
+-----------------------------------------+-----------------+--------------+
|Interest bearing debt & accrued interests| 371.2| 621.9|
| | | |
|Trade payables | 2,126.8| 2,027.1|
| | | |
|Other payables | 708.3| 697.7|
+-----------------------------------------+-----------------+--------------+
|Total current liabilities | 3,206.3| 3,346.7|
+-----------------------------------------+-----------------+--------------+
|Total liabilities | 6,837.0| 6,542.2|
+-----------------------------------------+-----------------+--------------+
|Total equity & liabilities | 11,180.4| 11,024.0|
+-----------------------------------------+-----------------+--------------+
1 Net debt includes:
* Debt hedge derivatives for ?6.5m at December 31. 2014 and ?(4.5)m at March
31, 2015
* Accrued interest receivables for ?(0.7)m at December, 2014 and for ?(4.4)m
at March 31, 2015
Change in Net Debt
+-----------------------------------------+---------+---------+
| ?m | Q1 2014 | Q1 2015 |
+-----------------------------------------+---------+---------+
| EBITDA | 154.0 | 147.7 |
+-----------------------------------------+---------+---------+
| Other operating revenues & costs((1)) | (20.1) | (18.1) |
+-----------------------------------------+---------+---------+
| Operating cash flow | 133.9 | 129.6 |
+-----------------------------------------+---------+---------+
| Change in working capital | (192.6) | (246.2) |
| | | |
| Net capital expenditure. of which: | (24.1) | (32.2) |
| | | |
| Gross capital expenditure | (18.2) | (27.0) |
| | | |
| Disposal of fixed assets & other | (5.9) | (5.2) |
+-----------------------------------------+---------+---------+
| Free cash flow before interest and tax | (82.7) | (148.7) |
+-----------------------------------------+---------+---------+
| Net interest paid / received((2)) | (38.0) | (41.4) |
| | | |
| Income tax paid | (27.6) | (34.0) |
+-----------------------------------------+---------+---------+
| Free cash flow after interest and tax | (148.3) | (224.1) |
+-----------------------------------------+---------+---------+
| Net financial investment | (6.8) | (10.2) |
| | | |
| Dividends paid | 0.0 | 0.0 |
| | | |
| Other | (63.3) | (22.6) |
| | | |
| Currency exchange variation | 5.1 | (182.6) |
+-----------------------------------------+---------+---------+
| Decrease (increase) in net debt | (213.3) | (439.5) |
+-----------------------------------------+---------+---------+
| Net debt at the beginning of the period | 2,192.0 | 2,213.1 |
+-----------------------------------------+---------+---------+
| Net debt at the end of the period | 2,405.3 | 2,652.5 |
+-----------------------------------------+---------+---------+
1 Includes restructuring outflows of ?12.1m in Q1 2014 and ?16.6m in Q1 2015
2 Excluding settlement of fair value hedge derivatives
Appendix 3: Working Capital Analysis
+-----------------------------------+----------------+----------------+
| Constant basis | March 31. 2014 | March 31. 2015 |
+-----------------------------------+----------------+----------------+
| Net inventories | | |
| | | |
| as a % of sales 12 rolling months | 11.1% | 11.1% |
| | | |
| as a number of days | 53.7 | 54.7 |
+-----------------------------------+----------------+----------------+
| Net trade receivables | | |
| | | |
| as a % of sales 12 rolling months | 16.6% | 16.3% |
| | | |
| as a number of days | 53.3 | 52.5 |
+-----------------------------------+----------------+----------------+
| Net trade payables | | |
| | | |
| as a % of sales 12 rolling months | 14.0% | 13.9% |
| | | |
| as a number of days | 59.6 | 59.8 |
+-----------------------------------+----------------+----------------+
| Trade working capital | | |
| | | |
| as a % of sales 12 rolling months | 13.7% | 13.6% |
+-----------------------------------+----------------+----------------+
| Total working capital | | |
| | | |
| as a % of sales 12 rolling months | 12.2% | 12.2% |
+-----------------------------------+----------------+----------------+
Appendix 4: Headcount and branches by geography
+---------------------+----------+----------+----------+-------------------+
|FTEs at end of period| | | | |
| |31/03/2014|31/12/2014|31/03/2015|Year-on-Year Change|
| comparable | | | | |
+---------------------+----------+----------+----------+-------------------+
|Europe | 16,554| 16,296| 16,198| -2.2%|
+---------------------+----------+----------+----------+-------------------+
|USA | 6,146| 6,297| 6,310| 2.7%|
+---------------------+----------+----------+----------+-------------------+
|Canada | 2,362| 2,355| 2,311| -2.2%|
+---------------------+----------+----------+----------+-------------------+
|North America | 8,508| 8,652| 8,621| 1.3%|
+---------------------+----------+----------+----------+-------------------+
|Asia-Pacific | 3,218| 3,312| 3,340| 3.8%|
+---------------------+----------+----------+----------+-------------------+
|Latin America | 1,564| 1,395| 1,382| -11.6%|
+---------------------+----------+----------+----------+-------------------+
|Other | 235| 261| 264| 12.3%|
+---------------------+----------+----------+----------+-------------------+
|Group | 30,079| 29,915| 29,804| -0.9%|
+---------------------+----------+----------+----------+-------------------+
+---------------------+----------+----------+----------+-------------------+
| Branches | | | | |
| |31/03/2014|31/12/2014|31/03/2015|Year-on-Year Change|
| comparable | | | | |
+---------------------+----------+----------+----------+-------------------+
|Europe | 1,287| 1,260| 1,253| -2.6%|
+---------------------+----------+----------+----------+-------------------+
|USA | 395| 398| 400| 1.3%|
+---------------------+----------+----------+----------+-------------------+
|Canada | 214| 207| 207| -3.3%|
+---------------------+----------+----------+----------+-------------------+
|North America | 609| 605| 607| -0.3%|
+---------------------+----------+----------+----------+-------------------+
|Asia-Pacific | 271| 264| 264| -2.6%|
+---------------------+----------+----------+----------+-------------------+
|Latin America | 89| 90| 90| 1.1%|
+---------------------+----------+----------+----------+-------------------+
|Group | 2,256| 2,219| 2,214| -1.9%|
+---------------------+----------+----------+----------+-------------------+
Appendix 5: Calendar. scope and change effects on sales
Based on the assumption of the following average exchange rates :
* 1 USD = 1.09?
* 1 CAD = 1.38?
* 1 AUD = 1.42?
* 1 GBP = 0.73?
and based on acquisitions to date. 2014 sales should take into account the
following estimated impacts to be comparable to 2015:
+-----------------+--------+-----------+-----------+-----------+-----------+
| | Q1 | Q2e | Q3e | Q4e | FYe |
+-----------------+--------+-----------+-----------+-----------+-----------+
| Calendar effect | -0.6% | c. +0.2% | c. +0.5% | c. +0.8% | c. +0.2% |
+-----------------+--------+-----------+-----------+-----------+-----------+
| Scope effect | ?6.5m | c. ?13.7m | c. ?13.2m | c. ?10.9m | c. ?44.4m |
+-----------------+--------+-----------+-----------+-----------+-----------+
| Change effect | 8.0% | c. 10.2% | c.8.6% | c.6.7% | c. 8.3% |
+-----------------+--------+-----------+-----------+-----------+-----------+
DISCLAIMER
The Group is exposed to fluctuations in copper prices in connection with its
distribution of cable products. Cables accounted for approximately 14% 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 Rexel Group:
i) the recurring effect related to the change in copper-based cable prices
corresponds to the change in value of the copper part included in the sales
price of cables from one period to another. This effect mainly relates to the
Group's sales; ii) the non-recurring effect related to the change in copper-
based cables prices corresponds to the effect of copper price variations on the
sales price of cables between the time they are purchased and the time they are
sold. until all such inventory has been sold (direct effect on gross profit).
Practically, the non-recurring effect on gross profit is determined by comparing
the historical purchase price for copper-based cable and the supplier price
effective at the date of the sale of the cables by the Rexel Group.
Additionally, the non-recurring effect on EBITA corresponds to the non-recurring
effect on gross profit, which may be offset, when appropriate. by the non-
recurring portion of changes in the distribution and administrative expenses.
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 Rexel
Group considers such estimates of the impact of the two effects to be
reasonable.
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 Document de Référence registered
with the French Autorité des Marchés Financiers (AMF) on March 25. 2015 under
number D.15-0201. These forward-looking statements are not guarantees of Rexel's
future performance. Rexel's actual results of operations, financial condition
and liquidity as well as development of the industry in which Rexel operates may
differ materially from those made in or suggested by the forward-looking
statements contained in this release. The forward-looking statements contained
in this communication speak only as of the date of this communication and Rexel
does not undertake, unless required by law or regulation, to update any of the
forward-looking statements after this date to conform such statements to actual
results. to reflect the occurrence of anticipated results or otherwise.
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. Rexe, its affiliates, directors, officers, advisors
and employees have not independently verified the accuracy of any such market
and industry data and forecasts and make no representations or warranties in
relation thereto. Such data and forecasts are included herein for information
purposes only.
This document includes only summary information and must be read in conjunction
with Rexel's Document de Référence registered with the AMF March 25. 2015 under
number D.15-0201, as well as the consolidated financial statements and activity
report for the 2014 fiscal year. which may be obtained from Rexel's website
(www.rexel.com).
Q1 2015 Results (unaudited):
http://hugin.info/143564/R/1917191/685801.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: REXEL via GlobeNewswire
[HUG#1917191]
Unternehmensinformation / Kurzprofil:
Datum: 30.04.2015 - 07:34 Uhr
Sprache: Deutsch
News-ID 389683
Anzahl Zeichen: 65558
contact information:
Town:
Paris
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 136 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"REXEL :Q1 2015 RESULTS (unaudited)"
steht unter der journalistisch-redaktionellen Verantwortung von
REXEL (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
