Rexel SA
PAR:RXL
Rexel SA
Rexel SA, a global leader in the distribution of electrical supplies, operates at the nexus of efficiency and innovation, shaping the infrastructure that powers and lights our modern world. Founded in France in 1967, Rexel has methodically expanded its footprint across Europe, North America, and Asia-Pacific, establishing a robust network that connects a diverse customer base with essential electrical products. This network includes electricians, contractors, and industrial operators who rely heavily on Rexel's extensive inventory of lighting, cables, and climate control systems, among other offerings. Through a sophisticated logistics chain and a proactive approach to technology, Rexel ensures that it efficiently meets the dynamic demands of its clients, providing not just products but solutions that enhance productivity and sustainability.
Rexel's business model thrives on its capacity to seamlessly integrate traditional distribution strengths with digital transformation initiatives. The company strategically invests in digital channels and data analytics, enabling an omni-channel experience where customers can access products and services through an online platform, complementing traditional in-store services. This dual approach not only accelerates Rexel's service delivery but also enriches customer interaction, increasing loyalty and satisfaction. By focusing on value-added services like energy management and supply chain optimization, Rexel crafts a competitive edge that elevates its standard product offering. Through these initiatives, Rexel SA transforms the simple act of distributing electrical supplies into a sophisticated enterprise that drives efficiency and innovation across the industries it serves.
Rexel SA, a global leader in the distribution of electrical supplies, operates at the nexus of efficiency and innovation, shaping the infrastructure that powers and lights our modern world. Founded in France in 1967, Rexel has methodically expanded its footprint across Europe, North America, and Asia-Pacific, establishing a robust network that connects a diverse customer base with essential electrical products. This network includes electricians, contractors, and industrial operators who rely heavily on Rexel's extensive inventory of lighting, cables, and climate control systems, among other offerings. Through a sophisticated logistics chain and a proactive approach to technology, Rexel ensures that it efficiently meets the dynamic demands of its clients, providing not just products but solutions that enhance productivity and sustainability.
Rexel's business model thrives on its capacity to seamlessly integrate traditional distribution strengths with digital transformation initiatives. The company strategically invests in digital channels and data analytics, enabling an omni-channel experience where customers can access products and services through an online platform, complementing traditional in-store services. This dual approach not only accelerates Rexel's service delivery but also enriches customer interaction, increasing loyalty and satisfaction. By focusing on value-added services like energy management and supply chain optimization, Rexel crafts a competitive edge that elevates its standard product offering. Through these initiatives, Rexel SA transforms the simple act of distributing electrical supplies into a sophisticated enterprise that drives efficiency and innovation across the industries it serves.
Challenging Market: 2024 was tougher than expected, especially in Europe, but Rexel delivered resilient results despite headwinds in electrification and economic uncertainty.
Sales & Margins: Reported full-year sales fell 2.4% like-for-like (first negative year since 2016, excluding COVID), while EBITA margin held at 5.9%, matching guidance.
Strong Cash Generation: Free cash flow conversion hit 76%, well above both guidance and historical levels, driven by good inventory and credit management.
North America Strength: North America showed solid momentum with Q4 same-day sales up 3.6%, offsetting weaker European performance.
Cost Savings & Self-Help: Structural cost actions, digital productivity, and AI tools are delivering and expected to drive further gains in 2025 and beyond.
2025 Outlook: Guidance for stable to slightly positive same-day sales and profitability around 6% EBITA margin; continued focus on cost discipline amid lingering uncertainties.
Dividend Maintained: Proposed dividend of EUR 1.20 per share, implying a 54% payout ratio, reflecting management's confidence.
Midterm Targets Affirmed: Rexel remains on track for 5–8% growth, >7% EBITA margin, and 65% cash conversion midterm, with digital and AI as key levers.
