|
FOURTH QUARTER SALES & FY 2021 RESULTS: RECORD
PERFORMANCE Same-day sales growth
of +12.2% in Q4 21, with positive momentum vs 2019
in all geographies Adj. EBITA margin at 6.2% in
2021 Robust FCF generation and lowest-ever
indebtedness ratio - Record dividend at €0.75 |
→ Sales of €4,077.3m in Q4
2021, up +12.2% on a constant and same day basis
vs Q4 2020 ; sequential acceleration vs Q3 2021, both in price and
volume. Agility to serve strong demand in an environment
still marked by labor and supply chain tensions
→ Record sales and growth rate in
2021: €14.7bn, up +15.6% on a constant and same-day
basis
→ FY 21 adj. EBITA margin up +196 bps at
6.2% vs 2020 (also above FY 19 margin of 5.0%) from FY 21
same-day sales growth of +15.6% as well as further deployment of
our digital initiatives, strong focus on price increase and
operational excellence. Adj. EBITA includes 40 bps of
positive one-off effects from non-cable products inventory
price inflation, net of higher performance-linked bonuses
→ Recurring net income
of €575.0m, up +107.0% in FY 2021, from all-time high
performance
→ Positive Free Cash Flow before
interest and tax of €680.6m in FY 2021 (€461.6m in FY
2019), with FCF conversion of 65.7%, significantly above guidance.
Lowest-ever indebtedness ratio at 1.37x
→ Proposal to distribute a record
dividend of €0.75 per share, payable in cash
→ Mayer acquisition : A
faster-than-expected integration process should translate into
higher synergies, now expected at 1.5% of sales in year 1
and above 2.5% in year 3.
→ 2022 outlook: Same-day sales
growth of between 4% and 6%, adjusted EBITA margin above 6% and
free cash flow conversion above 60%
→ An updated strategic roadmap will be presented
at a Capital Market Day in Zurich on June
16, 2022
Key figures1 (€m) -
Actual |
On a FY basis |
2021 |
2020 |
2019 |
21 vs 20 |
21 vs 19 |
Sales on
a reported basis |
14,690.2 |
12,592.5 |
13,742.3 |
+16.7% |
+6.9% |
On a constant and
actual-day basis |
|
|
|
+15.2% |
+8.7% |
On a constant and same-day basis |
|
|
|
+15.6% |
+8.3% |
Gross margin2,3 |
3,812.5 |
3,092.7 |
3,439.8 |
+22.1% |
+13.0% |
As a percentage of sales |
26.0% |
24.6% |
25.0% |
146 bps |
99 bps |
Adjusted EBITA2 |
906.0 |
526.4 |
685.1 |
+69.0% |
+35.7% |
As a percentage of sales |
6.2% |
4.2% |
5.0% |
196 bps |
123 bps |
Reported EBITA |
963.7 |
537.0 |
677.5 |
+79.5% |
+42.3% |
Operating income (loss) |
911.8 |
(3.4) |
486.4 |
n/a |
+87.5% |
Net income (loss) |
597.6 |
(261.3) |
203.8 |
n/a |
+193.2% |
Recurring net income |
575.0 |
277.7 |
341.2 |
+107.0% |
+68.5% |
FCF before interest and tax |
680.6 |
613.0 |
461.6 |
+11.0% |
+47.4% |
Net debt at end of period |
1,551.2 |
1,334.9 |
1,945.9 |
+216.3 |
-394.7 |
1 See definition in the Glossary section of this document 2
Change at comparable scope of consolidation 3 Adjusted for
non-recurring copper effect
Guillaume TEXIER, Chief Executive Officer, said:
“Rexel’s record results in 2021 attest to the success of our recent
transformation. Our investments in people, digital and logistics
allowed us to fully capture the market recovery and to optimize our
operations in an environment marked by increasing inflation and
continued tensions in the supply chain. Our 5 acquisitions of 2021,
most notably Mayer and a utility distribution business in Canada,
representing more than €1bn of sales in a full year, are also
contributing more than anticipated. These results are testament to
the exceptional commitment of our teams. Having reached our
financial objectives ahead of plan and supported by strong
underlying market trends towards more electrification and
sustainability, we are ready to accelerate and will update our
strategic roadmap in June, aiming to create even more value in a
buoyant industry.” |
FINANCIAL REVIEW FOR THE PERIOD ENDED DECEMBER 31,
2021 |
- 2021 financial
statements and consolidated results was authorized for issue by the
Board of Directors on February 10, 2022. It has been audited by
statutory auditors.
- The
following terms: Reported EBITA, Adjusted EBITA, EBITDA, EBITDAaL,
Recurring net income, Free Cash Flow and Net Debt are defined in
the Glossary section of this document.
- Unless
otherwise stated, all comments are on a constant and adjusted basis
and, for sales, at same number of working days.
SALES
In Q4, sales were up +20.3% year-on-year
on a reported basis and up +12.2% on a constant and same-day basis,
despite a challenging base effect, reflecting our robust underlying
activity.
In the fourth quarter, Rexel posted sales of
€4,077.3 million, up +20.3% on a reported basis, including:
- A positive currency
effect of €90.2 million (i.e. +2.7% of Q4 2020 sales), due to the
appreciation of all currencies against the euro and more
specifically the US, Canadian and Australian dollars as well as the
British Pound and Chinese Renminbi;
- A
positive net scope effect of €167.8 million (i.e. +4.9% of Q4 2020
sales), mainly resulting from the acquisition of Mayer in the US
and a utility distribution business in Canada;
- A
negative calendar effect of (0.4)%.
Key figures (€m) |
On a Q4 basis |
On a FY basis |
2021 |
vs 2020 |
vs 2019 |
2021 |
vs 2020 |
vs 2019 |
Sales on
a reported basis |
4,077.3 |
+20.3% |
+15.8% |
14,690.2 |
+16.7% |
+6.9% |
On a constant and
actual-day basis |
|
+11.8% |
+12.8% |
|
+15.2% |
+8.7% |
On a constant and same-day basis |
|
+12.2% |
+11.1% |
|
+15.6% |
+8.3% |
Sales were up +11.8% on a constant and
actual-day basis (or up +12.2% a constant and same-day basis),
notably driven by North America and Europe, despite a more
difficult base effect as the business environment started to
recover in Q4 2020 from the Covid-19 outbreak.
- At group level, our
3 end-markets (residential, commercial and industrial) all grew at
a similar pace.
- This
strong performance in Q4 21 was achieved in a constrained
environment, with the business still impacted by persistent supply
chain pressure that disrupted activity both at our suppliers and at
our customers. This unprecedented situation of supply chain
pressure and product scarcity represents an opportunity for Rexel,
allowing us to leverage our competencies (data-driven, pricing
tools to manage volatility, purchasing strategy...) to maximize
service levels and ensure business continuity for our
customers.
- Same-day
sales in Q4 21 were up +12.2%, benefiting from an improvement in
volume, up +0.5% (or +1.2% restated for the large aerospace
contract in China) and further supported by a very favorable
pricing environment both on cable (+35.4% in Q4 2021 corresponding
to a 5.1% contribution) and non-cable products (up +7.7% in Q4 2021
corresponding to a 6.6% contribution).
-
Underlying demand has accelerated, as illustrated by the comparison
to the 2019 pre-crisis situation. While demand for renovation
remained at a very high level, supporting our proximity activity,
project execution has improved, notably in North America. We
benefited from healthy underlying demand with increased electrical
usage and greater complexity of installed solutions:
- Same-day
sales in Q4 21 grew +11.1% compared to Q4 2019, with Europe at
+12.4%, North America at +9.7% and Asia-Pacific at +10.0%. It shows
positive momentum versus the +6.7% in Q3 21 (vs Q3 19).
In addition, the quarter benefited from further
growth in digitalization in all geographies, with digital sales now
representing 23.7% of Group sales, up +262 bps compared to Q4 2020.
Trends were positive in North America (up to 12.2% of sales
including Mayer, up +267 bps), Europe (up to 34.8% of sales, an
increase of +97 bps) and in Asia-Pacific (5.3% of sales, up +147
bps).
In FY 2021, Rexel posted sales of €14,690.2
million, up +16.7% on a reported basis. On a constant and same-day
basis, sales were up +15.6%, including a positive impact of +5.2%
from the change in copper-based cable prices (vs. a positive impact
of +0.2% in FY 2020) and a positive impact from non-cable copper
price of 4.5%.
The +16.7% increase in sales on a reported basis
included:
- A neutral currency
effect;
- A
positive net scope effect of €150.8 million (i.e. +1.2% of FY 2020
sales), mainly resulting from the acquisition of Mayer in the US
and a utility distribution business in Canada offsetting the
disposal of Gexpro Services in the US and two small
businesses;
- A
negative calendar effect of (0.4)%.
Europe (53% of Group sales): +10.0% in
Q4 and +16.4% in FY on a constant and same-day basis
In the fourth quarter, sales in Europe increased
by +11.0% on a reported basis, including a positive currency effect
of +1.0%, or €20.2 million, mainly due to the appreciation of
Norwegian Krone and the British pound against the euro and a
negative scope effect of (0.4)%, or €(7.7) million. On a constant
and same-day basis, sales were up +10.0%, positioning Rexel above
the pre-crisis level in both volume and price.
Key figures (€m) |
On a Q4 basis |
On a FY basis |
2021 |
vs 2020 |
vs 2019 |
2021 |
vs 2020 |
vs 2019 |
Europe |
2,172.7 |
+10.0% |
+12.4% |
8,273.8 |
+16.4% |
+11.8% |
France |
823.3 |
+8.1% |
+10.1% |
3,178.4 |
+21.3% |
+13.6% |
Scandinavia |
301.6 |
+9.1% |
+12.4% |
1,081.5 |
+6.5% |
+10.3% |
Benelux |
228.3 |
+7.6% |
+15.0% |
869.3 |
+12.2% |
+13.5% |
Germany |
210.3 |
+15.1% |
+24.6% |
817.1 |
+17.9% |
+25.5% |
UK |
185.3 |
+12.1% |
+2.4% |
728.0 |
+16.8% |
(3.6) % |
Switzerland |
147.7 |
+10.1% |
+13.3% |
546.1 |
+10.1% |
+8.5% |
Austria |
121.4 |
+16.2% |
+26.6% |
476.0 |
+24.7% |
+27.7% |
Southern Europe |
85.6 |
+20.0% |
+2.9% |
308.3 |
+14.6% |
(6.9) % |
- Sales in
France (38% of the region’s sales) posted solid
+8.1% growth, (or +10.1% vs Q4 2019), driven by an increased number
of active customers, further market share gains and significant
price increases. More specifically, Q4 21 was supported by HVAC
solutions as well as strong demand in residential (renovation) and
commercial segments.
- Sales in
Scandinavia (14% of the region’s sales) were up
+9.1% (or +12.4% vs Q4 2019), with a sequential acceleration in
Sweden as the result of our action plans to promote Small &
Medium installers' activity.
-
Benelux (11% of the region’s sales) was up +7.6%
(or +15.0% vs Q4 2019) with Belux up +1.6% from the end of
subsidies in Flanders in photovoltaic products (-9.3% impact in the
quarter). Strong underlying acceleration in Belux was driven by
price increases on both cable and non-cable products. The
Netherlands were up +16.8% (or +13.8% versus Q4 2019), with all
end-markets well oriented.
- Sales in
Germany (10% of the region’s sales) were up +15.1%
(or +24.6% vs Q4 2019) from strong demand in the proximity business
and in industry (e.g. Manufacturing & metals).
- In the
UK (9% of the region’s sales), sales were up by +12.1% (or
+2.4% vs Q4 2019), a stronger performance than Q3 21, notably
thanks to a public contract with the UK government (contribution
+6.2% vs Q4 2020). The Denmans banner was up +7.9% vs Q4 2019,
benefiting from positive pricing.
- Sales in
Switzerland (7% of the region’s sales) were up
+10.1% (or +13.3% vs Q4 2019), accelerating versus Q3 21 notably
thanks to significant price increases.
-
Austria (6% of the region's sales) remains very
strong, up +16.2% (or +26.6% above Q4 2019, improving over Q3's
two-years stack) driven by all segments and more specifically
strong demand in the industrial segment and in proximity.
North America (39% of Group sales):
+18.5% in Q4 and +16.6% in FY on a constant and same-day
basis
In the fourth quarter, sales in North America
were up +41.7% on a reported basis, including a positive currency
effect of +4.8%, or €52.8 million, due to the appreciation of the
US and Canadian dollars against the euro and a positive scope
effect of €181.8 million, or +16.4%, from the acquisition of Mayer
in the US and a utility distribution business in Canada. On a
constant and same-day basis, sales were up +18.5%, and are now
significantly above their pre-crisis level (Q4 21 up +9.7% vs Q4
2019).
Key figures (€m) |
On a Q4 basis |
On a FY basis |
2021 |
vs 2020 |
vs 2019 |
2021 |
vs 2020 |
vs 2019 |
North America |
1,566.1 |
+18.5% |
+9.7% |
5,122.6 |
+16.6% |
+2.9% |
Total US |
1,255.2 |
+20.0% |
+11.4% |
3,930.5 |
+16.6% |
+2.5% |
Mayer* |
|
+16.5% |
+13.7% |
|
+20.2% |
+12.3% |
US excl. Mayer |
|
+21.7% |
+11.7% |
|
+16.9% |
+2.2% |
Mountain Plains |
|
+28.1% |
+31.5% |
|
+17.8% |
+11.8% |
Northwest |
|
+23.0% |
+29.0% |
|
+27.5% |
+27.0% |
Florida |
|
+18.9% |
+16.1% |
|
+7.5% |
+5.4% |
Gulf Central |
|
+47.3% |
+3.8% |
|
+24.0% |
(15.6) % |
Southeast |
|
+16.9% |
+3.3% |
|
+11.7 % |
(5.1) % |
California |
|
+10.9% |
+0.3% |
|
+7.1% |
+1.0% |
Northeast |
|
+13.8% |
(3.4) % |
|
+14.6% |
(9.4) % |
Midwest |
|
+8.2% |
(4.5) % |
|
+4.1% |
(11.7) % |
Canada |
310.8 |
+12.7% |
+3.3% |
1,192.1 |
+16.5% |
+4.2% |
* Mayer consolidated as of November 8, 2021
- In the
US (80% of the region’s sales), sales were up +20.0% in Q4
21 and are now significantly above their pre-crisis level (+11.4%
compared to Q4 19) with all 3 end-markets above their 2019 level in
value for the first time. The acceleration compared to Q3 21 (up
+2.8% vs Q3 19) is notably explained by an acceleration of our
proximity business and also better activity in Projects &
Specialty.
- Mayer
has been integrated since November 8, 2021 and we confirm the full
potential of this acquisition. A faster-than-expected integration
process should translate into higher synergies, now expected at
1.5% of sales in year 1 and above 2.5% in year 3.
- By
region, we saw sequential improvement in commercial activity in the
Northeast, Southeast, Mountain Plains and Florida and stronger
demand in industry, notably in Gulf Central, the Southeast and the
Midwest. Volumes in the US have significantly improved in Q4 21: c.
10% below their Q4 19 level (c.20% below in Q3 21 vs Q3 19),
leaving room for further improvement in 2022. Lastly, order intake
further improved in Q4 21 and backlog is 50% above the level at
end-December 2020.
- By
market, with the industrial segment now above pre-crisis levels,
our 3 end-market are above their 2019 level for the first time in
Q4. The commercial segment significantly improved in Q4 21.
- The 2021
performance is in line with the market while increasing business
selectivity
- In
Canada (20% of the region’s sales), sales grew by
+12.7% on a same-day basis and are +3.3% above their Q4 2019 level,
accelerating from Q3 21 (up +1.4% vs Q3 2019) notably thanks to
higher volume from the West region (commercial proximity &
projects and the industrial projects) offsetting lower activity in
the Quebec region (lower commercial project). The integration of
the utility distribution business is now completed and is
delivering above expectations.
Asia-Pacific (8% of Group sales):
(0.1)% in Q4 and +7.5% in FY on a
constant and same-day basis
In the fourth quarter, sales in Asia-Pacific
were up +4.0% on a reported basis, including a positive currency
effect of +5.3%, or €17.2 million, due to the appreciation of all
currencies against the euro and more specifically the Australian
dollar and the Chinese renminbi. On a constant and same-day basis,
sales were down (0.1)%.
Key figures (€m) |
On a Q4 basis |
On a FY basis |
2021 |
vs 2020 |
vs 2019 |
2021 |
vs 2020 |
vs 2019 |
Asia-Pacific |
338.5 |
(0.1) % |
+10.0% |
1,293.8 |
+7.5% |
+9.1% |
Australia |
144.3 |
+10.6% |
+11.9% |
543.6 |
+7.3% |
+7.7% |
China |
138.6 |
(12.4) % |
+6.7% |
543.0 |
+4.2% |
+11.5% |
New-Zealand |
32.7 |
+22.3% |
+18.4% |
114.2 |
+13.0% |
(1.1) % |
India |
18.5 |
+9.1% |
+9.5% |
66.7 |
+40.2% |
+29.8% |
Middle-East |
4.4 |
(30.0) % |
(0.5) % |
26.3 |
(3.2) % |
(2.4) % |
- In the Pacific (52%
of the region’s sales), sales were up +12.6% on a constant and
same-day basis:
-
In Australia (82% of Pacific’s sales), sales were
up +10.6% (or up +11.9% vs Q4 19), accelerating compared to Q3
thanks to the end of the lockdown in large cities that affected
activity in Q3 21. The recovery was driven by industrial activity
and small & medium installers' activity as well as better
pricing contribution.
- In Asia (48% of the
region’s sales), sales were down (11.0)% on a constant and same-day
basis:
- In
China (86% of Asia’s sales), sales were down
(12.4)% (or +6.7% compared to Q4 19). Restated for the large
aerospace contract, Q4 21 is up +2.5% vs Q4 20, in line with Q3 21,
with a better pricing environment offsetting lower volume growth.
Activity remains impacted by scarcity of industrial products.
PROFITABILITY
Adjusted EBITA margin at 6.2% in FY
2021, up +196 bps compared to FY 2020
FY 2021 (€m) |
Europe |
North America |
Asia-Pacific |
Holding |
Group |
Sales & AD growth |
8,274 |
+16.5% |
5,123 |
+15.3% |
1,294 |
+7.5% |
|
14,690 |
+15.2% |
Constant & SD basis |
|
+16.4% |
|
+16.6% |
|
+7.5% |
|
|
+15.6% |
Gross margin |
2,272 |
|
1,309 |
|
231 |
|
|
3,813 |
|
% of sales |
27.5% |
68 bps |
25.6% |
279 bps |
17.9% |
60 bps |
|
26.0% |
146 bps |
Adj. EBITA |
586 |
|
335 |
|
31 |
|
(46) |
906 |
|
% of sales |
7.1% |
174 bps |
6.5% |
278 bps |
2.4% |
52 bps |
|
6.2% |
196 bps |
Group contribution |
|
107 bps |
|
95 bps |
|
3 bps |
-9 bps |
|
196 bps |
The +15.2% actual sales growth in FY 21
translated into a gross margin improvement of +146 bps
year-on-year, at 26.0% of sales and an adjusted EBITA margin up
+196 bps year-on-year at 6.2%, including a non-recurring impact of
40 bps that benefited 2021 (80 bps of positive one-off from
non-cable products inventory price inflation net of a negative
40bps impact from the higher performance-linked bonuses). It
demonstrates the result of our profound transformation over the
last 5 years and notably the digital transformation that translates
into above-market sales growth, improved customer service and
higher productivity.
The graph below details the +196 bps improvement
in Adjusted EBITA margin:
* including 60bps of government subsidies net of
45bps of lower volume related rebates in 2020
Assuming a return to a normalized price increase
environment, the 40bps non-recurring impact that benefited 2021
will not repeat in 2022.
By geography:
-
Europe:
- Gross
margin was up +68 bps year-on-year at 27.5% of sales and was also
above its pre-crisis level (27.3% in 2019) leveraging strong
pricing management and positive country mix.
- Adjusted
EBITA margin was up +174 bps in the year, at 7.1% of sales,
benefiting from robust sales growth and digital productivity (c.
300 fewer people than pre-crisis, in February 2020). It includes c.
20bps of non-recurring impact from non-cable products inventory
price inflation, net of higher performance-linked bonuses.
- North
America:
- Gross
margin up +279 bps vs. 2020 at 25.6% of sales, benefiting from
pricing initiatives and a one-off effect reflecting price inflation
on non-cable products, increased project selectivity and favorable
business mix (proximity vs project).
- Adjusted
EBITA margin was up +278 bps at 6.5% of sales, benefiting from
sales growth, the one-off effect reflecting price inflation on
non-cable products (gross margin impact) and structural measures
(c. 620 fewer people than in February 2020) offsetting higher
variable pay in 2021. It includes c. 100 bps of non-recurring
impact from non-cable products inventory price inflation, net of
higher performance-linked bonuses.
-
Asia-Pacific:
- Gross
margin was up +60 bps year-on-year at 17.9% of sales, with
increased Gross Margin in Pacific offsetting negative business mix
in China.
- Adjusted
EBITA margin was up +52 bps, at 2.4% of sales driven by better
profitability in Pacific.
- At corporate
level, adjusted Ebita amounted to €(46.2) million,
deteriorating versus last year’s level of €(33.2)million, due to
higher centrally-hosted projects and long-term incentives.
As a result, adjusted EBITA stood at €906.0
million, up +69.0%, in the year 2021 and reported EBITA stood at
€963.7 million (including a positive one-off copper effect of €57.8
million), up +79.5% year-on-year.
NET INCOME
Net income of €597.6 million in FY
2021
Recurring net income up
+107.0% to €575.0 million in FY 2021
Operating income in the year stood at €911.8
million, reversing a loss of €(3.4) million in FY 2020.
- Amortization of
intangible assets resulting from purchase price allocation amounted
to €(7.3) million (vs. €(10.5) million in FY 2020)
- Other income and expenses amounted
to a net charge of €(44.6) million (vs. a net charge of €(529.9)
million in FY 2020 largely explained by a charge of €(486.0)
million from goodwill impairment reflecting lower volume related to
the Covid-19 crisis). They included:
- €(23.4) million
impaired trade receivables in connection with the discontinuation
of a non-core contract in China in 2021 and legal proceedings
initiated as a result.
- €(9.8) million of
acquisition costs mainly related to the acquisitions in North
America of Mayer and a utility distribution business.
- €(7.3)
million of write-down on right-of-use and other fixed assets in
Spain.
- €(6.3)
million of restructuring costs (vs. €(26.1) million in FY
2020).
Net financial expenses in the year amounted to
€(133.1) million (vs. €(117.2) million in FY 2020) split as
follows:
- €(67.6) million
from financial cost of net debt before one-off expenses change,
fair-value of derivatives and foreign exchange gains & losses
in FY 2021 vs €(79.2) million in FY 2020, from lower average gross
debt.
- €(40.4)
million from interest on lease liabilities in FY 2021 vs €(42.7)
million in FY 2020.
- €(22.6)
million from one-offs in FY 2021 from the early repayment of the
€500 million senior notes due in 2025 (coupon: 2.125%) completed
end of May 2021 and the €600 million senior notes due in 2026
(coupon: 2.75%) completed in November 2021.
- Others
for €(2.5) million in FY 21 from change in fair-value of
derivatives and foreign exchange gains and losses.
- The
effective interest rate was stable at 2.42% in FY 2021 compared to
2.45% in FY 2020.
Income tax in the year represented a charge of
€(180.8) million in 2021 (vs. €(140.7) million in FY 2020):
- The effective tax
rate stood at 23.2% due to the €32.2 million one-off deferred tax
gain as a result of better-than-expected future taxable income in
countries carrying tax losses carried forward.
- Restated
for non-recurring impacts, the effective tax rate stood at 27.3%
(vs 30.7% in FY 2020), down 340 bps notably thanks to a lower tax
rate in France (tax rate from 32.02% to 28.41%).
Net income in the year was €597.6 million (vs. a
negative €(261.3) million in FY 2020).
Recurring net income amounted to €575.0 million
in 2021, up +107.0% compared to FY 2020 (see appendix 3),
corresponding to an all-time high Earnings Per Share of €1.89.
FINANCIAL STRUCTURE
Free cash-flow before interest and tax
of €680.6 million in full-year 2021
Indebtedness ratio of
1.37x at December 31, 2021
In the full year, free cash flow before interest
and tax was an inflow of €680.6 million (vs. an inflow of €613.0
million in FY 2020), representing a free cash flow
conversion rate (EBITDAaL into
FCF before interest and taxes) of 65.7%, above guidance (>
60%). This net inflow included:
- EBITDAaL of
€1,035.2 million (vs €605.9 million in FY 2020), including €(229.3)
million of lease payments in FY 2021.
- An
outflow of €(209.0) million from change in working capital
(compared to an inflow of €122.5 million in FY 2020), mainly to
support the sales recovery. The change in trade working capital
stood at €(324.1) million and was partially offset by an inflow of
€115.5 million from the change in non-trade working capital, mostly
explained by the non-recurring level of provisioning of variable
pay. More specifically, the trade WCR stood at 13.6% of sales in FY
2021, compared to 13.1% of sales in 2020, in a context of disrupted
global supply chain.
- Broadly stable cash
outflow from restructuring (€12.6 million in FY 21 vs €15.4 million
in FY 2020).
- A stable level of
net capital expenditure (€(103.2) million vs. €(76.6) million in FY
2020). Gross capex stood at €(103.0) million and represented 0.7%
of sales.
At December 31, 2021, net financial debt
increased by €216.3 million year-on-year at €1,551.2 million
(vs €1,334.9 million at December 31, 2020). It took into
account:
- €(56.1) million of
net interest paid in FY 2021 (vs €(66.5) million paid in FY
2020).
- €(199.0) million of
income tax paid in the year, compared to €(88.5) million paid in FY
2020.
- €(439.1)
million of cash invested mainly in the acquisition of Mayer in the
US, the utility distribution business in Canada, Winkle in the US
(an industrial automation business in Eastern Ohio, Western
Pennsylvania and Western New York- c. USD30m of annualized sales)
and of an EV charging station business in France (Freshmile).
- €(139.6)
million of dividends paid for the year 2020 (€0.46 per share)
- €(36.9)
million of negative currency effects during the year (vs a positive
€24.7 million in FY 2020).
At December 31, 2021, the indebtedness ratio
(Net financial debt/EBITDAaL), as calculated under the Senior
Credit Agreement terms, stood at 1.37x significantly lower than the
2.14x posted at December 31, 2020.
INCREASED DIVIDEND DISTRIBUTION WITH A
PROPOSAL OF €0.75 PER SHARE, PAYABLE IN CASH |
Rexel will propose to shareholders a dividend of
€0.75 per share, the highest-ever amount fully paid in cash. This
represents a payout of 40% of the Group’s recurring net income, in
line with Rexel’s policy of paying out at least 40% of recurring
net income.
This dividend, payable in cash in early June
2022, will be subject to approval at the Annual Shareholders’
Meeting to be held in Paris on April 21, 2022.
OUTLOOK AND SAVE THE DATE FOR THE COMING STRATEGIC
UPDATE |
In 2022, Rexel will continue to operate in
favorable market conditions:
- Non-cable inflation
continuing, adding to carry-over pricing impact
- Robust volume
environment
- Room for
additional growth in the USA
- Continued high
level of demand in Europe
- Record-high
backlogs (US, France, Canada, UK…)
Labor and product availability will remain a factor at least in
the first part of the year.
Leveraging our transformation and enhanced efficiency, we target
for 2022, at comparable scope of consolidation and exchange
rates*:
- Same-day sales
growth of between 4% and 6%
- An adjusted EBITA1
margin above 6%
- Free cash flow
conversion2 above 60%
* Assuming no severe deterioration of the sanitary
environment
An updated strategic roadmap, will be presented
at a Capital Market Day to be held at our Group's biggest branch
in Zurich on June 16, 2022.
1 Excluding (i) amortization of PPA and (ii) the non-recurring
effect related to changes in copper-based cable prices. 2 FCF
Before interest and tax/EBITDAaL
NB: The estimated impacts per quarter of (i) calendar effects by
geography, (ii) changes in the consolidation scope and (iii)
currency fluctuations (based on assumptions of average rates over
the rest of the year for the Group's main currencies) are detailed
in appendix 6
April 21,
2022 First-quarter
2022 sales
April 21,
2022 Annual
Shareholders' Meeting
June 16, 2022
Capital
Market Day in Zurich
2021 financial statements and consolidated
result is available on the Group’s website (www.rexel.com).A
slideshow of the fourth-quarter sales and full-year 2021 results
publication is also available on the Group’s website.
Rexel, worldwide expert in the multichannel
professional distribution of products and services for the energy
world, addresses three main markets: residential, commercial, and
industrial. The Group supports its residential, commercial, and
industrial customers by providing a tailored and scalable range of
products and services in energy management for construction,
renovation, production, and maintenance. Rexel operates through a
network of more than 1,900 branches in 24 countries, with more than
26,000 employees. The Group’s sales were €14.7 billion in 2021.
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, and STOXX600. Rexel is also
part of the following SRI indices: FTSE4Good, Dow Jones
Sustainability Index Europe, Euronext Vigeo Europe 120 and Eurozone
120, STOXX® Global ESG Environmental Leaders, and S&P Global
Sustainability Yearbook 2022, in recognition of its performance in
terms of Corporate Social Responsibility (CSR).
For more information, visit
www.rexel.com/en.
FINANCIAL ANALYSTS / INVESTORS
Ludovic
DEBAILLEUX |
+33 1 42 85 76
12 |
ludovic.debailleux@rexel.com |
PRESS
Sara DU REAU |
+33 6 60 31 77
72 |
sara.dureau@rexel.com |
Brunswick: Thomas
KAMM |
+33 1 53 96 83
92 |
tkamm@brunswickgroup.com |
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
Reported 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.
EBITDAaL is defined as EBITDA after deduction
of lease payment following the adoption of IFRS16.
RECURRING NET INCOME is defined
as net income restated 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.
For appendix, please open the pdf file by clicking on the link
at the end of the press release.
The Group is exposed to fluctuations in copper
prices in connection with its distribution of cable products.
Cables accounted for approximately 17% 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 cable
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 Universal Registration Document registered
with the French Autorité des Marchés Financiers (AMF) on March 11,
2021 under number D.21-0111, and its amendment filed with the AMF,
on March 29, 2021 under number D.21-0111-A01. 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. Rexel, 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 Universal Registration Document registered
with the AMF on March 11, 2021 under number D.21-0111, its
amendment filed with the AMF, on March 29, 2021 under number
D.21-0111-A01, as well as the financial statements and consolidated
result and activity report for the 2021 fiscal year which may be
obtained from Rexel’s website (www.rexel.com).
- PR- Full year 2021 results
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