REXEL : STRONG OPERATING PERFORMANCE IN THE FIRST NINE MONTHS OF 2007
Market Wire, November, 2007
ALL KEY INDICATORS UP:
- Sales up 3.5% on a constant and same day basis: 7,982 million EUR
- Adjusted EBITA up 20% on a constant basis: 490 million EUR or 6.1% of sales
- Net profit before IPO costs up 57%: 238 million EUR
- Free Cash Flow up 69%: 451 million EUR before interest and taxes
- Net Debt reduced to 1,688 million EUR, or 2.4x Last Twelve Months EBITDA
Jean-Charles Pauze, Chairman of the Management Board and CEO, commented:
"Over the first nine months of 2007, Rexel delivered very strong performance, with operating profit up significantly by 20% on sales growth of 3.5%, and our Adjusted EBITA margin rising to 6.1% of sales.
During the third quarter of 2007, Rexel saw continued growth in Europe and Asia-Pacific, led by the industrial and commercial end-markets while sales trends in North America were comparable to the second quarter. We pursued our focus on profit generation and succeeded in holding our cost base constant at Group level, whilst reducing our costs in North America.
We continued to implement our bolt-on acquisition strategy, with the purchase of EIW Holdings, strengthening our number one position in Australia.
Looking ahead, our proposed full cash offer for Hagemeyer marks our confidence in the quality of Rexel's business model and would provide compelling development opportunities for our Group."
Nine months and third quarter 2007 results - Solid performance across the board
Key Figures:
(All comments on a constant and adjusted basis and for sales, at same number of days)
------------------------- --------------- --------------- -------- |IFRS, unaudited, EUR |Nine months to |September 30th | | |million | | | | ------------------------- --------------- --------------- -------- | | 2007 | 2006 | Change | ------------------------- --------------- --------------- -------- |Constant(1) and | | | | |adjusted(2) basis | | | | ------------------------- --------------- --------------- -------- |Sales | 7,981.8 | 7,716.4 | 3.4% | ------------------------- --------------- --------------- -------- |Same number of days | | | 3.5% | ------------------------- --------------- --------------- -------- |Gross margin as a % of | 24.6% | 24.1% | 50 bps | |sales | | | | ------------------------- --------------- --------------- -------- |OPEX | (1,472.6) | (1,452.0) | 1.4% | ------------------------- --------------- --------------- -------- |EBITA | 489.8 | 407.9 | 20.1% | ------------------------- --------------- --------------- -------- |as a % of sales | 6.1% | 5.3% | 80 | ------------------------- --------------- --------------- -------- | | | | bps | ------------------------- --------------- --------------- -------- |Actual basis | | | | ------------------------- --------------- --------------- -------- |Sales(3) | 7,981.8 | 6,576.0 | 21.4% | ------------------------- --------------- --------------- -------- |EBITA(4) | 490.5 | 405.8 | 20.9% | ------------------------- --------------- --------------- -------- |as a % of sales | 6.1% | 6.2% | | ------------------------- --------------- --------------- -------- |Net income pre IPO | 237.5 | 151.1 | 57.2% | |costs(5) | | | | ------------------------- --------------- --------------- -------- |Free cash flow before | 450.8 | 267.2 | 68.7% | |interest & tax(6) | | | | ------------------------- --------------- --------------- -------- |Net debt | 1,687.5 | n.c. | | ------------------------- --------------- --------------- -------- ------------------------- ---------------- --------------- -------- |IFRS, unaudited, EUR |Three months to |September 30th | | |million | | | | ------------------------- ---------------- --------------- -------- | | 2007 | 2006 | Change | ------------------------- ---------------- --------------- -------- |Constant(1) and | | | | |adjusted(2) basis | | | | ------------------------- ---------------- --------------- -------- |Sales | 2,677.0 | 2,641.0 | 1.4% | ------------------------- ---------------- --------------- -------- |Same number of days | | | 1.4% | ------------------------- ---------------- --------------- -------- |Gross margin as a % of | 24.2% | 24.2% | 0 bp | |sales | | | | ------------------------- ---------------- --------------- -------- |OPEX | (484.4) | (484.0) | 0.1% | ------------------------- ---------------- --------------- -------- |EBITA | 163.7 | 154.4 | 6.0% | ------------------------- ---------------- --------------- -------- |as a % of sales | 6.1% | 5.8% | 30 bps | ------------------------- ---------------- --------------- -------- | | | | | ------------------------- ---------------- --------------- -------- |Actual basis | | | | ------------------------- ---------------- --------------- -------- |Sales(3) | 2,677.0 | 2,504.5 | 6.9% | ------------------------- ---------------- --------------- -------- |EBITA(4) | 162.5 | 176.2 | -7.8% | ------------------------- ---------------- --------------- -------- |as a % of sales | 6.1% | 7.0% | | ------------------------- ---------------- --------------- -------- |Net income pre IPO | 86.8 | 74.6 | 16.4% | |costs(5) | | | | ------------------------- ---------------- --------------- -------- |Free cash flow before | 87.0 | 115.5 | -24.7% | |interest & tax(6) | | | | ------------------------- ---------------- --------------- -------- |Net debt | 1,687.5 | n.c. | | ------------------------- ---------------- --------------- --------
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