FX.co ★ Rexel Q1 Net Sales Down, Confirms FY24 Outlook; To Buy Privately Held Itesa

Rexel SA, a French company specializing in the distribution of electrical supplies, announced a decrease in its first-quarter sales by 4.5 percent from the previous year, totaling about 4.71 billion euros. This decrease aligns with expectations, given the high amount of electrification activities, specifically in the domain of solar technologies across Europe.

However, the company also highlighted noticeable market share increase in key countries such as France, Germany, and Switzerland. Moreover, for the upcoming fiscal year of 2024, Rexel is optimistic about achieving a stable to slightly positive same-day sales growth despite a comparably high base during the first half of the year. The firm is also aiming for an adjusted EBITA margin ranging between 6.3 and 6.6 percent.

Guillaume Texier, the Chief Executive Officer of Rexel, commented that despite a tough economic environment, the company managed to put up a solid performance in the first quarter. He credited this strength to the resilience of their core electrical distribution business, excluding electrification categories and cables. He also pointed to the robust demand in non-residential markets and industrial automation along with the beneficial pricing on non-cable products.

In addition to these developments, Rexel announced its plans to acquire Itesa, a French B2B distributor of security solutions specializing in the datacom/security sector. This strategic acquisition is projected to increase Rexel's earnings per share in its first year and contribute to value creation in the second year. This move aligns perfectly with the Group's commitment to growth and expansion.

However, the completion of this deal is contingent on the approval of the French competition authority. If all goes according to plan, the acquisition is set to close in the second half of the year.