(Update: comments from the CEO of Rexel and analysts, share price)
PARIS (Agefi-Dow Jones)–The electrical equipment distribution group Rexel raised its objectives for 2022 on Thursday and presented its forecasts for the period 2022-2025 during a day dedicated to investors.
“Rexel is raising its objectives for the year, after a better than expected start to the year in all geographies and higher inflation, in an environment that remains uncertain,” the group said in a press release.
For 2022, Rexel expects like-for-like sales growth of between 7% and 9%, compared to a previous range of 4% to 6%.
Rexel is now targeting an adjusted Ebita margin – a measure of operating income before depreciation and amortization of around 6.7% “including 50 basis points of non-recurring positive impacts linked to inflation”. The group previously expected an Ebitda margin above 6%.
For JPMorgan analysts, who expected an increase in these objectives when the group’s half-year results were published at the end of July, “this anticipated update implies a robust performance in the second quarter”, before an expected slowdown. growth in the second half.
For the 2022-2025 period, Rexel expects annual growth in constant-day sales of between approximately 4% and 7%, and an adjusted Ebita margin of between 6.5% and 7% in 2025.
Underlying trends that protect against risks
The risks that could weigh on the group’s forecast “are the same as for everyone else, that is to say the possible risk of a macroeconomic slowdown in the market, but I consider that there are a number of underlying buoyant trends which are specific to our market and which partially protect us”, explained Rexel’s CEO, Guillaume Texier, to the Agefi-Dow Jones agency.
Among these fundamental trends are the growth of electrification associated with the energy transition and, particularly in Europe, the securing of energy supplies, specified the manager.
The group also intends to carry out “targeted acquisitions capable of bringing in additional turnover [allant] up to 2 billion euros over the period”.
Rexel is primarily targeting small and medium-sized acquisitions in order to consolidate its presence in the United States, explained Guillaume Texier.
Rexel also plans to distribute to shareholders at least 40% of recurring net income each year and will buy back approximately €400 million of its shares by 2025. This share buyback program, which was not expected by consensus, represents about 7% of Rexel’s market capitalization, Berenberg analysts pointed out.
“Rexel’s prospects are very good for the coming years and they are not yet fully priced in by the market, so it makes sense for us to buy back shares of an undervalued company,” he said. explained Guillaume Texier.
After gaining up to 4.1% at the start of trading, Rexel shares fell 3.4% to 17.72 euros at the start of the afternoon, while the SBF 120 index lost 2.3% .
-Alice Doré, Agefi-Dow Jones; +33 (0)1 41 27 47 90; [email protected] ed: JXM – ECH
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June 16, 2022 07:18 ET (11:18 GMT)