Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on REXEL SA. We currently have 7 research reports from 1 professional analysts.
|27Feb17 16:45||GNW||REXEL : SUCCESFUL PLACEMENT OF THE €300 MILLION NOTES OFFERING|
|27Feb17 07:25||GNW||REXEL LAUNCHES €300 MILLION NOTES OFFERING|
|21Feb17 07:30||GNW||REXEL : CATHERINE GUILLOUARD TO STEP DOWN AS DEPUTY CEO OF REXEL GROUP|
|13Feb17 06:31||GNW||REXEL : CAPITAL MARKETS DAY|
|13Feb17 06:30||GNW||REXEL : ANNUAL RESULTS 2016|
|28Oct16 06:31||GNW||REXEL : THIRD-QUARTER & NINE-MONTH 2016 RESULTS|
|28Oct16 06:31||GNW||REXEL : APPOINTMENT OF A NEW EXECUTIVE COMMITTEE WITH AN INCREASED REPRESENTATION OF COUNTRY/REGION MANAGERS|
Frequency of research reports
Research reports on
Rexel at the inflection point
04 Feb 17
Rexel reported Q3 FY16 results slightly below our estimates. All the sales growth numbers are at CER and same-day basis unless specified otherwise. The company’s revenue decreased by 3.7% (vs Q2: -2.3%, Q1: -1.4%; our estimate: -2.7%), largely due to the ongoing slump in copper-based cable prices (-0.9% yoy) and sluggish industrial activity in North America (slump in oil & gas prices and stronger dollar). The region clocked a 6.0% revenue decline (vs Q2: -4.2%, Q1: -4.4%; our estimate: -3.7%; c.35% of group revenue), pinned down by the subdued performance in both the US (-6.6% vs Q2: -3.4%, Q1: -3.6%; our estimate: -3.0%) and Canada (-4.0% vs Q2: -7.1%, Q1: -7.4%; our estimate: -6.0%). Europe was down 1.6% (vs Q2: -0.9%, Q1: +0.3%; our estimate: -2.2%), as a result of sluggish construction activity in France (-1.1%, c.35% of regional revenue) and the UK (-6.4%, largely due to the 78% drop in photovoltaic equipment sales; c.14% of regional revenue), more than offsetting the positive sales growth in Germany (+0.2%; c.11% of regional revenue) and Scandinavia (+1.6%; c.13% of regional revenue). Challenging macro-economic conditions in China (-11.2% lfl; reduced industrial demand from the wind industry; c.35% of regional revenue) and Australia (-2.6% lfl; ongoing slowdown in mining activity; c.38% of regional revenue) kept APAC in the red zone (Q3: -5.6%, Q2: -3.2%, Q1: +0.2%; our estimate: -1.9%). Despite the positive scope impact of €9.1m, the reported revenue declined by 5.6% (vs Q2: -2.2%, Q1: -1.9%; our estimate: -2.3%) due to currency headwinds (-1.6% yoy; depreciation of GBP vs the EUR). Better gross margin (+41bp yoy; on the back of better product mix and pricing action) failed to stem the EBITA margin erosion (-51bp yoy at 4.0%; our estimate: 4.3%) due to lower operating leverage. The company continued to optimise debt financing and expects the effective interest rate to reduce further to 3.4% in H2 FY16 (vs 3.7% in H1 FY16). Management confirmed the full-year performance target at the lower end of February’s guidance (organic sales of -3 to +1%; EBITA margin of 4.1% to 4.5%).
North America improves further; CEO to share new growth strategy shortly
28 Aug 16
Rexel reported Q2 FY16 results ahead of our estimates. All the sales growth numbers are at CER and same day basis unless specified otherwise. The total revenue remained under pressure with a decline of 2.3% (vs Q1 16: -1.4%, Q4 15: -2.9%), largely due to the ongoing slump in cable prices (-1.3% impact yoy) and sluggishness in the North America’s industrial sector (Q2 16: -21% yoy, Q1 16: -36%). The region clocked a revenue slump of 4.2% during the quarter (our estimate: -2.8%; accounts for c.34% of group revenue). Despite an improved performance in Scandinavia (Q2 16: +3.5%, Q1 16: -0.1%; our estimate: +0.5%) and flat growth in France (36% of region’s sales), Europe slipped back into the red zone (Q2 16: -0.9% vs Q1 16: +0.3% and our estimate: +0.2%; accounts for 56% of group revenue), largely on the back of a dismal performance in the UK (-6.4% yoy; reflecting an 80% drop in photovoltaic equipment sales after the change in tariff regulations; contributes 14% of region’s sales) and Germany (-2% yoy; contributes 11% of the region’s sales). Furthermore, the challenging macro-economic conditions in China kept Asian growth in negative territory (Q2 16: -7.2%, Q1 16: -1.6%, Q4 15: -1.0%; accounts for c.5% of group revenue) while the Pacific region clocked a revenue growth of +1.4% (vs Q1 16: +2.3%, Q4 15: +1.0%; c.5% of the group revenue). However, a positive calendar and scope effect (2.4% and 0.5% respectively) more than offset the FX headwinds (-2.8%; depreciation of USD and GBP vs EUR), leading to a reported revenue decline of 2.2% (vs Q1 16: -1.9%, Q4 15: 3.2%; our estimate: -2.5%). However, the reported EBITA margin came in at +4.5% (+30bp vs our estimate), on the back of an improved gross margin in Europe (+17bp yoy), Asia-Pacific (+92bp yoy) and continuous opex reduction activity in North America (-15bp yoy as a percentage of sales; reflecting ongoing branch network optimisation programme). Furthermore, the company realised lower financial expenses due to early bond redemption (Q2 16: €43.7m vs €69.8m in Q2 15; worth €650m maturing June 2020) and refinanced at lower interest rate (-160bp vs earlier issue), resulting in a +184% increase in the net income from continuing operations. While management remains cautious about the Brexit impact and industrial activity levels in H2 16 (North America and China), it remains bullish on an improvement in the French construction activity. The company also reconfirmed the FY16 guidance (organic growth: -3% to +1%; EBITA margin: +4.1% to +4.5%).
North America set for a turnaround; uncertainty to continue in Europe
04 Jul 16
Rexel reported Q1 FY16 results broadly in line with our estimates. Revenue decreased by 1.4% at CER (vs Q4 15: -2.9%, Q3 15: -3.3% and our estimate: -1.4%), dragged down once again by the negative impact of copper-cable prices (-1.2% impact on organic growth; USD copper prices dropped by 20% in the quarter) and weak industrial activity in North America (36% revenue drop in the Oil & Gas sector). All the sales growth numbers are at CER unless specified otherwise. Despite good construction activity in the US, revenue growth in the region slumped by 4.4% (vs Q4 15: -6.5%, Q3 15: -7.2%, our estimate: -3%). However, Europe jumped back to positive territory with growth of +0.3% (vs Q4 15: -0.8%, Q3 15: -0.9% and our estimate: -0.4%), largely driven by France (+2.5%), Sweden (+3.6%) and the Netherlands (+7.1%). Similarly, Asia-Pacific clocked +0.2% revenue growth (vs Q4 15: -0.1%, Q3 15: -0.8% and our estimate: -1%) on the back of positive momentum in Australia (+1.3%; positive growth for the first time since Q3 11), despite a dismal performance in Asia (-1.6% yoy; reflecting growth challenges in China). Despite a positive scope effect of €38.1m, the reported revenue was down 1.9% (vs Q4 15: -3.2%, Q3 15: +3.7% and our estimate: -2.6%), pinned down by FX headwinds (largely due to the depreciation of the Canadian dollar and sterling vs the euro) and a negative calendar impact (-0.6%). The adjusted EBITA margin decreased to 3.9% (-20bp yoy), reflecting higher distribution and administrative expenses in Asia-Pacific (+40bp yoy) and Europe (+20bp yoy), partially offset by better ‘opex’ control in the US. The debt refinancing activity completed in FY15 led to lower financial expense (lower effective interest rate in Q1 16: 3.8%, -70bp yoy) and, consequently, higher recurring net income (+13.5% yoy). Management expects a recovery in the French construction activity in the second half of FY16 and has reconfirmed earlier guidance (FY16 lfl revenue growth: -3% to 1% and EBITA margin: 4.1% to 4.5%). Rexel witnessed a major change in the governance structure at the end of June 2016. Rudy Provoost was asked to step down as Chairman and CEO (due to a divergence of views with the Board about the change in governance and his approach to implementing the group’s strategy). Patrick Berard, presently in charge of Rexel’s European operations is appointed as the new CEO, effective on 1 July 2016, and François Henrot (currently Deputy-Chairman and Senior Independent Director) has stepped in as interim Chairman. Ian Meakins (current CEO of Wolseley Plc; due to retire on 31 August 2016) will take-over as non-executive Chairman of the board from 1 October 2016.
A challenging year ahead
25 Feb 16
Rexel announced FY15 results in line with our expectations and the guidance provided in October last year. Annual revenue was down 2.1% at CER, pulled down by lower copper prices ($5,800 per tonne in Q1 vs c.$4,700 in Q4 15), weaker industrial activity in North America (28% drop in the O&G segment), challenging construction activity in France and weaker macro-economic conditions in China. Both the biggest markets, North America (-5.2%) and France (-2.3%), registered a decline. However, the FX benefit of €916.7m, primarily due to stronger USD, resulted in the total revenue growth of 3.5% to €13.5bn. The adjusted EBITA margin tanked 60bp to 4.4% for the full year, in line with our expectation, primarily due to lower gross margin (24.0%, -20bp) and higher distribution and administrative expenses (19.6%, +50bp). Asia Pacific clocked the biggest decline in profitability (EBITA: -247bp yoy), attributable to lower supplier rebates in Australia and a 100bp increase in distribution & admin expenses (bad debt in China and business developments in Asia). In Q4, revenue dipped 2.9% yoy at CER to €3.5bn and the EBITA margin stood at 4.7% (+30bp vs annual EBITA of 4.4%), sequentially better but down 57bp yoy. The company has slashed the dividend pay-out to €0.40 per share (c.45% of net recurring income vs c.70% in 2014), to be paid in cash as opposed to the share dividend option available in previous years. In terms of FY16 outlook, management expects growth of -3% to +1% at CER (including a 1.1% negative impact from the copper price) and an adjusted EBITA margin of 4.1-4.5%. Rexel also announced its 2020 roadmap wherein it is looking to achieve a CER growth target of 1-2% and EBITA growth of at least twice the pace of organic sales growth.
Margins seem to be bottoming-out; management delivers US gross margin improvement
02 Nov 15
After issuing profit warnings twice this year (the last on 7 October), Rexel reported Q3 results were in line and it was reassuring that it maintained guidance (FY15 organic sales decline of 2-3% and EBITA margin of 4.3%-4.5%). Favourable FX helped 3.7% growth in revenue to €3.4bn while constant and same day revenue was down 3.3% (H1: -1%; 9M: -1.8% vs. our estimate of -4.2% for FY15). Despite an organic sales decline on the back of the challenging construction sector in most European markets (including the big one, France) and impact from O&G markets in China, NA, and Australia, Rexel’s Q3 EBITA margin remained stable sequentially at 4.4% (9M 15: 4.3% vs. our FY15 estimate of 4.4%).
Profit warning; longer wait before a recovery
09 Oct 15
Continuing macro-economic headwinds in O&G markets and the slowdown in France led the company to revise downwards its full-year guidance. FY15 organic sales is now expected to witness a fall of 2-3% (vs. our earlier estimate of -3.4%) compared with the previous guidance of at most -2%. The new guidance for the EBITA margin is 4.3-4.5% (vs. our estimate of 4.7%) vs. 4.8% in the previous management outlook. Q3 15 sales are reported to be witnessing a decline of 3.5% organically (constant and same day), with the maximum drop coming in North America (-7% vs. -3.3% in H1) followed by Europe (-1% vs. +0.7% in H1) and Asia Pacific (-1% vs. -1.7% in H1). Rexel’s stock price has lost c.17% since its H1 earnings update in July when the company warned of a higher expected decline in its O&G business and lower copper prices.
N+1 Singer - Morning Song 21-03-2017
21 Mar 17
accesso Technology (ACSO LN) Full year results in line, but key trading months still ahead | Augean (AUG LN) Double digit growth in ’16, good start to ‘17 | Earthport (EPO LN) Interims show continued top line strength | Goals Soccer Centres (GOAL LN) Good momentum under new team. It’s now all about delivery | IQE (IQE LN) FY’16 results prompt further upgrades | Microsaic Systems (MSYS LN) Challenges in 2016, strategy remains in place | mporium Group (MPM LN) Funds raised to help execute strategy | RhythmOne (RTHM LN) Dawn of the independents | ScS Group (SCS LN) Strong progress on key growth initiatives albeit comps now toughen | Sinclair Pharma (SPH LN) FY results: EBITDA ahead, Instalift™ gaining pace | Vectura Group (VEC LN) FY (9-month) results
N+1 Singer - N1S Trend spotting - Strategy update
08 Mar 17
In this new product we present some strategy theme updates arising out of our latest analysis of macro trends and economic data and our innovative Quant work. We also look at upcoming events and suggest topping up on some of our Best Ideas for 2017.
N+1 Singer - Augean - Double digit growth in ’16, good start to ‘17
21 Mar 17
Augean reported another year of double digit growth for 2016, with profits in line with our forecasts. Sales grew by 21% excluding landfill tax, while adjusted PBT grew by 18% to £7.1m before amortisation of acquired intangibles. DPS was increased by 54% to 1.0p, 25% ahead of our estimate. The business units made further strategic progress, with revenues from their top 20 customers increasing from 42% to 43% of the total, of which 88% was under contract or a framework agreement, increasing forward visibility. There has been an encouraging start to 2017 and management is confident of delivering another year of profits growth. The shares trade on undemanding single digit multiples, offering good value.
Scott deal puts spotlight back on corporate strategy and valuation
17 Mar 17
The acquisition of Scott Safety by 3M announced yesterday is not a huge surprise but it puts the spotlight back on (1) Avon’s corporate strategy as two strong competitors merge and (2) Avon’s break-up valuation given the rich multiple (12.9x EBITDA) being paid by 3M. Avon and other competitors, particularly MSA Safety, cannot ignore the fact that Scott, which is the leader in SCBA (self-contained breathing apparatus) market and 3M, which derives the bulk of sales from industrial hard hats and masks, would together have the most comprehensive portfolio of products in the PPE (Personal Protective Equipment) market. The good news for investors is that if we were to apply similar EBITDA multiple, then Avon’s Protection & Defence business alone would account for the entire market cap. In effect, at the current share price, investors are getting the Dairy business for free. Our sum-of-the parts model now values the shares at 1,279p, up 7% compared with 1,200p previously.
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
Carador Income Fund (CIFU LN) Premium rating restored, high levels of refinancing activity | Cello Group (CLL LN) Outlook getting brighter – watch Pulsar | Eckoh (ECK LN) Largest ever US secure payments win | eg solutions (EGS LN) Full year results in line | Futura Medical (FUM LN) Licensing deal for CSD500 in Portugal | Verona Pharma (VRP LN) Global agreement with QuintilesIMS to support development of RPL554 | Xaar (XAR LN) 2016 results slightly ahead, reduced visibility in 2017