Rexel Sales Grow 2.2% in Third Quarter - Modern Distribution Management

Rexel Sales Grow 2.2% in Third Quarter

The global electrical distributor also acquired Thai company "4 Knights International."

Electrical distributor Rexel, Paris, France, reported third-quarter sales of €3.3 billion (US$4.2 billion), up 2.2 percent over the same period a year ago. On a constant, same-day basis, sales also increased 2.2 percent. Profit fell 14.4 percent to €67.1 million (US$85.6 million).

“Rexel’s third quarter sales showed positive momentum, particularly in North America, while the operating margin was impacted by unfavorable mix effects on gross margin, transition costs related to the implementation of our business transformation program and increased investments to accelerate profitable growth in strategic areas," CEO Rudy Provoost said.

For the first nine months, sales were €9.6 billion (US$12.3 billion), down 1.1 percent from the prior-year period. On a constant, same-day basis, sales were up 1.1 percent. Profit grew 5.2 percent to €157.5 million (US$201 million).

Sales in Europe (55 percent of group sales) were up 1.3 percent in the third quarter and up 1 percent for the nine months (on a constant, same-day basis). Third-quarter sales declined slightly in France (-0.2 percent) and Germany (-0.3 percent), while the Netherlands declined 7.3 percent. Sales grew in the UK (1.7 percent), Scandinavia (6.8 percent), Belgium (0.4 percent), Switzerland (1.5 percent), Austria (1.9 percent) and the Southern European countries (3.7 percent).

In the third quarter, sales in North America (34 percent of group sales) were up 3.7 percent on a reported basis but up 5.5 percent on a constant and same-day basis. In the nine months, sales were up 2.1 percent on a constant and same-day basis. In the U.S., sales increased 5.7 percent in the quarter, while in Canada sales were up 4.7 percent.

Third-quarter sales in Asia-Pacific (9 percent of group sales) were up 2.4 percent on a reported basis, but down 2.6 percent on a constant, same-day basis. In the nine months, sales were down 0.9 percent on a constant and same-day basis. Third-quarter sales were down 5 percent in Australia, down 3.7 percent in China and down 3.5 percent in New Zealand; sales increased 6.1 percent in South-East Asia.

In the third quarter, sales in Latin America (2 percent of group sales) were down 9.8 percent on a reported basis and down 7 percent on a constant, same-day basis. . In the nine months, sales were down 3.7 percent on a constant and same-day basis. Third-quarter sales declined in Brazil (-7.4 percent) and Chile (10.6 percent), but grew 8.4 percent in Peru.

Rexel also acquired the Thai company "4 Knights International."  The acquisition reinforces the group’s position in the key oil & gas segment, in line with the Group’s high-growth initiatives, and strengthens Rexel's presence in South-East Asia.

Headquartered in Bangkok, “4 Knights International” generated annual sales of €10 million (US$12.8 million) in 2013. This is Rexel’s second acquisition in Thailand.

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!