Gexpro parent, Rexel Group, reports results
A strong first half and positive performance indicators bode well for 2008 results for Rexel Group, Gexpro’s France-based parent company. Key results included:
- Organic sales growth on constant and same day basis: +2.3%
- Robust profitability: EBITA at 5.6% of sales versus 5.4% in 1H07
- Net income up 72.1% driven by a reduction of financial expenses and a capital gain
- Continued improvement in working capital which is down to 12.8% of sales from 13.3% at the end of 1H07
Jean-Charles Pauze, Chairman of the Management Board and Rexel CEO, commented: “Rexel recorded a solid performance in H1 and Q2 2008. In a challenging environment, Rexel achieved organic growth and improved its Adjusted EBITA margin. The Group also reduced its debt significantly through the combination of strong cash flow generation and the sale of the non-retained Hagemeyer activities ahead of schedule. The integration of Hagemeyer’s European activities in Q2 08 allowed Rexel to begin benefitting from initial cost synergies. With activity slowing down in the construction end-market in the US and several European countries, Rexel continues to focus on adjusting its cost base while accelerating gains from its enhanced European platform and allocating its resources to higher growth market segments. Against this backdrop and comforted by the actions we have taken, Rexel confirms its 2008 Full Year objectives.”