France-based electrical products distributor Rexel reported its 2024 second quarter financial results on July 30, showing resilience in the North American market, offset by a challenging environment in Europe.
Overall, the company posted 2Q sales of $5.31 billion, down 2.4% year-over-year on a same-day basis (1.8% reported). The company noted its sales for electrification — 22% of the company’s 2Q’s total — were down 14.4% year-over-year, while core electrical distribution sales (including cable) — 78% of the company’s 2Q total — were down 1.1% year-over-year.
In Europe — 50% of group sales — 2Q sales decreased by 4.5% year-over-year on a same-day basis (2.1%). Electrification categories were down 14.4% and contributed -340 basis points, while core electrical distribution sales were down 1.1%.
In North America — 43% of group sales — 2Q sales were up 0.9% year-over-year on a same-day basis (1.2% reported). Electrification sales were down 4.6% and contributed -100 bps, while core electrical distribution sales were broadly flat with positive volume.
- U.S. sales — 82% of regional sales — were down 1% year-over-year (reported)
- Canada sales — 18% of regional sales —were down 0.5% year-over-year (reported)
In Asia-Pacific — 7% of group sales — 2Q sales were up 4.1% on a same-day basis (3.5% reported).
Other notes from Rexel’s 2Q:
- Digital: The company said its “digital penetration rate” was 31% of sales, up 290 bps year-over-year
- M&A: The company said its overall sales increase was driven by its M&A strategy in Europe and North America. The company acquired Talley in the U.S. and Wasco in the Netherlands to contribute to its M&A growth.
- Pricing: The company said that its 2Q pricing for non-cable products was down 1.1%, caused by deflation in solar panels across geographies. In contrast, cable price contribution increased to 0.4% benefitting from more supportive copper prices.
Rexel — No. 5 on MDM’s Top Distributors List for Electrical, Data and Security Supplies — reported 2023 revenues of $8.9 billion.
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