Rexel Upgrads Medium-term Targets

(RTTNews) - Rexel Group (RXEEF.PK), a distributor of electrical products, Friday unveiled its new and upgraded medium-term financial ambitions, ahead of its Capital Markets Day in Paris.

Over the medium-term, the company now projects high-single digit growth in earnings per share, adjusted EBITA margin above 7 percent, as well as sales growth potential of between 5 percent and 8 percent, with targeted M&A representing between 2 percent and 3 percent.

The company also plans a dividend payout of at least 40 percent and share buybacks of between 50 million euros and 150 million euros per year.

Going forward, Rexel expects its solid foundation to allow to benefit from the secular trends shaping its end markets.

Guillaume Texier, CEO of Rexel, said, "Rexel is taking today a new step to power up to the next level, building on the Power Up 2025 plan, which is well on its way to success.... The combination of a transformed, more resilient Rexel and an accelerating market in the medium term makes us confident we will deliver further growth in sales, profitability and value creation."

In order to achieve its targets, the company plans to focus on two main pillars, such as building on its winning formula as well as seizing acceleration businesses in an electrifying market.

Rexel aims to achieve 50 percent of its sales through digital channels, compared to 28 percent in 2023. It plans to reach 15+ automated Distribution Centers and 500+ robots in its supply chain, compared to 10 automated DCs and 325 robots at present.

Rexel added that, while 2024 is a transition year facing a high comparable base, the medium-term prospects point to continued solid growth, notably in the US, driven by reshoring, grid modernization and expanding data centers.

The company said it aims to derive 40 percent of its sales from "acceleration" businesses in the medium-term, compared to the 32 percent at present. This will be done both through organic growth and disciplined M&A, as well as continued investment to grow the North American platform.