North American full-year sales reached nearly $8.9 billion for a 4.0% annual gain. See our in-depth breakdown of Rexel’s financials.

Rexel

Paris-based Rexel reported its 2023 fourth quarter and full-year financial results on Feb. 14, which showed an overall group sales decline in the October-December period year-over-year, while North American sales saw a modest increase.

The electrical supplies distribution giant posted total 4Q23 group sales of $5.09 billion, down 1.6% year-over-year (-1.4% constant, same-day), with the company citing a “challenging base effect” in electrification Europe and lower demand in some end-markets. 

Rexel noted that the four product categories related to electrification — solar, electric vehicle charging infrastructure, HVAC and industrial automation — represented 23% of 4Q23 sales and decreased by 2% in the period.

The 1.6% figure was positively impacted 2.1% by recent acquisitions and divestments and 0.3% from calendar effect, more than offset by a negative 2.7% currency impact and -1.4% impact from constant and same-day sales evolution.

For the full-year, Rexel reported total group sales of $20.63 billion, up 2.4% vs. 2022 (+4.3% constant, same-day). Full-year gross margin of 25.5% fell 50 bps vs. 2022.

By Rexel geography in 4Q and full-year 2023

  • Europe sales of $2.63 billion (52% of group total) fell by 2.8% year-over-year, while full-year sales of $10.36 billion increased 5.1% vs. 2022. Full-year adjusted EBITA margin of 7.2% fell 80 bps vs. 2022.
  • North America sales of $2.12 billion (42% of group total) increased 0.4% year-over-year, while full-year sales of $8.87 billion increased 4.0% vs. 2022. Full-year adjusted EBITA margin of 7.4% fell 79 bps vs. 2022.
    • U.S. 4Q sales (81.8% of N.A. total) dipped 0.1% year-over-year, and improved 3.4% vs. 2022.
    • Canada 4Q sales (18.2% of N.A. total) improved 2.9% year-over-year, and improved 7.0% vs. 2022
    • Rexel noted that N.A. growth was driven by the company’s capacity to capture reshoring trends and to enhance backlog execution
  • Asia-Pacific sales of $339 million (6% of group total) fell 1.4% year-over-year, while full-year sales of $1.40 billion dipped 0.1%. Full-year adjusted EBITA margin of 3.0% improved 109 bps vs. 2022.

Rexel’s total full-year adjusted EBITA margin was 6.8%, down 71 bps vs. 2022.

The company posted a 2023 operating profit of $1.31 billion that fell 9.4% year-over-year, while net profit of $834 million fell 16.0%.

Other notes

  • Digital sales represented 30% of total 4Q23 group sales, up 269 basis-points year-over-year. Europe reached 40% digital sales (+234 bps); North America was 21% (+359 bps) and Asia Pacific was 9% (+314 bps).
  • Rexel ended 2023 with a full-time equivalent headcount fo 27,192, up 0.5% from the end of 2022.
    • Europe FTE of 15,120 increased 1.3%
    • North America FTE of 9,388 decreased 0.5%
      • U.S. FTE of 7,247 down 0.7%
      • Canada FTE of 2,141 up 0.1%
    • Asia-Pacific FTE of 2,447 decreased 0.4%
  • Rexel ended 2023 with a global branch count of 1,972, up two from the end of 2022
    • Europe branch count ended 2023 at 1,080, identical to the end of 2022
    • North America branch count ended 2023 at 656, up three
      • U.S. count of 460 down three
      • Canada count of 193 identical
    • Asia-Pacific branch count ended 2023 at 236, down one
  • On MDM’s 2023 Top Distributors Lists, Rexel’s North American operations ranked No. 5 for electrical supplies.

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Mike Hockett

Mike Hockett

Mike Hockett is MDM’s executive editor, having joined the publication in March 2022. He oversees MDM’s editorial content and direction, coordinates with contributing authors, conducts interviews with executives in the wholesale distribution space and serves as the editorial face of MDM at industry events. He has extensively covered the distribution and manufacturing sectors since 2014. Hockett works from his home in Madison, WI. He can be contacted at mike@mdm.com.

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