Rexel: share up as 2021 outlook raised
(CercleFinance.com) - The Rexel share is up sharply on Wednesday in Paris, following the group increasing its outlook for FY 2021.
In a statement, the distributor of products and services for the energy sector explains that it benefited from better-than-expected business activity in Q4.
Combined with a focus on gross margin and cost discipline, this momentum enabled it to achieve LFL sales growth of 15.3% last year.
In comparison, it previously forecast between 12% and 15% growth.
The electrical equipment specialist also points to a dynamic recovery, particularly in the United States, also supported by rising inflation.
As a result, Rexel says it expects an adjusted EBITA margin of 6.2% for 2021, compared to a previous forecast of around 5.7%.
The group adds that it will start 2022 with a strong order book, driven by projects that were postponed from last year due to labour shortages and supply chain tensions.
Following these announcements, Rexel shares price were up about 4% on Wednesday morning in Paris, a big winner in a flat CAC.
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