Electrical supplies distribution giant Rexel reported its 2022 second quarter financial results on July 28, showing a significant increase in year-over-year sales, gross profit and EBITDA that were largely influenced by the company’s 2021 acquisition of fellow distributor Mayer Electric Supply.
Paris, France-based Rexel showed that North American sales at Rexel totaled $3.82 billion, up 63.3% year-over-year. On a constant basis, sales increased 22.2%, and increased 19.2% on a constant, same-day basis. The company noted that North American sales had a $227 million foreign currency benefit from on the appreciation of the U.S. dollar against the euro, and a positive $561 million impact from the Mayer acquisition, which closed in November 2021.
Rexel said that in the U.S., 2022 first half sales of $3.09 billion were up 20.4% year-over-year on a constant and same-day basis, with backlog up 81% at the end of June. On a constant and same-day basis, six-month sales at Mayer were up 17% year-over-year.
In Canada, first half sales of $723 million increased 14.4% year-over-year on a constant and same-day basis, which Rexel attributed to performance in the industrial end markets (oil & gas and mining, specifically).
The company said U.S. performance was sustained by growth in all three of its end markets, especially in industrial, while the mountain plans and Gulf central regions benefited from overall strong momentum that was notably driven by oil & gas.
Rexel’s North America gross profit of $964 million jumped 63.8% year-over-year, while margin of 25.7% ticked up 0.1 percentage points. Meanwhile, EBITDA of $322 million surged 103.1% year-over-year (+87.6 on constant basis).
As a whole, Rexel’s total 2Q company sales of $9.24 billion increased 28.7% year-over-year and 15.3% on a constant basis. Gross profit of $2.45 billion increased 29.9% (+21.3% constant) and gross margin of 26.5% improved 0.3 percentage points. The company’s Q2 net profit of $468 million jumped 69.9% year-over-year.