Measures related to Covid-19
In today's rapidly-changing environment, our priorities are the health and safety of our employees as well as the protection of our company, focusing on business continuity, cash flow generation and management of operating expenses.
Business Continuity Plans have been implemented at central and country level. The vast majority of our distribution centers and branches are up and running and able to respond to customer needs, including emergency maintenance for critical activities such as hospitals, the food & beverage industry and the power sector. We are encouraging our customers to use our digital and telephone platforms.
We have taken the following measures to be in a position to better navigate this challenging environment and capture the full benefits of a recovery when it materializes:
- The Board of Directors has decided to postpone the next AGM to June 25, 2020 and to postpone the proposal on the 2019 dividend;
- The Senior Credit Lines have been partially drawn (€550M out of €850M available) as a conservative measure to give us additional liquidity headroom, even though we are not facing any short-term issues. This liquidity will reinforce our cash position, which was recently strengthened by the cash proceeds from the sale of Gexpro Services;
- Given the severity of the situation, we are monitoring our operations daily in order to prioritize capital expenditure and implement all measures announced by the governments in the countries in which we operate (such as temporary unemployment and tax payment postponement measures) to mitigate the financial impact in H1 2020, which cannot yet be quantified;
- We are suspending 2020 guidance, which is no longer relevant in the current unprecedented environment; we will communicate updated guidance when visibility permits.
Patrick Berard, Chief Executive Officer of Rexel, declared: "At this critical time, Rexel's chosen priorities are to protect its employees and ensure business continuity, especially for customers operating essential infrastructure. All the company's key activities, from logistics centers to branches, are functioning in full compliance with applicable safety measures. The company is supported by the broad use of digital interfaces such as email to EDI and click & collect and these are working well. Our continuity plans allow the availability of products and services for essential, and sometimes vital, needs in a world which cannot run without electrical usage. The duration and magnitude of this crisis cannot be predicted or quantified but be assured Rexel is taking all measures to protect the interests of the company and its stakeholders."
ABOUT REXEL GROUP
Rexel, worldwide expert in the multichannel professional distribution of products and services for the energy world, addresses three main markets - residential, commercial and industrial. The Group supports its residential, commercial and industrial customers by providing a tailored and scalable range of products and services in energy management for construction, renovation, production and maintenance.
Rexel operates through a network of more than 1,900 branches in 26 countries, with more than 26,000 employees. The Group's sales were €13.74 billion in 2019.
Rexel is listed on the Eurolist market of Euronext Paris
CONTACTS
FINANCIAL ANALYSTS / INVESTORS
| Ludovic DEBAILLEUX | +33 1 42 85 76 12 | ludovic.debailleux@rexel.com (mailto:ludovic.debailleux@rexel.com) |
PRESS
| Brunswick: Thomas KAMM | +33 1 53 96 83 92 | tkamm@brunswickgroup.com (mailto:tkamm@brunswickgroup.com) |
Attachment
- PR - Measures related to Covid-19 (https://ml-eu.globenewswire.com/Resource/Download/3e0a0178-6b35-49b1-8924-da638c647e6e)
