Nexans confirms its targets despite a decline in sales in Q1 2024
Nexans, the world’s second-largest cable manufacturer, has maintained its financial outlook for the current year, boosted by robust demand in the electrification sector, despite a 3.1% decline in sales in the first quarter of 2024.
| Sectors | Power Grids, Distribution |
|---|---|
| Themes | Markets & Finance, Results |
| Companies | Nexans |
| Countries | France, Italy |
In the first three months of 2024, Nexans sales reached 1.971 billion euros. However, adjusting for the effect of metal prices, the Group’s “standard” sales posted organic growth of 2.8% to 1.592 billion euros. General Manager Christopher Guérin pointed out that the start of the year marked a record for standard first-quarter sales.
Contribution of electrification segments to growth
Electrification-related activities were the main contributors to Nexans’ growth, recording an organic increase of 6.7% over the same period last year. This increase is due in particular to strong growth in the power generation and transmission segments, as well as good momentum in distribution and end-use.
Specialization strategy and acquisitions
In February, Nexans announced the acquisition of La Triveneta Cavi, a major cable factory in Italy, representing the largest acquisition in the company’s history, with sales of 800 million euros and 700 employees. This operation, which should be finalized in the second quarter, is part of Nexans’ strategy to become a “pure player” in electrification, marking a refocusing from 2021 on electrical cables and a gradual withdrawal from telephone and data cables.
Despite a slight decline in sales in the first quarter, Nexans remains optimistic for 2024, anticipating to benefit from sustained demand in the electrification market. The Group confirmed its financial targets, aiming for adjusted Ebitda of between €670 and €730 million for the current year.
