FINANCIAL AND ACCOUNTING INFORMATION straight repayment of USD170.0 mil lion out of the (from €250.7 mil lion in 2016 to €224.3 mil lion in USD500 million notes due 2020. 2017) as wel l as the one-off impact of the change Restated from these effects in both periods, net in enacted income tax rates in the US (from 35% to financial expenses were down 7.8% mainly driven by 21%) and in France (from 33% to 25%) related to the a 30 basis-point decrease in the effective interest reevaluation of deferred tax position. This impact rate on gross debt (from 3.5% in 2016 to 3.2% in was partly compensated by the non tax-deductible 2017) as a result of the refinancing transactions. goodwill impairment and South East Asia disposal Also, the reduction in average net debt contributed loss. As a result, effective tax rate was 40.5% in 2017 to a lesser extent to lower interest expense. as compared to 46.4% in 2016. Tax expense Net income In 2017, income tax expense was €71.5 million, down As a result of the items above, net income stood at 38.6% as compared to €116.4 mil lion in 2016. This €104.9 million in 2017, a 21.9% decrease as compared decrease reflected the decline in profit before tax to €134.3 million in 2016. Europe (55% of Group sales) YEAR ENDED DECEMBER 31, (in millions of euros) 2017 2016 Change in % REPORTED Sales 7,292.3 7,168.5 1.7% Gross profit 1,967.6 1,915.1 2.7% Distribution and administrative expenses (1,532.5) (1,528.3) 0.3% 5 EBITA 435.1 386.9 12.5% as a % of sales 6.0% 5.4% YEAR ENDED DECEMBER 31, (in millions of euros) 2017 2016 Change in % CONSTANT BASIS ADJUSTED FINANCIAL DATA Sales 7,292.3 7,050.3 3.4% Same-day basis 4.2% Gross profit 1,956.4 1,886.8 3.7% as a % of sales 26.8% 26.8% 7 bps Distribution and administrative expenses (1,532.1) (1,504.2) 1.9% as a % of sales (21.0)% (21.3)% 33 bps EBITA 424.3 382.5 10.9% as a % of sales 5.8% 5.4% REXEL 2017 – REGISTRATION DOCUMENT 203