Legrand posted financial results for the first nine months of 2017.
Good performance in the first nine months of 2017
- Steep rise in total sales: +7.7%
- Double-digit growth in adjusted operating profit (+10.0%), net profit attributable to the Group (+11.4%), and normalized free cash flow (+12.2%)
Sharp acceleration in development initiatives
- Rise in investments dedicated to new products: +27% in the first nine months of 2017
- Strong contribution of acquisitions to sales growth expected: nearly +15% in 2017‑2018
2017 minimum targets raised
- Organic growth in sales: new target +2% to +3% (initially between 0% and +3%)
- Adjusted operating margin before acquisitions: new target 19.8% to 20.1% (initially between 19.3% and 20.1%)
Gilles Schnepp, Chairman and CEO of Legrand, made the following comments:
Steep Rise in Total Sales: “In the first nine months of the year, Group sales were up +7.7% in total, supported by its two growth drivers.
“Organic growth in sales thus stood at +2.9%, driven by good showings in new economies (+4.8%) and solid increases in mature countries (+2.1%), despite, as announced, unfavorable effects related to calendar impacts and bases for comparison in the third quarter.
“The impact of the broader scope of consolidation resulting from acquisitions was +4.4% in the first nine months of the year, and should reach over +7% full year.”
Schnepp added:
Double-Digit Growth in Profit and Normalized Free Cash Flow: At the same time, adjusted operating profit rose by +10.0% and adjusted operating margin before acquisitions (at 2016 scope of consolidation) stood at 20.6% of sales compared with 20.0% in the first nine months of 2016, a rise of 0.6 points.
“Net profit attributable to the Group and normalized free cash flow increased +11.4% and +12.2%, respectively, compared with the first nine months of 2016.
“These very good showings reflect once again Legrand’s ability to create value over the long term by expanding its positions.”
View press release and financial tables.
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