Benoît Coquart, Legrand’s Chief Executive Officer, commented: “Group sales were up +7.3% compared with the first quarter of 2018. This sustained growth resulted from a solid +2.9% organic rise in sales rounded out by the impact of an increased scope of consolidation of +1.9% and a favorable exchange-rate effect of +2.3%.
“Adjusted operating profit grew +5.1%, and adjusted operating margin stood at 19.7% of sales. Before acquisitions (at 2018 scope of consolidation), adjusted operating margin reached 19.8% of sales.
“Finally, net profit attributable to the Group increased +8.6% and normalized free cash flow rose +9.5%.”
Pursuit of innovation and acquisition strategy and of operational initiatives
Coquart continued: “Legrand is pursuing its innovation strategy, launching many new products for user interfaces—including new connected ranges sold in Europe as part of the Eliot program—as well as for digital infrastructures, UPS systems and assisted living.
“The Group also acquired Universal Electric Corporation, the undisputed U.S. leader in busways for datacenters. The move rounds out Legrand’s offering in a promising market where it already holds front-runner positions.
“More generally, and as announced in February, Legrand is actively pursuing the deployment of initiatives launched to strengthen its profitable and sustainable development model, particularly by organizing its front office into three regions, optimizing its industrial footprint, and continuing the targeted digitalization of its operations and front office.”
Launch of the new 2019-2021 CSR roadmap
“Legrand today launched its fourth CSR roadmap,” Coquart continued. “Organized around three focal areas (business ecosystem, people and the environment) and lasting three years (2019-2021), this new roadmap, which addresses key challenges expressed by Group stakeholders, is aimed at contributing to the UN’s Sustainable Development Goals. Legrand also set ambitious targets for 2030, aimed at increasing the share of revenues derived from sustainable products, further developing the presence of women in Legrand’s workforce, and reducing the carbon footprint of its operations.”
2019 targets confirmed
Based on its first-quarter 2019 performance, Legrand confirms its 2019 target for organic growth in sales of between 0% and +4%, and its 2019 target for adjusted operating margin before acquisitions (at 2018 scope of consolidation) of between 19.9%2 and 20.7%2 of sales. Legrand will also pursue its strategy of value-creating acquisitions.Tagged with earnings, finance, Legrand