LIMOGES, France — In a building market in retreat, Legrand recorded solid results and specifies its annual targets
Solid financial performance
Sales: +2.5%, i.e. +5.8% excluding exchange rates and Russia
Adjusted operating margin: 21.6% of sales
Rise in net earnings per share: +15.9%
Free cash flow: €1,214 million, 19.2% of sales
Dynamic external growth in buoyant segments
Acquisition of ZPE Systems in datacenters
4 acquisitions announced in 2023
2023 full-year targets specified
Sales growth (excl. FX and Russia): around +5%
Adjusted operating margin: 20.5% to 21.0% of sales before acquisitions and Russia
Benoît Coquart, Legrand’s Chief Executive Officer, commented:
“The first nine months of the year have confirmed trends observed in the first half, with an overall building market in retreat. Despite this unfavorable context, Legrand has recorded very strong results with revenue up +2.5%, driven by organic growth of +3.7%. The Group’s financial indicators are very robust, with adjusted operating margin at 21.6% of sales, free cash flow of 1,214 million euros, net profit at 14.9% of sales, and net earnings per share up +15.9%.
We are actively pursuing the implementation of our growth strategy, as evidenced by the strength of our faster expanding segments (energy efficiency solutions, connected products, and datacenters) and continued acquisitions including today’s announcement of ZPE Systems in the United States, on top of the 3 operations announced since the beginning of the year
Given the uncertain economic outlook, and driven by the unwavering and determined engagement of our teams, Legrand will deploy initiatives to both seize any growth opportunities on its markets and optimize its cost structures.”