Manufacturers

Legrand Posts Double-Digit Sales Growth

LIMOGES, France — Legrand SA today posted financial results for the first nine months of 2018:

Double-digit growth in key indicators

  • Net sales: +11.3% (+17.2% excluding exchange-rate effect)
  • Adjusted operating profit: +11.4%
  • Net profit attributable to the Group: +21.1%
  • Normalized free cash flow: +24.5%

Multiple development initiatives

  • Success of new product launches
  • To date, four external growth operations announced

2018 targets confirmed and specified

  • Legrand is aiming for:
    • organic growth in sales of close to +4%, and
    • adjusted operating margin before acquisitions of between 20.0% and 20.5%

Benoît Coquart, Legrand Chief Executive Officer, made the following assessments:

Double-digit growth in key indicators

Over the first nine months of 2018, sales rose +11.3% in total. This good performance was driven by an increase in the scope of consolidation (+11.8%) and by a solid organic rise in sales (+4.8%) which benefited from Group growth initiatives that were partially offset by a decrease in sales in France in the third quarter due to a marked and one-off destocking in distribution.

Excluding the unfavorable exchange-rate effect (-5.1%), sales rose +17.2% in the first nine months of the year.

Compared with the first nine months of 2017, adjusted operating profit increased +11.4% and adjusted operating margin stood at 20.5%, up 0.1 points. Excluding acquisitions, adjusted operating margin for the first nine months was stable compared with 2017 at 20.4%, as performance in the third quarter alone was unfavorably affected by specific items.

At the same time, net profit attributable to the Group and normalized free cash flow grew sharply, increasing +21.1% and +24.5%, respectively, from the same period of 2017.

Multiple development initiatives

The innovation momentum continues, with many digital initiatives and the successful launch of many new products since the beginning of the year. These included connected offerings of the Eliot program, solutions dedicated to the buoyant digital infrastructures market, as well as several user interface ranges.

Moreover, the Group has pursued its strategy of targeted acquisitions and has already announced since the beginning of the year four external growth operations in the fields of digital infrastructures, UPS, and electrical equipment for DIY activities. These acquisitions thus enable Legrand to continue to strengthen its positions on upbeat segments of its accessible market.

The full earnings report can be found here.

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