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.”
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.”
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