LIMOGES, France — Legrand published its financial results for the first nine months of 2020.
HIGHLIGHTS:
- Good showings in the third quarter
- Sales stabilize compared with the third quarter of 2019
- Rebound in adjusted operating margin and free cash flow
- First nine months: solid performances in an unprecedented crisis environment
- Organic change in sales: -10%
- Adjusted operating margin: 18.7%
- Free cash flow: 13.8% of sales
- Continued deployment of the Legrand model
Benoît Coquart, Legrand’s Chief Executive Officer, commented: “Over the third quarter, in a persistently degraded context and thanks to our teams’ full mobilization, many commercial initiatives, and efficient adaptation measures, Legrand recorded – compared with the third quarter of 2019 – good showings, with stable organic growth, an adjusted operating margin before acquisitions1 of 21.6% of sales, up +1.4 points, and free cash flow increasing a steep +22%.”
First nine months: solid performances in an unprecedented crisis environment
- In the first nine months of the year, Group sales were down -8% from September 30, 2019. The organic trend in sales was -10%. The adjusted operating margin stood at 18.7%, a limited -1.7-point decline from September 30, 2019, with the ratio of free cash flow to sales steady at 13.8%.
- Together, these showings demonstrated once again how solid Legrand’s fundamentals are.
Continued deployment of the Legrand model
- Since the beginning of the year, Legrand has actively pursued its initiatives, in particular structural ones, to preserve and sustain its growth model.
- The Group has thus adapted its cost base and structure while continuing a sustained innovation effort, in particular through the Eliot program, with 5% of sales dedicated to R&D.
- Legrand has also pursued its very dynamic program for the launch of innovative products. These include products designed to improve energy efficiency, connectivity, safety and comfort in buildings, along with offers aimed specifically at data centers, the office of tomorrow, remote working, and healthcare buildings.
Anticipated trends for the fourth quarter of 2020
- Taking into account a persistently difficult and very uncertain environment – due in particular to new health measures in a number of markets – and given the demanding basis for comparison recorded in the fourth quarter of 2019, Legrand anticipates an organic decrease in sales in the fourth quarter of 2020.
- The Group is confident in its ability to keep developing its market share and will continue to actively protect its adjusted operating margin.
- Finally, Legrand is resolutely deploying its CSR roadmap.