Legrand Releases First-Half 2020 Results

Legrand today released the company’s financial results for the first half of 2020.

Performance shows good resistance in a very deteriorated environment
Organic change in sales: -15.2%
Adjusted operating margin: 17.5%
Many measures to adapt to consequences of the crisis
Solid financial position

Continued deployment of the Legrand model in a still uncertain environment

Benoît Coquart, Legrand’s Chief Executive Officer, commented:
“Against a backdrop of an unprecedented health and economic crisis, Legrand mobilized for all of its stakeholders. Protecting employees and partners was a key priority. We also actively supported our customers in pursuing their business – one example being the decision to keep almost all of our logistics and production centers open.
“In a spirit of responsibility given the efforts the crisis requires, Legrand has made a balanced appeal to all stakeholders – management, employees, partners, shareholders, civil society and government authorities.”

Performance shows good resistance in a very deteriorated environment
“In the first half of 2020, Legrand recorded a -12.2% fall in sales, primarily due to an organic decline (-15.2%) that was particularly marked in the second quarter across our main markets. This decline was partly offset by an increase in the scope of consolidation (+3.6%), while the exchange-rate effect was limited (-0.1%).
“Against this backdrop, adjusted operating margin stood at 17.5%, i.e., a limited 3-point decrease from the first half of 2019. This good resistance reflects in particular the immediate roll-out of initiatives, some one-off, to protect Group profitability.
Legrand has also a solid financial position, as seen in particular in the high level of available cash.”

Continued deployment of the Legrand model in a still uncertain environment
“The outlook for the global health situation and the world economy remains particularly unpredictable. In this context, and subject to a favorable trend in the global health situation, net sales in the second half of the year should see a sequential improvement compared with the second quarter.
“Given this environment, Legrand is continuing to actively deploy its model, building on the fundamentals that underpin the Group’s value-creating strategy. This means extending and promoting products that are perfectly positioned to meet the major changes the building industry is facing; innovating; adopting initiatives to optimize our performance; and pursuing disciplined growth through acquisitions while confirming our responsible commitments, in particular an accelerated fight against global warming.”

Amid the current unprecedented health crisis arising from the Covid-19 epidemic, Legrand has adopted a responsible approach towards all of its stakeholders, focusing on key priorities that include:

• protecting employees and partners by moving very early on to deploy the most stringent health protocols possible throughout the Group, and by adapting its work methods (widespread use of teleworking, digitalization of customer relations, and more);
• actively supporting customers in pursuing their business, which is an essential part of keeping the economy running smoothly. For example, Legrand kept nearly all of its logistics and production centers open, applying optimum health measures, to keep supply chains operating and to pursue with no disruption its customer support and service operations wherever it operates.

Legrand also continued to show solidarity to local communities by helping fight the impact of the health crisis. This has involved many initiatives1 (from donating equipment to helping produce ventilators, supporting communities that are the most exposed, and more).

The Group also committed to assisting the most vulnerable members of society by creating a solidarity fund dedicated to nursing homes for the elderly, such as EHPADs in France. Beneficiaries included 228 institutions and 15,000 of their staff members. Finally, in a spirit of responsibility given the efforts the crisis requires, Legrand has made a balanced appeal to all stakeholders – management, employees, partners, shareholders, civil society and government authorities2 .