Gilles Schnepp, Chairman and CEO of Legrand, made the following comments:
Ongoing Growth Acceleration
In the first half of 2017, Legrand reported total sales up +9.1% driven by the ongoing acceleration of its two growth drivers (organic growth of +3.2% and external growth of +4.1%). The exchange rate effect was +1.6%.
Organic growth in sales was sustained with good performances recorded in mature countries as well as new economies. A steady stream of new product launches, including the new Smarther connected thermostat in Italy in the second quarter of 2017, contributed to these good showings.
Moreover Legrand has made five acquisitions that round out its operations (“bolt-on”) and signed one joint venture since the beginning of the year, allowing the Group to strengthen positions in segments of its market driven by technological and societal megatrends. These acquisitions should thus help increase the share of Group annual sales made in new business segments to around 38% and raise the percentage of Group sales made with products ranked #1 or #2 on their markets to around 69%.
Double-Digit Increase in Results and Cash Flow
Growth in adjusted operating profit (+10.9%), net profit attributable to the Group (+11.5%) and free cash flow (+19.1%) reflect robust value creation.
At the same time, adjusted operating margin before acquisitions (at 2016 scope of consolidation) stood at 20.6% of sales compared with 20.1% in the first half of 2016, or an increase of 0.5 point.
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