LIMOGES, France — Legrand today released its 2021 first-quarter results.
Benoît Coquart, Legrand’s Chief Executive Officer, commented: “In the first quarter of 2021, our revenues showed a steep rise in all regions. At constant scope of consolidation and exchange rates, sales were up +13.1% from the first quarter of 2020, which represents a +4.9% increase over two years2 and reflects Legrand’s stronger positions in our markets.
“This growth momentum was driven by buoyant demand in residential and datacenter markets, as well as by the moves made in 2020. These included in particular the decision to maintain services to our customers throughout the year’s lockdowns; sales and marketing initiatives; our vigorous and ongoing program of new-product development and launches; and stepped-up investment in digital technologies.
“Our first-quarter results reflect a good start to the current year, with adjusted operating margin (before acquisitions 1) equal to 21.9% of sales, net profit attributable to the Group up +36.4%, and normalized free cash flow at 16.5% of sales.
“Drawing on fundamentals that were strengthened during the crisis (leadership positions, excellent customer relations, innovation, financial and ESG performance), Legrand is well positioned to take full advantage of the next economic cycle, particularly in the growing segments of the buildings of tomorrow.”
1 At 2020 scope of consolidation.
2 Two-year compounded result of published organic changes in the first quarter of 2020 and the first quarter of 2021.
Full-year 2021 Targets Raised
Given its first-quarter achievements, and despite a persistently uncertain environment due to the pandemic situation and increasing pressure on supply chains, Legrand is raising its targets for 2021 and is now aiming for:
- organic growth in full-year sales of between +4% and +7%;
- a scope of consolidation effect of at least +3%;
- an adjusted operating margin before acquisitions (at 2020 scope of consolidation) of between 19.6% and 20.4% of sales.
The basis for comparison for both sales and margin will be very favorable in the second quarter of 2021, and challenging in the second half of the year, particularly in the third quarter. Legrand also aims to achieve at least 100% of its CSR roadmap for 2021, testifying to the ongoing deployment of a bold and exemplary ESG approach, with a particular focus on the fight against global warming and the promotion of diversity. These annual targets are fully in line with the Group’s mid-term targets released in February 20211.
1 Over a full economic cycle and excluding a major economic slowdown, the Group aims for:
– an average annual growth in sales, excluding exchange-rate effects, of between +5% and +10%;
– an average adjusted operating margin (Including restructuring costs) of approximately 20% of sales;
– a normalized free cash flow of between 13% and 15% of sales on average.
At the same time, Legrand will continue to deploy a bold and exemplary ESG approach, driven by demanding roadmaps, with a particular focus on the fight against global warming and the promotion of diversity
Highlights:
- Strong growth in sales and financial results
- Organic rise in sales: +13.1%
- Adjusted operating margin before acquisitions1:21.9% of sales
- Net profit attributable to the Group: +36.4%
- Full-year 2021 targets raised
The full financial report can be found here.
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