Legrand Shows Strong Sales Growth in First Half of 2022

LIMOGES, France — Legrand reported financial results for the first-half of 2022:

• Strong growth in sales: +18.5%
  including organic growth: +10.9%
• Very solid results despite an unstable and highly inflationary environment
  Adjusted operating margin: 20.5% of sales
  Rise in net profit: +13.9%
• 2 new bolt-on acquisitions in datacenters announced
• 2022 full-year target for sales raised
  Total growth at constant exchange rates: +9% to +12% 

Benoît Coquart, Legrand’s Chief Executive Officer, commented:

“Over the first six months of the year, Legrand reported good results characterized by sustained growth and high profitability.

Sales, which totaled over €4 billion, grew by +18.5%, buoyed by sustained organic growth (+10.9%). Our adjusted operating margin stood at 20.5% of sales, confirming healthy resistance despite a particularly unstable and inflationary environment. Net profit grew by +13.9%.

In an increasingly uncertain economy, our Group is laying the groundwork to:

– first, seize any growth opportunities that arise by leveraging the quality of our positioning in segments structurally driven by digitalization and energy savings (these include datacenters, energy efficiency solutions and connected products); by continuing to invest in innovation; and by pursuing our bolt-on acquisitions policy;

– second, limit the impact of an economic slowdown on our performance, thanks in particular to an ongoing optimization of our cost base, our intact pricing power, and teams that are quick to respond and fully in tune with their markets.”

2022 full-year targets revised

In 2022, Legrand is pursuing its strategy of profitable and responsible development laid out in its strategic roadmap.

Taking into account notable achievements in the first half of 2022 and the current macroeconomic outlook, Legrand has revised the full-year targets it set for 2022, and is now aiming for:

• growth in sales at constant exchange rates raised and now anticipated between +9% and +12% (compared to between +5% and +11% previously), with (i) organic growth of between +6% and +9% (compared to between +3% and +7% previously) and (ii) a scope of consolidation effect of around +3% (compared to between +2% and +4% previously);
• an adjusted operating margin of about 20% of sales, with (i) a margin of between 19.9% and 20.7% before acquisitions (at 2021 scope of consolidation) and (ii) dilution from acquisitions of between -20 and -40 basis points.

The Group also aims to reach around 100% of CSR achievement for the first year of its 2022-2024 roadmap, testifying to its bold and exemplary approach to ESG.