Legrand reports 10.8% Growth in Organic Sales, Net Profit up 13.9%; Stock Drops 2%

Legrand Reports

Legrand reported their first half 2022 numbers which include a strong growth in sales, up 18.5%; 10.8% of the growth is organic.  They reported adjusted operating margin of 20.5% of sales and a rise in net profit of 13.9%. They raised their target for sales growth from  5% to 11% to between 9% to 12%.

LIMOGES, France, July 29, 2022–(BUSINESS WIRE)–Regulatory News: Legrand (Paris:LR):

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 revised1

In 2022, Legrand is pursuing its strategy of profitable and responsible development laid out in its strategic roadmap2.

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.

Financial performance at June 30, 2022

Key figures

Consolidated data

(€ millions)(1)

1st half 2021 1st half 2022 Change
Sales 3,453.4 4,092.4 +18.5%
Adjusted operating profit 761.4 837.8 +10.0%
As % of sales 22.0% 20.5%
20.8% before acquisitions(2)
Operating profit 716.2 789.4 +10.2%
As % of sales 20.7% 19.3%
Net profit attributable to the Group 481.3 548.1 +13.9%
As % of sales 13.9% 13.4%
Normalized free cash flow 577.4 688.2 +19.2%
As % of sales 16.7% 16.8%
Free cash flow 571.3 320.9 -43.8%
As % of sales 16.5% 7.8%
Net financial debt at June 30 2,545.3 2,861.8 +12.4%
(1) See appendices to this press release for definitions and indicators reconciliation tables.
(2) At 2021 scope of consolidation.

Consolidated sales

In the first half of 2022, sales rose a total of +18.5% from the same period of 2021, reaching €4,092 million.

Organic growth in sales was +10.9% over the period, including +10.0% in mature countries and +13.6% in new economies. This trend reflects many commercial successes, Legrand’s pricing power, and a still very active management of the supply chain, which remained under strong pressure in the second quarter, particularly for electronic components.

The impact of the broader scope of consolidation was +2.4%. Based on acquisitions completed and their likely dates of consolidation, this impact should be around +3% for the full year.

The exchange-rate effect on sales in the first half of 2022 was +4.4%. Based on the monthly average exchange rates of June 2022 alone, the full-year exchange-rate effect on sales should be close to +4.5% in 2022.

Changes in sales by destination at constant scope of consolidation and exchange rates broke down as follows by region:

1st half 2022 / 1st half 2021 2nd quarter 2022 / 2nd quarter 2021
Europe +11.3% +9.7%
North and Central America +11.2% +11.2%
Rest of the world +9.7% +11.7%
Total +10.9% +10.7%

These changes are analyzed below by geographical region:

Europe (41.5% of Group revenue): growth at constant scope of consolidation and exchange rates was +11.3% in the first half of 2022.

In Europe’s mature countries (35.9% of Group revenue), sales rose organically by +9.5% in the first half of 2022, including +9.1% in the second quarter alone.

Sales in Europe’s new economies rose +22.5% in the first half. In the second quarter alone, sales grew +13.8%, negatively impacted by the conflict between Russia and Ukraine. Together, these two countries accounted for around 2% of Group sales in full-year 2021.

North and Central America (39.1% of Group revenue): sales increased +11.2% from the first half of 2021 at constant scope of consolidation and exchange rates.

In the United States alone (35.8% of Group revenue), sales showed an organic rise of +11.3% in the first six months of the year, including +11.6% in the second quarter alone. The increase throughout the first half remained driven by marked growth in sales of non-residential applications in particular.

Over the first half, sales were almost unchanged in Canada, and up sharply in Mexico.

Rest of the world (19.4% of Group revenue): sales marked an organic rise of +9.7% in the first half of 2022.

In Asia-Pacific (12.6% of Group revenue), sales rose +12.2% in the first half of the year and +16.0% in the second quarter. This good momentum reflects very sustained growth in India, compensating a decline recorded in China.

In Africa and the Middle East (3.5% of Group revenue), sales were up +9.8% in the first six months of the year and +14.6% in the second quarter. Over six months, sales trends were upbeat at comparable levels in Africa and Middle East, with many countries recording strong double-digit growth.

In South America (3.3% of Group revenue), sales edged up +0.9% in the first half, with a -5.9% decline in the second quarter that was linked in particular to Brazil.

Adjusted operating profit and margin

Adjusted operating profit for the first half of 2022 was €838 million, up +10.0% from the first half of 2021. Adjusted operating margin thus stood at 20.5% of sales for the period.

Before acquisitions (at 2021 scope of consolidation), adjusted operating margin reached 20.8% of sales in the first half of 2022, down -1.2 points compared with the first half of 2021.

In a lasting strongly inflationary environment (including a rise of around +17% for raw material and components in the first half of the year), persistently high profitability reflects the Group’s efficient management of both expenses and sales pricing.

Net profit attributable to the Group

Net profit attributable to the Group rose +13.9% from the same period of 2021 to total €548 million. This €67 million increase results primarily from:

  • a rise in operating profit (+€73 million);
  • a favourable trend (+€5 million) in financial and foreign-exchange results; and
  • a rise in corporate income tax (-€11 million).

Cash generation and balance sheet structure

Cash flow from operations stood at €787 million, i.e., 19.2% of first-half 2022 sales, down -1.0 point from the first half of 2021.

Representing 16.8% of sales in the first six months of the year, i.e., €688 million, normalized free cash flow grew +19.2% from the first half of 2021.

Free cash flow was equal to 7.8% of sales for the period, including continued strengthened coverage of inventories to serve Group customers best.

The ratio of net debt to EBITDA3 was 1.6 at June 30, 2022.

2 new bolt-on acquisitions in datacenters announced

Following the acquisition of Emos announced in early 20224, Legrand is continuing its strategy of targeted external growth with two new acquisitions announced today:

  • Usystems, a specialist in datacenter solutions. Usystems’ portfolio of cooling solutions and racks helps its clients reduce their datacenter energy bills and therefore their carbon footprint. Founded in 2003 and based in Bedford in the United Kingdom, the company has some 70 employees and recorded annual sales of around €11 million, including 50% in the United States; and
  • Voltadis5, a French player in datacenter services. From design to commissioning, including equipment supply and installation, Voltadis offers comprehensive support in defining tailored electrical power supply systems for datacenters’ grey rooms. Based in Cournon d’Auvergne, France, the company has some 20 employees and annual sales of around €13 million.

These two new acquisitions strengthen Legrand’s positions in added-value solutions for datacenters, a field buoyed by the rise in data flows.

The consolidated financial statements for the first half of 2022 that were subject of a limited review by the Group’s auditors were adopted by the Board of Directors at its meeting on July 28, 2022. These consolidated financial statements, a presentation of 2022 first-half results, and the related teleconference (live and replay) are available at www.legrandgroup.com.


  • 2022 nine-month results: November 3, 2022
    “Quiet period6” starts October 4, 2022
  • 2022 annual results: February 9, 2023
    “Quiet period6” starts January 10, 2023
  • General Meeting of Shareholders: May 31, 2023


Legrand is the global specialist in electrical and digital building infrastructures. Its comprehensive offering of solutions for commercial, industrial and residential markets makes it a benchmark for customers worldwide. The Group harnesses technological and societal trends with lasting impacts on buildings with the purpose of improving life by transforming the spaces where people live, work and meet with electrical, digital infrastructures and connected solutions that are simple, innovative and sustainable. Drawing on an approach that involves all teams and stakeholders, Legrand is pursuing its strategy of profitable and responsible growth driven by acquisitions and innovation, with a steady flow of new offerings—including products with enhanced value in use (faster expanding segments: datacenters, connected offerings and energy efficiency programs). Legrand reported sales of €7.0 billion in 2021. The company is listed on Euronext Paris and is notably a component stock of the CAC 40 and CAC 40 ESG indexes. (code ISIN FR0010307819).

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