- Release for the first nine months of 2023
- In a building market in retreat, Legrand recorded solid results and specifies its annual targets –
Solid financial performance- Sales: +2.5%, i.e. +5.8% excluding exchange rates and Russia Adjusted operating margin: 21.6% of sales
- Rise in net earnings per share: +15.9%
- Free cash flow: €1,214 million, 19.2% of sales
- Dynamic external growth in buoyant segments
- Acquisition of ZPE Systems in datacenters
4 acquisitions announced in 2023
- Acquisition of ZPE Systems in datacenters
- 2023 full-year targets specified
- Sales growth (excl. FX and Russia):
- around +5% Adjusted operating margin: 20.5% to 21.0% of sales before acquisitions and Russia
- In a building market in retreat, Legrand recorded solid results and specifies its annual targets –
Benoît Coquart, Legrand’s Chief Executive Officer, commented:
“The first nine months of the year have confirmed trends observed in the first half, with an overall building market in retreat. Despite this unfavorable context, Legrand has recorded very strong results with revenue up +2.5%, driven by organic growth of +3.7%. The Group’s financial indicators are very robust, with adjusted operating margin at 21.6% of sales, free cash flow of 1,214 million euros, net profit at 14.9% of sales, and net earnings per share up +15.9%.
We are actively pursuing the implementation of our growth strategy, as evidenced by the strength of our faster expanding segments (energy efficiency solutions, connected products, and datacenters) and continued acquisitions including today’s announcement of ZPE Systems in the United States, on top of the 3 operations announced since the beginning of the year.
Given the uncertain economic outlook, and driven by the unwavering and determined engagement of our teams, Legrand will deploy initiatives to both seize any growth opportunities on its markets and optimize its cost structures.”
2023 full-year targets specified
In 2023, the Group is pursuing the profitable and responsible development laid out in its strategic roadmap.
Taking into account achievements reported in the first nine months of the year and the world’s current short- term macroeconomic outlook, Legrand has now set the following full-year targets for 2023:
– sales growth at constant exchange rates and excluding Russia impacts2 of around +5% (vs +5% and +8% previously), including an organic growth of between +2.5% and +3.5% and a scope of consolidation effect linked to acquisitions of close to +2%;
– an adjusted operating margin between 20.5% to 21.0% of sales before acquisitions, at 2022 scope of consolidation, and excluding Russia and related impacts (vs around 20.5% previously);
– at least 100% CSR achievement rate for the second year of its 2022-2024 roadmap.
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