2010 annual results
Firm sales growth: +8.7%
Improvement in adjusted operating margin, up from 16.2% to 20.2%
et profit and dividend up by 44% and 26%1 respectively
+10% total annual average growth in sales2
50% of sales in new economies five years from now
20% average adjusted operating margin including acquisitions3
On the occasion of the approval of full-year accounts for 2010, Legrand CEO Gilles Schnepp commented on group fundamentals, results and targets.
“A sound, virtuous business model
Legrand demonstrated the soundness and quality of its business model, which has been further reinforced over the past three years. Offering profitability and cash generation that are among the highest in the sector, this has enabled our group to self-finance growth through innovation and acquisitions and pay an attractive dividend, consistent with a very sound balance-sheet structure.
2010: return to growth and effectiveness of the business model
Highlights of our 2010 performance included:
- 24% sales growth in new economies and an overall rise in consolidated sales of 8.7%
- a rise in adjusted operating margin to 20.2% in 2010 compared with 16.2% in 2009 while adjusted operating income increased 35.5%.
Considering these results and the group’s balance-sheet structure, the Board of Directors will ask the General Meeting of shareholders to approve a dividend distribution of €0.88 per share payable on June 3, 2011.
Starting from these bases, the group has set itself the following mid-term objectives:
- 10% total annual average growth in sales, driven by increasing exposure to new economies, which are expected to account for 50% of consolidated sales five years from now compared with one third today; expansion on new business segments (see page 3) that already account for nearly 20% of sales; and pursuit of targeted, self-financed acquisitions
- 20% average adjusted operating margin, including acquisitions3.
Legrand is committed to responsible growth. After meeting goals set in 2007 for corporate social responsibility, care for the environment and governance, the group will actively pursue efforts in these areas and announce new stages in its drive for progress in the first half of 2011.
Legrand’s targets for 2011 are:
- 5% organic growth rounded out with acquisitions3
- adjusted operating margin equaling or exceeding 20%, including the impact of acquisitions3.”
1 Subject to the approval of shareholders at the General Meeting on May 26, 2011.
2 Including like-for-like and acquisition-driven growth, excluding major exchange-rate effects or economic downturns
3 Small to mid-size bolt-on acquisitions