Solid performances in first-half 2019

Sales: +8.0%
Adjusted operating profit: +6.0%
Net profit attributable to the Group: +6.5%
Normalized free cash: +10.0%

Ongoing initiatives for development and operational optimization

2019 targets confirmed

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

“Solid performances in first-half 2019
 
Sales rose +8.0% in the first half of 2019, driven by organic growth of +2.2%, the increased scope of consolidation for +3.5%, and a favorable exchange-rate effect for +2.2%.
Adjusted operating profit grew +6.0% and adjusted operating margin before acquisitions (at 2018 scope of consolidation) stood at 20.9% of sales, equal to the first half of 2018. After taking acquisitions into account, adjusted operating margin for the first six months of the year came to 20.5% of sales.

Over the same period, net profit attributable to the Group rose +6.5% and normalized free cash flow was up +10.0%.
These solid performances recorded in the first half illustrate once again the quality of Legrand’s business model and the Group’s ability to create value over the long term.

Ongoing initiatives for development and operational optimization

Innovation momentum remained sustained with the launch of connected ranges for user interfaces, home systems, and emergency lighting, as well as innovative solutions for energy distribution and digital infrastructure.

Legrand is also pursuing its strategy of external growth with the acquisition in April 2019 of Universal Electric Corporation, the undisputed US leader in busways for datacenters. More generally, the Group has successfully initiated the docking of recently acquired companies, which have reported very encouraging performances.
Moreover, after achieving the 2020 targets set for its Eliot program as early as 2018 – and building on its acquisition of Netatmo – Legrand has accelerated the development of its digital offering, and announced ambitious new targets on June 12, 2019:
- double-digit average annual organic growth in sales of connected products from 2018 to 2022; and
- over one billion euros in sales generated by connected products in 2022, excluding acquisitions and exchange-rate effects.

Legrand is also pursuing initiatives aimed at strengthening its operational performance, in particular through the gradual roll-out of its “Legrand Way” program to new sites, and through targeted optimization of its industrial footprint.”