Finance |02.10.2022 07:30
2021 full-year results
Legrand reports record results in 2021
Total growth in sales: +14.7%
Adjusted operating margin: 20.5% of sales
Rise in net profit attributable to the Group: +32.8%
Normalized free cash flow: 15.4% of sales
Solid extra-financial performance
CSR achievement rate: 131% in 2021
Reduction in CO2 emissions: -28% over 3 years (constant)
Continued deployment of strategic roadmap
Including announcement of 2 new acquisitions: a total of 4 over one year
2022 full-year targets
Growth in sales excluding exchange rate impacts: +5% to +11%
Adjusted operating margin: ~20% of sales
On the closing of full-year accounts for 2021, Benoît Coquart, Legrand’s Chief Executive Officer, commented:
“In 2021, Legrand reported record results reflecting, once again, the Group’s agility and resilience in a moving environment (volatile pandemic situation, strong and rising pressure on supply chains). Full-year 2021 sales of nearly €7 billion were up +14.7%, with a rise of +5.6% over two years. This performance was driven by a marked +13.6% organic growth year on year, and +3.7% over two years. It reflects in particular the Group’s stronger competitive positions in its markets.
Adjusted operating margin for the year came to 20.5% of sales, net profit was up +32.8% from 2020, i.e., +8.3% from 2019, and normalized free cash flow stood at 15.4% of 2021 sales.
These showings confirm Legrand’s position as an industry’s benchmark.
In 2021, our Group actively pursued its investments and initiatives for growth, focusing in particular on faster expanding segments (datacenters, connected products, and energy efficiency programs). Legrand thus launched a number of new products, rolled out offerings geographically, stepped up digital commercial relationship, and acquired bolt-on companies – 4 over one year, including 2 announced today. These acquisitions expand Legrand’s leadership positions in different countries and strengthen its presence in faster expanding segments as well as in promising channels to markets.
The Group also turned in a very good CSR performance. At the end of its fourth roadmap, covering 2019-2021, Legrand had reached a 131% achievement rate, with strong achievements in all three areas – Environment, People and Business Ecosystem. We are particularly proud to have reduced scopes 1 and 2 CO2 emissions by -28% and to have raised the share of women among our managers by +18% over these three years. Our fifth CSR roadmap runs over the 2022-2024 period and marks a bold new departure. It will be unveiled at a Capital Markets Day dedicated to the Group’s ESG strategy on March 29, 2022.
We owe these strong showings to our customers, our partners and our own teams, who have demonstrated unwavering commitment since the very start of the pandemic – employees engagement rate was 80% in 2021, significantly higher than in 2017.
These 2021 achievements and 2022 targets are an integral part of Group’s strategic roadmap and mid-term targets for accelerating value-creating growth 1. Legrand is a unique and perfectly positioned player, with a fine-tuned strategy designed to make the most of the acceleration in the trends that structurally drive its market – from electrification to a focus on comfort and energy efficiency, along with digitalization.”
1 For more information, readers are referred to the press release dated September 22, 2021.