Legrand: 2024 first-half results

In This Article:

Good resilience in the first half, including sales growth in the second quarter and very firm margins
H1 sales trends: -2.0%, i.e. -0.7% excluding exchange rates and Russia
Adjusted operating margin: 20.7%
Net profit attributable to the Group: 13.7% of sales

5 acquisitions announced since the beginning of the year, including 3 in datacenters
More than €200 million additional revenue on an annual basis

Strong product innovation momentum

2024 full-year targets unchanged

LIMOGES, France, July 31, 2024--(BUSINESS WIRE)--Regulatory News:

Legrand (Paris:LR):

Beno?t Coquart, Legrand’s Chief Executive Officer, commented:

"Our first-half results for 2024 show a limited retreat in sales and very firm margins and free cash flow.

In the second quarter alone, a moderate rebound in sales (+1.5% organic growth) stemmed notably from datacenter business, while the building market remained depressed. Margins and free cash flow hold steady at very good levels.

This performance highlights once again the relevance of our business model, and we stand by the annual targets announced in early February.

We are continuing to roll out our strategy, as illustrated by the very strong pace of external growth since the beginning of the year, with five acquisitions including three in the datacenter segment. This momentum will continue in the quarters to come. We are innovating relentlessly, with launches of a large number of new products including the new Céliane iconic range of wiring devices in France."

2024 full-year targets unchanged1

In 2024, the Group is pursuing the profitable and responsible development laid out in its strategic roadmap. Taking into account the world’s current macroeconomic outlook, with confidence in its model for creating integrated value, Legrand has set the following full-year targets for 2024:
- low single-digit sales growth (organic and through acquisitions2);
- an adjusted operating margin before acquisitions between 20.0% and 20.8%;
- at least 100% CSR achievement rate for the third year of the 2022-2024 roadmap.

1 For more information, see Legrand press releases dated February 15 and May 3, 2024
2 Excluding exchange-rate effect and impacts linked to the Group’s disengagement from Russia

Financial performance at June 30, 2024

Key figures

Consolidated data

(€ millions)(1)

1st half 2023

1st half 2024

Change

Sales

4,294.8

4,210.3

-2.0%

Adjusted operating profit

954.7

873.1

-8.5%

As % of sales

22.2%

20.7%

20.8% before acquisitions (2)

Operating profit

892.3

811.5

-9.1%

As % of sales

20.8%

19.3%

Net profit attributable to the Group

650.9

577.6

-11.3%

As % of sales

15.2%

13.7%

Normalized free cash flow

766.9

734.6

-4.2%

As % of sales

17.9%

17.4%

Free cash flow

813.8

468.1

-42.5 %

As % of sales

18.9%

11.1%

Net financial debt at June 30

2,415.5

3,429.9

+42.0%

(1) See appendices to this press release for definitions and indicator reconciliation tables

(2) At 2023 scope of consolidation

Consolidated sales

In the first half of 2024, sales were down a total of -2.0% from the same period of 2023, reaching €4,210.3 million.