Legrand : 2018 first-half results

Double-digit growth in key indicators

Sales: +11.8%
Adjusted operating profit: +14.4%
Net profit attributable to the Group: +23.3%
Normalized free cash flow: +25.3%

Numerous innovation and growth initiatives

New product launches
Deployment of Eliot and international programs
Ongoing acquisition-driven growth
CSR achievements

2018 targets fully confirmed

Benoît Coquart, Legrand Chief Executive Officer, commented:

'Double-digit growth in key indicators

Sales for the first six months of the year rose +11.8% from the first half of 2017, driven by solid organic growth (+5.2%) and the increase in scope of consolidation (+13.6%), partially offset by an unfavorable exchange-rate effect (-6.5%). Excluding this foreign-exchange effect, Group sales were up +19.5%.

Sustained by the positive overall economy in the first half and by favorable one-off effects that drove business in several countries, these good showings resulted from the Group's numerous growth initiatives.

Adjusted operating profit rose +14.4% over the first six months of the year, reflecting a +0.5 points improvement in adjusted operating margin. At the same time, net profit attributable to the Group and normalized free cash flow were up by +23.3% and +25.3%, respectively.

This double-digit rise in key financial indicators illustrates the Group's capacity to deliver profitable growth and thus to create value.

Numerous innovation and growth initiatives

Legrand's innovation momentum continued with successful launches of new ranges that included user interfaces, with six new connected offerings; smart UPS systems; digital infrastructures, in particular for Audio-Video applications; energy distribution; and cable management.

The development of Eliot and recently launched international programs, such as LCS3 high-performance structured cabling, has also continued at a sustained pace. In addition, Legrand has pursued the deployment of the product offerings of its recent acquisitions outside their home countries.

External growth was also active, with bolt-on small- and mid-size acquisitions in digital infrastructures, UPS, and electrical equipment for DIY3 activities. A total of four transactions have been announced since the beginning of the year.

Finally, Legrand remains totally committed to creating sustainable value for all of its stakeholders. The targets for reducing greenhouse gas emissions that the Group set itself to hold global warming to +2°C were indeed approved by the Science Based Targets initiative, making Legrand one of the first CAC 40 companies to qualify.'

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