Total growth in sales +10%
Integrated performance fully in line with targets
Organic growth in sales: +2.6%
Adjusted operating margin before acquisitions1: 20.4%
Achievement rate of CSR roadmap2: 113%
Strong value creation
Net profit attributable to the Group: +8%
Normalized free cash flow: +13%
Strengthening profitable growth profile
Continued deployment of Eliot program
Innovation-driven enrichment of product offering
Three acquisitions made in 2019
Ongoing momentum for improving performance
On the closing of full-year accounts for 2019, Benoît Coquart, Legrand's Chief Executive Officer, commented:
'In 2019, in a mixed economic environment, Legrand delivered a solid integrated performance that was fully in line with its targets for the year3 and its value-creating medium-term business model.
Sales rose a total +10.4%, driven in particular by dynamic +2.6% organic growth and a sustained +5.3%increase in scope of consolidation, rounded out by a +2.2% exchange-rate effect.
Adjusted operating margin before acquisitions1 came to 20.4%. Taking acquisitions into account, adjusted operating margin was 20.0%, reflecting a +9.4% rise in adjusted operating profit. Net profit attributable to the Group and normalized free cash flow increased by +8.2% and by +13.0% respectively.
In addition, non-financial performance was ahead of schedule, with 113%2 achievement rate of Group's CSR roadmap - reflecting its commitment to all stakeholders.
In keeping with its ambitions4, in 2019, Legrand pursued initiatives aimed at strengthening its profitable growth profile and leading positions.
Against this backdrop, in June 2019, the Group reiterated its focused ambition as a strategic player in connected buildings through steady deployment of the Eliot program. Legrand sales of connected products have thus risen by +29% in total, including organic growth up a solid +10%. This performance reflects the very positive response to IoT products, plus the successful docking of Netatmo.
The Group also continued its bold innovation drive, launching a host of new products that included user interface ranges, digital solutions, cable management systems and energy distribution products.
As part of its ongoing strategy of value-creating acquisitions, Legrand also purchased three companies in 2019: Universal Electric Corporation, the undisputed US leader in busways for data centers; Jobo Smartech, the Chinese leader in connected hotel-room management systems; and Connectrac, an innovative US company specializing in over-floor power and data distribution. These bring to 10 the number of acquisitions that Legrand has made over the past two years, reinforcing the Group's leading positions in growing areas.
Lastly, Legrand is actively pursuing initiatives aimed at improving its performance, including in particular roll-out of the Legrand Way5 program, digitalization of its organization, and optimization of its industrial footprint.
The Group's 2019 achievements fully reflect the momentum that stems from its medium-term business model for value-creation6.'
1 At 2018 scope of consolidation.
2 Achievement rate of CSR 2019-2021 roadmap in 2019.
3 For a complete presentation of Legrand's 2019 targets and medium-term business model, readers are invited to consult the press release dated February 14, 2019.
4 For more details, readers are invited to consult press releases dated February 14, 2019 and June 12, 2019.
5 Program dedicated to the implementation of best practices throughout the Group, covering in particular the management of operational performance, new-product development, rules for health and safety, and quality.
6 For the complete wording of the medium-term model, readers are invited to consult the press release dated February 14, 2019.
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Legrand SA published this content on 13 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 February 2020 10:35:07 UTC