Newsroom
Finance |
02.14.2019 07:002018 annual results
Strong growth in 2018 main indicators
Sales: +8.6%
Adjusted operating profit: +9.7%
Net profit attributable to the Group: +23.3%
Normalized free cash flow: +21.5%
2018 targets fully met
Organic growth in sales: +4.9%
Adjusted operating margin before acquisitions: 20.2%
Achievement rate of CSR roadmap: 122%
A stronger sustainable and profitable growth profile
Eliot program accelerating with the acquisition of Netatmo
Strengthened organic growth momentum
External growth driven by 7 acquisitions in 2018
Ongoing performance optimization
New CSR roadmap for 2019-2021
Confirming Legrand’s medium-term value-creating model
On the closing of full-year accounts for 2018, Benoît Coquart, Legrand’s Chief Executive Officer, commented:
“Strong growth in 2018 main indicators, 2018 targets fully met
With +4.9% of organic growth in sales in 2018, Legrand outperformed the target that it set itself for the year and continued to expand its positions. The effect of the increased scope of consolidation was also substantial at +7.8%. Excluding the exchange-rate effect, sales were up +13% in 2018 – the highest rise since 2006.
Adjusted operating profit increased +9.7%, to over €1.2bn, and adjusted operating margin before acquisitions reached 20.2% of sales, in line with the 2018 target.
Net profit attributable to the Group was up a strong +23.3% and normalized free cash flow rose +21.5%, to represent 14.9% of sales.
Lastly, targets set in the 2014-2018 CSR roadmap were fully met, with an achievement rate of 122%.
This very good integrated performance reflects the Group’s ability to create lasting value for all of its stakeholders thanks to its clear strategy, robust business model, and the commitment of its teams.
A stronger sustainable and profitable growth profile
In 2018, Legrand undertook many initiatives aimed at fueling its development in keeping with the solid fundamentals that have made it successful. Against this backdrop, the Group intends to:
- after having reached in 2018 its Eliot program targets for 2020, step up the development of its connected ranges by acquiring Netatmo, whose 130 engineers have added their expertise in Artificial Intelligence, user experience and software integration into products to the Group’s R&D teams. More generally, Legrand is pursuing the digital transformation of its offering by integrating innovative functions such as voice assistance into user interfaces, displayed at the latest CES in Las Vegas, and by the geographical deployment of its Eliot program;
- boost organic expansion by pursuing growth investments, including in particular the launch of numerous new product ranges, and by setting a front office organization in three geographical areas that are better aligned with the structure of its markets and allow more efficient deployment of commercial programs;
- after seven acquisitions made in 2018, pursue its strategy of bolt-on acquisitions aimed at strengthening its leadership positions and expanding its accessible market in fields that are very complementary to its existing operations;
- optimize continuously its performance with enhanced manufacturing initiatives; the deployment of the “Legrand Way ” to administrative and R&D activities; the targeted digitalization of manufacturing and supply chain processes as well as the achievement of synergies linked to recent acquisitions and the decrease in energy consumption linked with the new Group CSR targets;
- launch its fourth CSR roadmap for the period 2019-2021, to maximize Legrand’s positive externalities for all stakeholders through three focal points: business ecosystem, people and the environment. Additionally and for each of these focal points, Legrand has set ambitious targets for 2030 that include raising the percentage of sales made with sustainable products to 80%, boosting the number of women part of management, and reducing the Group’s activities carbon footprint.
Confirming Legrand’s medium-term value-creating model
Confident in the soundness of its model and its ability to fuel lasting profitable growth, Legrand confirms its medium-term model:
- assuming a buoyant economic backdrop and excluding exchange-rate effects, the Group intends to achieve annual growth in sales and adjusted operating profit of around +10%;
- assuming a lackluster or unfavorable economic backdrop, Legrand will focus on protecting its model, profitability and generation of free cash flow.
Over a full economic cycle, and excluding any major economic slowdown, this model would result in average annual total growth in sales above that of the Group’s reference markets, adjusted operating margin averaging around 20% of sales , normalized free cash flow ranging on average between 13% and 14% of sales4, and an attractive dividend.
Legrand also intends to continue rolling out an ambitious approach to CSR, driven by demanding roadmaps.”
À découvrir
Finance corner
Our solutions
Press
World presence