Legrand has released its results for the first half of 2016.
Legrand’s organic growth in sales stood at +1.9% in the first half of 2016, as a result of solid performance in the United States (+5.5%), growth in mature European economies (+1.6%) and stability in new economies where conditions vary from one country to the next.
Adjusted operating profit rose +3.1% and adjusted operating margin before acquisitions (at 2015 scope of consolidation) stood at 20.3% of sales compared with 19.8% in the first half of 2015. Taking acquisitions into account, adjusted operating margin came to 20.1% in the first half of 2016.
Net income excluding minority interests was steady at €283m, or 11.6% of sales.
“These robust performances illustrate—once again—Legrand’s ability to create value,” said Gilles Schnepp, Chairman and CEO of Legrand.
Numerous growth initiatives
Legrand is continuing to expand in connected offerings. The move that began with the launch of the Eliot programand was confirmed in 2015 (when sales of connected products rose 34% in total during the year) has continued successfully. A wide range of connected offerings have been rolled out since the beginning of the year. The Group is ahead of schedule in implementing targets set in the Eliot program.
In addition, and as announced, Legrand has been
actively pursuing targeted and bolt-on acquisitions,
and since the beginning of the year, the Group has
already concluded seven transactions, representing
annual sales totaling nearly €160m. For 2016 as a whole,
external growth should account for over +4% of growth in consolidated sales. Legrand thus continues to enhance and expand its market positions.”
Consolidated sales
First-half 2016 sales totaled €2,448.4m, up +1.5% in total from the first half of 2015.
The organic change in Group sales came to +1.9%, reflecting a +2.9% rise in mature countries as a whole and flat sales overall (+0.1%) in new economies. In the first half, Legrand benefited from a favorable calendar effect estimated at around one day that should be reversed in the second half.
The impact of the broader scope of consolidation that resulted from acquisitions was +3.0%.
Excluding the exchange-rate effect, sales thus rose +5% in the first half of 2016.
The exchange-rate impact was -3.3% in the first half. Applying average exchange rates for June 2016 to the rest of the year, the full-year exchange-rate effect would be close to -3%.
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