Gilles Schnepp, Chairman and CEO of Legrand (Paris:LR), commented:
Solid 2016 first-quarter achievements
“Driven by a particularly good relative performance at the start of the year in the United States, where organic growth stood at +6.9%, Group sales at constant scope of consolidation and exchange rates rose +1.9% in the first quarter of 2016. Over the same period, organic change in sales was flat overall in mature European countries and in new economies.
“Taking into account the exchange-rate effect and acquisitions, Group sales were up +2.1% in total.
“Adjusted operating profit rose +3.7% and adjusted operating margin before acquisitions (at 2015 scope of consolidation) stood at 19.2% of sales compared with 18.8% in the first quarter of 2015. Taking acquisitions into account, adjusted operating margin came to 19.1% in the first quarter of 2016.”
2016 targets confirmed
Based on 2016 first-quarter achievements, Legrand confirms its two 2016 targets:
- organic change in sales of between -2% and +2%, and
- adjusted operating margin before acquisitions (at 2015 scope of consolidation) of between 18.5% and 19.5% of sales.
Legrand will also pursue its strategy of value-creating acquisitions.
|1st quarter 2015||1st quarter 2016|
|Adjusted operating profit||218.6||226.7|
|As % of sales||18.8%||19.1%|
|19.2% before acquisitions(2)|
|As % of sales||17.9%||18.2%|
|Net income excluding minorities||127.4(3)||127.4(3)|
|As % of sales||10.9%||10.7%|
|Normalized free cash flow||174.0||155.5|
|As % of sales||14.9%||13.1%|
|Free cash flow||56.8||37.4|
|As % of sales||4.9%||3.1%|
|Net financial debt at March 31||866.9||790.9|
(1) See appendices to this press release for definitions and reconciliation tables of indicators presented.
(2) At 2015 scope of consolidation.
(3) Excluding the impact of the foreign-exchange result, net income excluding minorities would come to €130.0m in the first quarter of 2016 compared with €127.7m in the first quarter of 2015, thus showing an increase of close to +2%.
Change in Legrand’s Board of Directors
Gérard Lamarche’s term as Director ends in 2016. Gérard Lamarche, who has served on Legrand’s Board of Directors since 2006, did not wish to renew his term as Director.
Acting on the recommendation of the Nominating and Governance Committee, the Board of Directors approved the candidacy of Isabelle Boccon-Gibod, which will be put to the vote at the Company’s annual Combined Ordinary and Extraordinary Shareholders’ General Meeting on May 27, 2016. Her experience in manufacturing, notably in the United States and the United Kingdom, as well as her acknowledged expertise in finance, will bring additional skills to the Board.
Subject to the General Meeting’s approval of Boccon-Gibod’s appointment on May 27, 2016, Board membership will be evenly divided by gender (five men and five women), with seven independent directors (70% of the total) and four nationalities represented.
The full report can be viewed here.