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Legrand: External Growth and Innovation to Support 2024 Expansion

Legrand, a global leader in electrical and digital infrastructures, plays a key role in transforming residential, commercial, and industrial buildings with its innovative solutions. Founded in 1904, the company has built its reputation on a wide range of products, from lighting systems to energy management solutions. Today, present in nearly 90 countries, Legrand continues to innovate to meet evolving market needs and consolidate its position as a leader.



Financial Results for the First Half of 2024

During the first half of 2024, Legrand demonstrated notable resilience in an economic environment marked by uncertainties. The group reported sales of €4,210.3 million, showing a moderate decline of 2.0% compared to the same period in 2023. This decrease was largely due to a downturn in the construction market, particularly in emerging economies where sales fell by 5.1%.


Despite the decline in sales, the second quarter performance showed encouraging signs with organic growth of 1.5%, supported by strong demand in the data center sector. This recovery highlights Legrand's ability to capitalize on growth segments despite a challenging global environment.


Solid Margins and Rigorous Management

Legrand maintained an adjusted operating margin of 20.7% in the first half of 2024, reflecting its effective cost management and operational efficiency. The net profit attributable to the group amounted to €577.6 million, demonstrating solid profitability even in the context of declining revenues.


Normalized free cash flow reached €734.6 million, confirming Legrand's ability to generate sufficient liquidity to support its operations and future investments. However, free cash flow experienced a sharper decline of 42.5% due to increased investments related to recent acquisitions.


External Growth and Product Innovations

Legrand continues its strategy of expansion through acquisitions, with five new deals announced in 2024, including three in the data center sector. These acquisitions are expected to generate over €200 million in additional annual revenue, further strengthening Legrand's position in high-growth segments.


At the same time, the company continues to innovate with the launch of new product lines, such as the Céliane electrical fittings in France. This innovation drive is a central pillar of Legrand's strategy, aimed at meeting the specific needs of local markets while consolidating its global presence.


Conclusion

Despite the challenges posed by an uncertain economic environment, Legrand has demonstrated its ability to maintain solid performance through rigorous management and a strategy focused on external growth and innovation. The outlook for 2024 remains positive, with growth targets maintained and continued strategic initiatives to strengthen its position in the global market.


You will find a presentation file on Legrand attached to this article.




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