2023-08-06 12:00:54
Once again, Legrand surprised on the occasion of the publication of its half-year results by its level of adjusted operating margin. This reached 22.2% (and even 22.7% excluding acquisitions and the negative impact of the exit from Russia, announced in January), an increase of 170 basis points compared to last year. Adjusted operating profit increased by 14%, to 954.7 million, and net profit rose even more strongly, by 18.8%.
The electrical equipment manufacturer benefited from a very strong price effect, of just over 7%. Taking into account organic sales growth of 4.6%, to 4.3 billion euros, this means that the volumes marketed fell by 2.4%, a performance lower than expected by the market, with a much more marked decline in the second quarter, when internal growth was only 2%. It was penalized in particular by a 2.3% drop in turnover in the Americas zone (and even 3% in the United States), which accounted for 38% of total billings. “The high profitability is linked to the gross margin and reflects our strict control of expenses and selling prices”, explained Benoît Coquart, the general manager, during the presentation to analysts.
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