Legrand Reports Strong Profit and Sales Growth


By Pierre Bertrand

Legrand, the French electrical and digital building infrastructure manufacturer, has announced an increase in both profit and sales for the year. However, due to a slowdown in the building market, the company has revised its sales growth target for the year.

In the first nine months of the year, Legrand achieved a net profit of 937 million euros ($1 billion), up from EUR 812 million in the previous year. Sales also saw a positive growth of 2.5%, reaching EUR 6.31 billion.

Despite these positive results, Legrand now anticipates constant-currency sales growth to be around 5%, excluding any impact from Russia. This is a revision from their initial guidance of 5%-8% growth.

Legrand has also adjusted its operating margin guidance to a range of 20.5% to 21%, previously estimated at around 20.5%.

The company attributes its sales growth to Europe, which accounts for 42% of its total revenue. This growth is primarily driven by the increasing demand for energy-efficiency solutions, data centers, and connected products.

However, Legrand expects its fourth-quarter results to be impacted by its recent exit from the Russian market. It estimates a loss of approximately EUR 45 million on net income for 2023, with a positive cash impact of around EUR 15 million.

In other news, Legrand has acquired ZPE Systems, a California-based company specializing in secure serial console servers and services routers. With over 140 employees and generating more than $80 million in annual sales, ZPE Systems offers Legrand access to a new and promising segment that complements its existing offerings for data centers.

Overall, Legrand continues to demonstrate its strength and resilience within the industry, with robust profit and sales growth. With strategic acquisitions and a focus on emerging segments, the company is well-positioned for future success.

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