Legrand: strong rebound in net profit in the first half

Electrical equipment maker Legrand saw its net profit jump 68.5% in the first half, a year after suffering the shock of the health crisis, and raised its annual targets accordingly.

Read alsoThe shortage of wood is destabilizing a vital sector for the French economy

Over the first six months of the year, its net income reached 481.3 million euros, for a turnover up 21.9% to 3.5 billion euros. Compared to the first half of 2019, therefore before the Covid-19 pandemic, sales are also up, by 7%.

The group's managing director, Benoît Coquart, underlined "the quality of these results and the success of the initiatives deployed since the start of the health crisis", in a press release published on Friday.

“Strong and growing tensions”

His performance in the first half has led Legrand to be more optimistic for the rest of the year: it is now aiming for higher organic revenue growth at 10% and an adjusted operating margin of around 20% of sales. From January to June, these two indicators rose to +22.6% and 22% respectively.

During a conference call, Benoît Coquart stressed that these new forecasts took into account an “uncertain” health context and “strong and growing tensions” on supplies, while many sectors are currently facing shortages of materials or semiconductors.

The electrical equipment manufacturer is also counting on its acquisitions to continue to develop. He announced two new ones on Friday: Ensto Building Systems, a Finnish group specializing in low voltage, and Ecotap, a Dutch company present in AC and DC charging stations for electric vehicles. These two companies respectively represent turnover of 120 million and 40 million euros, said Legrand.

Concerning its operations in the first half of the year, the French group benefited from good momentum in all of its geographical areas. In Europe, its largest market, which represents 42.5% of its sales, organic growth reached 30.6%, while it was 11.7% in North and Central America.

Also readDespite Brexit, Nissan is strengthening its roots in the United Kingdom

In the United States alone, which accounts for 34.5% of the group's turnover, organic growth was 9.9% over the first six months of the year, driven by residential spaces as well as data centers, says Legrand.