Legrand has announced that it has come close to a billion euro net profit in 2022, up 10.5%. This performance is due to the growing need for decarbonization and electrification. The group based in Limoges, France, posted net income of 999.5 million euros and sales of 8.34 billion euros, up 19.2% in all its markets.
The growth of energy efficiency
In a context of energy crisis and soaring prices, energy efficiency equipment is particularly dynamic, especially in Europe. This includes equipment such as thermostats to reduce energy consumption. According to Legrand CEO Benoît Coquart, “energy efficiency clearly represents a growing part of Legrand’s sales.” He also noted that the share of these products increased from 11% in 2015 to 22% in 2022.
Legrand is also benefiting from its external growth, with seven acquisitions during the year, including two announced on Thursday: Encelium, a US player in lighting for commercial buildings, and Clamper, the Brazilian leader in low-voltage solutions for photovoltaic infrastructures.
Impacts of disengagement in Russia
The 2022 results already reflect an impairment of 148 million euros of assets related to the withdrawal from Russia. Operations in Russia, where Legrand employed 1,100 people in four plants, accounted for about 1.5% of sales in 2022. The group is still examining its options to ensure this transfer of activities announced in January.
Outlook for 2023
Taking into account the current macroeconomic outlook and excluding the impact of the disengagement in Russia, Legrand is targeting sales growth between 2% and 6% in 2023, excluding currency effects, with a scope effect of around +3%. It expects an adjusted operating margin before acquisitions and excluding related impacts of around 20% of sales.
Legrand’s CEO, Benoît Coquart, pointed out that the group has had to deal with a rise in raw material prices
