Legrand Raises 2022 Sales Targets Following First Half Growth
The electrical and digital building infrastructure specialist revised its annual sales growth outlook upward after first half revenue rose 18.5%.
Legrand revised its 2022 annual objectives upward following a first half where consolidated revenue reached 4,092.4 million euros,. The company, a specialist in electrical and digital building infrastructures, reported that sales grew 18.5% compared to the same period in 2021,.
Organic sales growth for the period was 10.9%. This growth was distributed across regions, with Europe seeing 11.3%, North and Central America 11.2%, and the Rest of the World 9.7%. The company attributed this performance to commercial successes, pricing power, and active supply chain management amid high tensions for electronic components. Other contributors to the total revenue increase included a 4.4% currency effect and a 2.4% perimeter effect from acquisitions,.
Profitability remained high despite an inflationary environment that saw raw materials and components rise approximately 17%. Adjusted operating income for the first half was 837.8 million euros, a 10.0% increase over the first half of 2021,. The adjusted operating margin stood at 20.5% of sales,. Before acquisitions, the adjusted operating margin was 20.8%, which represents a decrease of 1.2 point compared to 22.0% in the first half of 2021,.
Group share of net income rose 13.9% to 548.1 million euros,,. This increase was driven primarily by a 73.2 million euro improvement in operating results, a 3.7 million euro improvement in net financial expenses, and a 0.4 million euro improvement in minority interests, offset by an 11.2 million euro increase in income tax. Net income per share was 2.056 euros.
Cash flow from operating activities was 380.4 million euros, down from 621.7 million euros in the first half of 2021. Total gross debt reached 5,531.7 million euros as of June 30, 2022, compared to 5,312.5 million euros on December 31, 2021. Total net debt was 2,861.8 million euros,. The net debt to consolidated equity ratio was approximately 45% as of June 30, 2022, compared to 44% on December 31, 2021.
Legrand now targets sales growth excluding currency effects between 9% and 12%, up from a previous range of 5% to 11%. This revised outlook includes organic growth between 6% and 9% and a perimeter effect of approximately 3%. The company aims for an adjusted operating margin of around 20% of revenue, with a margin before acquisitions between 19.9% and 20.7%.