Legrand, the French electrical and digital building infrastructure manufacturer, has announced impressive results for the first half of the year. The company reported a net profit of €650.9 million ($717.2 million), representing a significant increase from the €548.1 million recorded in the same period last year. Sales also experienced growth, rising by 4.9% to reach €4.29 billion.
Despite a challenging building market, Legrand’s organic sales increased by 4.6%, boosted by effective pricing strategies. In Europe, which accounts for 43% of the company’s revenue, sales grew by 6.8% at constant exchange rates, driven by the demand for energy efficiency solutions. However, sales in the U.S., responsible for 35% of total revenue, saw a slight decline of 0.3%. This decrease was primarily attributed to a decline in residential building and a slight retreat in non-residential applications.
In light of their strong performance, Legrand has raised its targets for the year ahead. The company now aims to achieve sales growth between 5% and 8% at constant exchange rates, compared to the previous target range of 2% to 6%. Additionally, they are striving for an adjusted operating margin before acquisitions of approximately 20.5% of sales, an improvement from the previous figure of around 20%.
Legrand’s positive results are a testament to their commitment to innovation and adaptability in the market. With their upgraded targets, the company is well-positioned for continued success in the coming years.