Regulatory News:
Legrand (Paris:LR):
Consolidated statement of
income........................................2 Consolidated
statement of comprehensive income...............2 Consolidated
balance sheet.................................................3
Consolidated statement of cash
flows...................................5 Notes to the consolidated
financial statements.....................6
Consolidated statement of income
9 months ended
(in € millions)
September 30, 2024
September 30, 2023
Net sales
6,229.0
6,307.3
Operating expenses
Cost of sales
(2,982.6)
(3,004.2)
Administrative and selling expenses
(1,664.2)
(1,615.1)
Research and development costs
(290.8)
(276.9)
Other operating income (expenses)
(101.7)
(137.3)
Operating profit
1,189.7
1,273.8
Financial expenses
(110.6)
(66.0)
Financial income
79.0
59.1
Exchange gains (losses)
(16.4)
0.4
Financial profit (loss)
(48.0)
(6.5)
Profit before tax
1,141.7
1,267.3
Income tax expense
(307.8)
(329.8)
Share of profits (losses) of
equity-accounted entities
0.0
0.0
Profit for the period
833.9
937.5
Of which:
- Net profit attributable to
the Group
833.7
937.2
- Minority interests
0.2
0.3
Basic earnings per share (euros)
3.183
3.528
Diluted earnings per share (euros)
3.160
3.503
Consolidated statement of comprehensive income
9 months ended
(in € millions)
September 30, 2024
September 30, 2023
Profit for the period
833.9
937.5
Items that may be reclassified
subsequently to profit or loss
Translation reserves
(94.4)
9.3
Cash flow hedges
(11.1)
(3.9)
Income tax relating to components of other
comprehensive income
(0.9)
0.4
Items that will not be reclassified to
profit or loss
Actuarial gains and losses after deferred
taxes
0.7
(0.1)
Other
0.0
0.0
Comprehensive income for the
period
728.2
943.2
Of which:
- Comprehensive income
attributable to the Group
729.1
942.9
- Minority interests
(0.9)
0.3
Consolidated balance sheet
(in € millions)
September 30, 2024
December 31, 2023
Non-current assets
Intangible assets
2,361.4
2,436.9
Goodwill
6,614.3
5,476.2
Property, plant and equipment
837.4
848.3
Right-of-use assets
276.2
260.8
Other investments
42.3
27.7
Other non-current assets
157.5
145.5
Deferred tax assets
143.3
141.0
TOTAL NON CURRENT ASSETS
10,432.4
9,336.4
Current assets
Inventories (Note 4)
1,360.8
1,222.3
Trade receivables (Note 5)
1,059.9
969.9
Income tax receivables
223.2
192.7
Other current assets
274.0
302.9
Other current financial assets
0.8
1.8
Cash and cash equivalents
1,834.6
2,815.4
TOTAL CURRENT ASSETS
4,753.3
5,505.0
TOTAL ASSETS
15,185.7
14,841.4
(in € millions)
September 30, 2024
December 31, 2023
Equity
Share capital (Note 6)
1,049.0
1,056.1
Retained earnings
6,337.1
6,126.5
Translation reserves
(553.2)
(459.9)
Equity attributable to equity holders of
Legrand
6,832.9
6,722.7
Minority interests
8.6
12.0
TOTAL EQUITY
6,841.5
6,734.7
Non-current liabilities
Long-term provisions
181.3
176.8
Provisions for post-employment
benefits
135.4
136.2
Long-term borrowings (Note 7)
4,627.1
4,089.0
Deferred tax liabilities
959.2
930.3
TOTAL NON-CURRENT LIABILITES
5,903.0
5,332.3
Current liabilities
Trade payables
923.7
936.5
Income tax payables
70.1
61.9
Short-term provisions
160.7
153.9
Other current liabilities
873.7
888.1
Short-term borrowings (Note 7)
412.3
732.3
Other current financial liabilities
0.7
1.7
TOTAL CURRENT LIABILITIES
2,441.2
2,774.4
TOTAL EQUITY AND LIABILITIES
15,185.7
14,841.4
Consolidated statement of cash flows
9 months ended
(in € millions)
September 30, 2024
September 30, 2023
Profit for the period
833.9
937.5
Adjustments for non-cash movements in
assets and liabilities:
– Depreciation and impairment of tangible
assets
100.8
92.3
– Amortization and impairment of
intangible assets
83.4
86.8
– Amortization and impairment of
capitalized development costs
17.1
22.4
– Amortization and impairment of
right-of-use assets
61.1
56.0
– Amortization of financial expenses
3.9
2.8
– Impairment of goodwill
0.0
0.0
– Changes in long-term deferred taxes
21.8
38.8
– Changes in other non-current assets and
liabilities
35.1
12.8
– Unrealized exchange (gains)/losses
(6.7)
16.3
– Share of (profits)/losses of
equity-accounted entities
0.0
0.0
– Other adjustments
12.2
0.2
– Net (gains)/losses on sales of
activities and assets
0.9
1.4
Changes in working capital
requirement:
– Inventories (Note 4)
(160.3)
43.9
– Trade receivables (Note 5)
(100.9)
(32.8)
– Trade payables
(7.1)
7.3
– Other operating assets and
liabilities
(23.9)
61.1
Net cash from operating
activities
871.3
1,346.8
– Net proceeds from sales of fixed and
financial assets
5.2
1.0
– Capital expenditure
(107.0)
(111.3)
– Capitalized development costs
(20.3)
(22.4)
– Changes in non-current financial assets
and liabilities
(10.7)
(65.0)
– Acquisitions and disposals of
subsidiaries, net of cash
(1,186.0)
(99.7)
Net cash from investing
activities
(1,318.8)
(297.4)
– Proceeds from issues of share capital
and premium (Note 6)
0.0
0.0
– Net sales/(buybacks) of treasury shares
and transactions under the liquidity contract (Note 6)
(45.0)
(228.5)
– Dividends paid to equity holders of
Legrand
(547.0)
(504.0)
– Dividends paid by Legrand
subsidiaries
0.0
0.0
– Proceeds from long-term financing
801.5
704.1
– Repayment of long-term financing* (Note
7)
(71.5)
(42.2)
– Debt issuance costs
(15.3)
(3.2)
– Increase/(reduction) in short-term
financing
(617.9)
(144.7)
– Acquisitions of ownership interests with
no gain of control
(20.0)
(9.2)
Net cash from financing
activities
(515.2)
(227.7)
Translation net change in cash and cash
equivalents
(18.1)
3.7
Increase (decrease) in cash and cash
equivalents
(980.8)
825.4
Cash and cash equivalents at the beginning
of the period
2,815.4
2,346.8
Cash and cash equivalents at the end of
the period
1,834.6
3,172.2
Items included in cash flows:
– Interest paid during the period**
80.5
51.5
– Income taxes paid during the period
301.5
* Of which €58.3 million corresponding to
lease financial liabilities repayment for the 9 months ended
September 30, 2024 (€55.0 million for the 9 months ended September
30,
2023).
** Interest paid is included in the net
cash from operating activities; of which €8.4 million interest on
lease financial liabilities for the 9 months ended September 30,
2024 (€6.5 million for the 9 months ended September 30, 2023).
Notes to the consolidated financial statements
KEY
FIGURES.....................................................................................................7
NOTE 1 -
INTRODUCTION..................................................................................8
NOTE 2 - SIGNFICANT TRANSACTIONS AND EVENTS FOR THE PERIOD.....8
NOTE 3 - CHANGES IN THE SCOPE OF
CONSOLIDATION.............................8 NOTE 4 -
INVENTORIES....................................................................................10
NOTE 5 - TRADE
RECEIVABLES.......................................................................10
NOTE 6 - SHARE
CAPITAL.................................................................................10
NOTE 7 - LONG-TERM AND SHORT-TERM
BORROWINGS............................11 NOTE 8 - SEGMENT
INFORMATION................................................................13
NOTE 9 - SUBSEQUENT
EVENTS.....................................................................16
KEY FIGURES
(in € millions)
9 months ended September 30,
2024
9 months ended September 30,
2023
Net sales
6,229.0
6,307.3
Adjusted operating profit
1,276.1
1,363.5
As % of net sales
20.5%
21.6%
20.6 % before acquisitions⁽¹⁾
Operating profit
1,189.7
1,273.8
As % of net sales
19.1%
20.2%
Net profit attributable to the Group
833.7
937.2
As % of net sales
13.4%
14.9%
Normalized free cash flow
1,046.5
1,112.9
As % of net sales
16.8%
17.6%
Free cash flow
749.2
1,214.1
As % of net sales
12.0%
19.2%
Net financial debt at September
30
3,204.8
2,153.7
(1) At 2023 scope of consolidation and
excluding Russia.
Adjusted operating profit is defined as operating profit
adjusted for: i/ amortization and depreciation of revaluation of
assets at the time of acquisitions and for other P&L impacts
relating to acquisitions, ii/ impacts related to disengagement from
Russia (impairment of assets and effective disposal) and, iii/
where applicable, impairment of goodwill.
Normalized free cash flow is defined as the sum of net cash from
operating activities - based on a working capital requirement
representing 10% of the last 12 months’ sales and whose change at
constant scope of consolidation and exchange rates is adjusted for
the period considered - and net proceeds of sales from fixed and
financial assets, less capital expenditure and capitalized
development costs.
Free cash flow is defined as the sum of net cash from operating
activities and net proceeds from sales of fixed and financial
assets, less capital expenditure and capitalized development
costs.
Net financial debt is defined as the sum of short-term
borrowings and long-term borrowings, less cash and cash equivalents
and marketable securities.
The reconciliation of consolidated key figures with the
financial statements is available in the appendices to the first
nine months 2024 results press release.
NOTE 1 - INTRODUCTION
This unaudited consolidated financial information is presented
for the 9 months ended September 30, 2024. It does not include all
the information required by International Financial Reporting
Standards (IFRS) and it should be read in conjunction with
consolidated financial statements for the year ended December 31,
2023 as established in the Universal Registration Document
deposited under visa no D.24-0270 with the French Financial Markets
Authority (AMF) on April 10, 2024.
All the amounts are presented in millions of euros unless
otherwise indicated. Some totals may include rounding
differences.
The unaudited consolidated financial statements have been
prepared in accordance with the International Financial Reporting
Standards (IFRS) and International Financial Reporting
Interpretations Committee (IFRIC) interpretations adopted by the
European Union and applicable or authorized for early adoption from
January 1, 2024.
None of the IFRS standards issued by the International
Accounting Standards Board (IASB) that have not been adopted for
use in the European Union are applicable to the Group.
NOTE 2 - SIGNFICANT TRANSACTIONS AND EVENTS FOR THE
PERIOD
No significant transactions or events are to be reported during
the period.
NOTE 3 - CHANGES IN THE SCOPE OF CONSOLIDATION
The contributions to the Group’s consolidated financial
statements of companies acquired since the end of 2022 were as
follows:
2023
March 31
June 30
September 30
December 31
Full consolidation method
Voltadis
Balance sheet only
6 months' profit
9 months' profit
12 months' profit
A. & H. Meyer
Balance sheet only
6 months' profit
9 months' profit
12 months' profit
Power Control
Balance sheet only
Balance sheet only
9 months' profit
12 months' profit
Encelium
Balance sheet only
6 months' profit
9 months' profit
12 months' profit
Clamper
Balance sheet only
Balance sheet only
Balance sheet only
11 months' profit
Teknica
Balance sheet only
4 months' profit
MSS
Balance sheet only
2024
March 31
June 30
September 30
Full consolidation method
Voltadis
3 months' profit
6 months' profit
9 months' profit
A. & H. Meyer
3 months' profit
6 months' profit
9 months' profit
Power Control
3 months' profit
6 months' profit
9 months' profit
Encelium
3 months' profit
6 months' profit
9 months' profit
Clamper
3 months' profit
6 months' profit
9 months' profit
Teknica
3 months' profit
6 months' profit
9 months' profit
MSS
Balance sheet only
6 months' profit
9 months' profit
ZPE Systems
Balance sheet only
Balance sheet only
Balance sheet only
Enovation
Balance sheet only
Balance sheet only
Netrack
Balance sheet only
Balance sheet only
Davenham
Balance sheet only
Balance sheet only
VASS
Balance sheet only
Balance sheet only
UPSistemas
Balance sheet only
During the first nine months of 2024, the main acquisitions were
as follows:
- ZPE Systems, Inc. in the United States. ZPE Systems is a
leading American specialist in serial console servers that enable
remote access and management of network IT equipment in
datacenters. Based in Fremont, California, ZPE Systems employs over
140 people, reporting annual sales of more than $80 million,
- Enovation, the Dutch leader in healthcare software in the
market for connected health and assisted living. Enovation is based
in Rotterdam, employs over 350 people and has annual sales of over
€60 million;
- Netrack, an Indian specialist in server and network rack
manufacturing, notably for datacenters. Based in Bangalore and
employing over 250 people, Netrack reports annual revenue of around
€10 million;
- Davenham, an Irish specialist in low-voltage power distribution
systems (protection, switching, metering and energy distribution)
for datacenters, including hyperscalers. Davenham is based in
Dublin, employing 350 people and reports annual revenue of around
€120 million, mostly in Europe and in the United States;
- VASS, the Australian leader in busbars, mostly for datacenters.
Based in Ingleburn, near Sydney, and employing close to 40 people,
VASS reports annual revenue of just under €10 million, mostly in
Australia and the Asia-Pacific region; and
- UPSistemas, a Colombian specialist in the integration,
commissioning, maintenance and monitoring of technical
infrastructures, in particular for datacenters. Based in Bogota,
and employing more than 300 people, UPSistemas reports annual
revenue of around €30 million.
NOTE 4 - INVENTORIES
Inventories are as follows:
(in € millions)
September 30, 2024
December 31, 2023
Purchased raw materials and components
627.0
589.5
Sub-assemblies, work in progress
164.4
134.9
Finished products
819.0
736.9
Gross value at the end of the
period
1,610.4
1,461.3
Impairment
(249.6)
(239.0)
NET VALUE AT THE END OF THE
PERIOD
1,360.8
1,222.3
NOTE 5 - TRADE RECEIVABLES
Trade receivables are as follows:
(in € millions)
September 30, 2024
December 31, 2023
Trade receivables
1,153.4
1,065.8
Impairment
(93.5)
(95.9)
NET VALUE AT THE END OF THE
PERIOD
1,059.9
969.9
NOTE 6 - SHARE CAPITAL
Share capital as of September 30, 2024 amounted to
€1,048,982,932 represented by 262,245,733 ordinary shares with a
par value of €4 each, for 262,245,733 theoretical voting rights and
262,144,725 exercisable voting rights (after subtracting shares
held in treasury by the Group as of this date).
Changes in share capital in the first 9 months of 2024 were as
follows:
Number of shares
Par value
Share capital (euros)
Premiums (euros)
As of December 31, 2023
264,031,292
4
1,056,125,168
263,208,950
Cancellation of free shares
(1,785,559)
4
(7,142,236)
(152,857,701)
As of September, 2024
262,245,733
4
1,048,982,932
110,351,249
As of September 30, 2024, the Group held 101,008 shares in
treasury, versus 1,863,478 shares as of December 31, 2023, i.e.
1,762,470 fewer shares corresponding to:
- the net acquisition of 750,000 shares outside of the liquidity
contract mainly for transfer under performance share plans and
employee share ownership plans;
- the transfer of 442,591 shares to employees under performance
share plans;
- the transfer of 299,996 shares under the launch of employee
share ownership plans;
- the net purchase of 15,676 shares under the liquidity
contract;
- the cancellation of 1,785,559 shares.
These transactions led to:
- a cash outflow of €43.8 million under share buybacks, net of
disposals;
- a cash outflow of €1.2 million under the liquidity
contract.
Number of shares
of which number of shares held
by the Group
As of December 31, 2023
264,031,292
1,863,478
Transfer to employees
(742,587)
Share buybacks
750,000
Transactions under the liquidity
contract
15,676
Shares cancellation
(1,785,559)
(1,785,559)
As of September 30, 2024
262,245,733
101,008
of which for transfer to employees
58,526
of which liquidity contract
42,482
of which for shares cancellation
0
NOTE 7 - LONG-TERM AND SHORT-TERM BORROWINGS
7.1 LONG-TERM BORROWINGS
Long-term borrowings can be analyzed as follows:
(in € millions)
September 30, 2024
December 31, 2023
Negotiable commercial paper
71.5
50.0
Bonds
4,230.0
3,500.0
Yankee bonds
0.0
262.7
Lease financial liabilities
228.5
216.3
Other borrowings
123.9
75.3
Long-term borrowings excluding debt
issuance costs
4,653.9
4,104.3
Debt issuance costs
(26.8)
(15.3)
TOTAL
4,627.1
4,089.0
7.2 SHORT-TERM BORROWINGS
Short-term borrowings can be analyzed as follows:
(in € millions)
September 30, 2024
December 31, 2023
Negotiable commercial paper
50.0
115.0
Bonds
0.0
500.0
Yankee bonds
259.7
0.0
Lease financial liabilities
71.4
68.3
Other borrowings
31.2
49.0
TOTAL
412.3
732.3
7.3 CHANGES IN LONG-TERM AND SHORT-TERM BORROWINGS
Changes in long-term and short-term borrowings can be analyzed
as follows:
Variations not impacting cash
flows
(in € millions)
September 30, 2024
Cash flows
Acquisitions
Reclassifications
Translation
adjustments
Other
December 31, 2023
Long-term borrowings
4,627.1
796.9
52.6
(386.6)
(6.1)
81.3
4,089.0
Short-term borrowings
412.3
(700.1)
0.1
386.6
(6.0)
(0.6)
732.3
Gross financial debt
5,039.4
96.8
52.7
0.0
(12.1)
80.7
4,821.3
NOTE 8 - SEGMENT INFORMATION
In accordance with IFRS 8, operating segments are determined
based on the reporting made available to the chief operating
decision maker of the Group and to the Group's management.
Given that Legrand activities are carried out locally, the Group
is organized for management purposes by countries or groups of
countries which have been allocated for internal reporting purposes
into three operating segments:
- Europe, including France, Italy and Rest of Europe (mainly
including Benelux, Germany, Iberia (including Portugal and Spain),
Poland, the United Kingdom and Turkey);
- North and Central America, including Canada, Mexico, the United
States, and Central American countries; and
- Rest of the world, mainly including Australia, China, India and
South America (of which particularly Brazil, Chile and
Colombia).
These three operating segments are under the responsibility of
three segment managers who are directly accountable to the chief
operating decision maker of the Group.
The economic models of subsidiaries within these segments are
quite similar. Indeed, their sales are made up of electrical and
digital building infrastructure products in particular to
electrical installers, sold mainly through third-party
distributors.
9 months ended September 30,
2024
(in € millions)
Europe
North and Central
America
Rest of the world
Total
Net sales to third parties
2,604.3
⁽¹⁾
2,528.2
⁽²⁾
1,096.5
6,229.0
Cost of sales
(1,179.3)
(1,208.8)
(594.5)
(2,982.6)
Administrative and selling expenses,
R&D costs
(823.7)
(839.8)
(291.5)
(1,955.0)
Other operating income (expenses)
(33.3)
(59.0)
(9.4)
(101.7)
Operating profit
568.0
420.6
201.1
1,189.7
- of which i/ acquisition-related
amortization, expenses and
income and ii/ impacts related to
disengagement from Russia (impairment of assets and effective
disposal)
· accounted for in
administrative and selling expenses, R&D costs
(19.4)
(57.7)
(7.1)
(84.2)
· accounted for in other
operating income (expenses)
(2.2)
(2.2)
- of which goodwill impairment
0.0
Adjusted operating profit
589.6
478.3
208.2
1,276.1
- of which depreciation and impairment of
tangible assets
(61.1)
(19.2)
(20.3)
(100.6)
- of which amortization and impairment of
intangible assets
(9.0)
(1.4)
(1.0)
(11.4)
- of which amortization and impairment of
development costs
(15.6)
0.0
(1.5)
(17.1)
- of which amortization and impairment of
right-of-use assets
(23.8)
(21.5)
(15.8)
(61.1)
- of which restructuring costs
(13.4)
(26.8)
(10.8)
(51.0)
Capital expenditure
(67.7)
(17.5)
(21.8)
(107.0)
Capitalized development costs
(19.2)
0.0
(1.1)
(20.3)
Net tangible assets
539.2
155.0
143.2
837.4
Total current assets
2,719.2
1,187.5
846.6
4,753.3
Total current liabilities
1,398.7
589.9
452.6
2,441.2
(1) Of which France: €866.0 million.
(2) Of which United States: €2,351.2
million.
9 months ended September 30, 2023
(in € millions)
Europe
North and Central
America
Rest of the world
Total
Net sales to third parties
2,757.5
⁽¹⁾
2,497.6
⁽²⁾
1,052.2
6,307.3
Cost of sales
(1,262.3)
(1,175.3)
(566.6)
(3,004.2)
Administrative and selling expenses,
R&D costs
(806.2)
(822.2)
(263.6)
(1,892.0)
Other operating income (expenses)
(62.3)
(60.8)
(14.2)
(137.3)
Operating profit
626.7
439.3
207.8
1,273.8
- of which i/ acquisition-related
amortization, expenses and
income and ii/ impacts related to
disengagement from Russia (impairment of assets and effective
disposal)
· accounted for in
administrative and selling expenses, R&D costs
(18.3)
(59.1)
(4.0)
(81.4)
· accounted for in other
operating income (expenses)
(8.3)
(8.3)
- of which goodwill impairment
0.0
Adjusted operating profit
653.3
498.4
211.8
1,363.5
- of which depreciation and impairment of
tangible assets
(54.9)
(19.4)
(17.8)
(92.1)
- of which amortization and impairment of
intangible assets
(10.3)
(2.0)
(1.1)
(13.4)
- of which amortization and impairment of
development costs
(21.6)
0.0
(0.8)
(22.4)
- of which amortization and impairment of
right-of-use assets
(21.4)
(19.9)
(14.7)
(56.0)
- of which restructuring costs
(21.3)
(10.2)
(8.2)
(39.7)
Capital expenditure
(72.6)
(20.1)
(18.6)
(111.3)
Capitalized development costs
(21.5)
0.0
(0.9)
(22.4)
Net tangible assets
482.6
160.3
131.1
774.0
Total current assets
3,661.0
1,404.1
874.9
5,940.0
Total current liabilities
2,144.2
543.7
458.1
3,146.0
(1) Of which France: €948.0 million.
(2) Of which United States: €2,306.8
million.
NOTE 9 - SUBSEQUENT EVENTS
External growth
The Group achieved the acquisition - announced on September 3,
2024 - of APP (Australian Plastic Profiles), an Australian cable
management (conduit) leader for all types of buildings. Based in
Sydney, Australian Plastic Profile employs approximately 250 people
and generates an annual revenue of over €100 million.
French Competition Authority’s (Autorité de la concurrence)
investigation
On September 6, 2018, a search of Legrand premises took place.
During the search, Legrand fully cooperated with the relevant
authorities.
On July 4, 2022, Legrand received a statement of objections
(notification de griefs) from the French Competition Authority,
concerning the derogation mechanism with its distributors on the
French market.
On October 20, 2022, Legrand reported that, as part of the
investigation on the derogation mechanism on the French market, one
of Legrand’s French entities has been indicted and ordered to
provide security in the amount of €80.5 million.
On October 30, 2024, Legrand has taken note of the enforceable
decision of the French Competition Authority ordering Legrand to
pay a fine of €43 million for the application of derogated prices
on the French market between 2012 and 2015.
Legrand categorically rejects the allegation made against it and
reserves the right to appeal this decision.
Legrand reiterates its firm commitment to comply strictly with
applicable law, in particular competition law.
This enforceable decision should not have a material impact on
the Group’s 2024 financial statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20241106229826/en/
Legrand
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