2020 Full Year Results
11/02/2021 - 10:41
Responsible crisis management
On the closing of full-year accounts for 2020, Benoît Coquart, Legrand’s Chief Executive Officer, commented:
“Facing an unprecedented and highly unpredictable environment, 2020 was a demonstration of Legrand’s clear strategy, solid business model, and highly responsive teams.
As the crisis began, our Group moved quickly to address the essentials: protecting employees and partners while continuing to serve our customers, whose businesses are essential to a working economy.
We then sought to limit the pandemic’s impact on our own performance: the full-year decline in sales was held to -7.9% in 2020, while we strengthened competitive positions in our main markets. Adjusted operating profit and net profit remained at excellent levels, respectively at 19% of sales (20% excluding exceptional items) and at 11% of sales. Free cash flow stood at over €1 billion for the second year running and amounted to 17% of sales.
Legrand also focused on pursuing and ramping up its Environmental, Societal and Governance (ESG) strategy. We achieved 128% of our CSR roadmap targets for the year, with very strong performances in a number of areas: CO2 emissions were down -17% from 2019 at constant scope of consolidation, in line with the carbon-neutral targets for 2022, 2030 and 2050 announced in July.
Throughout the year, Legrand worked hard to strengthen its fundamentals in preparation for a recovery. We stepped up our sales and marketing initiatives, and continued to focus on developing new products – in particular connected solutions – with R&D expenditure equal to over 5% of sales. We bolstered our market positions with four targeted acquisitions, including three announced today; we accelerated digitization of our structures and processes; and we pursued talent development and diversity promotion programs.
These unique fundamentals, combined with a market structurally driven by favorable underlying trends in energy efficiency, safety, new ways of living and working, connected buildings, comfort, health and assisted living, mean that we are confident in the future. They also lead us to stand by our goal of profitable, sustainable and responsible growth serving our corporate purpose: improving lives by transforming the spaces where people live, work and meet.”
Solid financial and ESG achievements in 2020
- Change in sales: -7.9%
- Adjusted operating margin: 19.0%
- Free cash flow: 16.9% of sales
- Achievement rate of CSR roadmap: 128%
Three new acquisitions announced
- Total of 4 new companies acquired in 2020
- Ongoing active roll-out of product offerings of recently acquired companies
Enhanced growth model profiled for the post-crisis period
- Diversified positions in promising segments
- Product offering well-suited to meet emerging new needs
- Scope for lasting high-quality growth through acquisitions
- Acceleration of digitization
- A pace-setting ESG policy
- Mid-term outlook driving value creation