(Boursier.com) — Great climbed by 2% this Friday to more than 92 euros, while over the whole year, the group’s turnover increased by +0.9% compared to 2022, to settle at 8.417 billion euros. Adjusted operating profit is E1.77 billion in 2023, up +4% compared to 2022. The adjusted operating margin thus stands at 21% of sales over the period. Over the period, the group’s high and record level of profitability once again demonstrates the quality of the model. This result is the result of intact pricing power, solid cost control and high productivity. It also includes the making of selective growth investments as well as significant restructuring expenses…
Net profit, group share, increased by +14.9% over 12 months, to €1.148 billion, and stood at 13.6% of turnover. This increase is mainly due to the increase in operating income, the favorable development of financial income, and a corporate tax rate of 25.9%.
As of December 31, 2023, net profit per share is 4.33 euros. It is growing by +15.6% compared to 2022.
A dividend of 2.09 euros
Free cash flow, with a historic high of €1.585 billion, represents 18.8% of turnover and a conversion rate of 138% of the Group’s share of net income for the period. The net debt to Ebitda ratio stands at 1 as of December 31, 2023. The Group has €2.8 billion in cash available with gross debt of more than 90% at a fixed rate and a maturity of 4.5 years.
Finally, the return on capital employed (ROCE) after tax and excluding intangible assets from the 2006 IPO shows a high level of 14.7%.
Quoting…
Legrand’s Board of Directors will propose for approval at the General Meeting of Shareholders on May 29, the payment of a dividend of 2.09 euros per share for 2023, an increase of +10% compared to 2022.
The detachment of the dividend will take place on May 31, 2024 for payment on June 4, 2024
2024 annual objectives
In 2024, the Legrand Group will continue its profitable and responsible development as part of its strategic roadmap. Taking into account the current global macroeconomic outlook, and confident in its integrated value creation model, Legrand has set itself objectives for the year 2024:
– slightly growing organic and acquisition turnover ‘Low Single Digit’;
– an adjusted operating margin before acquisitions of between 20% and 20.8%;
– a CSR achievement rate of at least 100% for the 3rd and final year of its 2022-2024 roadmap.
Among the latest broker opinions, Citigroup is still a seller on Legrand, but with an objective raised from 75 to 85 euros.