The electrical infrastructure specialist was able to position itself on new products and posted the best results in its history.
“We benefit from buoyant markets, with the growing electrification and digitization of buildings”. Benoît Coquart, CEO of Legrand recognizes that the company he leads is currently benefiting from a favorable current. And it takes full advantage of it by publishing the best results in its history. “In 2021, our revenue, net income and operating margin reached their highest historical level”, welcomes the boss of the group. Legrand has erased the crisis suffered in 2020, since all the indicators are now up over two years. Even the supply difficulties – in chips, aluminum or plastic – that the group experienced last year did not stop the dynamism of the activity. Overall, revenue amounted to 7 billion euros (up 5.6% compared to 2019), for adjusted operating income of 1.43 billion (+8.1%).
Known for its switches and electrical outlets, Legrand has now greatly diversified, with a presence in data centers, security, connected objects, etc. In all, the group has more than 300,000 references in around a hundred families. of products. A complexity, to ensure their development but also the logistics, which constitutes a solid barrier to entry for its competitors.
However, the group is not content to take advantage of the favorable wind. “ We innovate a lotexplains Benoît Coquart, by devoting nearly 5% of our turnover to our R&D expenses”. Enough to develop new products, but also to have a wide enough range to have inexpensive but also very high-end products. The price of a switch ranges from 5 to 100 euros! Beyond its own strengths, Legrand also relies heavily on external growth. It is not aimed at large companies, but rather players who are sometimes small but have a good market share in a specific geography or an original product. Last year, the Finnish company Ensto enabled Legrand to triple its market share in Scandinavia. In total, the group has devoted 5 billion euros to these acquisitions over the past ten years.
Data center, connected objects and energy efficiency
These innovative capabilities have made it possible to develop three high-growth segments – data centers, connected objects and energy efficiency – which last year represented a third of the group’s overall activity. And this dynamism will not be denied. “In these three segments, the organic growth rate of turnover reached 15% over two years, when it fell slightly for the rest of the activities”, explains Benoît Coquart. These most dynamic branches should weigh half of the turnover “in the medium term”.
These elements allow us to see the future with confidence. Benoît Coquart aims for an increase in activity of 5 to 11% in 2022, with an operating margin of 20%, similar to that of the previous year. The momentum will be fueled by organic growth (+3 to 7%) but also acquisitions (+2 to 4%). “There is still a lot of potential in this area.specifies Benoît Coquartsince we follow no less than 300 companies worldwide”.