Legrand: Unaudited Consolidated Financial Statements as of March 31, 2024
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 |
|||
|
3 months ended |
||
(in € millions) |
|
|
|
Net sales |
2,028.2 |
2 149,6 |
|
Operating expenses |
|
|
|
Cost of sales |
(952.0) |
(1 010,1) |
|
Administrative and selling expenses |
(559.3) |
(549.8) |
|
Research and development costs |
(97.2) |
(92.1) |
|
Other operating income (expenses) |
(32.2) |
(47.2) |
|
Operating profit |
387.5 |
450.4 |
|
Financial expenses |
(34.4) |
(26.2) |
|
Financial income |
29.0 |
22.2 |
|
Exchange gains (losses) |
(9.0) |
(0.2) |
|
Financial profit (loss) |
(14.4) |
(4.2) |
|
Profit before tax |
373.1 |
446.2 |
|
Income tax expense |
(97.0) |
(115.8) |
|
Share of profits (losses) of equity-accounted entities |
0.0 |
0.0 |
|
Profit for the period |
276.1 |
330.4 |
|
Of which: |
|
|
|
- Net profit attributable to the Group |
275.9 |
330.5 |
|
- Minority interests |
0.2 |
(0.1) |
|
Basic earnings per share (euros) |
1.053 |
1.240 |
|
Diluted earnings per share (euros) |
1.046 |
1.232 |
Consolidated statement of comprehensive income |
|||
|
3 months ended |
||
(in € millions) |
|
|
|
Profit for the period |
276.1 |
330.4 |
|
Items that may be reclassified subsequently to profit or loss |
|
|
|
Translation reserves |
90.1 |
(77.6) |
|
Other |
(3.2) |
(3.6) |
|
Income tax relating to components of other comprehensive income |
1.9 |
(1.1) |
|
Items that will not be reclassified to profit or loss |
|
|
|
Actuarial gains and losses after deferred taxes |
0.1 |
(1.8) |
|
Other |
0.0 |
0.0 |
|
Comprehensive income for the period |
365.0 |
246.3 |
|
Of which: |
|
|
|
- Comprehensive income attributable to the Group |
368.1 |
246.4 |
|
- Minority interests |
0.1 |
(0.1) |
Consolidated balance sheet |
|||
(in € millions) |
|
|
|
Non-current assets |
|
|
|
Intangible assets |
2,428.9 |
2,436.9 |
|
|
5,838.3 |
5,476.2 |
|
Property, plant and equipment |
841.5 |
848.3 |
|
Right-of-use assets |
267.6 |
260.8 |
|
Other investments |
29.6 |
27.7 |
|
Other non-current assets |
147.6 |
145.5 |
|
Deferred tax assets |
145.4 |
141.0 |
|
TOTAL NON CURRENT ASSETS |
9,698.9 |
9,336.4 |
|
Current assets |
|
|
|
Inventories (Note 4) |
1,288.1 |
1,222.3 |
|
Trade receivables (Note 5) |
1,125.2 |
969.9 |
|
Income tax receivables |
187.8 |
192.7 |
|
Other current assets |
297.7 |
302.9 |
|
Other current financial assets |
2.6 |
1.8 |
|
Cash and cash equivalents |
2,709.3 |
2,815.4 |
|
TOTAL CURRENT ASSETS |
5,610.7 |
5,505.0 |
|
TOTAL ASSETS |
15,309.6 |
14,841.4 |
(in € millions) |
|
|
|
Equity |
|
|
|
Share capital (Note 6) |
1,049.0 |
1,056.1 |
|
Retained earnings |
6,343.8 |
6,126.5 |
|
Translation reserves |
(369.8) |
(459.9) |
|
Equity attributable to equity holders of |
7,023.0 |
6,722.7 |
|
Minority interests |
10.2 |
12.0 |
|
TOTAL EQUITY |
7,033.2 |
6,734.7 |
|
Non-current liabilities |
|
|
|
Long-term provisions |
181.2 |
176.8 |
|
Provisions for post-employment benefits |
133.1 |
136.2 |
|
Long-term borrowings (Note 7) |
3,974.6 |
4,089.0 |
|
Deferred tax liabilities |
939.0 |
930.3 |
|
TOTAL NON-CURRENT LIABILITIES |
5,227.9 |
5,332.3 |
|
Current liabilities |
|
|
|
Trade payables |
921.9 |
936.5 |
|
Income tax payables |
107.3 |
61.9 |
|
Short-term provisions |
155.1 |
153.9 |
|
Other current liabilities |
856.7 |
888.1 |
|
Short-term borrowings (Note 7) |
1,005.0 |
732.3 |
|
Other current financial liabilities |
2.5 |
1.7 |
|
TOTAL CURRENT LIABILITIES |
3,048.5 |
2,774.4 |
|
TOTAL EQUITY AND LIABILITIES |
15,309.6 |
14,841.4 |
Consolidated statement of cash flows |
|||
|
3 months ended |
||
(in € millions) |
|
|
|
Profit for the period |
276.1 |
330.4 |
|
Adjustments for non-cash movements in assets and liabilities: |
|
|
|
– Depreciation and impairment of tangible assets |
32.0 |
30.2 |
|
– Amortization and impairment of intangible assets |
26.9 |
27.6 |
|
– Amortization and impairment of capitalized development costs |
5.0 |
6.4 |
|
– Amortization and impairment of right-of-use assets |
19.7 |
18.0 |
|
– Amortization of financial expenses |
1.1 |
0.8 |
|
– Impairment of goodwill |
0.0 |
0.0 |
|
– Changes in long-term deferred taxes |
1.5 |
13.1 |
|
– Changes in other non-current assets and liabilities |
9.8 |
6.4 |
|
– Unrealized exchange (gains)/losses |
2.9 |
3.2 |
|
– Share of (profits) losses of equity-accounted entities |
0.0 |
0.0 |
|
– Other adjustments |
6.4 |
(1.3) |
|
– Net (gains)/losses on sales of activities and assets |
2.4 |
(0.2) |
|
Changes in working capital requirement: |
|
|
|
– Inventories (Note 4) |
(63.4) |
(4.5) |
|
– Trade receivables (Note 5) |
(147.6) |
(159.2) |
|
– Trade payables |
(21.3) |
42.0 |
|
– Other operating assets and liabilities |
27.3 |
50.2 |
|
Net cash from operating activities |
178.8 |
363.1 |
|
– Net proceeds from sales of fixed and financial assets |
0.2 |
0.2 |
|
– Capital expenditure |
(25.5) |
(24.5) |
|
– Capitalized development costs |
(7.4) |
(7.3) |
|
– Changes in non-current financial assets and liabilities |
(1.1) |
(60.3) |
|
– Acquisitions and disposals of subsidiaries, net of cash |
(299.5) |
(54.3) |
|
Net cash from investing activities |
(333.3) |
(146.2) |
|
– 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) |
(71.6) |
(44.6) |
|
– Dividends paid to equity holders of |
0.0 |
0.0 |
|
– Dividends paid by |
0.0 |
0.0 |
|
– Proceeds from long-term financing |
201.5 |
0.0 |
|
– Repayment of long-term financing* (Note 7) |
(19.6) |
(18.9) |
|
– Debt issuance costs |
(10.4) |
0.0 |
|
– Increase (reduction) in short-term financing |
(48.7) |
6.7 |
|
– Acquisitions of ownership interests with no gain of control |
(3.7) |
0.0 |
|
Net cash from financing activities |
47.5 |
(56.8) |
|
Translation net change in cash and cash equivalents |
0.9 |
(8.3) |
|
Increase (decrease) in cash and cash equivalents |
(106.1) |
151.8 |
|
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 |
2,709.3 |
2,498.6 |
|
Items included in cash flows: |
|
||
– Interest paid during the period** |
18.0 |
16.4 |
|
– Income taxes paid during the period |
38.6 |
45.5 |
* Of which €18.7 million corresponding to lease financial liabilities repayment for the 3 months ended |
** Interest paid is included in the net cash from operating activities; of which €2.7 million interests on lease financial liabilities for the 3 months ended |
Notes to the consolidated financial statements | ||
|
7 |
|
NOTE 1 - INTRODUCTION |
8 |
|
NOTE 2 - SIGNIFICANT TRANSACTIONS AND EVENTS FOR THE PERIOD |
8 |
|
NOTE 3 - CHANGES IN THE SCOPE OF CONSOLIDATION |
8 |
|
NOTE 4 - INVENTORIES |
9 |
|
NOTE 5 - TRADE RECEIVABLES |
9 |
|
NOTE 6 - SHARE CAPITAL |
10 |
|
NOTE 7 - LONG-TERM AND SHORT-TERM BORROWINGS |
11 |
|
NOTE 8 - SEGMENT INFORMATION |
12 |
|
NOTE 9 - SUBSEQUENT EVENTS |
14 |
(in € millions) |
1st quarter 2024 |
|
1st quarter 2023 |
Net sales |
2,028.2 |
|
2,149.6 |
Adjusted operating profit |
415.9 |
|
477.2 |
As % of net sales |
20.5% |
|
22.2% |
|
20.6 % before
|
⁽¹⁾ |
|
Operating profit |
387.5 |
|
450.4 |
As % of net sales |
19.1% |
|
21.0% |
Net profit attributable to the Group |
275.9 |
|
330.5 |
As % of net sales |
13.6% |
|
15.4% |
Normalized free cash flow |
362.6 |
|
389.3 |
As % of net sales |
17.9% |
|
18.1% |
Free cash flow |
146.1 |
|
331.5 |
As % of net sales |
7.2% |
|
15.4% |
Net financial debt at |
2,270.3 |
|
2,305.0 |
(1) At 2023 scope of consolidation. |
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
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 three months 2024 results press release.
NOTE 1 - INTRODUCTION | |
This unaudited consolidated financial information is presented for the three months ended 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
None of the IFRS standards issued by the |
NOTE 2 - SIGNIFICANT TRANSACTIONS AND EVENTS FOR THE PERIOD
No significant transactions or events are to be reported over 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 |
|
|
|
|
|
|
|
|
Full consolidation method |
|
|
|
|
||||
Voltadis |
Balance sheet only |
|
6 months' profit |
|
9 months' profit |
|
12 months' profit |
|
A. & |
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 |
|
|
Full consolidation method |
|
|
Voltadis |
3 months' profit |
|
A. & |
3 months' profit |
|
Power Control |
3 months' profit |
|
Encelium |
3 months' profit |
|
Clamper |
3 months' profit |
|
Teknica |
3 months' profit |
|
MSS |
Balance sheet only |
|
ZPE Systems |
Balance sheet only |
During the first three months of 2024, the Group acquired
NOTE 4 - INVENTORIES
Inventories are as follows:
(in € millions) |
|
|
|
Purchased raw materials and components |
614.8 |
589.5 |
|
Sub-assemblies, work in progress |
143.6 |
134.9 |
|
Finished products |
773.6 |
736.9 |
|
Gross value at the end of the period |
1,532.0 |
1,461.3 |
|
Impairment |
(243.9) |
(239.0) |
|
NET VALUE AT THE END OF THE PERIOD |
1,288.1 |
1,222.3 |
NOTE 5 - TRADE RECEIVABLES
Trade receivables are as follows:
(in € millions) |
|
|
|
Trade receivables |
1,221.1 |
1,065.8 |
|
Impairment |
(95.9) |
(95.9) |
|
NET VALUE AT THE END OF THE PERIOD |
1,125.2 |
969.9 |
NOTE 6 - SHARE CAPITAL
Share capital as of
Changes in share capital in the first three months of 2024 were as follows:
|
Number of shares |
|
Par value |
|
Share capital (euros) |
|
Premiums (euros) |
|
As of |
264,031,292 |
4 |
1,056,125,168 |
263,208,950 |
||||
Cancellation of shares |
(1,785,559) |
4 |
(7,142,236) |
(152,857,701) |
||||
As of |
262,245,733 |
4 |
1,048,982,932 |
110,351,249 |
As of
|
|
|
Number of shares |
of which number of
|
|
As of |
264,031,292 |
1,863,478 |
|
Transfer to employees |
|
0 |
|
Share buybacks |
|
750,000 |
|
Transactions under the liquidity contract |
|
944 |
|
Shares cancellation |
(1,785,559) |
(1,785,559) |
|
As of |
262,245,733 |
828,863 |
|
of which for transfer to employees |
|
801,113 |
|
of which liquidity contract |
|
27,750 |
|
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) |
|
|
|
Negotiable commercial paper |
71.5 |
50.0 |
|
Bonds |
3,630.0 |
3,500.0 |
|
Yankee bonds |
0.0 |
262.7 |
|
Lease financial liabilities |
221.0 |
216.3 |
|
Other borrowings |
76.7 |
75.3 |
|
Long-term borrowings excluding debt issuance costs |
3,999.2 |
4,104.3 |
|
Debt issuance costs |
(24.6) |
(15.3) |
|
TOTAL |
3,974.6 |
4,089.0 |
7.2 SHORT-TERM BORROWINGS
Short-term borrowings can be analyzed as follows:
(in € millions) |
|
|
|
Negotiable commercial paper |
115.0 |
115.0 |
|
Bonds |
500.0 |
500.0 |
|
Yankee bonds |
268.9 |
0.0 |
|
Lease financial liabilities |
71.6 |
68.3 |
|
Other borrowings |
49.5 |
49.0 |
|
TOTAL |
1,005.0 |
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) |
|
Cash
|
Acquisitions |
Reclassifications |
Translation
|
Other |
|
|||||||
Long-term borrowings |
3,974.6 |
191.1 |
0.0 |
(332.4) |
1.3 |
25.6 |
4,089.0 |
|||||||
Short-term borrowings |
1,005.0 |
(68.3) |
0.0 |
332.4 |
5.7 |
2.9 |
732.3 |
|||||||
Gross financial debt |
4,979.6 |
122.8 |
0.0 |
0.0 |
7.0 |
28.5 |
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
|
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. |
3 months ended |
|
|
|
|
|
|
|
(in € millions) |
|
|
North and
|
|
Rest of the
|
|
Total |
Net sales to third parties |
918.9 |
⁽¹⁾ |
767.5 |
⁽²⁾ |
341.8 |
2,028.2 |
|
Cost of sales |
(411.2) |
|
(357.3) |
|
(183.5) |
(952.0) |
|
Administrative and selling expenses, R&D costs |
(286.3) |
|
(276.9) |
|
(93.3) |
(656.5) |
|
Other operating income (expenses) |
(15.5) |
|
(11.9) |
|
(4.8) |
(32.2) |
|
Operating profit |
205.9 |
|
121.4 |
|
60.2 |
387.5 |
|
- of which i/ acquisition-related amortization, expenses and income and ii/ impacts related to disengagementfrom |
|
|
|
|
|
|
|
· accounted for in administrative and selling expenses, R&D costs |
(5.4) |
|
(18.8) |
|
(2.0) |
(26.2) |
|
· accounted for in other operating income (expenses) |
(2.2) |
|
|
|
|
(2.2) |
|
- of which goodwill impairment |
|
|
|
|
|
0.0 |
|
Adjusted operating profit |
213.5 |
|
140.2 |
|
62.2 |
415.9 |
|
- of which depreciation and impairment of tangible assets |
(18.9) |
|
(6.5) |
|
(6.6) |
(32.0) |
|
- of which amortization and impairment of intangible assets |
(2.6) |
|
(0.5) |
|
(0.4) |
(3.5) |
|
- of which amortization and impairment of development costs |
(4.5) |
|
0.0 |
|
(0.5) |
(5.0) |
|
- of which amortization and impairment of right-of-use assets |
(7.6) |
|
(7.0) |
|
(5.1) |
(19.7) |
|
- of which restructuring costs |
(1.6) |
|
(5.9) |
|
(3.0) |
(10.5) |
|
Capital expenditure |
(16.0) |
|
(5.2) |
|
(4.3) |
(25.5) |
|
Capitalized development costs |
(7.1) |
|
0.0 |
|
(0.3) |
(7.4) |
|
Net tangible assets |
530.0 |
|
164.6 |
|
146.9 |
841.5 |
|
Total current assets |
3,715.0 |
|
1,040.5 |
|
855.2 |
5,610.7 |
|
Total current liabilities |
2,053.3 |
|
523.8 |
|
471.4 |
3,048.5 |
|
(1) Of which |
|||||||
(2) Of which |
3 months ended |
|
|
|
|
|
|
|
(in € millions) |
|
|
North and
|
|
Rest of the
|
Total |
|
Net sales to third parties |
978.2 |
⁽¹⁾ |
829.2 |
⁽²⁾ |
342.2 |
2,149.6 |
|
Cost of sales |
(436.6) |
|
(389.6) |
|
(183.9) |
(1,010.1) |
|
Administrative and selling expenses, R&D costs |
(287.7) |
|
(271.3) |
|
(82.9) |
(641.9) |
|
Other operating income (expenses) |
(16.6) |
|
(27.8) |
|
(2.8) |
(47.2) |
|
Operating profit |
237.3 |
|
140.5 |
|
72.6 |
450.4 |
|
- of which i/ acquisition-related amortization,
expenses and income and ii/ impacts related to disengagement
|
|
|
|
|
|
|
|
· accounted for in administrative and selling expenses, R&D costs |
(6.3) |
|
(19.2) |
|
(1.3) |
(26.8) |
|
· accounted for in other operating income (expenses) |
|
|
|
|
|
0.0 |
|
- of which goodwill impairment |
|
|
|
|
|
0.0 |
|
Adjusted operating profit |
243.6 |
|
159.7 |
|
73.9 |
477.2 |
|
- of which depreciation and impairment of tangible assets |
(17.9) |
|
(6.3) |
|
(5.9) |
(30.1) |
|
- of which amortization and impairment of intangible assets |
(2.3) |
|
(0.6) |
|
(0.3) |
(3.2) |
|
- of which amortization and impairment of development costs |
(6.1) |
|
0.0 |
|
(0.3) |
(6.4) |
|
- of which amortization and impairment of right-of-use assets |
(6.4) |
|
(6.6) |
|
(5.0) |
(18.0) |
|
- of which restructuring costs |
(5.0) |
|
(4.7) |
|
(3.6) |
(13.3) |
|
Capital expenditure |
(16.5) |
|
(4.8) |
|
(3.2) |
(24.5) |
|
Capitalized development costs |
(7.1) |
|
0.0 |
|
(0.3) |
(7.4) |
|
Net tangible assets |
451.8 |
|
155.2 |
|
128.0 |
735.0 |
|
Total current assets |
3,321.5 |
|
1,217.9 |
|
891.0 |
5,430.4 |
|
Total current liabilities |
1,825.3 |
|
512.9 |
|
439.7 |
2,777.9 |
|
(1) Of which |
|||||||
(2) Of which |
NOTE 9 - SUBSEQUENT EVENTS
The Group announced on
-
Enovation1, 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 and; -
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.
_________________________________ |
1 Subject to standard conditions precedent. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240502918507/en/
Source: