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
3 months ended
(in € millions)
March 31, 2022
March 31, 2021
Net sales
1,972.3
1,674.1
Operating expenses
Cost of sales
(993.7)
(792.9)
Administrative and selling expenses
(481.9)
(428.7)
Research and development costs
(84.9)
(80.3)
Other operating income (expenses)
(34.2)
(32.3)
Operating profit
377.6
339.9
Financial expenses
(24.4)
(23.0)
Financial income
2.0
1.7
Exchange gains (losses)
(1.0)
0.4
Financial profit (loss)
(23.4)
(20.9)
Profit before tax
354.2
319.0
Income tax expense
(95.7)
(90.8)
Share of profits (losses) of
equity-accounted entities
0.0
0.0
Profit for the period
258.5
228.2
Of which:
- Net profit attributable to the
Group
258.3
228.0
- Minority interests
0.2
0.2
Basic earnings per share (euros)
0.968
0.853
Diluted earnings per share (euros)
0.962
0.847
Consolidated statement of comprehensive income
3 months ended
(in € millions)
March 31, 2022
March 31, 2021
Profit for the period
258.5
228.2
Items that may be reclassified
subsequently to profit or loss
Translation reserves
126.0
193.3
Cash flow hedges
22.3
0.0
Income tax relating to components of other
comprehensive income
1.5
5.5
Items that will not be reclassified to
profit or loss
Actuarial gains and losses after deferred
taxes
(0.1)
(0.1)
Other
0.0
0.0
Comprehensive income for the
period
408.2
426.9
Of which:
- Comprehensive income attributable to
the Group
408.0
426.6
- Minority interests
0.2
0.3
Consolidated balance sheet
(in € millions)
March 31, 2022
December 31, 2021
Non-current assets
Intangible assets
2,503.2
2,485.3
Goodwill
5,444.4
5,241.2
Property, plant and equipment
709.8
719.2
Right-of-use assets
269.2
268.4
Investments in equity-accounted
entities
0.0
0.0
Other investments
2.4
2.4
Other non-current assets
65.4
62.6
Deferred tax assets
124.1
116.3
TOTAL NON CURRENT ASSETS
9,118.5
8,895.4
Current assets
Inventories (Note 4)
1,345.0
1,252.7
Trade receivables (Note 5)
1,020.9
728.5
Income tax receivables
98.5
115.1
Other current assets
258.0
240.4
Other current financial assets
28.5
6.4
Cash and cash equivalents
2,778.5
2,788.3
TOTAL CURRENT ASSETS
5,529.4
5,131.4
TOTAL ASSETS
14,647.9
14,026.8
(in € millions)
March 31, 2022
December 31, 2021
Equity
Share capital (Note 6)
1,067.3
1,069.8
Retained earnings
5,544.8
5,268.5
Translation reserves
(495.8)
(621.8)
Equity attributable to equity holders of
Legrand
6,116.3
5,716.5
Minority interests
6.5
3.8
TOTAL EQUITY
6,122.8
5,720.3
Non-current liabilities
Long-term provisions
201.9
196.6
Provisions for post-employment
benefits
167.5
170.7
Long-term borrowings (Note 7)
4,579.9
4,485.9
Deferred tax liabilities
889.7
866.5
TOTAL NON-CURRENT LIABILITES
5,839.0
5,719.7
Current liabilities
Trade payables
863.2
810.5
Income tax payables
68.0
39.6
Short-term provisions
149.1
135.8
Other current liabilities
768.7
774.3
Short-term borrowings (Note 7)
836.4
826.6
Other current financial liabilities
0.7
0.0
TOTAL CURRENT LIABILITIES
2,686.1
2,586.8
TOTAL EQUITY AND LIABILITIES
14,647.9
14,026.8
Consolidated statement of cash flows
3 months ended
(in € millions)
March 31, 2022
March 31, 2021
Profit for the period
258.5
228.2
Adjustments for non-cash movements in
assets and liabilities:
– Depreciation and impairment of tangible
assets
29.7
27.2
– Amortization and impairment of
intangible assets
25.3
22.8
– Amortization and impairment of
capitalized development costs
6.5
6.4
– Amortization of right-of-use assets
17.3
16.6
– Amortization of financial expenses
1.0
0.9
– Impairment of goodwill
0.0
0.0
– Changes in long-term deferred taxes
16.7
15.9
– Changes in other non-current assets and
liabilities
6.7
2.9
– Unrealized exchange (gains)/losses
0.6
(1.7)
– Share of (profits) losses of
equity-accounted entities
0.0
0.0
– Other adjustments
0.1
0.0
– Net (gains)/losses on sales of
assets
0.3
(4.2)
Changes in working capital
requirement:
– Inventories (note 4)
(75.2)
(31.1)
– Trade receivables (note 5)
(281.1)
(102.1)
– Trade payables
41.0
33.5
– Other operating assets and
liabilities
23.0
48.3
Net cash from operating
activities
70.4
263.6
– Net proceeds from sales of fixed and
financial assets
0.4
8.0
– Capital expenditure
(18.6)
(17.4)
– Capitalized development costs
(7.8)
(8.3)
– Changes in non-current financial assets
and liabilities
(2.0)
(5.3)
– Acquisitions of subsidiaries, net of
cash acquired
(128.4)
6.2
Net cash from investing
activities
(156.4)
(16.8)
– 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)
(15.6)
(16.2)
– Dividends paid to equity holders of
Legrand
0.0
0.0
– Dividends paid by Legrand
subsidiaries
0.0
0.0
– Proceeds from long-term financing
100.0
0.0
– Repayment of long-term financing* (note
7)
(31.3)
(21.3)
– Debt issuance costs
0.0
0.0
– Increase (reduction) in short-term
financing
9.3
(263.3)
– Acquisitions of ownership interests with
no gain of control
0.0
0.0
Net cash from financing
activities
62.4
(300.8)
Translation net change in cash and cash
equivalents
13.8
16.5
Increase (decrease) in cash and cash
equivalents
(9.8)
(37.5)
Cash and cash equivalents at the beginning
of the period
2,788.3
2,791.7
Cash and cash equivalents at the end of
the period
2,778.5
2,754.2
Items included in cash flows:
– Interest paid during the period**
18.2
18.4
– Income taxes paid during the period
36.0
25.3
* Of which €17.1 million corresponding to lease financial
liabilities repayment for the 3 months ended March 31, 2022 (€16.1
million for the 3 months ended March 31, 2021). ** Interest paid is
included in the net cash from operating activities; of which €1.7
million interests on lease financial liabilities for the 3 months
ended March 31, 2022 (€1.8 million for the 3 months ended March 31,
2021).
Notes to the consolidated financial
statements
KEY FIGURES
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
9
NOTE 7 -
LONG-TERM AND SHORT-TERM
BORROWINGS
10
NOTE 8 -
SEGMENT INFORMATION
11
NOTE 9 -
SUBSEQUENT EVENTS
12
KEY FIGURES
(in € millions)
1st quarter 2022
1st quarter 2021
Net sales
1,972.3
1,674.1
Adjusted operating profit
401.2
361.1
As % of net sales
20.3%
21.6%
20.6 % before acquisitions
⁽¹⁾
Operating profit
377.6
339.9
As % of net sales
19.1%
20.3%
Net profit attributable to the Group
258.3
228.0
As % of net sales
13.1%
13.6%
Normalized free cash flow
318.1
276.3
As % of net sales
16.1%
16.5%
Free cash flow
44.4
245.9
As % of net sales
2.3%
14.7%
Net financial debt at March 31
2,637.8
2,400.2
(1) At 2021 scope of consolidation.
Adjusted operating profit is defined as operating profit
adjusted for amortization and depreciation of revaluation of assets
at the time of acquisitions and for other P&L impacts relating
to acquisitions and, where applicable, for 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
three months 2022 results press release.
NOTE 1 - INTRODUCTION
This unaudited consolidated financial
information is presented for the three months ended March 31, 2022.
It should be read in conjunction with consolidated financial
statements for the year ended December 31, 2021 such as established
in the Registration Document deposited under visa no D.22-0245 with
the French Financial Markets Authority (AMF) on April 06, 2022.
The 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, 2022.
All the amounts are presented in millions
of euros unless otherwise indicated. Some totals may include
rounding differences.
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 - SIGNIFICANT TRANSACTIONS AND EVENTS FOR THE
PERIOD
In addition, in view of the current situation regarding Russia
and Ukraine, the Group would point out that its economic exposure
is not material in those two countries, which accounted for around
2% of its revenue in the full year 2021.
NOTE 3 - CHANGES IN THE SCOPE OF CONSOLIDATION
The contributions to the Group’s consolidated financial
statements of companies acquired since the end of 2020 were as
follows:
2021
March 31
June 30
September 30
December 31
Full consolidation method
Champion One
Balance sheet only
6 months' profit
9 months' profit
12 months' profit
Compose
Balance sheet only
6 months' profit
9 months' profit
12 months' profit
Ecotap
Balance sheet only
6 months' profit
Ensto Building Systems
2 months' profit
Geiger
Balance sheet only
2022
March 31
Full consolidation method
Champion One
3 months' profit
Compose
3 months' profit
Ecotap
3 months' profit
Ensto Building Systems
3 months' profit
Geiger
Balance sheet only
Emos
Balance sheet only
During the first three months of 2022, the Group acquired Emos,
the leader in Central and Eastern Europe in electrical installation
components. Based in the Czech Republic, Emos has annual sales of
around €85 million.
NOTE 4 - INVENTORIES
Inventories are as follows:
(in € millions)
March 31, 2022
December 31, 2021
Purchased raw materials and components
579.3
529.3
Sub-assemblies, work in progress
147.8
145.7
Finished products
774.7
727.4
Gross value at the end of the
period
1,501.8
1,402.4
Impairment
(156.8)
(149.7)
NET VALUE AT THE END OF THE
PERIOD
1,345.0
1,252.7
NOTE 5 - TRADE RECEIVABLES
Trade receivables are as follows:
(in € millions)
March 31, 2022
December 31, 2021
Trade receivables
1,118.8
826.6
Impairment
(97.9)
(98.1)
NET VALUE AT THE END OF THE
PERIOD
1,020.9
728.5
NOTE 6 - SHARE CAPITAL
Share capital as of March 31, 2022 amounted to €1,067,270,984
represented by 266,817,746 ordinary shares with a par value of €4
each, for 266,817,746 theoretical voting rights and 266,591,539
exercisable voting rights (after subtracting shares held in
treasury by the Group as of this date).
Changes in share capital in the first three months of 2022 were
as follows:
Number of shares
Par value
Share capital (euros)
Premiums (euros)
As of December 31, 2021
267,447,746
4
1,069,790,984
539,064,770
Cancellation of shares
(630,000)
4
(2,520,000)
(47,307,842)
As of March 31, 2022
266,817,746
4
1,067,270,984
491,756,928
As of March 31, 2022, the Group held
226,207 shares in treasury, versus 678,176 shares as of December
31, 2021, i.e. 451,969 fewer shares corresponding to:
Among the 226,207 shares held in treasury
by the Group, 140,230 shares have been allocated for performance
share plans, and 85,977 shares are held under the liquidity
contract.
- the net acquisition of 125,000 shares outside of the liquidity
contract at a cost of €10.9 million;
- the cancellation of 630,000 shares;
- the net purchase of 53,031 shares under the liquidity contract
led to a cash outflow of €4.7 million.
NOTE 7 - LONG-TERM AND SHORT-TERM BORROWINGS
7.1 LONG-TERM BORROWINGS
Long-term borrowings can be analyzed as follows:
(in € millions)
March 31, 2022
December 31, 2021
Negotiable commercial paper
320.0
220.0
Bonds
3,700.0
3,700.0
Yankee bonds
297.4
304.1
Lease financial liabilities
216.8
217.0
Other borrowings
64.0
64.1
Long-term borrowings excluding debt
issuance costs
4,598.2
4,505.2
Debt issuance costs
(18.3)
(19.3)
TOTAL
4,579.9
4,485.9
7.2 SHORT-TERM BORROWINGS
Short-term borrowings can be analyzed as follows:
(in € millions)
March 31, 2022
December 31, 2021
Negotiable commercial paper
330.0
320.0
Bonds
400.0
400.0
Lease financial liabilities
63.7
62.2
Other borrowings
42.7
44.4
TOTAL
836.4
826.6
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)
March 31, 2022
Cash
flows
Acquisitions
Reclassifications
Translation
adjustments
Other
December 31, 2021
Long-term borrowings
4,579.9
86.5
0.0
(17.5)
10.2
14.8
4,485.9
Short-term borrowings
836.4
(8.6)
0.0
17.5
0.9
0.0
826.6
Gross financial debt
5,416.3
77.9
0.0
0.0
11.1
14.8
5,312.5
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.
- Rest of the world, mainly including Australia, China, India and
South America (of which particularly Brazil, Chile and
Colombia).
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:
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.
- Europe, including France, Italy and Rest of Europe (mainly
including Benelux, Germany, Iberia (including Portugal and Spain),
Poland, Russia, Turkey, and the United Kingdom);
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.
- North and Central America, including Canada, Mexico, the United
States, and Central American countries; and
3 months ended March 31, 2022
(in € millions)
Europe
North and Central
America
Rest of the world
Total
Net sales to third parties
880.8
⁽¹⁾
759.7
⁽²⁾
331.8
1,972.3
Cost of sales
(408.2)
(398.9)
(186.6)
(993.7)
Administrative and selling expenses,
R&D costs
(255.2)
(237.8)
(73.8)
(566.8)
Other operating income (expenses)
(24.8)
(8.8)
(0.6)
(34.2)
Operating profit
192.6
114.2
70.8
377.6
- of which acquisition-related
amortization,
expenses and income
· accounted for in administrative and
selling expenses, R&D costs
(4.0)
(18.2)
(1.4)
(23.6)
· accounted for in other operating
income
(expenses)
0.0
- of which goodwill impairment
0.0
Adjusted operating profit
196.6
132.4
72.2
401.2
- of which depreciation and impairment
expense
(17.2)
(6.5)
(5.9)
(29.6)
- of which amortization and impairment
expense
(1.9)
(0.6)
(0.4)
(2.9)
- of which amortization and impairment of
development costs
(6.3)
0.0
(0.2)
(6.5)
- of which amortization and impairment of
right-of-use assets
(6.4)
(5.8)
(5.1)
(17.3)
- of which restructuring costs
(3.9)
(1.7)
(1.1)
(6.7)
Capital expenditure
(13.3)
(3.5)
(1.8)
(18.6)
Capitalized development costs
(7.4)
0.0
(0.4)
(7.8)
Net tangible assets
433.1
147.0
129.7
709.8
Total current assets
3,530.0
1,062.4
937.0
5,529.4
Total current liabilities
1,758.4
481.9
445.7
2,686.0
(1) Of which France: €306.5 million.
(2) Of which United States: €699.7
million.
3 months ended March 31, 2021
(in € millions)
Europe
North and Central
America
Rest of the world
Total
Net sales to third parties
754.2
⁽¹⁾
625.5
⁽²⁾
294.4
1,674.1
Cost of sales
(325.3)
(299.6)
(168.0)
(792.9)
Administrative and selling expenses,
R&D costs
(228.5)
(210.0)
(70.5)
(509.0)
Other operating income (expenses)
(16.6)
(9.7)
(6.0)
(32.3)
Operating profit
183.8
106.2
49.9
339.9
- of which acquisition-related
amortization,
expenses and income
· accounted for in administrative and
selling expenses, R&D costs
(3.4)
(16.5)
(1.3)
(21.2)
· accounted for in other operating
income
(expenses)
0.0
- of which goodwill impairment
0.0
Adjusted operating profit
187.2
122.7
51.2
361.1
- of which depreciation and impairment
expense
(15.4)
(6.3)
(5.4)
(27.1)
- of which amortization and impairment
expense
(1.7)
(0.6)
(0.3)
(2.6)
- of which amortization and impairment of
development costs
(6.2)
0.0
(0.2)
(6.4)
- of which amortization and impairment of
right-of-use assets
(6.5)
(5.4)
(4.7)
(16.6)
- of which restructuring costs
(9.5)
(0.1)
0.7
(8.9)
⁽³⁾
Capital expenditure
(11.9)
(3.2)
(2.3)
(17.4)
Capitalized development costs
(8.0)
0.0
(0.3)
(8.3)
Net tangible assets
421.8
143.6
115.2
680.6
Total current assets
3,169.0
810.2
761.9
4,741.1
Total current liabilities
1,871.2
381.2
407.5
2,659.9
(1) Of which France: €297.5 million.
(2) Of which United States: €579.9
million.
(3) €(13.1) million excluding net gains on
sales of assets.
NOTE 9 - SUBSEQUENT EVENTS
No significant events occurred between March 31, 2022 and the
date when the financial consolidated statements were prepared.
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