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Legrand’s 9M figures marginally missed the company-compiled consensus on sales and organic growth, were in line on adjusted profits, and ahead on FCF. Sales growth was supported by the faster-expanding segments and pricing, whereas the adjusted operating profits were protected by pricing and cost actions. CFO was boosted by higher profits and a reduction in working capital. With these results, Legrand again revised its 2023 sales and margin targets. We continue to see the stock as attractive.
Companies: Legrand (LR:EPA)Legrand SA (LR:PAR)
AlphaValue
Legrand’s H1 sales marginally missed the consensus although organic growth came in 15% short. H1 revenue growth was positive across all regions and was driven by pricing, with volumes down in the first half. Adjusted operating profit, however, was higher than expected due to positive pricing along with cost initiatives. CFO was robust due to higher profits and the effective unwinding of working capital. This also boosted FCF generation. With another strong quarter, Legrand revised its 2023 sales
Legrand delivered a strong beat across the board in its Q1 figures. Organic growth was nearly twice the consensus estimate and FCF generation in the quarter was exceptionally robust. Revenue growth was supported by strong pricing as volumes were almost flat. The former, in conjunction with cost control, helped deliver an outstanding margin during the quarter. But, despite this solid start, the group left its outlook unchanged citing end-market and input inflation uncertainties for the remainder
Legrand’s 2022 figures delivered a decent beat over consensus and our estimates. Organic growth was above the company’s guidance with pricing again being the key driver. Profitability was strong due to good cost and price management. CFO and FCF also grew yoy. The board will propose a dividend of €1.90 and commence a buy-back programme of upto €500m over 18 months. Lastly, Legrand’s 2023 outlook is slightly ahead of consensus and we remain confident in the company’s ability to deliver.
Legrand’s 9M results slightly beat the consensus estimates on most figures. The organic sales growth was again above the group’s 2022 guidance. Pricing was the key driver of organic growth in Q3 as volumes declined. The company maintained its focus on cost management but margins faced some pressure in this quarter. Good organic growth was seen across all geographies. CFO increased yoy but FCF was lower due to higher levels of working capital. Lastly, Legrand confirmed its 2022 outlook.
Legrand again beat consensus estimates across all metrics. Organic sales growth was above the group’s guidance with margins improving sequentially. Pricing effects were even more evident in this quarter with volumes growing only infinitesimally. The former along with good cost control helped Legrand to evade the margin headwinds. Strong growth was seen across all geographies. CFO and FCF were lower on account of higher working capital requirements. Given this strong result, Legrand raised its or
Legrand delivered a solid consensus beat across the board. Organic sales growth well above the group’s guidance and margins were also slightly better than expected. The group upheld its pricing supremacy and protected margins despite the ongoing cost inflation and supply-chain problems. All geographies reported good growth with Europe and the Americas delivering a robust performance. Both CFO and FCF were lower due to higher working capital investments. Following the release, the company confirm
Legrand’s results were in line with consensus but better than our expectations. Organic sales growth was above the group’s guidance and margins came in at the higher-end of the range. All geographies saw strong growth with Europe being the strongest. The ongoing supply-chain issues and price inflation continued but Legrand was able to convincingly adapt its operations. The group also gave a better-than-expected FY22 outlook on revenue growth and proposed a dividend of €1.65, up 16.2% yoy.
Although Legrand’s Q3 numbers were slightly better than our expectations, they were very much in line with consensus. Sales growth was seen across all geographies with Europe again being the strongest (yoy growth). The Rest of the World did well too. Supply-chain issues were present in Q3 and are expected to escalate in Q4. With this release, the group also provided a more precise FY21 guidance that was slightly better than our forecasts.
Legrand’s first-half results were above consensus expectations and much better than our estimates across the board. This strong growth was visible across all geographies with Europe being particularly strong. The company also made two acquisitions in this quarter. Net income and FCF also grew strongly. Following such a strong showing, the group has revised its outlook for the full-year while keeping the margin target largely unchanged.
Legrand’s Q1 results beat both our and consensus expectations, largely fitting into the pattern of Q1 beats so far. All geographic regions registered growth with Europe and APAC showing relatively stronger growth rates. In terms of end-markets, residential and datacentres witnessed strong demand, whereas non-residential still showed mixed developments. Profitability was strong, which also resulted in good FCF generation. Given this result, the group raised its FY21 outlook, albeit not by much. N
Legrand’s Q4 and FY20 results were in line with our as well as consensus estimates. While Q3 saw increased activity, Q4 represented a more docile state of affairs. Barring the FCF generation for the year, there were no surprises or letdowns. This also applies to the group’s FY21 outlook. The group proposed a dividend of €1.42 per share. Going forward, Legrand will continue to target growth through acquisitions and accelerate digitisation within the group.
Legrand reported a stable set of numbers for 9M FY20, despite an uncertain business environment, and the adjusted operating margins also saw a rebound. Q3 numbers, taken separately, show a sequential improvement as well. The company continues to execute the “Legrand” model by the integration of recent acquisitions, rationalising supply chain and industrial footprint, and undertaking digitalisation.
Companies: Legrand SA
Legrand reported a mixed set of results, with sales and adjusted operating profit beating expectations, whereas FCF missed consensus. As demonstrated in the past, Legrand’s agility to manage actively its cost structure is a strong asset. Furthermore, we also see further room for restructuring, enabling the company to protect both its profitability and margins. For all these reasons, we remain positive on the stock, though our intrinsic valuation indicates at this stage a limited upside.
Legrand’s Q1 figures were soft and Q2 will be worse. We remain confident of the company’s ability to protect its profitability as c.50% of costs are variable, which offers some agility in the event of a sustained fall in volumes. We, nevertheless, remain prudent in the coming quarters given the current low visibility we have and the fact that a third of profits are located in France and Italy.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Legrand SA. We currently have 116 research reports from 5 professional analysts.
Strix has reported FY23 results to 31 December 2023 with adjusted PAT of £20.1m, in line with our updated forecast and company guidance provided in January. Revenue grew 35.2% to £144.6m, benefitting from the full year inclusion of the Billi acquisition, albeit slightly below our forecast of £151.0m. Its core Kettle Controls division also performed robustly, growing 2.7%, ahead of the broader market and indicating market share gain. Recent acquisitions have noticeably improved the Group’s growth
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Zeus Capital
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Cavendish
The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no
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Hardman & Co
Cohort announces that its subsidiary SEA (Systems Engineering and Assessment Ltd.) has been awarded a major contract by the UK’s Ministry of Defence to provide Electronic Warfare Counter Measures (Increment 1a) (EWCM 1a) to the Royal Navy with a total value of at least £135m. This includes provision and support of SEA’s Trainable Decoy Launcher System, Ancilia. At the FY 24 interim results Cohort had commented on an overall “increased tempo” of order intake. The Group reported a closing order b
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Equity Development
Positives emerged, particularly in H2, as the recovery commenced within the kettle controls market. Billi was the architect of the revenue improvement, with LAICA also delivering a double-digit increase in the top line. Margins improved, notwithstanding a change in the mix. Encouragingly, investor concerns on debt were allayed with the careful management of cash, and latterly as bankers raised the net debt/EBITDA covenant to 2.75x. With further emphasis on costs and cash conservation and a lik
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Quadrise continues to advance towards commercial revenues for its innovative fuel and biofuel technologies, with each of its projects approaching key milestones in 2024. Preparatory steps for the MSC Shipmanagement (MSC) fuel trials are now complete and fuel supply agreements are nearing finalisation. Quadrise will achieve its first licensing revenues on the successful completion of Valkor’s project financing (timing uncertain). Quadrise also successfully concluded its Morocco trial, paving the
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Edison
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Judges Scientific is a group involved in the buy and build of scientific instrumentation businesses. Testament to the strength of its highly engineered offer and global diversified customer base, total revenue increased an impressive 20.2% to £136.1m (organic +15%), with adj. PBT +7.5% to £31.7m (FY2022: £28.3m), 3.1% ahead of our estimate of £30.5m. Fully diluted (FD) adjusted EPS increased a more muted 2.6% (impacted by anticipated tax headwinds) to 368.5p (basic adj EPS 374.5p), 3.4% ahead of
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Gelion has reported in line H1 FY24 results that demonstrate continued strong cash management and steady progress in its pursuit of next generation lithium-sulphur battery technologies. Encouraging early test results justify last year’s IP acquisitions and validate Gelion’s Li-S battery technology plan, with additional progress expected to be reported in H2 alongside its pursuit of a strategic partner for its planned Advanced Commercial Prototyping Centre (ACPC) facility in Australia. There is a
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Forterra’s FY23 (to 31 December) earnings were slightly higher than guidance, which was raised in January, with resilient pricing partly offsetting a steep fall in demand among its main end users, large housebuilders. Our estimates are broadly unchanged, other than reflecting a more conservative stance on the final dividend. Despite a cautious tone in the outlook statement, we believe the largest housebuilders may now rebound more strongly than smaller peers.
Companies: Forterra Plc
Progressive Equity Research
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