Legrand's results down in the 1st quarter, against a backdrop of the construction crisis

Its turnover, 80% linked to the construction sector, amounted to 2,03 billion euros over this period, down 5,6%, announced the group, which however confirms its annual objectives .

“Our results for the first quarter of 2024 are in line with our expectations,” commented the general manager, Benoît Coquart.

“In a construction market in marked decline in most geographies, the limited drop in turnover and the resistance of our margins (...) illustrate the resilience of our business model and the solidity of our positions. market,” he added.

In residential building (40% of activity), "the market is suffering, in Scandinavia, Germany, France, the United States even if it is recovering, and that is not going well at all in China", he said. described Mr. Coquart to a few journalists.

In tertiary buildings (40% of its sales), the market is flat "in Europe, down in the United States for offices", he added, however saying he was "very confident" about an improvement in the balance sheet of the company.

"In the coming months, we expect sequential improvements in turnover: a 2nd quarter better than the 1st, a 3rd quarter better than the 2nd, etc.", estimates the manager, who is counting on a higher number of working days but also a high level of demand on data centers (“data centers”, 15% of its activity).

"In the construction market, we think that there could be a gradual improvement between now and the end of the year, in the United States in the residential sector, and it is very possible that some markets will do better, as in Africa or even Europe when interest rates start to fall,” he adds.

For 2024, Legrand is targeting "slightly growing" revenue organically and through acquisitions, and an adjusted operating margin before acquisitions of between 20% and 20,8%.

Its management evokes “a positive dynamic of market share gains”, continues to launch new products and has increased its communication expenses.

In this quarter alone, the group announced three acquisitions (a Dutch company specializing in connected health, an Indian company positioned in data center equipment, etc.), and plans to continue on this path, to strengthen itself in " high growth sectors.