The group based in Limoges, in the center of France, generated 999,5 million euros in net profit, for a turnover of 8,34 billion (+ 19,2%) up in all its markets , and shows his "confidence" for the future despite the uncertainties, according to a press release.
The 4th quarter in particular was marked by a strong increase in activity, beyond analysts' forecasts.
After these announcements, the group's share on the Paris Stock Exchange jumped 7,51%, to 87,94 euros per title.
In a context of crisis and soaring energy prices, sales of energy efficiency equipment are particularly dynamic, especially in Europe: thermostats, equipment to reduce consumption, etc.
"Energy efficiency clearly represents a growing share of Legrand's turnover", explained its managing director Benoît Coquart to journalists. "The share of these products has increased from 11% of turnover in 2015 to 22% in 2022", he noted.
Legrand is also benefiting from its external growth, with seven acquisitions in one year, including two announced on Thursday: Encelium, an American player in lighting for tertiary buildings, and Clamper, a Brazilian leader in low voltage solutions, particularly for photovoltaic infrastructures.
Its 2022 results, however, already reflect a depreciation of 148 million euros in assets, linked to its disengagement from Russia which invaded Ukraine in February 2022.
These activities in Russia, where Legrand had four factories employing 1.100 people, represented around 2022% of its sales in 1,5. The group is still examining its options for the transfer of activities announced in January.
Going forward, taking into account the current macroeconomic outlook, and excluding impacts related to the withdrawal from Russia, Legrand is targeting 2023 revenue growth excluding currency effects of between 2% and 6% (with scope effect of approximately +3 %).
It expects an adjusted operating margin before acquisitions (and excluding Russia and related impacts) of around 20% of sales, according to forecasts.
“In 2022, we faced a 12% rise in raw material and component prices, the lack of availability of electronic components – we had to fight all year to source”, underlined Mr. Coquart.
And to add: "the war in Ukraine weighed on activity, probably on the morale of European households. And, in some countries, we have seen difficult economic situations, such as in China with the zero Covid policy, which does not 'didn't help supply chains'.
"That's a lot of adverse factors," he noted, believing that "some will persist and others will subside".
As for energy, Legrand suffered a price increase of around 50%. However, this item represents 0,6% of turnover, against 0,5% previously, notes the manager, who also mentioned the group's energy consumption reduction plan, the rate of which he wants to double between 2021 and 2023.