{"id":9320,"date":"2023-06-01T08:11:08","date_gmt":"2023-06-01T08:11:08","guid":{"rendered":"https:\/\/www.emr-online.com\/?p=9320"},"modified":"2023-06-02T06:38:00","modified_gmt":"2023-06-02T06:38:00","slug":"schneider-electric-schneider-electric-first-quarter-2023-revenues","status":"publish","type":"post","link":"https:\/\/www.emr-online.com\/schneider-electric-schneider-electric-first-quarter-2023-revenues\/","title":{"rendered":"Schneider Electric – Schneider Electric First Quarter 2023 Revenues"},"content":{"rendered":"
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Rueil-Malmaison (France), April 27, 2023<\/p>\n
Financial Highlights\u00a0<\/strong><\/p>\n <\/p>\n Jean-Pascal Tricoire, Chairman and CEO, commented:<\/p><\/blockquote>\n <\/p>\n \u201cQ1 is my last full quarter as CEO and I am pleased to confirm a strong start to the year 2023, with organic revenue growth of +16% in the first quarter in a continuation of the strong momentum seen over the past two years.<\/p><\/blockquote>\n <\/p>\n Both of our businesses are performing strongly, generating double-digit organic growth in each, highlighting the broad-based demand for software and digitization, as well as sustainability and electrification, and reflecting the unique integration and synergies of our portfolio. All four regions that constitute our balanced global footprint are growing strongly, up double-digit in North America, Western Europe and Rest of the World. In Asia Pacific, China had a slow start as expected, with the rest of the region up double-digit.<\/p><\/blockquote>\n <\/p>\n Our growth engines are delivering. Field Services is growing at +14% organic in the quarter. We are also accelerating in our suite of agnostic software offers, with double-digit revenue growth in software and digital services, and a noticeable acceleration in ARR, up +16% at AVEVA as the transition to a subscription model continues to gather momentum. Our sustainability business as well as our digital flywheel are growing doubledigit. The digital flywheel now represents well in excess of 50% of our turnover and is positioned uniquely to serve the double priority agenda of digitization and sustainability of enterprises in the short, medium and longterm.<\/p><\/blockquote>\n Looking forward, I am excited about the role Schneider will play for a smarter and greener future across all geographies. Our purpose, now more than ever, is to provide our customers with digital technologies for greater efficiency and decarbonization, and the need for those solutions keeps increasing, to drive positive outcomes both economically and for society. At Schneider, we are also proud to drive our own efforts to achieve the ambitious targets showcased in our Schneider Sustainability Impact dashboard, which reaches a score of 5.25 at the end of Q1.<\/p><\/blockquote>\n <\/p>\n Finally, we upgrade our 2023 financial target, as the global supply chain environment continues to ease, supporting the execution of our order backlog, while demand remains at high levels with a record backlog at the end of Q1, despite deceleration in consumer-linked segments. It has been a great privilege to build Schneider to a new dimension and capability with you over the past 20 years. I am thankful for the support of all, and I look forward to supporting our teams and Peter through the next steps of the journey.\u201d<\/p><\/blockquote>\n <\/p>\n <\/p>\n I. FIRST QUARTER REVENUES WERE UP +16% ORGANIC<\/strong><\/p>\n 2023 Q1 revenues were \u20ac8,493 million, up +15.8% organic and up +12.3% on a reported basis.<\/p>\n Products (56% of Q1 revenues)<\/strong> grew +11% organic in Q1. In Energy Management, product sales grew double-digit, while in Industrial Automation growth was high-single digit. Both businesses were impacted by the slow start to the year in China. Supply chain shortages, while remaining a factor, showed some progressive improvement as expected, allowing good execution against the backlog. There was positive contribution from volume expansion, with price as the significant driver of organic growth for the quarter, mainly in relation to the carryover impact from actions taken in 2022. The Group continued its focus on expanding its digital footprint through ongoing innovation leading to the growth rate of connectable products being significantly ahead of the overall products growth.<\/p>\n Systems (26% of Q1 revenues)<\/strong> grew +32% organic in Q1, with sales growing in excess of +20% organic in both Energy Management and Industrial Automation. This strong growth was driven across end-markets, supported by a combination of continued strong demand, pricing impact, the improving supply chain situation and prioritization in the quarter to specific segments.<\/p>\n Software & Services (18% of Q1 revenues)<\/strong> grew +12% organic in Q1.<\/p>\n Software and Digital Services grew +10% organic in Q1.<\/p>\n Field Services grew +14% organic in Q1 with both businesses contributing similar rates of growth. Industrial Automation saw good recovery in services related to large projects, which had been impacted in 2022 by the lag effect from COVID-19. Services relating to OEMs and end-users continued on a strong trend. In Energy Management, the growth was strong across segments, with the investments made in 2022 starting to generate a strong contribution to results. The continued focus on growing Field Services is strategically linked to the development of the Digital Flywheel and also enhancing recurring revenue for the Group.<\/p>\n Sustainability Business: Sustainability consulting and services offers (split between Digital and Field Services) delivered another quarter of double-digit growth against a high base of comparison, with the consulting business in particular continuing to lead the growth. North America was the major contributor to sales, with traction for efficiency programs in both the public and private sectors leading to pull-through of core offers of the Group. Western Europe saw strong growth with contract wins in multiple countries. Sustainability consulting continues to be a driver for engagement at customer C-Suite level, to the benefit of the full portfolio.<\/p>\n The breakdown of revenue by business and geography was as follows:<\/p>\n\n
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