Schneider Electric posted group revenues of EUR 8.5 bn during 1Q 2023 — a record high for the first quarter of a year, according to its earnings release (pdf). Its revenues were up 15.8% y-o-y organic and 12.3% on a reported basis, with all four regions where it operates contributing to the robust results, it said.

The breakdown: Its products segment — which represents 56% of 1Q revenues — rose 11% organic in the quarter. Energy management revenues were up 14.3% y-o-y to c. EUR 6.5 bn, with an organic growth of 18%. Its industrial automation services grew by 6.1% y-o-y in 1Q to EUR 2 bn with an organic growth of 10%, with both affected 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,” it said.

Sustainability progress: Schneider Electric’s 1Q results for its Schneider Sustainability Impact (SSI) program cited good progress in helping clients slash their carbon footprint through low carbon emissions solutions. It also made progress in the Zero Carbon Project, which falls under efforts to reach net-zero emissions across its value chain by 2040. The company’s consolidated SSI for 1Q was 5.25 out of 10 as its eyes a full-year target of 6, it added.

Looking ahead: The French electrical equipment group upgraded its 2023 target on the back of the strong results, adjusting its EBITA growth to between 16-21% organic from a previous 12-16% organic, its earnings release showed. Revenue growth was adjusted to 10%-13% organic from a previous growth of 9% and 11% organic. “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 1Q, despite deceleration in consumer-linked segments,” it said on the adjusted growth for the year.

Tags: