Schneider Electrics Half-Year Report 2024
Peter Herweck, Chief Executive Officer, commented: “I am pleased to see our strong and focused continued execution in H1 2024 resulting in record revenues and strong organic improvement in adjusted EBITA margin, accelerating in Q2. We are uniquely positioned and continue to invest into materializing on the megatrends of Digitization & AI and Energy Transition. Remaining committed to shareholder value creation, we delivered a 10% increase in adjusted Net Income and a growth in Operating Cash Flow of 15%. Alongside the strong financial results, I am particularly proud of the recognition we received in June as the world’s most sustainable company.”
Products (52% of Q2 revenues) grew +1% organic in Q2. Product revenues saw good growth in Energy Management with good growth in sales of electrical distribution products across many end-markets and segments, while consumer-linked segments such as residential buildings and distributed IT remained stable. Industrial Automation product revenues contracted, impacted by continued weak Discrete automation markets notably in Western Europe. Across the Group, product volumes remained positive.
Systems (30% of Q2 revenues) grew +16% organic in Q2, with strong double-digit organic sales growth in Energy Management supported by continued strong demand, including in Data Center and Infrastructure end markets, where the Group continues to invest in additional manufacturing capacity to support its medium-term growth ambitions. In Industrial Automation, systems sales into Process & Hybrid markets delivered solid growth, however, the continued weak Discrete automation market resulted in systems sales to OEMs being down sharply year-on-year.
Highlights
- Recognized as the world’s most sustainable company, by TIME magazine
- Q2 Group revenues of €9.6bn, up +7% organic; a record for any quarter
- Energy Management up +10% organic
- Industrial Automation down -4% organic, due to softness in Discrete markets
- North America and Rest of the World leading growth, up double-digit org.
- Services up double-digit org., AVEVA ARR up +16%
- H1 Group revenues of €18.2 billion, up +6% organic
- H1 Adj. EBITA €3.4 billion, up +12% organic
- Adj. EBITA Margin 18.6%, up +100bps organic
- Adjusted Net Income €2.2 billion, up +10%
- Operating Cash Flow €3.1 billion, up +15%
- Schneider Sustainability Impact program on-track
- 2024 Financial Target Upgraded
