RUEIL-MALMAISON, France — Schneider Electric today released its first quarter 2023 earnings results.
Jean-Pascal Tricoire, Chairman and CEO, commented: “Q1 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.
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 the Rest of the World. In Asia Pacific, China had a slow start as expected, with the rest of the region up double-digit.
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 double-digit. 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.
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.
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.”
Read the full report here.
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