Schneider Electric 2022 Earnings Rose on Strong Demand - Update
February 16 2023 - 5:14AM
Dow Jones News
By Pierre Bertrand
Schneider Electric SE reported an increase in full-year earnings
Thursday amid easing of supply-chain constraints and strong demand
for electrification and decarbonization.
The French energy-management company achieved 3.48 billion euros
($3.72 billion) in 2022 net profit compared with EUR3.20 billion in
2021 on revenue that grew 12% organically to EUR34.18 billion.
The result compares with expectations of net profit of EUR3.52
billion and revenue of EUR33.63 billion, according to a
company-provided consensus.
Adjusted earnings before interest, taxes and amortization
exceeded analysts' expectations, amounting to EUR6.02 billion, a
14% organic rise compared to 2021.
Analysts had expected Schneider Electric to post EUR5.95 billion
in adjusted Ebita, according to the consensus.
The Paris-based company said its result was driven by dynamic
demand in all of its four end-markets, which were supported by
customers focusing on electrification, digitization and
sustainability. That said, consumer-linked segments including
residential buildings and distributed IT remained weak as softening
demand trends seen in the third quarter carried over.
That weakness is expected to continue and normalize to more
usual levels in 2023 compared with the pandemic-related highs
registered in 2020 and 2021, Chief Executive Jean-Pascal Tricoire
said.
"On the other hand, what we see is a continuous traction for
everything we do, electrification and digitization, on the vast
majority of our business where all the plans of retrofit, energy
transition [and] energy efficiency are really being developed and
executed as we go forward," Mr. Tricoire said.
The company noted it saw a degree of destocking in the fourth
quarter in its industry end-market, though demand stayed high.
The progressive easing of supply-chains constraints supported
growth at the company's energy-management, industrial-automation
and discreet-automation segments, Schneider said.
Schneider Electric said currency effects in 2023 are estimated
to drag revenue by a range of EUR600 million to EUR700 million,
while scope impact is estimated to hit revenue by around EUR750
million.
The company said it would propose a dividend of EUR3.15 a share
compared with EUR2.90 for 2021.
Schneider Electric said it is targeting organic adjusted Ebita
growth of between 12% and 16% in 2023 and expects organic revenue
growth of 9% to 11%, with an Ebita margin of around 17.4% to
17.7%.
Write to Pierre Bertrand at pierre.bertrand@wsj.com
(END) Dow Jones Newswires
February 16, 2023 04:59 ET (09:59 GMT)
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