By Pierre Bertrand
Schneider Electric, the French digital energy-management and automation company, announced on Thursday that it has upgraded its 2023 targets and reported higher first-half earnings. The company saw strong demand and high growth during this period.
Revised Targets for 2023
Schneider Electric now aims for organic adjusted earnings before interest, taxes, and amortization (EBITA) growth of between 18% and 23% for 2023. This is an increase from the previous target range of 16% to 21%. Additionally, the company revised its organic revenue growth target for 2023 to 11% to 13%, up from the previous range of 10% to 13%.
Improved EBITA Margin
With the new targets, Schneider Electric expects to achieve an adjusted EBITA margin of around 17.7% to 18.0%. This is an improvement from the previous margin range of around 17.6% to 17.9%.
Strong Financial Performance
During the first half of the year, Schneider Electric generated a net profit of €2.02 billion ($2.24 billion). This represents a significant increase from the €1.52 billion reported in the same period last year. The company also experienced a revenue growth of 9.7%, reaching €17.63 billion. The adjusted EBITA rose by 14% to €3.17 billion.
Driving Demand: Electrification and Artificial Intelligence
Chief Executive Peter Herweck commented on the company's performance, highlighting the growing backlog as a reflection of strong demand trends. He specifically pointed to the Electrification sector in the New Energy Landscape and the increased traction for Data Centers driven by Artificial Intelligence.
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