The following is a summary of the Schneider Electric SE (SBGSF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Schneider Electric reported a strong Q1 2024 with sales reaching EUR 8.6 billion, indicating a 5.3% revenue growth.
Growth was primarily driven by the Energy Management segment, showcasing good diversification across business models and geographies.
The Software services segment grew by 5%, with Annual Recurring Revenue (ARR) growth at AVEVA at 13%. The company projects 15%+ growth by year-end.
The company foresees an organic growth of 8% to 12% in its adjusted EBITA for full year 2024, as stated in their guidance.
Despite a profitable quarter, the company experienced timing impacts on Q1 profitability due to year-end realignments with AVEVA.
Business Progress:
Schneider Electric continued progress on its Capital Markets Day strategies, particularly in the Energy Management sector, with notable solid growth in distributed IT.
Schneider Electric launched several operational initiatives and made noteworthy collaborations with Digital Realty and a large water utility.
The company made commendable strides with the EcoStruxure Automation Experts platform, aiming to leverage software layer for enhanced collaboration and direction.
A potential strategic transaction with Bentley Systems is under discussion, indicating possible further expansion of Schneider's portfolio as part of the One Software strategy.
In terms of sustainability, Schneider Electric is making good progress towards its goal of a score target of 7.4 for 2025.
More details: SCHNEIDER ELECTRIC SE IR
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