Half Year 2024 Schneider Electric SE Earnings Call Transcript
Key Points
- Schneider Electric SE (SBGSF) reported record revenues for Q2 2024, reaching EUR9.6 billion with an organic growth of 7.1%.
- The company achieved a gross profit increase of 8.8% organically, with a stellar gross margin of 43.4%, up 100 basis points.
- Adjusted EBITA margin improved to 18.6%, with an adjusted net income up 10% to EUR2.2 billion.
- Strong performance in key growth markets such as the US, Middle East, Africa, and India, all showing double-digit growth.
- Significant progress in the software business, with AVEVA showing an ARR growth of 16% and cloud revenues up 140% in H1 2024.
- Industrial automation sales were down 3.5% for Q2, with discrete automation showing particular weakness.
- Western Europe showed negative growth, impacted by discrete automation and continued weakness in residential markets, especially in Germany.
- The company faced supply chain issues in North America, necessitating significant capacity investments which may impact short-term productivity.
- Net income was impacted by a non-cash impairment related to Uplight, resulting in a net income decrease of 7% to EUR1.9 billion.
- FX translation adversely impacted revenues by around EUR300 million, mainly due to the weakening of the Chinese yuan and other volatile currencies against the euro.
Good morning, everybody. Delighted to be with you today to report on our half-year 2024 results. I'm joined by our CEO, Peter Herweck; and our CFO, Hilary Maxson. We come to you from London. Today, the slides and the press release are both with you. We will go through the presentation and make sure to try to keep enough time for the Q&A.
So without any further ado, I hand it over to Peter.
Well, thank you very much, Amit, and good morning, everybody, from London. We've left Paris for the 33rd Olympic Games and we're here at the AVEVA office. And very proud actually in H1, we've been named the most sustainable company in the world by the TIME magazine and Statista. It goes in line with our stringent execution on our purpose and our mission to create impact by empowering all to make the most out of energy and resources, bridging progress and sustainability for all.
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