Schneider Electric H1 Profit Down, Revenues Up; Lifts FY22 Outlook; Backs Long Term View

French energy management firm Schneider Electric (SBGSF.PK) reported Thursday that its first-half net income (Group share) declined 2 percent to 1.52 billion euros from last year's 1.56 billion euros.

Adjusted net income was 1.80 billion euros, up 11 percent from 1.62 billion euros a year ago. Adjusted earnings per share were 3.24 euros, higher than prior year's 2.92 euros.

Adjusted EBITA grew 17.8 percent from last year to 2.78 billion euros.

Revenues were 16.08 billion euros, up 16.7 percent from 13.77 billion euros last year. Revenues grew 10.1 percent organically.

In the second quarter, revenues were 8.5 billion euros, up 17.4 percent on a reported basis and up 10.3 percent organically, despite lockdowns in China and impact from Russia.

Further, the company lifted fiscal 2022 target citing continued strong demand and agile response to inflation.

For the year, adjusted EBITA is now expected to grow between 11 percent and 15 percent organic, compared to previously expected between 9 percent and 13 percent organic. The target would be achieved through a combination of organic revenue growth and margin improvement.

The company continues to expect adjusted EBITA margin up 30 basis points to 60 basis points organic, implying adjusted EBITA margin of around 17.7 percent to 18.0 percent.

Revenue is expected to grow 9 percent to 11 percent organic, compared to previously expected 7 percent to 9 percent organic.

Further, Schneider Electric continues to expect 2022 - 2024 organic revenue growth of between 5 percent to 8 percent, on average, and a yearly organic improvement of between 30 bps to 70 bps in adjusted EBITA margin.

For the longer-term, the company still expects organic revenue growth of 5 percent on average across the economic cycle.

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