Schneider Electric: new CEO and historic results
Schneider Electric had an outstanding 2022 with strong growth in its electrification and energy efficiency business. The group recorded a net profit of 3.477 billion euros, up 9%, and revenues of 34.176 billion, up 18.2%. Schneider Electric continues its expansion with the appointment of Peter Herweck as CEO for 2023, and ambitious goals for the coming year.
| Sectors | Power Grids |
|---|---|
| Themes | Markets & Finance |
| Companies | Schneider Electric |
| Countries | France, United Kingdom, Russia, United States |
Schneider Electric reported a record year in 2022, with net income of €3.477 billion, up 9%, and sales of €34.176 billion, up 18.2%. This growth is driven by the expansion of the electrification and energy efficiency markets, particularly in North America, Europe and Asia. The group has therefore decided to separate the functions of Chief Executive Officer and Chairman, and has appointed Peter Herweck as Chief Executive Officer as of May 4, 2023.
A change in continuity
Peter Herweck joined Schneider Electric seven years ago and was most recently CEO of Aveva, a British industrial software company that Schneider began acquiring in 2017 until finalizing the full purchase last year. According to Jean-Pascal Tricoire, the current and future Chairman, “his experience in software and automation comes with a strong commitment to the values, culture and ambition” of the company.
A winning strategy
Under the leadership of Jean-Pascal Tricoire, Schneider Electric has transformed itself, focusing in recent years on the key trends of electrification and digitalization. The full acquisition of Aveva in 2022 confirmed this strategy. The group is well prepared for the future, according to Jean-Pascal Tricoire, with relevant offers, a balanced geographical organization and a focus on sustainable development.
Challenges to overcome
The year 2022 was marked by supply chain difficulties, and Schneider Electric had to divest its business in Russia, where it was generating about 2% of its revenue. Nevertheless, the group is very confident about the future, bolstered by government programs on energy and decarbonization, such as the IRA in the United States, which is Schneider’s largest market.
Objectives for 2023
Schneider Electric on Thursday announced a target for 2023 of organic growth in adjusted Ebita (operating margin) between +12% and +16%, based on organic revenue growth between +9% and +11%. The group is therefore well set to continue its expansion and historical performance under the leadership of Peter Herweck, with Jean-Pascal Tricoire remaining as President and taking on a specific role in Asia.
