Driven by double-digit product growth along with a better than expected industrial automation sales, technology major Schneider Electric has reported a record revenue of $9.3 billion in the first quarter of 2023.
The technology major sells its integrated portfolio into four end-markets: buildings, data center, infrastructure and industry, leveraging the complementary technologies of its energy management and industrial automation businesses and supported by the focus on electrification, digitisation and sustainability, the company wrote in a statement.
The company recorded a significant growth in the Middle East region, driven by a surge in business Turkey and Saudi Arabia, where both price and volume are contributing to the growth along with the strong project execution.
In Q1, sales growth across all four of these end-markets remained strong, the statement noted.
Comment on the development, Jean-Pascal Tricoire, chairman and CEO, Schneider Electric said, “Both of our businesses are performing strongly, generating double-digit organic growth in each, highlighting the broad-based demand for software and digitization, as well as sustainability and electrification, and reflecting the unique integration and synergies of our portfolio.”
He explained all four regions that constitute our balanced global footprint are growing strongly, up double-digit in North America, Western Europe and Rest of the World. In Asia Pacific, China had a slow start as expected, with the rest of the region up double-digit. Our growth engines are delivering. Field Services is growing at +14% organic in the quarter.
“We are also accelerating in our suite of agnostic software offers, with double-digit revenue growth in software and digital services, and a noticeable acceleration in ARR, up +16% at AVEVA as the transition to a subscription model continues to gather momentum. Our sustainability business as well as our digital flywheel are growing double digit,” he said.
The company has upgraded its 2023 finacial target as the global supply chain environment continues to ease, supporting the execution of its order backlog, while demand remains at high levels with a record backlog at the end of Q1, despite deceleration in consumer-linked segments.