2018: Continued growth



Socomec Growth

  Turnover (M€)
  Workforce (includes the E’nergys division from 2018 onwards)



Socomec EBIT

Operating profit (EBIT)
In M€
In % of turnover

Net profit
  In M€
  In % of turnover


Socomec Corporate Financing

Corporate financing
  Equity capital (M€)
  % debt-to-equity ratio


A buoyant economic environment

The momentum of global economic growth that began in 2017 continued in 2018 in both the developed and emerging economies, and this within a context of monetary policies that have remained very accommodating. Nevertheless, there was a year-end situation characterized by risks related to the high level of global public and private debt and the return of protectionism, which culminated in trade tensions between the United States and China along with the prospect of BREXIT. In this uncertain context, growth slowed slightly in Europe and Asia at the end of the year and the prospects for 2019 are slightly less favourable.

A fiscal year marked by "logistical disruptions" at Socomec and continued consolidation for the E'nergys division

Despite a buoyant economic environment, Socomec's business activities faced tough challenges in the first half of 2018, particularly in the PCS (Switching) and EE (Energy Efficiency) Business Applications.
The logistics operations of these two BAs, which were handled in-house until the end of 2017, were transferred to an external service provider (Compagnie Logistique Jung) in early January 2018, and this changeover has proved to be somewhat more complicated than originally anticipated.
It is estimated that this loss of revenue will amount to between 6M€ and 8M€ for 2018.
In addition to the problems with maintaining delivery times, there were also problems with the supply of components, which in turn had an impact on sales revenue.
The significant shortfall in turnover over the first quarter has led us to implement measures to reduce our overhead costs (what we term our "Profit +" plan).
This plan, combined with a partially restored delivery capacity in the second quarter and a high level of new order bookings, allowed us to end the year on a positive note.


As for E'nergys, it consolidated its activities during the 2018 fiscal year by focusing on four business sectors:
- audits, consulting and engineering,
- provision of solutions,
- maintenance,
- digital platforms.
This organizational structure, as well as the strengthening of cross-functional departments (HR and marketing), will enable E'nergys to boost its growth in 2019/2020.
Despite a 2% growth in net revenue excluding VAT (excluding Socomec AG), E'nergys achieved a significant improvement in its profitability in 2018.
Net sales excluding taxes, including the non-Group portion, amounted to 46M€ in 2018, compared with 41M€ the year before, for a total workforce of 280 people.

Continued external acquisitions in North America have supported our growth

Our expansion in North America, which began with the acquisition of CCS in 2017, continued in 2018 with a stake in EPC, a California-based energy storage company, and with the acquisition of Powersmiths in Canada a few months later.
The Socomec Group (Socomec + E'nergys) posted growth of +6% with overall sales revenues rising from 526M€ in 2017 to 558M€ in 2018. Once again in 2018, the fluctuation in exchange rates and in particular the weakness of the US dollar against the euro had a negative impact on the Group's performance: at 2017 exchange rates, sales would have amounted to 564M€, 8M€ more than the actual deferred sales figures. Operating income (EBIT), also impacted by exchange rates, increased by only 3.8% to 37.3 M€. The logistical problems mentioned above and the resulting shortfall in sales turnover clearly had a negative impact on turnover.
The Group's consolidated net income amounted to 21.6M€, a drop of 4.6M€ or -17.4% compared to 2016, mainly due to lower financial earnings and exceptional results compared to 2017.
It should be noted that, in contrast to 2017, the effective tax rate, which increased by 2.4 percentage points (25.95% in 2017 to 28.44% in 2018), also contributed to the decrease in the net income for the year.
Lastly, shareholders' equity, including minority interests, rose from 229M€ in 2017 to 240M€ in 2018, an increase of +4.9%.