2017: Continued growth
Operating profit (EBIT)
A buoyant economic environment
The results achieved in 2017 have confirmed the recovery of worldwide business activity. It was marked by monetary policies that remained supportive and by solid growth in the three main economic regions: the United States (+2.3%), Europe (+2.4%) and China (+6.8%). World growth (+3.2%) thus overtook the 3% growth threshold, which had not happened over the past seven years. 2017 also saw the Euro rise against most foreign currencies, the US Dollar in particular. This has had a significant impact on the financial performance of multicurrency companies that post their results in Euros, as is the case with Socomec.
Growth in line with targets
The Socomec Group (Socomec + E'nergys) posted growth of +7% with overall revenues rising from € 491 million in 2016 to € 526 million in 2017. This growth was marked in particular by the symbolic threshold of half a billion euros in sales revenues (504.8 million euros / +5%) for the manufacturing branch. As mentioned above, the changes in exchange rates had a negative impact on the Group's results: based on the 2016 exchange rate, revenues would have amounted to € 512 million, i.e. € 7 million more than the revenues actually posted in 2017.
Predominantly organic growth
In early October 2017, Socomec acquired 70% of the capital of Continental Control Systems (CCS), a company specialising in the development of power meters and located in Denver, United States. This acquisition is part of a much more ambitious development plan for this part of the world which should continue in 2018. Growth in 2017 was therefore mainly achieved by increasing our R&D innovation investments and continuing to strengthen our sales forces.