AVEVA’s F2021 basically flat — but optimistic about AVEVA+OSI future; CEO Hayman stepping down
As you know, Schneider Electric (SE) owns a majority of AVEVA shares, so when Schneider announces results they usually say something about AVEVA’s results. SE is on a calendar year and talks results every quarter; AVEVA is on a March-ending calendar and talks in detail twice a year. So what we wind up with on a day like today is … a bit minimalist … when it comes to AVEVA. But here’s what we learned:
AVEVA said that its second half of fiscal 2021 was good: Excluding the OSIsoft acquisition that closed in March, “AVEVA achieved double digit revenue growth … This resulted in full year revenue being flat year-on-year, on the same basis, reflecting the disruption related to the COVID-19 crisis during the first half.”
But that OSIsoft acquisition will be “enhancing the Group’s ability to accelerate the digital transformation of the industrial world. On an organic constant currency basis, OSIsoft grew revenue by a mid to high single digit percentage rate in the year ended 31 March 2021.”
If we look at the combination of AVEVA and OSIsoft on a pro format basis (meaning, if the acquisition had happened in March 2020), “Both elements of the combined Group responded flexibly to the challenges posed by COVID-19, growing combined pro forma revenue … by a low single-digit percentage on an organic constant currency basis, while achieving strong growth in Subscription revenue and increasing operating margins”. In other words, looking good if we look ahead.
Today’s announcements also held a bit of a shocker: AVEVA CEO Craig Hayman will step down on May 1 and be replaced by Peter Herweck. Mr. Herweck is currently EVP, Industrial Automation at Schneider Electric. According to the press release, Mr. Herwisk’s “30 years of experience in automation, digitalisation and industrial software and his experience, not just with Schneider Electric but previously with Mitsubishi and Siemens, will be invaluable as AVEVA integrates the business of OSIsoft and continues its ambitious growth strategy”. Mr. Herweck has been on AVEVA’s Board of Directors since 2018, so is no stranger to AVEVA or its team.
AVEVA announces full-year results on May 25 and will hold a Capital Markets Day on July 1, when we’ll learn much more about Mr. Herweck’s plans and about the integration of OSIsoft with AVEVA.