Overview of H1 2021:
- 6.8 GW inverter output sold (H1 2020: 7.1 GW)
- Sales of €488 million (H1 2020: €514 million)
- Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to €38 million (H1 2020: €24 million)
- Equity ratio still high at 42% (December 31, 2020: 42%)
- Managing Board confirms sales and earnings guidance for 2021 fiscal year
SMA Solar Technology AG (SMA/FWB: S92) generated earnings before interest, taxes, depreciation and amortization (EBITDA) of €38.1 million in the first half of 2021 (EBITDA margin: 7.8%; H1 2020: €24.0 million, 4.7%). The company has thus significantly increased its profitability. Between January and June 2021, the SMA Group sold inverters with an accumulated output of around 6.8 GW and generated €488.3 million in sales (H1 2020: €514.2 million). Sales were slightly lower than in the previous year because small and medium-sized businesses were still reluctant to invest in the first few months of the year due to the continuing uncertainties surrounding the coronavirus pandemic. Accordingly, demand in the Business Solutions segment fell short of expectations and prices dropped. By contrast, the Home Solutions and Large Scale & Project Solutions segments recorded an increase in sales. The shortage of electronic components had a minor overall impact on the level of sales.
Net income increased significantly to €13.3 million (H1 2020: €2.7 million). Earnings per share thus increased to €0.38 (H1 2020: €0.08). Net cash decreased to €170.0 million (December 31, 2020: €226.0 million). This is due in particular to increased stockpiling in view of the general shortage of materials. Stockpiling supports SMA’s delivery capacity for the expected positive business performance to come in the second half of 2021. At 42.4%, the equity ratio remained at the same level as at the end of the previous year (December 31, 2020: 41.8%). In addition, SMA has a credit line of €100 million from domestic banks.
“Compared with the first six months of the previous year, we have increased our earnings (EBITDA) by around 60% in the first half of 2021. This is due in particular to our continuous improvement of the product mix and cost structure,” explains SMA Chief Executive Officer Jürgen Reinert. “In the segments for private residential PV systems and PV power plants, we were able to increase sales and the order backlog compared with the previous year. By contrast, we suffered a significant drop in sales of commercial systems due to lower demand and lower prices. Small and medium-sized businesses were still reluctant to invest in the first few months of the year due to the coronavirus pandemic. However, orders received in this segment increased again in the second quarter. We therefore expect positive sales and earnings development here as well in the second half of the year.”
The SMA Managing Board confirms its sales and earnings guidance for the 2021 fiscal year as published on February 5, 2021, which forecasts an increase in sales to between €1,075 million and €1,175 million and EBITDA of between €75 million and €95 million. The ongoing strained supply situation for electronic components could lead to delivery capacity constraints for SMA in the second half of the year. The Managing Board is responding to the situation by implementing tighter and more intensive supplier management policies and putting in place a stockpiling strategy.
The Half-Yearly Financial Report for January to June 2021 is available online at www.SMA.de/IR/FinancialReports.
As a leading global specialist in photovoltaic and storage system technology, the SMA Group is setting the standards today for the decentralized and renewable energy supply of tomorrow. SMA’s portfolio contains a wide range of efficient PV and battery inverters, holistic system solutions for PV and battery-storage systems of all power classes, intelligent energy management systems and complete solutions for PV diesel hybrid applications. Digital energy services as well as extensive services up to and including operation and maintenance services for PV power plants round off SMA’s range. SMA inverters with a total output of more than 100 gigawatts have been installed in more than 190 countries worldwide. SMA’s multi-award-winning technology is protected by more than 1,600 patents and utility models. Since 2008, the Group’s parent company, SMA Solar Technology AG, has been listed on the Prime Standard of the Frankfurt Stock Exchange (S92) and is listed in the TecDAX index.
SMA Solar Technology AG
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This press release serves only as information and does not constitute an offer or invitation to subscribe for, acquire, hold or sell any securities of SMA Solar Technology AG (the “Company”) or any present or future subsidiary of the Company (together with the Company, the “SMA Group”) nor should it form the basis of, or be relied upon in connection with, any contract to purchase or subscribe for any securities in the Company or any member of the SMA Group or commitment whatsoever. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended.
This press release can contain future-oriented statements. Future-oriented statements are statements which do not describe facts of the past. They also include statements about our assumptions and expectations. These statements are based on plans, estimations and forecasts which the Managing Board of SMA Solar Technology AG (SMA or company) has available at this time. Future-oriented statements are therefore only valid on the day on which they are made. Future-oriented statements by nature contain risks and elements of uncertainty. Various known and unknown risks, uncertainties and other factors can lead to considerable differences between the actual results, the financial position, the development or the performance of the corporation and the estimates given here. These factors include those which SMA has discussed in published reports. These reports are available on the SMA website at www.SMA.de. The company accepts no obligation whatsoever to update these future-oriented statements or to adjust them to future events or developments.