SMA Solar to significantly improves sales and earnings in 2019 – positive business development in first quarter of 2020
Overview of fiscal year 2019:
- Inverter output sold exceeds 10 GW for the first time at 11.4 GW (2018: 8.5 GW)
- Sales increase by around 20% year on year to €915 million (2018: €761 million)
- EBITDA positive at €34 million (2018: -€69 million)
- Equity ratio still high at 38% (December 31, 2018: 43%) and high net cash of €303 million (December 31, 2018: €306 million)
- Managing Board anticipates sales of between €275 million and €285 million as well as EBITDA of between €12 million and €15 million in first quarter of 2020 and confirms sales and earnings guidance for the year as a whole
In fiscal year 2019, SMA Solar Technology AG (SMA/FWB: S92) sold inverters with a cumulative output of around 11.4 GW. Inverter output sold was thus approximately 35% above the previous year’s level (2018: 8.5 GW). The SMA Group’s sales increased by around 20% to €915.1 million (2018: €760.9 million). This growth is attributable, in particular, to the very good business performance in the Home Solutions and Large Scale & Project Solutions segments. Here SMA was able to regain market share and generate more sales than in the previous year, especially in the target markets Germany and the USA, but also in new markets. EBITDA improved significantly to €34.2 million (EBITDA margin: 3.7%; 2018: –€69.1 million, –9.1%).
Net income came to –€8.6 million (2018: –€175.5 million). Earnings per share thus amounted to –€0.25 (2018: –€5.06). Net cash remained virtually unchanged at €303.0 million (December 31, 2018: €305.5 million) and thus continued to be at a high level. With an equity ratio of 37.6% (December 31, 2018: 42.9%) at the end of 2019, SMA has a robust balance sheet structure. In addition, the company has a credit line of €100 million from domestic banks.
“Thanks to successfully implemented restructuring and cost reduction measures, an increased customer focus and targeted sales activities, SMA has significantly improved its volume, sales and earnings in the past year,” explained Chief Executive Officer Jürgen Reinert. “We have reached key milestones in both the core business and future business fields. These include the largest order in our company’s history for the supply of 595 medium-voltage power stations with a cumulated nominal output of 2.2 GW to a major U.S. utility, the expansion of our market leadership in storage systems and the growth of our managed portfolio in the operations and maintenance business for large-scale PV power plants by around 30%.”
Despite the current coronavirus crisis, the SMA Managing Board is confirming its sales and earnings guidance for the 2020 fiscal year published on February 7, 2020. It predicts a sales increase to between €1.0 billion and €1.1 billion. SMA is well positioned to gain market shares even in the current circumstances. In addition, the Managing Board is implementing further cost reduction measures. In this context, the SMA Managing Board is still expecting an increase in EBITDA of between €50 million and €80 million.
“So far, the coronavirus has had only a minimal negative impact on SMA’s business development,” said Jürgen Reinert. “Since the beginning of the year, order intake and sales have continued to develop positively and we have minimized supply shortages through active management. SMA has focused on prevention at an early stage, implementing appropriate measures such as travel bans, mobile working where possible and adjustments to manufacturing processes. We are thereby guaranteeing business as usual as far as possible, while protecting the health of our employees at the same time. We will of course have to closely monitor the ongoing developments in relation to the coronavirus and respond quickly and flexibly at all times. However, we consider SMA well equipped to respond appropriately to all possible developments.”
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