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SMA Solar announces Ebitda turnaround

Niestetal, Germany - SMA Solar Technology AG posted a good start to fiscal year 2015 and achieved the forecast sales target in the first quarter.

Compared to the same quarter of the previous year, the SMA Group's sales from January to March 2015 climbed by 28% to EUR226.3 million (Q1 2014: EUR176.3 million). The main sales driver was the segment of large-scale PV power plants. The international share of sales rose significantly to 88.0% (Q1 2014: 71.1%). This underscores SMA's outstanding international position. No other competitor has a comparable international infrastructure or comparable product and service portfolio. The SMA Group's most important foreign markets in the first three months of the year were North America, Japan, Great Britain and Australia. SMA sold PV inverters with a total output of 1.7 GW in the reporting period (Q1 2014: 1.0 GW).

As a result of increased sales volumes, reduced fixed costs and positive exchange rate effects, EBITDA improved considerably to EUR13.4 million (Q1 2014: EUR-2.5 million). At EUR-5.4 million (EBIT margin: -2.4%), EBIT was at the upper end of the Managing Board's earnings forecast (forecast: EUR-5.0 million to EUR-10.0 million). In the same period of the previous year, SMA had generated EBIT of EUR-22.4 million (EBIT margin: -12.7%). Consolidated earnings amounted to EUR-7.9 million (Q1 2014: EUR-16.7 million).

From January to March 2015, the SMA Group generated significant positive gross cash flow of EUR16.1 million. In the same period of the previous year, this figure was EUR-9.4 million. Net cash remained at the same high level as at the end of the previous year at EUR223.7 million (December 31, 2014: EUR225.4 million). With an equity ratio of 46.6% (December 31, 2014: 46.8%), SMA remains financially sound and can implement the strategy from its own resources.

"We are satisfied with the financial performance in the first quarter of 2015. With the sales generated and the order backlog at the end of the first quarter, we have already achieved more than 60% of our sales target for the year as a whole. The earnings situation developed better than planned, partly due to the reduction of fixed costs already initiated and to exchange rate effects. In addition, we maintained our high net cash and implemented the measures to transform SMA as planned in the first quarter of 2015. Returning to sustainable profitability is not a sprint but a marathon for us - which is why we will also continue systematically implementing the strategy presented at the start of the year," explains SMA CEO Pierre-Pascal Urbon.

The SMA Managing Board is confirming the sales and earnings forecast for the current fiscal year, which predicts sales of EUR730 million to EUR770 million. Given that the savings from the transformation measures currently being implemented will only be recognized in profit or loss from mid-2015 at the earliest, the Managing Board is forecasting negative operating earnings (EBIT) of EUR-30 million to EUR-60 million for the current year. Considering likely depreciation and amortization of approximately EUR70 million, the Managing Board expects positive earnings (EBITDA) in 2015. The SMA Managing Board expects to return to positive operating earnings (EBIT) in 2016. For the first half year 2015, the SMA Managing Board is expecting sales of EUR400 million to EUR450 million and operating earnings (EBIT) of EUR-15 million to EUR-25 million.



Source: IWR Online, 13 May 2015

 


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