SMA Half-Year Results: Sales And Earnings as Expected - Weak Order Situation - Share in Reverse Gear
Niestetal, Germany - SMA Solar Technology AG has presented its business figures for the first half of 2024. As expected by the solar group, sales and earnings from January to June were below the previous year's figures, while the order situation is surprising. The share comes under pressure.
Sales development particularly weak in Home Solutions - Large Scale & Project Solutions with sales doubling
SMA Group sales decreased by 2.5% to EUR 759.3 million in the first half of 2024 (H1 2023: EUR 778.9 million). According to SMA, sales development in the Home Solutions and Commercial & Industrial Solutions segments was significantly influenced by persistently high inventories at distributors and installers as well as a generally very challenging market environment. Against this backdrop, sales in the Home Solutions segment amounted to EUR 109.9 million (H1 2023: EUR 327.3 million) and in the Commercial & Industrial Solutions segment to EUR 113.6 million after EUR 194.2 million in the first half of 2023. The Large Scale & Project Solutions segment recorded significant sales growth as planned, reaching EUR 535.8 million after EUR 257.4 million in the first half of 2023.
Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 80.6 million (including EUR 19.1 million from the sale of the shares in Elexon GmbH in Q1 2024) after EUR 125.3 million in the first half of 2023. This corresponds to an EBITDA margin of 10.6% (H1 2023: 16.1%). According to SMA, the main reasons for the change compared to the previous year were the lower sales volume, the changed product mix and an increased cost base in the Group. Consolidated earnings in the first six months amounted to EUR 44.1 million (H1 2023: EUR 103.5 million), with earnings per share of EUR 1.27 (H1 2023: EUR 2.98).
The order backlog as at June 30, 2024 has a volume of EUR 1,348.6 million and is therefore 45% below the previous year's level (June 30, 2023: EUR 2,453.7 million). At EUR 988.0 million, three quarters of this figure is attributable to the product business (June 30, 2023: EUR 2,075.7 million).
SMA sees solid first half of 2024 in challenging market environment
SMA confirms the reduced forecast from June 18 for the 2024 fiscal year as part of the half-year figures. This envisages sales of between EUR 1.55 billion and EUR 1.7 billion (previously: EUR 1.95 billion and EUR 2.22 billion) and earnings based on EBITDA of between EUR 80 million and EUR 130 million (previously: EUR 220 million and EUR 290 million).
"Despite the volatile market, the first half of 2024 showed a solid development. In the Large Scale & Project Solutions segment, we have once again made significant gains in both sales and earnings during the second quarter. Given the delayed market recovery in the Home and C&I segments, we have expanded our sales activities to other product groups and countries during the last few weeks. We have also implemented a number of measures to adapt the cost structure and working capital to the reduced sales level in the Group, as well as to stabilize the cash flow," commented SMA CFO Barbara Gregor on the half-year results.
SMA share in reverse gear
Investors reacted with disappointment to the SMA balance sheet, in particular due to the sluggish order situation. The share came under heavy pressure yesterday and fell significantly. At the end of the trading day, the share price was down 7.6% at EUR 22.28 (August 8, 2024, closing price, Stuttgart Stock Exchange), making it the weakest stock in the RENIXX World renewable energy industrial share index yesterday. Compared to the share price at the turn of the year, this is a drop of 63%.
Source: IWR Online, 09 Aug 2024
