Photovoltaic (PV) and battery inverters maker SMA Solar Technology AG (ETR:S92) this week increased its 2023 outlook and confirmed the provisional results for 2022, which were released earlier in March.
After a strong first quarter, the German manufacturer raised its guidance for 2023, with sales now seen in the range of EUR 1.45 billion (USD 1.58bn) to EUR 1.6 billion, compared to the projection of EUR 1.35 billion to EUR 1.5 billion that was provided just recently. The outlook for annual earnings before interest, tax, depreciation and amortisation (EBITDA) is raised to between EUR 135 million and EUR 175 million from between EUR 100 million and EUR 140 million.
In 2022, SMA swung to a net profit of EUR 55.8 million from a loss of EUR 23.2 million in 2021 as sales increased 8.4% to EUR 1.07 billion. EBITDA jumped to EUR 70 million from EUR 8.5 million in 2021.
The positive results were driven by consistent high demand, improvements in the supply of electronic components in the second half of the year, and price increases implemented by the company.
In 2022, SMA's Large Scale & Project Solutions segment suffered a 6.8% fall in sales, down to EUR 440.6 million, mainly as a result of project delays due to US anti-dumping policy toward Chinese modules. There was, however, an improvement after tariffs were suspended for four Southeast Asian countries in June 2022. The segment is expected to achieve positive EBIT as early as fiscal 2023.
In the first quarter of 2023, SMA benefited from improved delivery capability, increased capacity utilisation and a favourable product mix. It expects sales to grow to EUR 340 million-350 million from EUR 221 million in the first quarter of 2022. EBITDA is seen to expand to EUR 50 million-60 million from EUR 15 million in the year-earlier quarter.
(EUR 1 = USD 1.089)
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