SMA Solar raises profit, earnings in H1, affirms outlook

German photovoltaic (PV) inverter maker SMA Solar Technology AG (ETR:S92) on Thursday said its profit and earnings improved significantly in the first half of 2021 despite a slight drop in sales and reiterated its guidance for the full year.

Net profit surged to EUR 13.3 million (USD 15.6m) in the first half from EUR 2.7 million a year earlier, while earnings before interest, tax, depreciation and amortisation (EBITDA) soared 58.7% to EUR 38.1 million, corresponding to an EBITDA margin of 7.8%.

The growth was a result of improved product mix and cost structure, chief executive Juergen Reinert said.

Sales fell 5% to EUR 488.3 million, dented by a decline in the commercial systems segment where prices dropped and demand among small and medium-sized companies was weak due to the uncertainties related to the coronavirus pandemic. However, demand started to recover in the second quarter.

Sales grew in the segments for private residential PV systems and PV power plants.

In the first six months, the group sold PV inverters with accumulated power of 6,798 MW compared with 7,105 MW a year earlier.

SMA Solar's order backlog increased 12% to EUR 852.1 million at the end of June, of which EUR 360.6 million was attributable to the product business.

The company maintained its outlook for 2021 but warned of potential delivery capacity constraints in the second half of the year that could be caused by the ongoing strained supply situation for electronic components. Sales are projected to grow to between EUR 1.075 billion and EUR 1.175 billion from EUR 1.027 billion in 2020 and EBITDA is expected to be in the range of EUR 75 million to EUR 95 million compared with EUR 71.5 million in the prior year.

(EUR 1 = USD 1.174)

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