German inverter maker SMA Solar Technology AG (ETR:S92) on Thursday reported solid financial results for the first half of 2020, with a 42% surge in sales.
The company turned to a net profit of EUR 3 million (USD 3.5m) from a loss of EUR 14 million a year back as sales rose to EUR 514 million from EUR 363 million. During the six-month period, SMA sold photovoltaic (PV) inverters with a total output of some 7.1 GW compared to 4 GW in January-June 2019. It explained the growth with the strong project business in the US and the ongoing positive trade business in Europe.
“We are also feeling the effects of the coronavirus crisis and generated lower sales than expected in the second quarter,” noted CEO Juergen Reinert.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased significantly to EUR 24 million from EUR 9 million, with EBITDA margin going up to 4.7% from 2.3%.
SMA’s order backlog amounts to EUR 760 million, including EUR 321 million attributable to product business.
“As we had forecast, the order intake in the second quarter was lower as a result of the coronavirus crisis. However, we anticipate a global recovery in demand in the coming months. In this context, we still expect to be able to meet our sales and earnings targets,” Reinert said, adding that the management sees good prospects for SMA in the medium and long term.
The company continues to expect sales of between EUR 1 billion and EUR 1.1 billion for the full year, along with EBITDA in the range of EUR 50 million-80 million.