SMA Solar Technology AG profitable in all core segments in Q1, 2016
SMA Solar Technology AG has had a successful start to the new fiscal year. The SMA Group’s sales increased by 12.2% to EUR 253.8 million in the first quarter of 2016 (Q1, 2015: €226.3 million) and exceeded the Managing Board’s forecast of EUR 235 million to EUR 240 million.
EBIT was EUR 25.3 million (Q1, 2015: €–5.4 million), in line with the Managing Board’s forecast of EUR 23 million to EUR 27 million.
With sales growth of more than 50% compared to the same period of the previous year, the segment for commercial photovoltaic (PV) systems was the largest growth driver and simultaneously returned to profitability.
The residential PV system and large-scale PV power plant (Utility) segments and Service business developed stably and were also profitable.
International share of sales reaches 92.4%
The additional increase in the international share of sales to 92.4% (Q1, 2015: 88.0%) reflects the SMA Group’s outstanding position internationally. In the first quarter of 2016, the SMA Group increased its sold PV inverter output by 21.3% to 2.1 GW (Q1, 2015: 1.7 GW).
As a result of increased sales volumes and the fixed cost reduction, EBITDA improved considerably in the first quarter of the fiscal year to EUR 42.1 million (EBITDA margin: 16.6%; Q1, 2015: €13.4 million, 5.9%). Consolidated earnings amounted to EUR 18.8 million (Q1, 2015: €–7.9 million). Earnings per share thus amounted to EUR 0.54 (Q1, 2015: €–0.23).
Gross cash flow improved considerably in the reporting period to EUR 40.6 million (Q1, 2015: €16.1 million). Net cash increased to EUR 323.4 million (December 31st, 2015: €285.6 million).With an equity ratio of 49.9% (December 31st, 2015: 49.1%), SMA has a comfortable equity capital base and therefore an extremely solid balance sheet structure.
EUR 100 million credit facility to secure financing of current assets in the long term
SMA’s bankability was also underscored by a revolving credit facility of EUR 100 million agreed upon at the end of April with a consortium of Commerzbank, Deutsche Bank and Hessische Landesbank to secure financing of current assets in the long term. SMA will use the financial leeway this provides to further expand its operations and maintenance services (O&M) business and thus further diversify its sales and earnings base.
“In the first quarter of 2016, SMA successfully continued on the path to more growth and sustainable profitability,” explained SMA Chief Executive Officer Pierre-Pascal Urbon.
SMA enters smart PV module technology market
“We have a balanced distribution of sales over all segments and regions and have generated positive earnings in all segments of the core business. The strategic partnership we entered into with Tigo Energy in April will also enable us to tap into the growing market for smart module technology, a market that was previously closed to us. With this strategic step, SMA has laid the foundation for further growth, especially in the Residential and Commercial segments, and will globally market a highly flexible and cost-effective solution to optimize the performance of PV modules in the next few months.”
The SMA Managing Board confirms its sales and earnings forecast for the current fiscal year. This forecast anticipates sales of EUR 950 million to EUR 1,050 million and a significant increase in EBIT to between EUR 80 million and EUR 120 million.The forecast is supported by a high order backlog of EUR 691.6 million at the end of the first quarter of 2016.
