COVID-19 Brought Down SMA Solar’s H1/2021 Sales

• SMA Solar's H1/2021 business continued to suffer from COVID-19 related uncertainties with net sales dropping 5% annually
• EBITDA went up 58.8% YoY
• There was an increase of 392.6% in net income as well
• Management has reiterated annual guidance for 2021 as it expects the home solutions and large scale and project solutions business to do well

Solar PV inverter manufacturer SMA Solar Technology AG admitted its H1/2021 business was negatively impacted by continuing uncertainties surrounding the COVID-19 pandemic, as its net sales dropped 5% annually to €488.3 million. Back in H1/2020, it increased YoY net sales by 42% (see SMA Solar Increased YoY Net Sales By 42% In H1/2020).

Compared to its business solutions segment where it suffered a significant drop due to lower demand and lower prices, the home solutions and large scale & project solutions segments recorded an increase in sales, according to the management. The latter gives it confidence for better business in the remainder of the year 2021.

In comparison, its EBITDA went up 58.8% for which the management attributed the improvement of its product mix and cost structure. It also reported an improvement of 392.6% in net income with $13.3 million on annual basis.

SMA Solar shipped 6,798 MW worth of inverters in H1/2021, down 4% from 7,105 MW it shipped a year back. But its order backlog has grown to a total of €852 million as on June 30, 2021, up 12% on annual basis with service business segment accounting for €491 million, and on geographical basis, most business is to come from the EMEA, followed by APAC and the Americas.

Management has reiterated its annual sales guidance for 2021 as between €1.075 billion to €1.175 billion and EBITDA of between €75 million and €95 million as it claims H1/2021 sales and current product order backlog secure close to 80% of its annual sales guidance (see SMA Solar's Q1/2021 Sales Drop, EBITDA Up).

"The ongoing strained supply situation for electronic components could lead to delivery capacity constraints for SMA in the second half of the year," stated the management. "The Managing Board is responding to the situation by implementing tighter and more intensive supplier management policies and putting in place a stockpiling strategy."

During a call with analysts, SMA's management said it expects electrolyzers to come into play during the 2023/24 timeline and grow exponentially, according to Jeffrey Osborne of Cowen.