SMA Solar’s shipments and net income improved in the first six months of 2018.
- SMA Solar achieved 3.5% higher net sales for the six-month period from January to June 2018, reaching €394.6 million ($450 million)
- Inverter shipment was also up with 4.3 GW sold during the second quarter, compared to 3.8 GW last year
- With China announcing its solar subsidy restricting end of May, SMA Solar expects that the part of this market accessible to the company will increase by only 7% annually to €7.6 billion ($8.66 billion) by 2020, from the previous expectation of €9.2 billion ($10.49 billion)
- Full year guidance has been reiterated with sales in the range of €900 million and €1 billion ($1,026 million and $1.14 billion)
Citing Module & Inverter Overcapacity In Chinese Market Along With Developers Shifting Project Implementation To 2019, SMA Solar Brings Down Sales Guidance For 2018
(01. October 2018)
Plagued by short supply of electronic components for its production processes, solar PV inverter manufacturer SMA Solar Technology AG still managed to report higher sales and better shipments during first half of 2018.
Asia and Europe were the best performing markets for the German company, which is confident that these two regions hold also great promise for the second half of the year. Medium-sized PV systems are another segment SMA it is pinning its hopes on. Like with many other PV companies, China’s PV policy changes is supposed to leave a negative impact on SMA as well. SMA’s management expects the part of the Chinese market accessible to the company to increase by only 7% annually to €7.6 billion ($8.66 billion) by 2020. Previously, it was expecting €9.2 billion ($10.49 billion) in sales in this region.
2018 guidance reiterated
Sales of between €900 million and €1,000 million ($1,026 million and $1,140 million) and EBITDA of between €90 million and €110 million ($102 million to $125 million) are expected during fiscal year 2018. The latter will include expenses of over €10 million ($11 million) to set up the digital business. SMA last year launched a subsidiary, Coneva, which is offering smart digital power solutions.
Sticking to its full year guidance, SMA’s management assumes that no PV projects to a greater extent will be postponed in anticipation of further decreases in PV module prices. The supply situation of electronic components too is expected to improve going forward.
H1/2018 inverter sales up
SMA sold 4.3 GW of inverters during the period, gaining 13% over the 3.8 GW sold in the same period last year. Sales improved 3.5% to €394.6 million ($450 million), with business doing well in Europe, the Middle East and Africa, and APAC.
EBITDA increased to €40.9 million ($46.6 million), while gross margin was also up at 24.5%. There was an increase in net income as well that amounted to €11.2 million ($12.77 million) during H1/2018, compared to €8.8 million ($10 million) last year.
“Through product innovations that we will be launching in the most important photovoltaic markets over the next 6 to 12 months, we have already found answers to the expected price pressure in the hardware business. In addition, our expertise in energy management and the integration of battery storage systems will help us enter the higher-margin systems and service businesses,” said CEO Pierre-Pascal Urbon.