Order postponement due to COVID-19 related challenges and an increase in the price of PV modules were largely responsible for a 17% annual dip in Q1/2021 sales for German solar PV inverter supplier SMA Solar Technology AG, as the management reported €240 million for the reporting quarter saying it was in line with expectations.
The major capacity was contributed by the large scale and project solutions business with €103 million, followed by its home solutions business adding €76 million, and business solutions another €61 million. It was only the home solutions business that grew from last year by 6%.
In terms of geographical contribution, 52% sales were contributed by the APAC region, followed by 36% from the Americas region, and 12% from APAC.
SMA Solar sold 3.4 GW worth of inverter capacity during the reporting quarter compared to 4.4 GW it sold in Q1/2020 (see SMA Solar Sold 4.4 GW Inverters In Q1/2020).
Nonetheless, its EBITDA improved 63% to €20 million on YoY basis which it said was driven by portfolio and cost improvements in its gross margin, while net income was €8 million, compared to none a year back. Order backlog for the inverter manufacturer increased to €836 million as on March 31, 2021, reflecting a growth of 5% compared to last year. Management shared that Q1/2021 sales and current product order backlog secures it close to 60% of 2021 annual sales guidance.
It confirmed that so far it is not impacted by the shortage of electronic components, but is keeping a 'close eye on the currently tight situation' as supply constraints may lead to projects being postponed, but SMA Solar expects the situation to improve over the next months.
Going forward, the management has reiterated its annual forecast for 2021 for sales to be between €1.075 billion to €1.175 billion, and EBITDA between €75 million and €95 million, as it sees the company benefiting from expected growth of the PV markets in Europe and America, as well as the global storage market. Cost reduction measures and continuous improvement in product portfolio will also help improve profitability, according to the company.
"The most recent political signals are extremely encouraging for medium- to long-term market developments. The EU has confirmed its commitment to a 55% reduction in greenhouse gases by 2030. For the US, President Biden has announced an infrastructure program entailing major investment in a more climate-friendly economy," said SMA Solar CEO Jürgen Reinert. "The home turf of Germany is also an attractive market for the company as the government increases installation targets."