EQS-News

SMA Group kicks off 2024 fiscal year with sales and profitability in line with expectations - Seite 2

The Large Scale & Project Solutions segment significantly improved its profitability compared with the same quarter of the previous year thanks to the high level of sales and associated increase in productivity, achieving EBIT of €41.3 million (Q1 2023: €2.3 million). EBIT in the Home Solutions segment fell to –€3.6 million (Q1 2023: €50.3 million) as a result of the decline in sales. The Commercial & Industrial Solutions segment was also down on the previous year at –€18.2 million (Q1 2023: –€1.2 million) due to the lower level of sales and higher fixed costs overall.

“We had a good start to the fiscal year in terms of sales, despite the decline in the Home and C&I segments which we believe is only a temporary effect because end customer demand remains fundamentally robust worldwide,” said Jürgen Reinert, CEO of SMA.” We also expect positive stimuli in Germany following the recently agreed Solar Package I. The installation, expansion and modernization of solar and battery systems will become much more attractive, especially for companies and tradespeople. But Solar Package I also creates better conditions for roof-mounted installations, tenant electricity models and solar solutions in the agricultural sector.”

“The first quarter of 2024 is going according to plan and in line with our expectations,” said Barbara Gregor, CFO of SMA. “As expected, the Large Scale & Project Solutions segments continued its extremely successful sales and earnings performance. In the Home Solutions and C&I segments, operating performance continues to be significantly influenced by the high inventory levels at distributors and installers and the associated shift in incoming orders and sales. We therefore do not expect a significant increase in sales in the two segments and the associated earnings contributions until the second half of the year.“

Net income amounted to €28.5 million (Q1 2023: €51.7 million). Earnings per share thus amounted to €0.82 (Q1 2023: €1.49).

After €50.0 million in the previous year, free cash flow in the SMA Group fell to –€45.7 million due to the higher net current assets. At €241.6 million, net cash on March 31, 2024, was below the level at the end of the previous year (December 31, 2023: €283.3 million). With an equity ratio of 43.2% (December 31, 2023: 42.3%), SMA continues to have a solid equity capital base.