SMA large scale & project solutions offering spurs 78% increase in sales in 2023

  • SMA Group has concluded the 2023 fiscal year extremely successfully with strong fourth quarter in the Large Scale & Project Solutions segment.  
  • Sales increase by 78.6% to €1,904.1 million (2022: €1,065.9 million). 
  • EBITDA improves from €70.0 million to €311.0 million.

The persistently high demand for SMA products and the delivery situation which has been normalized since the beginning of the year were both contributing factors to this positive performance. Earnings before interest and taxes (EBIT) rose from €31.9 million in the 2022 fiscal year to €269.5 million (EBIT margin in 2023: 14.2%; 2022: 3.0%). Inverter output sold in 2023 as a whole was 20.5 GW (2022: 12.2 GW).

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All three segments could significantly improve their sales and earnings in 2023 and contributed to the positive result. The Home Solutions segment increased its sales to €580.2 million (2022: €335.0 million) with an EBIT of €148.0 million (2022: €53.8 million); in the Commercial & Industrial Solutions segment, sales rose to €478.9 million (2022: €290.3 million) with an EBIT amounting to €22.7 million (2022: −€26.0 million); the Large Scale & Project Solutions segment increased its sales to €845.0 million (2022: €440.6 million) and achieved an EBIT of €103.8 million (2022: −€13.5 million).

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“In the fourth quarter of 2023, we once again significantly increased sales in the Large Scale & Project Solutions segment and even exceeded the upper end of our sales forecast,” said SMA CEO Jürgen Reinert. “Overall, we can look back on a successful 2023 and are extremely satisfied with our operating performance. The high demand for our products and solutions, good production capacity utilization and our ability to deliver have resulted in an exceptional performance in all three segments. Our segment-specific platform strategy, which we have been consistently driving forward since 2018, will enable us to respond even more quickly and efficiently to changing customer requirements and market changes in the future.”

“We are also optimistic for the 2024 fiscal year,” said SMA CFO Barbara Gregor. “Despite the changed market conditions and the associated higher volatility compared with the previous year, we intend to continue our profitable growth overall. In the Large Scale & Project Solutions segment in particular, we expect further sales and earnings growth as a result of the high order backlog and the level of incoming orders. In the Home Solutions and Commercial & Industrial Solutions segments, we do not anticipate an increase in the order intake before the second quarter. Due to this seasonal development and our increased future investments in new products and solutions, we therefore expect a decline in sales and earnings in the Home Solutions segment compared with 2023. However, in the Commercial & Industrial Solutions segment, we are planning further slight sales growth with earnings development at around the same level as in the previous year.”

Against this backdrop, the Managing Board expects the SMA Group to generate sales of between €1,950 million and €2,220 million and EBITDA1) of between €220 million and €290 million in the current fiscal year 2024.

Construction of SMA’s new gigawatt factory in Germany in progressing well. Read more

Author: Bryan Groenendaal

 

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