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

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  • SMA Group has concluded the 2023 fiscal year extremely successfully with strongย fourth quarter in the Large Scale & Project Solutions segment. ย 
  • Sales increase by 78.6% to โ‚ฌ1,904.1 million (2022: โ‚ฌ1,065.9 million).ย 
  • EBITDA improves from โ‚ฌ70.0 million to โ‚ฌ311.0 million.

Theย persistently high demand for SMA products and the delivery situation whichย has been normalized since the beginning of the year were both contributingย factors to this positive performance. Earnings before interest and taxesย (EBIT) rose from โ‚ฌ31.9 million in the 2022 fiscal year to โ‚ฌ269.5 millionย (EBIT margin in 2023: 14.2%; 2022: 3.0%). Inverter output sold in 2023 as aย whole was 20.5 GW (2022: 12.2 GW).

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All three segments could significantly improve their sales and earnings inย 2023 and contributed to the positive result. The Home Solutions segmentย increased its sales to โ‚ฌ580.2 million (2022: โ‚ฌ335.0 million) with an EBIT of โ‚ฌ148.0 million (2022: โ‚ฌ53.8 million); in the Commercial & Industrialย Solutions segment, sales rose to โ‚ฌ478.9 million (2022: โ‚ฌ290.3 million) withย an EBIT amounting to โ‚ฌ22.7 million (2022: โˆ’โ‚ฌ26.0 million); the Large Scale & Project Solutions segment increased its sales to โ‚ฌ845.0 million (2022:ย โ‚ฌ440.6 million) and achieved an EBIT of โ‚ฌ103.8 million (2022: โˆ’โ‚ฌ13.5ย million).

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โ€œIn the fourth quarter of 2023, we once again significantly increased salesย in the Large Scale & Project Solutions segment and even exceeded the upperย end of our sales forecast,โ€ said SMA CEO Jรผrgen Reinert. โ€œOverall, we can look back on a successful 2023 and are extremely satisfied with ourย operating performance. The high demand for our products and solutions, goodย production capacity utilization and our ability to deliver have resulted inย an exceptional performance in all three segments. Our segment-specificย platform strategy, which we have been consistently driving forward sinceย 2018, will enable us to respond even more quickly and efficiently toย changing customer requirements and market changes in the future.โ€

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

Against this backdrop, the Managing Board expects the SMA Group to generateย sales of between โ‚ฌ1,950 million and โ‚ฌ2,220 million and EBITDA1) of betweenย โ‚ฌ220 million and โ‚ฌ290 million in the current fiscal year 2024.

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

Author: Bryan Groenendaal

 

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