Supply chain difficulties translate into losses for SMA

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SMA Solar Technology AG had a difficult first half of 2022. The persistent supply difficulties with electronic components have affected the development of the company’s sales and earnings, as seen in its latest figures released on Thursday.

In the first half of the year, SMA sold PV inverters with a total power of around 5.8 GW – about one gigawatt less than in the first half of 2021. Sales fell from €488.3 million to €471.9 million year-on-year.

In particular, sales in the Home Solutions segment were lower because the high demand could not be met due to the shortage of materials. In the Commercial & Industrial Solutions and Large Scale Project Solutions segments, the higher prices ensured that sales remained at the previous year's level despite lower sales.

SMA's consolidated earnings were negative in the first half of the year. After a profit of €13.3 million in the same period last year, this time there was a loss of €10.6 million.

Despite the losses, the SMA Managing Board confirmed the March forecast for the 2022 fiscal year. The company expects sales of between €900 million and €1 billion and before interest, taxes, depreciation, and amortization (EBITDA) of between €10 million and €60 million. In the first half of 2022, EBITDA was €16 million.

In the meantime, SMA is issuing “a series of measures to improve its long-term ability to deliver,” said SMA Chief Executive Officer Jürgen Reinert. This includes the construction of a new gigawatt factory at the Kassel site, which is intended to double the company’s production capacity by 2024 in response to the growing demand for PV inverters and storage solutions.

“Our order intake is developing positively. But the continued tight delivery situation is having a significant toll on the development of sales and earnings,” said Reinert, adding, “As in numerous other industries, the difficulties relating to the supply of electronic components are also affecting European inverter manufacturers, illustrating once again the dependency of global supply chains on the Asian markets. We are expecting a significant improvement of the overall situation and profitable sales growth from 2023 onwards.”

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