Material Shortages and Supply Disruptions Drive SMA Solar’s H1 2022 Net Income Down 13%

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Material shortages and supply chain disruptions negatively impacted solar equipment supplier’s sales and finances SMA solar technology during the first half (1H) of fiscal year (FY) 2022.

SMA Solar reported total sales of €472 million (~$479.52 million), a year-over-year (YoY) decline of 3.27% from €488 million ( ~$495.85 million). Ongoing difficulties in the electronics component supply chain continue to affect SMA’s sales and results.

SMA’s product portfolio includes solar photovoltaic and battery-powered inverters, system solutions of photovoltaic and battery storage systems, energy management systems and charging solutions for electric vehicles. The company also offers digital energy services and extended services, including operation and maintenance services for solar energy projects.

The company’s 1H net profit was €11.6m (~$12m), down 13% from €13.3m (~$14m). dollars) as of 1H 2021.

Geopolitical tensions in Ukraine and lockdowns in China have caused additional disruptions in the supply chain cycle.

Due to the continuing tight situation in the supply of electronic components, the German company sold around 5.8 GW of inverters between January and June 2022, a 15% drop in sales compared to the 6.8 GW sold at the same time last year.

The company posted adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of €16 million (~$16.27 million), down 58% year-on-year from €38 million (~$39 million).

SMA’s net cash flow from operating activities during the first half of 2022 was €14.1 million (~$14.22 million), a 17% year-over-year increase from compared to €12 million (~$12.19 million).

Gross margin for the period decreased to 20.3% from 22.3% in HY 2021, while cost of sales was €376m (~$382m) from €380m. euros (~$386.21 million) last year.

SMA CEO Jürgen Reinert said: “The still very tight supply situation weighs heavily on the development of sales and profits. As in many other industries, the difficulties related to the supply of electronic components are also affecting European inverter manufacturers, illustrating once again the dependence of global supply chains on Asian markets. We expect a significant improvement in the overall situation and profitable sales growth from 2023. We are preparing for this by building a new gigawatt plant at the Kassel site and thus doubling our production capacity by 2024.”

The company’s selling expenses reached €47.8 million (~$49 million), an increase of 10% from €43.5 million (~$44.22 million) at the same period last year. The increase according to SMA was due to the implementation of a reorganization project and increased trade show appearances.

SMA estimates that new PV installations in the EMEA (Europe, Middle East and Africa) region jumped between 19 and 21 GW in 1H 2022 from 17 GW in 1H 2021, while sales of inverter technology in the EMEA increased to approximately €1.2 to €1.4 billion (~$1.2-1.43 billion) from €1.1 billion (~$1.118 billion) in the year last.

New investments in photovoltaic technologies in North and South America were between 800 and 900 million euros (~$814 and 915.20 million) compared to 800 million euros (~$814 million) the last year.

SMA Solar reported revenue of €984 million (~$1.04 billion) for fiscal year 2021, a year-over-year decline of 4.17% from €1,027 million ( ~$1.49 billion) in the prior fiscal year.

Another inverter maker, Enphase Energy, reported revenue of $530.2 million in the second quarter of 2022, a 66% increase from $316.05 million in the second quarter of 2021.


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