Sales increased by 42% compared with the first half of 2019 to €514 million (H1 2019: €363 million). The growth is mainly the result of the strong project business in the U.S. and the ongoing positive trade business in Europe. From January to June 2020, EBITDA amounted to €24 million, considerably higher than the comparative figure for the previous year (EBITDA margin: 4.7%; H1 2019: €9 million, 2.3%).
Net income improved significantly to €3 million in the first half of 2020 (H1 2019: –€14 million). Earnings per share thus amounted to €0.08 (H1 2019: –€0.41). With net cash of €201 million (December 31, 2019: €303 million) and an equity ratio of 42.1% (December 31, 2019: 37.6%), SMA has a sustainably solid balance-sheet structure.
Corona effects in Q 1 2020 – but solid business in the last half year
“We are also feeling the effects of the coronavirus crisis and generated lower sales than expected in the second quarter,” said SMA Chief Executive Officer Jürgen Reinert. “Nevertheless, we were able to significantly increase our sales and earnings year-on-year both in the first half of the year as a whole and in the second quarter of 2020, and also achieve a positive result at EBIT level.
Recovery of demand expected
This was possible only thanks to SMA‘s good IT infrastructure, the great dedication and flexibility of our employees, active supplier management, and our continuous customer support. Another very positive aspect is that we did not have to use any government support. As we had forecast, the order intake in the second quarter was lower as a result of the coronavirus crisis. However, we anticipate a global recovery in demand in the coming months. In this context, we still expect to be able to meet our sales and earnings targets. We also see good prospects for SMA in the medium and long term.
In tackling the coronavirus crisis, there is a historic opportunity to make the economy more sustainable and resilient. Use of renewable energy will play a crucial role here. Political initiatives such as the European Green Deal and U.S. presidential candidate Joe Biden’s climate protection plan are steps in the right direction. Now we need to consistently implement them. SMA is ready and ideally equipped to help shape this process with our extensive expertise and our innovative and sustainable technologies.“
Predicted sales increase to over $1 billion
Despite the continuing coronavirus crisis, the SMA Managing Board is confirming its sales and earnings guidance for the 2020 fiscal year published on February 7, 2020. It predicts a sales increase to between €1.0 billion and €1.1 billion. SMA is well positioned to gain market shares even in the current circumstances. The Managing Board is also implementing further cost reduction measures. Against this background, the SMA Managing Board is still expecting an increase in EBITDA to between €50 million and €80 million. (hcn)
