SMA achieves EBITDA margin of 16.3 percent in Q1

German inverter and system technology provider SMA Solar Technology AG has completed a very successful first quarter of 2023, achieving sales of € 367.2 million ($ 401,6 million), an increase of 66.5 percent compared to the same quarter of the previous year (€ 220.6 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 305 percent from 14.8 to 60.0 million euros ($ 65.6 million). The EBITDA margin in the first quarter of 2023 was thus 16.3 percent (Q1 2022: 6.7 percent).
The most significant increase in sales, namely 161 percent from 62.6 to 163.3 million euros, was in the business with components for smaller PV systems (Home Solutions segment). The Commercial & Industrial Solutions segment achieved sales of € 80.2 million (plus 42 percent), while the project business (Large Scale & Project Solutions segment) saw an increase of 22 percent to € 123.7 million. According to SMA, the main reasons for the positive development were »persistently high demand and improvements in the supply of electronic components, combined with positive effects from capacity utilization and the current product mix«. However, changes in the product range, planned investments and »seasonal costs« would mean that the current profitability cannot be continued »on a totally linear basis throughout the year as a whole.« The full-year forecast of 1.45 to 1.60 billion euros in sales and 135 to 175 million euros in EBITDA, which was adjusted upward at the end of March but, with an EBITDA margin of around ten percent, is below the first-quarter results, therefore remains unchanged.
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