EQS-News: SFC Energy AG posts continued strong growth and higher margins – sales forecast for 2023 raised

SFC Energy AG posts continued strong growth and higher margins – sales forecast for 2023 raised

• Group sales rise in the first nine months by 38.0% to EUR 88,030 thousand (9M/2022: EUR 63,776 thousand)
• Adjusted EBITDA of +62.0% to EUR 11,931 thousand (9M/2022: EUR 7,366 thousand)
• Adjusted EBIT more than doubles to EUR 7,561 thousand (9M/2022: EUR 3,737 thousand)
• Continued strong order book – incoming orders of EUR 89,678 thousand (9M/2022: EUR 88,290 thousand) again at the same high level of the previous year
• Strong growth in both segments – strongest regional momentum in North America and Asia
• Strong operating leverage and -performance continue to drive the increase in margins
• Update of the forecast for 2023: Range for sales increased and earnings forecast specified at the upper end of the previous forecast

Brunnthal/Munich, Germany, November 15, 2023 – SFC Energy AG (“SFC,” F3C:DE, ISIN: DE0007568578), a leading supplier of hydrogen and methanol fuel cells for stationary and mobile hybrid power solutions, published its report for the first nine months of 2023 today.

Management Board Report

Dr. Peter Podesser, CEO of SFC Energy AG: “Our strong organic growth accompanied by increased margins not only reflects a consistent and reliable development in an economic environment characterized by challenges, but also underscores our clear differentiation in the industry. SFC Energy stands out from its peer group clearly by driving growth and profitability in equal measure.

In absolute terms, sales in the North American region recorded outstanding year-on-year growth of around 47%, fueled by rising demand for fuel cell solutions for industrial applications. In relative terms, the region of Asia, and India in particular, recorded the most dynamic growth in the nine-month period, posting year-on-year growth of around 80%. These markets, with their enormous potential, will continue to be the focus of our expansion strategy next year as well.

The presentation of the prototype of the HIGH Power Platform up to 200 kW at our first Capital Markets Day and the successful commissioning of our production facility in India mark important milestones in our technological and international expansion in the past quarter. With our modular design for hydrogen fuel cell solutions up to 200 kW, we are strategically positioning ourselves to serve current market segments with more powerful fuel cells in the future and to tap into new market segments. We are also making considerable progress in expanding our core competencies in membrane technology for fuel cells. In doing so, we are meeting our customers’ expectations and making a concrete contribution to our vision of a climate-neutral society.”

Development of sales

In the first nine months of fiscal year 2023, SFC Energy once again achieved strong growth in sales of 38.0% to EUR 88,030 thousand (9M/2022: EUR 63,776 thousand ) compared to the same period of the previous year. This pleasing performance was driven equally by the two segments – Clean Energy and Clean Power Management.

Sales by segments (in EUR thousand)	9M/2023	9M/2022
Clean Energy	58,877	43,918
Clean Power Management	29,153	19,858
Total	88,030	63,776

Development of the segments

Clean Energy

The Clean Energy segment generated significant growth in sales of 34.1% to EUR 58,877 thousand in the nine-month period compared to EUR 43,918 thousand in the same period of the previous year due to the continued strong demand for fuel cell solutions – particularly for industrial applications, which account for around 63% of segment sales, as well as increased demand from the public sector (public safety). Clean Energy, whose share of sales in the overall Group declined slightly to 66.9% in the reporting period (9M/2022: 68.9%), thus remained the segment with the highest sales.

Clean Power Management

The Clean Power Management segment achieved exceptionally strong growth in sales of 46.8% to EUR 29,153 thousand in the first nine months of the year (9M/2022: EUR 19,858 thousand). On the one hand, the challenges in the procurement environment, which had significantly impacted the segment’s sales growth in the previous year, eased considerably over the course of the year, while on the other hand, the segment’s products continue to meet with high demand. As a result, the Clean Power Management segment’s share of Group sales increased to 33.1% in the reporting period (9M/2022: 31.1%).

Development of earnings

In line with the dynamic sales performance, gross profit increased by 42.6% to EUR 33,321 thousand (9M/2022: EUR 23,368 thousand). This increase was made possible by the strong sales growth combined with an increase in margins as well as improved pricing and a more attractive product mix. The resulting gross profit margin for the Group (gross profit as a percentage of sales revenue) was 37.9% in the reporting period, slightly above the previous year’s level (9M/2022: 36.6%).

The gross profit for the two segments compared to the same period of the previous year is as follows:

Gross profit by segment (in EUR thousand)	9M/2023	9M/2022
Clean Energy	25,967	18,505
Clean Power Management	7,355	4,863
Total	33,321	23,368

EBITDA adjusted for non-recurring effects rose by 62.0% to EUR 11,931 thousand in the first nine months of the year 2023 (9M/2022: EUR 7,366 thousand). The adjusted EBITDA margin increased by 2.1 percentage points to 13.6% (9M/2022: 11.5%). EBIT adjusted for non-recurring effects more than doubled compared to the previous year to EUR 7,561 thousand (9M/2022: EUR 3,737 thousand). This resulted in a significant increase in the adjusted EBIT margin to 8.6% (9M/2022: 5.9%). The Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 18.6% in the nine-month period to EUR 11,564 thousand (9M/2022: EUR 9,754 thousand). The Group’s earnings before interest and taxes (EBIT) improved by 17.4% to EUR 7,194 thousand (9M/2022: EUR 6,126 thousand). Consolidated net income for the nine-month period amounted to EUR 6,495 thousand, compared to EUR 5,254 thousand in the same period of the previous year. Accordingly, undiluted and diluted earnings per share according to IFRS increased to EUR 0.37 and EUR 0.36, respectively (9M/2022: EUR 0.35 and EUR 0.34, respectively).

Incoming orders amounted to EUR 89,678 thousand in the reporting period, slightly exceeding the previous year’s high level (9M/2022: EUR 88,290 million). The order book as of September 30, 2023, increased to EUR 75,345 thousand (September 30, 2022: EUR 55,398 thousand, December 31, 2022: EUR 74,176 thousand).

Solid balance sheet

Equity increased by EUR 6,949 thousand in the reporting period, mainly due to the positive consolidated net profit for the period, and amounted to EUR 110,386 thousand as of September 30, 2023 (December 31, 2022: EUR 103,437 thousand). This resulted in a consistently high equity ratio of 70.0% (December 31, 2022: 70.3%). SFC Energy AG is virtually free of financial debt – the net financial position (freely available cash and cash equivalents less liabilities to banks) amounted to EUR 52,854 thousand as of September 30, 2023 (December 31, 2022: EUR 60,748 thousand). Operating cash flow before changes in net working capital and income taxes (the operating result before changes in working capital) amounted to EUR 12,164 thousand in the reporting period and was therefore significantly higher than in the previous year (9M/2022: EUR 7,451 thousand).

Forecast for 2023: Sales forecast raised and earnings forecast specified at the upper end of the expected range

The continued strong demand for SFC’s products and solutions, which Management believes is also due to positive developments in the energy transition in several regions, continues to have a predominantly positive impact on SFC’s financial performance. The relevance of SFC’s product platforms is becoming increasingly important in the current market environment.

SFC continues to work consistently on efficient cost structures to improve its own competitiveness in all regions, among other objectives. Regional expansion in particular will initially result in expenses that could have a negative impact on operating earnings in the fourth quarter, however. In addition to a possible decline in sales volumes, which would simultaneously lead to a lower dilution of production overheads, a significantly weaker Euro would also have a particularly negative impact on the operating result.

Due to the economic uncertainties summarized above, the Management Board’s forecasts (including the following key performance indicators) are subject to a certain degree of uncertainty. SFC is monitoring further developments very closely and will adjust the expectations accordingly if necessary.

Sales

In view of the positive business performance in the first nine months of 2023 and the expected shipments and current order book for the fourth quarter of 2023, the Management Board now expects to exceed the previous sales forecast for the current fiscal year 2023 and is therefore raising the range for expected sales to approximately EUR 115,000 thousand to EUR 117,000 thousand (previously: EUR 107,000 thousand to EUR 111,000 thousand).

Adjusted EBITDA

Taking the positive sales trend, the results achieved in the first nine months of the fiscal year and the developments mentioned above into account, the Management Board is specifying the forecast for adjusted EBITDA to the upper end of the previous forecast and narrowing the range to approximately EUR 13,000 thousand to EUR 14,100 thousand (previously: EUR 10,500 thousand to EUR 14,100 thousand).

Adjusted EBIT

In line with the results achieved in the first nine months of the fiscal year and the expectations described above, the Management Board is also specifying the forecast for adjusted EBIT and narrowing the range to approximately EUR 7,500 thousand to EUR 8,600 thousand, which is at the upper end of the previous forecast (previously: EUR 5,000 thousand to EUR 8,600 thousand).

 

Key figures for 9M 2023/9M 2022

In EUR thousand	01/01–09/30/2023	01/01–09/30/2022
Sales	88,030	63,776
Gross profit	33,321	23,368
Gross margin	37.9%	36.6%
EBITDA	11,564	9,754
EBITDA margin	13.1%	15.3%
Adjusted EBITDA	11,931	7,366
Adjusted EBITDA margin	13.6%	11.5%
EBIT	7,194	6,126
EBIT margin	8.2%	9.6%
Adjusted EBIT	7,561	3,737
Adjusted EBIT margin	8.6%	5.9%
Consolidated net result for the period	6,495	5,254
Order booka)	75,345	55,398

a) as of September 30

Detailed financial information

SFC Energy AG’s interim statement for the third quarter of 2023 is available for download at www.sfc.com

SFC Energy AG will be holding a conference call for interested investors and journalists in English today, November 15, 2023, at 9:00 am. Please send an e-mail to [email protected] to register.

 

About SFC Energy AG

SFC Energy AG (www.sfc.com) is a leading provider of hydrogen and direct methanol fuel cells for stationary and mobile hybrid power solutions. With the Clean Energy and Clean Power Management business segments, SFC Energy is a sustainably profitable fuel cell producer. The company distributes its award-winning products worldwide and has sold more than 65,000 fuel cells to date. The company is headquartered in Brunnthal/Munich, Germany, operates production facilities in the Netherlands, Romania, India and Canada. SFC Energy AG is listed on the Deutsche Boerse Prime Standard and has been part of the selection index SDAX since 2022 (GSIN: 756857, ISIN: DE0007568578).

 

SFC Energy IR and Press Contact:
Susan Hoffmeister
Phone +49 89 125 09 03-33
Email: [email protected]
Web: sfc.com

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This release may contain forward-looking statements, estimates, opinions and projections with respect to the anticipated future performance of the company (“Forward-Looking Statements”). These Forward-Looking Statements can be identified by the use of forward-looking terminology, including, but not limited to, the terms “expects,” “plans,” “anticipates,” “expects,” “intends,” “may,” “will” or “should” or, in each case, their negative, or other variations or comparable terminology. These Forward-Looking Statements include all matters that are not historical facts. Forward-Looking Statements are based on the current views, expectations and assumptions of the Management Board of SFC Energy AG and involve significant known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Forward-Looking Statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Any Forward-Looking Statements only apply as of the date of this release. We undertake no obligation, and do not expect to publicly update, or publicly revise, any of the information, Forward-Looking Statements or the conclusions contained herein or to reflect new events or circumstances or to correct any inaccuracies which may become apparent subsequent to the date hereof, whether as a result of new information, future events or otherwise. We accept no liability whatsoever in respect of the achievement of such Forward-Looking Statements and assumptions.