NIESTETAL (dpa-AFX) - Inverter manufacturer SMA Solar returned to profitability in the first half of the year. All three business divisions returned to profitability earlier than planned, Chief Financial Officer Barbara Gregor said Thursday in Niestetal, according to a statement. And overall, the group was also in the black with a profit of just under 52 million euros in the second quarter, compared with a loss of almost 14 million euros a year earlier. On the stock exchange, however, the slowing growth in orders disappointed; the share, which had been performing well recently, fell significantly.

In the morning, the SMA share, which is listed in the MDax, fell by slightly more than seven percent to 76.80 euros. This means that the price gains achieved since the end of March, which had driven the share to a record high of 112.70 euros, have disappeared again. The company is one of the biggest winners on the financial market from the Russian war of aggression, as the gas shortage in the summer of 2022 has highlighted the need to expand renewable energy sources.

Since the start of the war in February last year, the market capitalization of the company from northern Hesse has risen by just over 180 percent to 2.7 billion euros. One-fifth of the shares are owned by Danish heating and cooling technology group Danfoss, while 39 percent are held by the founders, their families and foundations, according to the company.

As of the end of June, SMA had orders on its books of nearly €2.45 billion. That was nearly double what it had a year ago. However, compared to just under €2.1 billion at the end of 2022, the increase was already smaller and compared to the end of the first quarter, the order backlog was almost stable.

The decline in orders, both year-on-year and quarter-on-quarter, was a cause for concern, noted Jefferies analyst Constantin Hesse. Otherwise, results looked solid and in line with expectations, he said. Profitability continues to be driven by the product mix and better capacity utilization, he added. SMA had already raised its full-year guidance at the end of June and announced earnings ranges for the operating business development expected in the first half of the year.

According to the final figures, sales in the second quarter rose by almost 64 percent year-on-year to €411.7 million. Of this, 55.7 million euros remained before interest and taxes (Ebit), compared to an operating loss of 8.3 million euros a year earlier. For the full year 2023, sales are expected to reach 1.7 to 1.85 billion euros and operating profit 190 to 230 million euros./lew/zb/mis