Meyer Burger Announces Strategic Shift and Upcoming Capital Increase in 2023 Annual Report

Meyer Burger Technology AG, a prominent manufacturer of premium solar modules and cells, outlined its strategic adjustments amidst a tumultuous year in its 2023 annual report. The company noted its challenges due to severe price undercutting in the European solar market, which hindered sales volumes. A strategic pivot towards the United States and investments in that direction significantly impacted the company's financials for the fiscal year 2023.

Despite running at a nameplate capacity of 1.4 gigawatts, Meyer Burger only managed to produce 650 megawatts of solar modules due to the adverse market conditions in Europe. This production rate failed to capitalize on economies of scale, leading to a substantial inventory build-up. The company's sales for the fiscal year 2023 stood at CHF 135.0 million, a decrease from the previous year's CHF 147.2 million.

The company recorded a considerable loss of CHF -291.9 million for the year, attributed largely to one-off effects and impairments on fixed assets and inventories due to the market's downfall. Meyer Burger's focus will now primarily be on enhancing its production and growth prospects in the U.S., with plans already set to close its module production facility in Freiberg, Germany, and concentrate on solar cell production to support its U.S. operations.

Additionally, Meyer Burger disclosed plans for a capital increase aiming to raise between CHF 200 to 250 million. This effort is expected to be bolstered by investments from its largest shareholder, Sentis Capital, and its principal U.S. customer, D.E. Shaw Renewable Investment, indicating a strong vote of confidence in the company's strategic direction.

The firm remains optimistic about its future, particularly in the U.S., where it anticipates generating a significant EBITDA. This optimism is further supported by its recent strategic decisions and potential partnerships aimed at fostering long-term growth and reducing capital intensity.