SFC Energy AG achieves record results in first quarter of 2023

SFC Energy AG achieves record results in first quarter of 2023

• Group sales 53.3% higher at EUR 27,454 thousand (Q1/2022: EUR 17,905 thousand)
• Adjusted EBITDA rises significantly by 313.8% to EUR 3,347 thousand (Q1/2022: EUR 809 thousand)
• Adjusted EBITDA margin increases to 12.2% (Q1/2022: 4.5%)
• 85.6% growth in North America compared to the previous year
• Order book increases to EUR 81,616 thousand as of March 31, 2023 (Dec. 31, 2022: EUR 74,176 thousand)

Brunnthal/Munich, Germany, May 16, 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, announced its financial results for the first quarter of 2023 today.

Management Board Report

Dr. Peter Podesser, CEO of SFC Energy AG: “We are pleased that we just recorded the best first quarter in our company’s history. We were again able to achieve strong operational growth and at the same time significantly increased our profitability. This is also a key element of our differentiation in the industry – we combine ambitious growth with a stable and continuous improvement in profitability. We are continuing on this path, which we are the only company in the industry to pursue to date.

The strong organic growth in the first quarter resulted from continued global growth in demand for fuel cell solutions and the increasing market penetration of our products. This is based on the assumptions of constantly rising (off-grid) demand for energy, continued motivation to reduce dependency on and the use of fossil fuels from society and policy makers, and the rapidly growing global acceptance of the sustainable green energy technologies necessary to achieve long-term climate targets. The easing of global supply chain bottlenecks and the price adjustments we made to our products in fiscal year 2022 resulted in a significant increase in profitability.

We were able to realize important milestones in our growth strategy in the first quarter, for both the technological and the regional expansion of our business. The pace of growth in the US is incredibly high, and comparably gratifying in Europe and Canada. In Asia, we are still seeing the after-effects of the pandemic in our business development activities and even project postponements in Singapore. Nevertheless, not least due to the current order backlog from India, we can also expect significant growth in Asia in 2023.

We are also on track with setting up production in India. The Indian army placed an initial major order in March and further projects are in the pipeline.

We have largely completed the build-up of production capacities at the site in Brunnthal, but are still experiencing delays at the Romanian site in Cluj due to outstanding permits for the conversion measures.

The technology transfer we reached an agreement on at the end of March in the area of direct methanol fuel cells (DMFCs) and the continuation of the decade-long development partnership for hydrogen products with Johnson Matthey (JM) represent a particular enrichment for our company. By acquiring JM’s equipment and technology for the production of membrane electrode assemblies (MEAs) for direct methanol fuel cells (DMFCs), we are adding a key component to our core competence. With this move, we are securing market and technology leadership in DMFCs and the supply chain. We expect significant cost advantages here in the medium term. JM is an ideal partner with regard to hydrogen fuel cells. Together, the two companies are thus accelerating the development of high-performance, low-cost core components. The new development and production site planned in the UK is a key element in this process.

Overall, we are extremely pleased with the course of business in the first quarter and sense the continuing momentum of demand in both the Clean Energy and Clean Power Management segments. Over the course of the year, we expect demand to continue to increase in the main regional markets, with significant growth impetus expected from North America. We therefore plan to strengthen our presence in the important US market in the second half of the year. We will make every effort to further accelerate both our regional expansion and our lead in technology.”

Development of orders and sales

The order book amounted to EUR 34,809 thousand in the reporting period. Accordingly, the order backlog increased to EUR 81,616 thousand as of March 31, 2023 (December 31, 2022: EUR 74,176 thousand).

In the period from January 1 to March 31, 2023, the SFC Energy Group generated significant growth in sales of 53.3% to EUR 27,454 thousand (Q1/2022: EUR 17,905 thousand). This positive development resulted from strong organic growth in both the Clean Energy segment and the Clean Power Management segment. From a regional perspective, North America delivered the strongest growth in sales, increasing by 85.6%. The North America region’s contribution to Group sales increased significantly to 50.5% (Q1/2022: 41.8%).

Development of the segments

Sales in the Clean Energy segment increased by 44.7% to EUR 17,764 thousand in the first quarter compared to EUR 12,279 thousand in the same quarter of the previous year. Sales of fuel cell solutions for industrial applications, which made the largest contribution to segment sales, increased significantly again in the reporting quarter. Sales to the segment’s industrial customers increased by around 75% compared to the same period of the previous year. By contrast, sales to customers in the public safety sector and in the area of private applications remained below the level of the previous year. The Clean Energy segment, whose share of Group sales decreased slightly to 64.7% in the reporting quarter (Q1/2022: 68.6%), remained the segment with the highest sales. By contrast, the Clean Power Management segment’s share of Group sales increased to 35.3% (Q1/2022: 31.4%). Sales in this segment increased significantly by 72.2% to EUR 9,690 thousand in the reporting quarter, compared to EUR 5,627 thousand the previous year. The increase was due to strong demand and the significant recovery from the challenging procurement environment in the same quarter of the previous year.

Development of earnings

The strong organic growth in sales and the significant increase in the margin, also due to the effectiveness of the price adjustments executed in fiscal year 2022, led to a significant increase in gross profit of 82.1% to EUR 10,214 thousand in the first quarter (Q1/2022: EUR 5,608 thousand). At 37.2% (Q1/2022: 31.3%), the resulting gross profit margin of the Group (gross profit as a percentage of sales) in the reporting quarter was significantly above the level of last year’s quarter and just above the gross profit margin for the full fiscal year 2022 (36.8%).

The gross profit for the individual segments compared to the previous year is as follows:

EBITDA adjusted for non-recurring effects increased significantly to EUR 3,347 thousand in the first quarter of 2023 (Q1/2022: EUR 809 thousand), mainly due to the significantly higher gross profit and the lower increase in functional costs relative to sales. The adjusted EBITDA margin also increased extraordinarily compared to the previous year to 12.2% (Q1/2022: 4.5%).

EBIT adjusted for non-recurring effects increased to EUR 2,151 thousand (Q1/2022: EUR -418 thousand). This resulted in an adjusted EBIT margin of 7.8% (Q1/2022: -2.3%). The first quarter closed with Group net income for the period of EUR 2,035 thousand (Q1/2022: EUR -1,178 thousand). Undiluted and diluted earnings per share according to IFRS improved to EUR 0.12 and EUR 0.11, respectively, in the reporting quarter (Q1/2022: EUR -0.08 and EUR -0.08, respectively).

Balance sheet

At 69.8%, the equity ratio as of March 31, 2023, was at roughly the same level of the balance sheet date in 2022 (70.3%). The net financial position (freely available cash and cash equivalents less liabilities to banks) declined to EUR 54,685 thousand as of March 31, 2023 (December 31, 2022: EUR 60,748 thousand). The SFC Energy Group had 353 permanent employees on March 31, 2023 (December 31, 2022: 354)

Forecast for 2023

Taking the positive performance in the first three months of 2023 and the current macroeconomic growth forecasts into account, the Management Board confirms its forecast for the current fiscal year of February 14, 2023, and expects Group sales of between EUR 103 million and EUR 111 million, adjusted EBITDA in the range of EUR 8.9 million to EUR 14.1 million, and adjusted EBIT of between EUR 3.4 million and EUR 8.6 million.

Key figures for Q1 2023/Q1 2022

* As of March 31, 2023/December 31, 2022

Detailed financial information

SFC Energy AG’s interim statement for the first 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, May 16, 2023, at 9:00 am.

Please send an email to susan.hoffmeister@sfc.com to register.

About SFC Energy AG

SFC Energy AG is a leading provider of hydrogen and 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 60,000 fuel cells to date. The Company is headquartered in Brunnthal/Munich and operates production facilities in Germany, the Netherlands, Romania, 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 Contact:
Susan Hoffmeister
Tel. +49 89 125 09 03-33
Email: susan.hoffmeister@sfc.com
Web: sfc.com

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This publication may contain forward-looking statements, estimates, opinions and projections with respect to 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 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 speak as at 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.