SFC Energy reports record sales and earnings in the first half of 2023 – growth in North America and Asia significantly expanded

• Group sales rise by 49.5% to EUR 57,053 thousand (H1/2022: EUR 38,159 thousand)
• Adjusted EBITDA more than doubles to EUR 7,321 thousand (H1/2022: EUR 3,112 thousand); adjusted EBITDA margin increased to 12.8% (H1/2022: 8.2%)
• Adjusted EBIT rises significantly to EUR 4,355 thousand (H1/2022: EUR 709 thousand); adjusted EBIT margin of 7.6% (H1/2022: 1.9%)
• Consolidated net profit for the period of EUR 3,327 thousand significantly higher than in the previous year (H1/2022: EUR 369 thousand)
• Significant growth in North America (+72.8%) and Asia (+94.7%) compared to the previous year
• Order book increases to EUR 85,709 thousand as of June 30, 2023 (Dec. 31, 2022: EUR 74,176 thousand)
• Outlook for 2023 narrowed to the upper half of the range

Brunnthal/Munich, Germany, August 22, 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, reported its financial results for the first half of 2023 today.

Management Board Report

Dr. Peter Podesser, CEO of SFC Energy AG: “In the first half of the year, SFC Energy was operationally above expectation in all key financial figures. In addition, we have taken the next strategic steps in regional and technological expansion. We continued realizing exceptional revenue growth and at the same time expanded our margins significantly.

With regard to our international growth strategy, we successfully implemented further important expansion steps by founding the subsidiaries SFC Energy UK Ltd., London (UK) and SFC Energy India Pvt. Ltd, Gurgaon (India).

Our new site in India can be considered the operational highlight. In February 2023, during talks between German Chancellor Olaf Scholz and Prime Minister Narendra Modi, we gave the go-ahead together with our long-standing local partner FC TecNrgy Pvt. Ltd. for the construction of a new production facility for hydrogen and methanol fuel cells and further market development in India. After only around five months, we were able to celebrate the opening of the site in July in the presence of the German Federal Minister for Economic Affairs and Climate Action Dr. Robert Habeck. In the first half of the year, we were already able to acquire major orders for fuel cells worth over EUR 33 million to supply energy in the world’s most populous nation. With local production, we meet the requirements of the ‘Make-in-India’ regulatory framework and can benefit from the Indian government’s extensive investment programs for sustainable energy generation as part of the ‘National Green Hydrogen Mission’.”

Our growth in North America also continued to accelerate considerably in the half year under review, and the establishment of a site in the US is on the agenda for the second half of the year in order to further expand and consolidate SFC Energy’s presence and customer proximity in the important US market.

Besides the traditionally good market access directly or together with our regional partners, decades of expertise in fuel cell development and production are now bearing fruit. Capacity expansion in Germany and Romania is underway, and with the integration of membrane production in the UK and further product development towards higher performance, we are meeting our customers’ expectations and making a concrete contribution to our vision of a climate-neutral society.”

Development of orders and sales

At EUR 74,176 thousand, incoming orders in the reporting period exceeded the previous year’s level (EUR 72,512 thousand). Accordingly, the order book as of June 30, 2023, increased to EUR 85,709 thousand (December 31, 2022: EUR 74,176 thousand).

In the period from January 1 to June 30, 2023, the SFC Energy Group generated significant sales growth of 49.5% to EUR 57,053 thousand (H1/2022: EUR 38,159 thousand). This positive development resulted from both the strong organic growth of the Clean Energy segment and the exceptionally strong growth of the Clean Power Management segment. From a regional perspective, Asia and North America delivered the strongest growth in sales by posting increases of 94.7% and 72.8%, respectively. The North America region’s contribution to Group sales increased significantly to 47.2% (H1/2022: 40.8%). In addition, Asia’s share of sales increased further to 10.1% in the half year under review (H1/2022: 7.7%).

Development of the segments

Sales in the Clean Energy segment climbed by 44.8% to EUR 38,590 thousand in the first half of the year, compared to EUR 26,648 thousand the previous year. Sales of fuel cell solutions for industrial applications, which contributed approx. 2/3 to the segment sales, increased again significantly in the first half-year of 2023. Sales of fuel cell solutions for industrial applications, such as “Civil Security Technology” and “Data Transmission and Digitalization,” increased by more than 40%. Sales to customers in the core target market for public security more than doubled. The Clean Energy segment, whose share of Group sales fell slightly to 67.6% in the half-year under review (H1/2022: 69.8%), remained the segment with the highest sales. By contrast, the Clean Power Management segment’s share of Group sales increased to 32.4% (H1/2022: 30.4%). Sales in this segment increased significantly by 60.4% to EUR 18,463 thousand in the first half of the year, compared to EUR 11,510 thousand in the previous year. The increase was due to very high demand and the significant recovery from the challenging procurement environment that still prevailed the previous year.

Development of earnings

The significant 62.5% increase in gross profit to EUR 21,876 thousand (H1/2022: EUR 13,463 thousand) was mainly the result of strong organic sales growth accompanied by expansion in the margin, also due to the effectiveness of improved pricing. The resulting gross profit margin for the Group (gross profit as a percentage of sales) also rose significantly year-on-year to 38.3% in the half-year under review (H1/2022: 35.3%).

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

EBITDA adjusted for non-recurring effects more than doubled year-on-year in the first half of 2023 to EUR 7,321 thousand (H1/2022: EUR 3,112 thousand). The adjusted EBITDA margin also increased significantly year-on-year to 12.8% (H1/2022: 8.2%). The increase in adjusted EBITDA was mainly due to the strong growth in sales combines with a relatively low increase in functional costs in conjunction with the marked improvement in the gross profit margin.

EBIT adjusted for non-recurring effects also increased significantly to EUR 4,355 thousand (H1/2022: EUR 709 thousand). This resulted in a significantly higher adjusted EBIT margin of 7.6% (H1/2022: 1.9%). Group net profit for the first half of the year increased to EUR 3,327 thousand (H1/2022: EUR 369 thousand) as a result of the good operating performance and lower charges due to non-recurring effects. Undiluted and diluted earnings per share in accordance with IFRS improved to EUR 0.19 in the reporting period (H1/2022: EUR 0.03).

Balance sheet

The equity ratio was 69.5% as of June 30, 2023 (31 December 2022: 70.3%). The net financial position (freely available cash and cash equivalents less liabilities to banks) declined to EUR 54,417 thousand as of June 30, 2023 (December 31, 2022: EUR 60,748 thousand). The SFC Energy Group had 375 permanent employees (December 31, 2022: 354) on June 30, 2023.

Forecast for 2023

Based on the successful business performance in the first half of the year and the continuing good order situation as well as the improved availability of intermediate goods, the Management Board expects business to continue to develop positively in the second half of the year.

Due to the very positive development of sales in both segments in the first half of 2023, which was characterized by continued high demand momentum, the Management Board is concretizing the forecast for sales growth 2023 compared to the previous year and now expects Group sales in 2023 to be between EUR 107 million and EUR 111 million, therefore reaching the upper half of the range of the original forecast ( EUR 103 million to EUR 111 million).

The Management Board also narrowed the range for the adjusted EBITDA and the adjusted EBIT to the upper half of the original forecast. Management expects the adjusted EBITDA to reach between EUR 10.5 million and EUR 14.1 million (previous forecast: EUR 8.9 million to EUR 14.1 million) and the adjusted EBIT to reach between EUR 5.0 million and EUR 8.6 million (previous forecast: EUR 3.4 million to EUR 8.6 million).

Key figures for H1 2023/H1 2022

* As of June 30, 2023/December 31, 2022

Detailed financial information and conference call today, August 22, 2023

SFC Energy AG’s Half-Year Report 2023 is available for download at www.sfc.com.

SFC Energy AG will hold a conference call in English for interested investors and members of the press today, August 22, 2023, at 9:00 am.

Please send an email to [email protected] to register.

Capital Markets Day on September 22, 2023

Capital Markets Day of SFC Energy AG will take place on September 22, 2023, at the headquarters in Brunnthal as well as virtually. During the event, the Management Board will provide insights into recent developments and outline the future strategy. In addition, the Management will provide insight into current product developments as well as a roadmap. Institutional investors, analysts and journalists can register for Capital Markets Day at the following link: https://equityforum.de/page/sfccmd#.

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 65,000 fuel cells to date. The company is headquartered in Brunnthal/Munich and operates production facilities in Germany, 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 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.