Material shortages and supply chain disruptions negatively impacted the sales and financials of solar equipment supplier SMA Solar Technology during the first half (1H) of the financial year (FY) 2022.

SMA Solar recorded total sales of €472 million (~$479.52 million), a year-over-year (YoY) dip of 3.27% from €488 million (~$495.85 million). Persistent supply chain difficulties for electronic components continue to affect SMA’s sales and earnings.

SMA’s product portfolio includes solar PV and battery inverters, PV and battery-storage systems system solutions, energy management systems, and charging solutions for electric vehicles. The company also offers digital energy services and extensive services, including operation and maintenance services for solar power projects.

The company’s net income for 1H amounted to €11.6 million (~$12 million), a drop of 13% from €13.3 million (~$14 million) during 1H 2021.

Geopolitical tensions in Ukraine and lockdowns in China caused additional disruptions in the supply chain cycle.

Owing to the persistent strained supply situation for electronic parts, the German company sold approximately 5.8 GW of inverters between January and June 2022, a 15% fall in sales compared to 6.8 GW sold in the same period last year.

The company posted an adjusted Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) of €16 million (~$16.27 million), a YoY fall of 58% from €38 million (~$39 million).

SMA’s net cash flow from operating activities during 1H 2022 totaled €14.1 million (~$14.22 million), a YoY increase of 17% from €12 million (~$12.19 million).

The gross margin for the period declined to 20.3% from 22.3% in 1H 2021, while the cost of sales amounted to €376 million (~$382 million), against €380 million (~$386.21 million) last year.

SMA’s CEO Jürgen Reinert observed, “The ongoing highly strained supply situation is taking a significant toll on the development of sales and earnings. As in numerous other industries, the difficulties relating to the supply of electronic components are also affecting European inverter manufacturers, illustrating once again the dependency of global supply chains on the Asian markets. We are expecting a significant improvement of the overall situation and profitable sales growth from 2023 onwards. We are preparing for this by building a new gigawatt factory at the Kassel site and consequently doubling our production capacity by 2024.”

The company’s selling expenses rose to €47.8 million (~$49 million), a 10% increase from €43.5 million (~$44.22 million) in the same period last year. The increase SMA said was due to implementing a reorganization project and increased appearances at trade fairs.

SMA estimates that new photovoltaic installations in the EMEA (Europe, Middle East, and Africa) region surged between 19 and 21 GW during 1H 2022 compared to 17 GW in 1H 2021, while inverter technology sales in EMEA increased to around €1.2-€1.4 billion (~$1.2-$1.43 billion) compared to €1.1 billion (~$1.118 billion) last year.

New investments in PV technologies in North and South America were between €800-€900 million (~$814-$915.20 million) compared to €800 million (~$814 million) last year.

SMA Solar posted revenue of €984 million (~$1.04 billion) for the FY 2021, a YoY dip of 4.17% from €1,027 million (~$1.49 billion) in the fiscal before.

Another inverter manufacturer, Enphase Energy, posted a revenue of $530.2 million in Q2 2022, an increase of 66% from $316.05 million in Q2 2021.