Germany-based solar energy equipment supplier SMA Solar Technology reported a net income of €28.5 million (~$30.6 million), down by 44.8% YoY from €51.7 million (~$55.6 million) in Q1 2023.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to €49.9 million (~$53.6 million), down by 16.8% YoY from €60.0 million (~$64.5 million) in the corresponding quarter of the previous year.

The primary factors behind the drop in income were alterations in the product mix and a rise in the company’s overall cost structure.

The company’s sales amounted to €361.8 million (~$389.2 million), remaining consistent with the previous year’s level of €367.2 million (~$395.1 million).

Sales in the home solutions and commercial and industrial solutions sectors during the quarter were affected by normalized demand conditions and elevated inventory levels at distributors and installers.

The sales in the home solutions segment stood at €62.6 million (~$67.3 million), a decrease of 61.6%, compared to €163.3 million (~$175.7 million) in Q1 2023, while the commercial and industrial solutions segment recorded €70.5 million (~$75.8 million), down by 12% YoY from €80.2 million (~$86.2 million).

The large-scale and project solutions segment experienced substantial sales growth of 84% YoY from €123.7 million (~$133.1 million) in the same quarter of the previous year to €228.7 million (~$246 million) in Q1 of 2024.

The company reported strong sales and earnings in the large-scale and project solutions segments, while performance in the home solutions and C&I segments continued to be impacted by high inventory levels at distributors and installers.

The company said sales and earnings increases in these segments are not expected until the second half of the year.

As of March 31, 2024, the order backlog stood at €1.47 million (~$1.5 billion) against €2.47 million (~$2.6 billion) in the same period last year.

“We had a good start to the fiscal year in terms of sales, despite the decline in the Home and C&I segments, which we believe is only a temporary effect because end customer demand remains fundamentally robust worldwide,” said Jürgen Reinert, CEO of SMA.

The company reported a 79% jump in its 2023 revenue due to strong inverter sales. The company’s full-year revenue came at €1.9 billion (~$2 billion) from €1.1 billion (~$1.2 billion) last year.

Last year, Mercom reported on how solar inverter suppliers remained optimistic and met the increasing demand despite the global chip shortage.