SFC Energy AG releases preliminary Group figures for 2023 – Further record growth and significantly improved profitability – Forecast: continued profitable growth

SFC Energy AG releases preliminary Group figures for 2023 – Further record growth and significantly improved profitability – Forecast: continued profitable growth

• Group sales grow significantly by 38.6% to EUR 118,148 thousand (2022: EUR 85,229 thousand)
• Adjusted EBITDA increases by 86.0% to EUR 15,158 thousand (2022: EUR 8,150 thousand), adjusted EBITDA margin significantly above the previous year’s level at 12.8% (2022: 9.6%)
• Adjusted EBIT more than triples to EUR 9,696 thousand (2022: EUR 3,157 thousand), adjusted EBIT margin increases to 8.2% (2022: 3.7%)
• Forecast for 2023 exceeded, also due to the strong fourth quarter characterized by an attractive product mix
• Order backlog increases to EUR 81,300 thousand as of 2023 balance sheet date (December 31, 2022: EUR 74,176 thousand)
• Internationalization bears fruit: North America and Asia the fastest-growing regions
• Significant growth in both segments: Clean Energy achieves sales growth of 37.1% and Clean Power Management sales growth of 41.7%
• Forecast for 2024: sales growth of approx. 20% to approx. 30% to EUR 141.7 million to EUR 153.5 million, adjusted EBITDA of EUR 17.5 million to EUR 22.4 million and adjusted EBIT of EUR 9.8 million to EUR 14.7 million

Brunnthal/Munich, Germany, February 22, 2024 – SFC Energy AG (“SFC,” F3C:DE, ISIN: DE0007568578), a leading supplier of hydrogen and methanol fuel cells for stationary and mobile hybrid power solutions, has announced preliminary figures for the full year 2023 and its forecast for fiscal year 2024.

Management Board Report

Dr. Peter Podesser, CEO of SFC Energy AG: “In fiscal year 2023, we achieved another record year with best marks for sales and earnings, to underscore our leading position in the field of fuel cell technologies. In particular, the strong growth in North America, our strongest sales region that grew by 43.5% compared to the previous year, demonstrates the success of our regional expansion. We will capitalize on this momentum and further expand the fast-growing US market with our newly established SFC site in Salt Lake City and plan to be up and running by the end of the first quarter of 2024.

By founding our subsidiary and establishing production in India, we have taken important steps towards international expansion. The first major deliveries from our own site are being made during the current quarter. Our presence in New Delhi/Gurgaon lays a solid foundation for sustainable expansion both in India and throughout Asia. We will also strengthen our local supply chain capabilities for the entire Group in order to leverage the enormous potential of the Indian market in the future.

In the UK, the transfer of IP, Know-how and equipment has been successfully completed, construction is progressing according to plan and production will commence in the second quarter of 2024. We have factored in the related start-up costs and consider them to be crucial investments in long-term cost and competitive advantages.

The development of hydrogen economies around the world takes longer than previously anticipated and the financial support for the energy transition through public households does not appear to be feasible as quickly or to the extent originally envisaged. Societies’ consensus on the need to decarbonize the energy infrastructure while maintaining resilience remains unchanged though and a long-term priority. This continues to drive demand for our fuel cell technologies.

As a financially stable market leader, we intend to further utilize our technological edge and established market access in order to grow disproportionately and profitably, particularly in a more challenging economic environment. We also see increasing opportunities for market consolidation and plan to actively exploit these in line with our three-pillar strategy – regional/international expansion, extending technology leadership and complementary M&A activities. This course clearly sets us apart from our peer group and underscores our clear differentiation in the industry.”

Sales and earnings performance

According to preliminary, unaudited figures, the SFC Energy Group generated strong sales growth in fiscal year 2023. Sales revenues increased by 38.6% to EUR 118,148 thousand (2022: EUR 85,229 thousand). The increase is the result of the continued high demand for fuel cell solutions in the Clean Energy segment and significant sales growth in the Clean Power Management segment due to an improved market environment in the core target industries.

According to preliminary calculations, adjusted EBITDA increased quite significantly in the 2023 reporting year by 86.0% to EUR 15,158 thousand (2022: EUR 8,150 thousand). At 12.8%, the adjusted EBITDA margin in 2023 significantly exceeded the previous year’s level (2022: 9.6%). According to preliminary calculations, EBIT adjusted for non-recurring effects more than tripled compared to the previous year to EUR 9,696 thousand (2022: EUR 3,157 thousand). The resulting adjusted EBIT margin more than doubled to 8.2% (2022: 3.7%). The considerable sales growth, the noticeable expansion of gross margins and the disproportionately low increase in adjusted functional costs compared to sales had a positive effect on adjusted EBITDA and adjusted EBIT.

Development of sales

According to preliminary figures, the Clean Energy segment achieved strong sales growth of 37.1 % to EUR 79,032 thousand (2022: EUR 57,632 thousand). In particular, demand increased in the area of energy solutions for industrial applications, including for civil security technology, data transmission, digitalization and energy as well as in the area of public safety, while sales in the area of private applications declined noticeably due to restrained consumer purchasing behavior.

According to preliminary figures, sales in the Clean Power Management segment increased by 41.7% to EUR 39,116 thousand (2022: EUR 27,597 thousand). This growth was mainly due to continued positive demand from current and new customers, both in Europe and North America. Demand from current customers in the energy sector also increased in the reporting year due to the stable market environment. Furthermore, segment sales in the previous year were particularly affected by a challenging procurement environment and supply bottlenecks in the electronics industry, which only gradually eased in the second half of 2022.

Incoming orders and order backlog

Incoming orders amounted to EUR 124,799 thousand in the reporting year (2022: EUR 127,195 thousand). The Group’s order backlog increased by around 10% to EUR 81,300 thousand as of December 31, 2023 (December 31, 2022: EUR 74,176 thousand).

Forecast for 2024

Based on the successful business performance in 2023, which once again set new records in a challenging environment, and the continued order momentum, the Management Board expects 2024 to be characterized by robust growth as well. For the current fiscal year, Group sales are expected to grow by around 20% to 30% year-on-year to approx. EUR 141.7 million to EUR 153.5 million, which will be driven more strongly by the Clean Energy segment. Demand is expected to increase in all regional markets in the 2024 reporting year, with the strongest growth momentum likely to come from North America and Asia.

For fiscal year 2024, the Management Board expects an increase in adjusted EBITDA to between EUR 17.5 million and EUR 22.4 million and thus a stable to slightly higher EBITDA margin. The further margin expansion depends on the timing of planned growth investments, in particular regional expansion, and the potential impact of higher material and procurement costs. It is assumed that the higher costs can be passed on to customers to a certain extent. Based on the planning for the Clean Energy and Clean Power Management segments, the Management Board assumes that adjusted EBIT for the Group will be between EUR 9.8 million and EUR 14.7 million in 2024. This planning takes expenses in connection with the regional expansion and the establishment of MEA production in particular into account.

Detailed financial information

The figures published in this release are preliminary and unaudited. SFC Energy AG will publish the final figures for fiscal year 2023 in its 2023 Annual Report on March 27, 2024.

SFC Energy AG will hold a conference call in English for interested investors and members of the press today, February 22, 2024, at 9:00 a.m. Please send an e-mail to susan.hoffmeister@sfc.com to register.

About SFC Energy AG 
SFC Energy AG (www.sfc.com) is a leading provider of hydrogen and direct 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, Germany and has operating subsidiaries in the Netherlands, Romania, India, the US, 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: susan.hoffmeister@sfc.com
Web: sfc.com

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This release may contain forward-looking statements, estimates, opinions and projections with respect to the 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 Board 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 apply as of 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.