SFC Energy AG continues series of records in the first quarter of 2024 – adjusted EBIT margin more than doubled

Group sales up 45.9% to EUR 40,048 thousand (Q1/2023: EUR 27,454 thousand)
Significant increase of 168.8% in adjusted EBITDA to EUR 8,997 thousand (Q1/2023: EUR 3,347 thousand); adjusted EBITDA margin substantially higher at 22.5% (Q1/2023: 12.2%)
More than threefold increase in adjusted EBIT to EUR 7,548 thousand (Q1/2023: EUR 2,151 thousand); adjusted EBIT margin more than doubled at 18.8% (Q1/2023: 7.8%)
Consolidated net result for the period up 157.8% to EUR 5,248 thousand (Q1/2023: EUR 2,035 thousand)
Significant expansion of growth in Asia, particularly in India
Incoming orders Q1/2024: EUR 51,608 thousand; Increase in order backlog to EUR 92,848 thousand as of 31 March 2024 (31 December 2023: EUR 81,300 thousand)
Full-year forecast 2024 confirmed

Brunnthal/Munich, Germany-- SFC Energy AG (“SFC”, F3C:DE, ISIN: DE0007568578), a leading supplier of hydrogen and methanol fuel cells for stationary and mobile hybrid power solutions, published its figures for the first quarter of 2024 today.

Management Board Report

Dr Peter Podesser, CEO of SFC Energy AG: “Last year’s favourable business performance continued seamlessly in the first quarter of 2024, delivering top figures in terms of sales and profitability once again. The focus on improving our earnings sustainably in tandem with international expansion is increasingly showing up in our key figures and sets us clearly apart in our sector.

Our international expansion continues to progress in line with our growth strategy. Our production facility in India, which went into operation in the third quarter of 2023, completed its first major deliveries to customers in the public safety sector in the first quarter. Our sales team in the United States is likewise being scaled up as planned. We are also on schedule with the expansion of our new site in Cluj, Romania, and the establishment of membrane production in the UK, which is an important building block in SFC Energy’s long-term competitiveness and the achievement of greater vertical integration.

In the first quarter, a follow-up order worth a record EUR 27.8 million was awarded. This success is the result of the unwavering commitment of the entire team at SFC Energy, which is increasingly reflected in the sustainable expansion of the international footprint of our business as well as in long-term partnerships. One example of a successful partnership – both at the customer and the product level – is the series launch of the H₂Genset mobile hydrogen (electricity) generator following a successful field test at music festivals, by construction companies and telecommunications providers. Together with our partners TEST-Fuchs GmbH from Austria and the Auto AG Group from Switzerland, we have already sold preliminary units after a period of just under 24 months from the initial idea to series production, including CE certification. Similarly, our newly developed EFOY ProShelter hybrid system is now proving its capabilities under extreme weather conditions in Northern Quebec, Canada, supplying electrical power to critical telecommunications infrastructure.

At the Hanover Fair, we not only welcomed new customers and signed contracts, but also presented our EFOY H₂PowerPack X50 pilot series (“EFOY Hydrogen Power Pack X50”). With a continuous electrical power output of 50 kW, the EFOY H₂PowerPack X50 sets new standards and addresses a wider range of power requirements. Reliable, low-maintenance and emission-free output of up to 200 kW can be achieved by clustering four units. Our mobile and stationary power supply solutions based on our hydrogen and methanol fuel cells now offer a “continuous” power range from 20 W to 200 kW for a variety of customer applications.

The extremely satisfying first quarter of 2024 was driven by the Clean Energy segment and the regions of Europe and Asia. In addition, a higher operating leverage effect, thanks to disproportionately low costs relative to sales, and a favourable product mix resulted in further significant improvements in margins.

Development of orders and sales

Order intake in the reporting period came to EUR 51,608 thousand (Q1/2023: EUR 34,809 thousand). Accordingly, the Group’s order backlog widened to EUR 92,848 thousand as of March 31, 2024 (December 31, 2023: EUR 81,300 thousand).

In the period from January 1 to March 31, 2024, the SFC Energy Group generated significant growth of 45.9% in sales, which climbed to EUR 40,048 thousand (Q1/2023: EUR 27,454 thousand). This favourable performance is once again the result of strong organic growth in the Clean Energy segment. In regional terms, Asian business generated very positive impetus from India, delivering some of the strongest sales growth and significantly widening its share of Group sales to 27.4%, up from 3.5% in the previous year.

Sales by segment in EUR thousand	Q1/2024	Q1/2023
Clean Energy	30,804	17,764
Clean Power Management	9,244	9,690
Total	40,048	27,454

Development of the segments

Sales in the Clean Energy segment increased significantly by 73.4% to EUR 30,804 thousand in the first quarter of 2024, up from EUR 17,764 thousand in the same quarter of the previous year. The segment’s sales growth was driven on the one hand by fuel cell solutions for industrial applications – which made the greatest contribution to segment sales – and on the other hand by higher sales to customers in the public safety sector. Sales to industrial customers in the segment climbed by around 30% compared to the previous year. By contrast, sales to customers for private applications decreased. Clean Energy, whose share of Group sales widened significantly in the first quarter to 76.9% (Q1/2023: 64.7%), remained the segment with the highest sales. By contrast, the Clean Power Management segment’s share of Group sales contracted to 23.1% (Q1/2023: 35.3%). Sales in this segment fell slightly by 4.6% to EUR 9,224 thousand in the quarter under review, compared to EUR 9,690 thousand in the previous year. While business in Power Management solutions expanded noticeably, frequency converter business for the upstream oil and gas industry experienced a decline over the same quarter of the previous year.

Development of earnings

The sharp organic sales growth and the significant increase in the gross profit margin in both segments led to a substantial 75.2% increase in gross profit to EUR 17,893 thousand in the first quarter of 2024 (Q1/2023: EUR 10,214 thousand). The resulting gross margin for the Group came to 44.7% in the quarter under review (Q1/2023: 37.2%), significantly higher than in the same quarter of the previous year.

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

Gross profit by segment in EUR thousand	Q1/2024	Q1/2023
Clean Energy	15,296	7,648
Clean Power Management	2,597	2,566
Total	17,893	10,214

EBITDA adjusted for non-recurring effects climbed significantly in the first quarter of 2024 to EUR 8,997 thousand (Q1/2023: EUR 3,347 thousand), mainly due to the higher gross profit and the disproportionally small increase in functional costs relative to sales. The adjusted EBITDA margin also widened at an extraordinary rate compared to the previous year to 22.5% (Q1/2023: 12.2%).

EBIT adjusted for non-recurring effects rose to EUR 7,548 thousand (Q1/2023: EUR 2,151 thousand), resulting in an adjusted EBIT margin of 18.8%, which was more than double that of the previous year (Q1/2023: 7.8%). The first quarter closed with a consolidated net result for the period of EUR 5,248 thousand (Q1/2023: EUR 2,035 thousand), which corresponds to an increase of 157.8%. Undiluted and diluted earnings per share in accordance with IFRS improved in the quarter under review to EUR 0.30 and EUR 0.29 respectively (Q1/2023: EUR 0.12 and EUR 0.11 respectively).

Balance sheet

At 72.5% as of March 31, 2024, the equity ratio was broadly unchanged over the end of 2023 (72.6%). The net financial position (freely available cash and cash equivalents less liabilities to banks) increased to EUR 63,234 thousand as of March 31, 2024 (December 31, 2023: EUR 56,056 thousand). As of March 31, 2024, the SFC Energy Group had 413 permanent employees (December 31, 2023: 403).

Forecast for 2024

Following a very successful start to the 2024 financial year, which saw exceptionally strong sales growth in the Clean Energy segment, the Management Board confirms its full-year forecast for the current financial year dated February 22, 2024 and expects Group sales of between EUR 141.7 million to EUR 153.5 million (2023: EUR 118.1 million), adjusted EBITDA in the range of EUR 17.5 million to EUR 22.4 million (2023: EUR 15.2 million) and adjusted EBIT of EUR 9.8 million to EUR 14.7 million (2023: EUR 9.7 million). In particular, this forecast takes account of expenses in connection with regional expansion and the establishment of MEA production in Swindon, UK, the expansion of the service and sales subsidiary in Orem (UT), United States, and the ramp-up of the production company in Cluj, Romania, which will have a negative impact on earnings in the Clean Energy segment.

Furthermore, the Management Board assumes that there will be capacity restrictions in the production of fuel cells in the second and possibly the third quarter, depending on the availability of MEAs.

Key figures for Q1 2024/Q1 2023

in EUR thousand	01/01–03/31/2024	01/01–03/31/2023
Sales	40,048	27,453
Gross profit	17,893	10,214
Gross margin	44.7 %	37.2 %
EBITDA	8,640	3,506
EBITDA margin	21.6 %	12.8 %
Adjusted EBITDA	8,997	3,347
Adjusted EBITDA margin	22.5 %	12.2 %
EBIT	7,191	2,310
EBIT margin	18.0 %	8.4 %
Adjusted EBIT	7,548	2,151
Adjusted EBIT margin	18.8 %	7.8 %
Consolidated net result for the period	5,248	2,035
Order book*	92,848	81,300

* As of March 31, 2024/December 31, 2023

Detailed financial information

SFC Energy AG’s interim statement for the first quarter of 2024 is available at www.sfc.com.

SFC Energy AG will be holding a conference call in English for interested investors and members of the press today, May 15, 2024, at 9.00 a.m.

To register, please send an e-mail to susan.hoffmeister@sfc.com.

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 has operating subsidiaries in the Netherlands, Romania, India, UK, USA 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 AG Continues Series of Records in the First Quarter of 2024 – Adjusted EBIT Margin More Than Doubled