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 Annual Report and audited Group figures for 2022 today.
- Audited Consolidated Financial Statements confirm preliminary figures published on February 14, 2023.
- Group sales up 32.5% to EUR 85,229 thousand (2021: EUR 64,320 thousand).
- Adjusted EBITDA increases by 30.8% to EUR 8,150 thousand (2021: EUR 6,233 thousand).
- Consolidated net income increases significantly to EUR 2,020 thousand (previous year: EUR -5,829 thousand) – Earnings per share according to IFRS basic and diluted significantly improved to EUR 0.13 (previous year: EUR -0.40).
- Order book more than doubles to EUR 74,176 thousand as of the 2022 balance sheet date (December 31, 2021: EUR 30,552 thousand) – Order intake of more than EUR 20 million since the beginning of 2023.
- Forecast for 2023: Sales to rise to EUR 103 million to EUR 111 million, adjusted EBITDA of EUR 8.9 million to EUR 14.1 million and adjusted EBIT of EUR 3.4 million to EUR 8.6 million.
“2022 was an extremely successful year for SFC Energy in which we achieved record operating figures again. Especially with our activities in the regions of North America and Asia, we were able to achieve strong growth rates in terms of sales of around 57% and around 66%, respectively, compared to 2021. We set yet another milestone in our expansion course in February this year by expanding our business activities in India. The order situation has remained dynamic in the first months of 2023 and gives us reason to be optimistic for the rest of the year and beyond. With our products, we make a very important contribution to improving our customers’ carbon footprint. These efforts pay into the long-term climate targets set by society and governments that must be achieved to ensure a responsible, ecological future. This transformation toward clean energy generation is no longer based solely on ecological conviction, however, but has also taken on a new dimension with the unfortunate geopolitical changes we are seeing. Reducing dependence on fossil fuels will therefore become a mandatory priority in many countries in the years to come. With our technology, we hold a key to making the energy supply more ecological, more environmentally friendly, and yet still reliable. This opens up huge opportunities for SFC Energy and we expect to be able to continue accelerating our growth trajectory. Investment and subsidy programs worth billions of euros at both the national and international level will also help facilitate the necessary energy turnaround,” commented Dr. Peter Podesser, CEO of SFC Energy AG.
Development of sales
In fiscal year 2022, the SFC Energy Group generated significant sales growth of 32.5% to EUR 85,229 thousand (2021: EUR 64,320 thousand). This gratifying development in a challenging environment resulted from growth in both segments, but especially in the Clean Energy segment, which achieved a particularly strong increase in sales of 35.8% due to sustained high demand for fuel cells. Overall, Group sales were thus above the forecast range of EUR 81,000 thousand to EUR 83,000 thousand in 2022.
| Sales by segments in EUR thousand | 2022 | 2021 |
| Clean Energy | 57,632 | 42,428 |
| Clean Power Management | 27,597 | 21,892 |
| Total | 85,229 | 64,320 |
Development of the segments
The Clean Energy segment in particular continued to benefit from even faster market growth and high demand for fuel cells in the reporting year. Sales increased significantly by 35.8% to EUR 57,632 thousand in 2022 compared to EUR 42,428 thousand in the previous year. Sales increased in particular in the area of industrial applications, which address the core target markets of “civil security technology,” “data transmission and digitalization,” among others, and accounted for the highest share of segment sales. In this context, the increased contribution to sales from the North America region in particular also had a positive impact on the growth of the segment. Sales of fuel cell solutions in the core target markets for private applications remained at approximately the same level as the previous year, while sales for applications in the core target markets for public safety, which accounted for the smallest share of segment sales, fell sharply. One key reason for this is the public safety market, which is generally dominated by project business. Here, there are only a few major projects whose timing of award and delivery has a significant impact on annual sales in this end customer market. At 67.6% (previous year: 66.0%), the Clean Energy segment managed to expand its share of total Group sales even further.
Sales in the Clean Power Management segment also showed significant growth of 26.1% to EUR 27,597 thousand in the reporting year (previous year: EUR 21,892 thousand). This growth was mainly based on recovering demand from current customers in the oil, gas and mining end customer market as a result of the significant increase in the price of crude oil and the improved market environment in the reporting year. Clean Power Management accounted for 32.4% of Group sales in the reporting year (previous year: 34.0%).
Due to the strong demand dynamics in the reporting year, order intake increased significantly to EUR 127,195 thousand (previous year: EUR 89,087 thousand). Accordingly, the Group’s order backlog increased to EUR 74,176 thousand as of December 31, 2022 (December 31, 2021: EUR 30,552 thousand).
Development of earnings
In the reporting year, both the increased sales contribution from the higher-margin Clean Energy segment and the segment’s gross profit margin, which was slightly higher than in the previous year, led to a 38.7% increase in consolidated gross profit to EUR 31,406 thousand (previous year: EUR 22,638 thousand). The resulting gross profit margin of the Group (gross profit as a percentage of sales) improved slightly to 36.8% (previous year: 35.2%).
Gross profit for the individual segments compared to the previous year is as follows:
| Gross profit by segment in EUR thousand |
2022 | 2021 |
| Clean Energy | 24,531 | 17,011 |
| Clean Power Management | 6,875 | 5,627 |
| Total | 31,406 | 22,638 |
EBITDA adjusted for non-recurring effects increased significantly in the reporting year to EUR 8,150 thousand (previous year: EUR 6,233 thousand) and was thus slightly above the middle of the forecast range of EUR 7,500 thousand to EUR 8,500 thousand. At 9.6%, the adjusted EBITDA margin was approximately at the level of the previous year (9.7%). EBIT adjusted for non-recurring effects increased significantly year-on-year to EUR 3,157 thousand (previous year: EUR 1,925 thousand) and was thus also within the target range of the Management Board’s expectations (EUR 2,600 thousand to EUR 3,600 thousand). This resulted in a slightly higher adjusted EBIT margin of 3.7% (previous year: 3.0%). The reporting year closed with a consolidated net result for the period of EUR 2,020 thousand (previous year: EUR -5,829 thousand). Basic and diluted earnings per share according to IFRS improved significantly to EUR 0.13 in the reporting year 2022 (previous year: EUR -0.40).
Balance sheet
The equity ratio increased to 70.3% in the reporting year (December 31, 2021: 57.3%). The net financial position (freely available cash and cash equivalents less liabilities to banks) increased to EUR 60,748 thousand as of the balance sheet date 2022 (December 31, 2021: EUR 21,888 thousand) due to the capital increase carried out in the reporting year. As of December 31, 2022, the SFC Energy Group had 354 permanent employees (December 31, 2021: 298).
Cash flow from operating activities before changes in net working capital and income taxes (the operating result before changes in working capital) amounted to EUR 8,742 thousand in the reporting year (previous year: EUR 5,977 thousand) and was thus significantly higher than in the previous year. After taking the change in net working capital into account, which increased by EUR 13,263 thousand in the year under review (previous year: EUR 4,567 thousand) with an effect on liquidity, and income tax payments, cash flow from operating activities amounted to EUR -4,761 thousand (previous year: EUR 1,078 thousand). The main reason for this high decrease was the increase in net working capital, mainly due to the increase in inventories.
Forecast for 2023
Based on how positively the business developed in 2022 with historic records achieved once again in a challenging general environment as well as the strong demand, the Management Board expects 2023 to develop dynamically as well.
Sales
For the current fiscal year, the Management Board expects Group sales to increase by 21% to 30% compared to the previous year to approximately EUR 103 million to EUR 111 million (fiscal year 2022: EUR 85.2 million), which will be driven much more strongly by the Clean Energy segment. Overall, demand is expected to continue to rise in all regional markets in the reporting year 2023, with significant growth impetus coming from North America and Asia, in particular.
Adjusted EBITDA
Bolstered by the expected dynamic development of demand, but depending on the timing of the implementation of planned growth investments – in particular in regional expansion and the extent of the expected burdens from increased material and procurement costs – the Management Board expects a moderate contraction or slight expansion in the margin for fiscal year 2023. It is assumed that the higher costs can be passed on to customers to a certain extent. Adjusted EBITDA in fiscal year 2023 is therefore expected to be approximately between EUR 8.9 million and EUR 14.1 million (fiscal year 2022: EUR 8.2 million).
Adjusted EBIT
Based on the planning of the Clean Energy and Clean Power Management segments, the Management Board expects adjusted EBIT for the Group in 2023 to be between EUR 3.4 million and EUR 8.6 million (fiscal year 2022: EUR 3.2 million).
Key figures for 2022/2021
| in EUR thousand | 01/01-12/31/2022 | 01/01-12/31/2021 | |
| Sales | 85,229 | 64,320 | |
| Gross profit | 31,406 | 22,638 | |
| Gross margin | 36.8% | 35.2% | |
| EBITDA | 8,593 | -797 | |
| EBITDA margin | 10.1% | -1.2% | |
| Adjusted EBITDA | 8,150 | 6,233 | |
| Adjusted EBITDA margin | 9.6% | 9.7% | |
| EBIT | 3,599 | -5,105 | |
| EBIT margin | 4.2% | -7.9% | |
| Adjusted EBIT | 3,157 | 1,925 | |
| Adjusted EBIT margin | 3.7% | 3.0% | |
| Consolidated net result for the period | 2,020 | -5,829 | |
| Order book* | 74,176 | 30,552 | |
* As of December 31.
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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 60,000 fuel cells to date. The Company is headquartered in Brunnthal/Munich and operates production facilities in Germany, the Netherlands, Romania, 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).
