News Article
Conergy boosts sales by 24% in Q1 2013
Hamburg-based solar company Conergy achieved significant growth in volume and sales in the first quarter of 2013 despite a difficult market environment. The effects of the substantial fall in prices at the end of 2012 extended into the first months of the current financial year and resulted in a decline in operating income. For 2013 as a whole, the Board is expecting a further rise in sales of between € 700 million and € 800 million and a slightly positive operating income (EBITDA).
"This is the best opening quarter Conergy ever recorded in terms of volume. We have gained market share, almost doubled our volume and increased sales by one quarter, despite the sustained excess capacities in the global market. This is an achievement that underlines the strength of our international sales and shows that we are still on the right track," said Conergy CEO Dr. Philip Comberg. "Although the substantial fall in prices affected our income for a large part of the first quarter, prices have become more stable and have even risen slightly in some cases since mid-March. That is why we are optimistic that our outstanding development in volume and sales will continue to positively influence our operating result over the course of the year and that we will meet our targets.
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Q1 2013: Growth in volume and sales in Germany and abroad
Conergy saw its volume increase by 83% to 128 megawatts (Q1 2012: 70 megawatts). In Europe, the solution and service provider reinforced its strong market position and excellent access to rooftops. Despite a fiercely competitive market, Conergy increased volume by 80% to a total of 95 megawatts (Q1 2012: 53 megawatts). In Spain, Conergy quadrupled its sales through exports. The markets in the UK, Greece, and France also performed well and in the same vein as the important Italian market. Despite a decline of the German market by nearly two thirds compared to the previous year, Conergy's volume remained almost at the same level in Germany and the company gained market shares. In the Asia-Pacific and America region (APAM) Conergy firmly established its strong presence and increased volume by 92% to around 33 megawatts (Q1 2012: 17 megawatts). In Thailand, Conergy tripled volume, in particular thanks to several large-scale orders that are still to be completed in the coming quarter.
Due to this positive growth in volume, sales were at a total of € 122.1 million in the first quarter of 2013, up 24% over the previous year (Q1 2012: € 98.2 million). Of this total sales figure, the European markets generated € 78.1 million (Q1 2012: € 64.7 million), representing a rise of around 21%. Asia recorded growth of just under one third at € 44.0 million (Q1 2012: € 33.5 million). Conergy generated 89% of its sales abroad, which underlines its strong international footprint.
2013: Outlook
"For 2013, we have set ourselves the goal of significantly increasing our volume. We have already made strides in meeting this goal in the first quarter," said Comberg. "To date, we have generated a large portion of our sales in the B2B segment. However, throughout the year we are seeking to achieve further growth in the higher-margin, large-scale power plant construction to achieve our goals. Major orders from Thailand made a good start for us. In addition to Thailand, we are also focusing in particular on Eastern Europe and the US market where were are currently in the process of setting up financing and interim financing solutions so that we are able to significantly expand our project-based business in those regions."
For 2013, the company is seeking a further improvement in its key performance indicators. The Board is therefore expecting a further rise in sales for the current financial year and a slightly positive EBITDA. Assuming that price levels recover, sales could reach between € 700 million and € 800 million due to a significant volume increase, up slightly over the Board's sales forecast between € 650 million and € 750 million at the beginning of the year. The main factor contributing to this success is a rise in large-scale projects in Asia and North America as well as in new export markets such as Eastern Europe.
In terms of EBITDA, the Board continues to assume that the strategic realignment is now for the most part complete and that, as sales rise, this will have a positive effect on income. Forecast expects a slightly positive EBITDA for the current financial year. As in the past, the main focus will continue to remain on generating a positive operating cash flow.
