L R AS Published on Tuesday 29 March 2022 - n° 399 - Categories:company results
Meyer Burger's 1st financial year as a PV manufacturer: confidence
Despite losses in 2021, Meyer Burger believes it has successfully transformed itself from a machine supplier into a photovoltaic manufacturer. The company expects to expand more rapidly than previously forecast.
The transformation from equipment supplier to panel manufacturer has been a success. The transition phase will be reflected in the 2021 accounts. Consolidated net sales fell to CHF 39.9 million (2020: CHF 90.5 million), of which CHF 8.8 million came from the first sale of 20 megawatts (MW) of PV panels. Operating profit after cost of products and services was CHF 29.2 million (2020: CHF 37.9 million). The number of employees increased, resulting in personnel costs of CHF 60.4 million (2020: CHF 53.9 million). EBITDA was CHF -72.5 million (2020: CHF -44.6 million). EBIT was CHF -85.3 million (2020: CHF -58.1 million) and net profit CHF -100.5 million (2020: CHF -64.5 million).
The company's business has grown strongly. It has 30 direct customers and 500 registered installers.
The order book is virtually full for the first half of 2022, and prices are in line with expectations. Demand is particularly strong in the Swiss domestic market.
The COVID-19 pandemic caused considerable disruption to the transformation and ramp-up of production. Unexpected short-term delivery problems have delayed the start of production to summer 2021. Staff absences were significantly higher than usual: Meyer Burger was forced to reduce the throughput of the new solar panel production in the fourth quarter of 2021 and again in early 2022. As a result, the ramp-up in production has been slower than originally planned.
The expansion of annual production capacity at the Thalheim cell production site to 1.4 GW and of annual capacity at the Freiberg panel production site to 1 GW is underway, as is planning for the expansion of the US site at Goodyear, Arizona. Annual production capacity in the US will initially be 0.4 GW and is expected to be available in 2023; the existing infrastructure at Goodyear will allow seamless expansion to 1.5 GW of solar panel production.
The ramp-up of panel production capacity at the Freiberg site to 1 GW is expected to be completed in the fourth quarter of 2022. At that point, the company expects to achieve a significantly positive operating result on a run-rate basis. Taking into account the ramp-up phases at Thalheim and Freiberg, the company expects to produce a total volume of 0.5 GW of modules in 2022. The company stresses the risk to global supply
In 2022, Meyer Burger plans to launch new products for commercial and industrial customers. Sales of solar roof tiles are planned for the second half of 2022.
Meyer Burger is accelerating its originally announced expansion plans. These envisaged a pause in development in 2023, followed by moderate growth to 7 GW by 2027. The new strategy also includes the targeted securing of supply chains for the necessary materials and components. Meyer Burger intends to accelerate its growth in large-scale photovoltaic installations
To read the annual report: https://www.meyerburger.com/de/investoren/berichte-publikationen
https://www.solarserver.de/2022/03/24/meyer-burger-jahresergebnis-2021/
SolarServer of 24 March 2022
Editor's note The most difficult period was of course the launch, which was complicated by the pandemic and supply difficulties. Having got through this period successfully, we feel that the company is well on the way to winning its bet. It will do so at the end of the financial year that has just begun, especially if it manages to produce 0.5 GW of panels, i.e. the plant's current capacity. This is further good news for European photovoltaic production, as it shows that large-scale projects can succeed.
Meyer Burger has been very lucky: its launch coincides with the problems encountered by its Chinese competitors: they have been overwhelmed by a shortage of silicon, and by price rises. This forced the management to focus on their company's internal problems, and to put the irruption of Meyer Burger on the market to one side. Meyer Burger has gradually been able to put the company's machinery in place, put the equipment into operation, find customers and collect orders for 2022.
Problems remain in China because of the pandemic (Shenfung, for example, is unable to visit its various units because of traffic restrictions, and so cannot complete its annual review!) The manufacturers will continue to be preoccupied by logistical problems and will let the Swiss continue to set up their plants.
You often need luck in a project. Meyer Burger has had a great deal of it
