Siemens Gamesa registered a solid start to fiscal year 2021, supported particularly by strong performance in Offshore and Service that led to an increase in revenue year-on-year and a positive EBIT margin pre-PPA and before integration and restructuring costs.
The company also reported a strong financial position and an order book that evidences the company is well placed to capture the potential of the wind industry.
As announced in a regulatory disclosure to the CNMV, revenue increased by 15% year-on-year (y/y) in the first quarter to €2,295m, driven by strong sales performance by both Offshore and Service, but also affected negatively by currency depreciation.
Excluding this impact, revenue would have increased by 21%, to €2,427m.
Onshore sales continue to be affected by some delays in project execution as a result of restrictions on the movement of people and goods due to the COVID-19 pandemic, but this impact was lower than in the previous fiscal year, and it is expected to tail off over the coming quarters as the vaccine is rolled out.
In the three months to 31 December 2020, EBIT before PPA amortization and integration and restructuring costs was €121m (versus a loss of -€136m in the year-ago quarter), with an implied margin of 5.3% of revenue, benefiting from the strength of the product portfolio and from productivity gains in the quarter. Profitability also reflects the effect of turnaround actions. Net income attributable to SGRE shareholders amounted to €11m in Q1 FY21.
Reported revenue growth and the positive EBIT margin pre PPA and before I&R support the guidance for fiscal year 2021, announced in November 2020: revenues between €10,200m and €11,200m and an EBIT margin before PPA and I&R costs between 3% and 5%.
The solid balance sheet in the first quarter of FY21 is reflected in the financial position, with €4.4bn in committed funding lines, against which the company had drawn around €1.3bn, and total liquidity in the amount of c. €4.6bn including the cash position. Net debt stood at €476m at the end of December. ■