BRUNNTHAL (dpa-AFX) - Fuel cell supplier SFC Energy has grown strongly at the start of the new year. "We are pleased with the best first quarter in our company's history," Group CEO Peter Podesser said on Tuesday, according to a statement. The continued growth in global demand for fuel cell solutions and the ongoing efforts of politicians and society to reduce dependence on fossil energy are providing SFC Energy with a strong tailwind. The company confirmed its forecast for the full year. The share price rose strongly in early trading.

The share price recently rose by ten percent to 23.10 euros, making it by far the top performer in the small cap index SDax. In addition, the SFC Energy share climbed above the 100-day line, which serves as an indicator of the medium to long-term trend for chart-orientated investors. Since the beginning of the year, however, SFC Energy's share price has lost about eight percent.

In the first quarter, SFC Energy's sales increased by 53.3 percent to EUR 27.45 million. The fuel cell supplier achieved particularly strong growth in North America, where the company generates about half of its total revenues. Here SFC Energy also expects further significant growth impulses and therefore wanted to expand its presence in the US market in the second half of the year.

"However, not least due to the existing order backlog from India, we can also expect significant growth in Asia in 2023," said SFC Energy CEO Podesser about the region with the lowest sales to date. Overall, the company is now sitting on an order backlog of €81.6 million. In the first quarter, however, incoming orders of €34.8 million were lower than in the same period last year, when they amounted to €44.3 million.

Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) rose from 0.8 to 3.35 million euros at the start of the year, and the adjusted Ebitda margin climbed from 4.5 to 12.2 percent. "The easing of global supply chain bottlenecks and the price adjustment of our products implemented in fiscal 2022 provided a noticeable increase in profitability," Podesser said. Below the line, the SDax company earned a good two million euros, compared to a loss of just under 1.2 million euros a year ago.

SFC Energy confirmed its forecast for the full year. The company is thus still targeting sales growth to between €103 million and €111 million and adjusted Ebitda in a range of €8.9 million to €14.1 million. One trader commented that average analyst estimates for profit were in the upper half of the range and even above it for sales. Overall, he assessed the quarterly figures as moderately positive./niw/mne/tih