Aleo solar announced its half-year financial results on Tuesday, revealing that the company’s revenue to the end of June had decreased 58.9% compared to the equivalent period of 2012. Revenue for the first half of this year was €68.3 million (US$90.8 million), compared with €166.4 million (US$221.2 million) for 2012.
The H1 results also showed a greater loss overall with earnings before interest and taxes (EBIT) showing a loss of €29.3 million (US$39 million) for 2013 compared with a loss of €23.5 million (US$31.2 million) last year. This represented a fall in the EBIT margin of -27.9%, standing at -42.9% this year compared to -14.1% for 2012, with earnings per share at –€2.54 (-€ 1.87 in 2012).
The company attributed this to shrinking sales in Europe, aleo solar’s main market. Weak demand and declining prices in the region combined with falling subsidies and tariffs meant that installed PV capacity and income dropped sharply in Europe this year.
Among aleo solar’s key markets, only the USA installed a greater capacity this year than last year. Aleo took steps during 2013 to further entrench the company in the US market, offering owners of domestic installations a newly established warranty scheme for photovoltaic systems in conjunction with Assurant Insurance.
Looking at the longer term, aleo solar chief operating officer York zu Putlitz implied that a shift toward a self-consumption market for solar electricity in key European territories such as Germany and Italy would be imminent and that aleo could benefit, providing systems and training to a changing market, bolstered by its ‘strong brand’ and backed by customer loyalty.
The results did not come as a shock, mostly displaying expected outcomes as reported by PV Tech in mid-June.
Earlier this year aleo solar’s majority shareholder, engineering and consumer electronics giant Bosch, announced that it would be selling its 90.7% stake in the company. Bosch has since been seeking a buyer, but has guaranteed financing for aleo solar until the end of March 2014.