Netherlands-headquartered smart energy management tech company Alfen has raised its revenue guidance for 2022 on the back of a strong half-year’s performance to date.
The company, which makes smart grid, EV charging and energy storage system (ESS) equipment has just released its H1 2022 financial results. Alfen has bumped up its forecasted revenue guidance to €410 million (£345.5 million) to €470 million from a previously offered €350 million to €420 million.
A 78% year-on-year growth in revenues compared to the first half of 2021 was reported, going from €115.3 million to €205.5 million. Adjusted EBITDA of €37.3 million represented 18.1% of revenue, compared to H1 2021’s adjusted EBITDA of €16.9 million, which was 14.7% of revenue in that period.
Indeed, EV charging equipment accounted for €125 million in revenues over the six months reported, 202% more than in H1 2021 (€41.3 million). More than 69% of that revenue came from activities outside Alfen’s Dutch homeland. For the full-year 2021, Alfen recorded EV charging equipment revenues of €103.8 million.
However, the company did note that it expected its recent performance to be an exception rather than the rule going forward: the end of COVID19 restrictions in many markets happened as some of Alfen’s customers building inventory bought stock ahead of their expected busy summer period. Subsequent quarters are likely to see demand quieten a little, the company said.
Deals were won for projects in Central and Eastern Europe, including for a Czech supermarket chain and with a utility and local authorities in Hamburg, Germany, while Alfen has in place preferred supplier status with French energy major Totalenergies covering the Dutch tech company’s full portfolio for projects across Europe.
In energy storage, H1 2022 revenue declined 18% to €9.4 million compared with €11.5 million in H1 2021, but Alfen said it sees momentum picking up in that market in general.
In the short term however permitting and other obstacles to project completion like long waits to obtain grid connections have caused delays, the company claimed. As such, energy storage revenues are likely to be “backloaded” to the second half of the year, it said.
Finally in smart grid solutions, revenues of €71.1 million represented a 14% upswing from H1 2021’s €62.5 million revenues. With Alfen having various existing partnerships in place with grid operators, the company has benefited from a wave of investments in that area.
Several of those smart grid projects included building substations, transformers and associated infrastructure for solar PV farms in the Netherlands.
Last time Current± covered Alfen’s financial results in February, reporting the company’s full-year 2021 performance, supply chain issues were cited as an ongoing challenge it faced.
That remained the case in H1 2022, and the company said it expects challenges to be ongoing for the rest of this year and during 2023. Although it has been able to manage those challenges, the company is taking measures to maintain a grip on them, such as holding daily meetings of key personnel, engaging with Tier 2 and Tier 3 suppliers in addition to Tier 1 and making strategic payments and holding in reserve stock of inverters, batteries, containers and other key components and equipment.
