EPS of $-7.69 decreased by 150% from previous year
Gross margin of -28.1%
Net income of -64.76M
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Meyer Burger Technology AG (0QQ7.L) QQ2 2023 Results Analysis — Revenue Growth Amid Debt-Backed Liquidity Build and Material Losses (CHF)
Executive Summary
Meyer Burger delivered a clear top-line expansion in QQ2 2023 with revenue CHF 96.86 million, up approximately 70.8% year over year, and a doubling versus the prior quarter. However, the company continued to post material profitability losses as cost of revenue CHF 124.11 million outstripped revenue, resulting in a gross loss of CHF 27.25 million and a net loss of CHF 64.76 million for the quarter. EBITDA was negative at CHF -43.31 million and operating income CHF -55.83 million, underscoring that the business is in a high-capex, early-scale phase where ramping production and achieving meaningful unit economics remains the critical near-term hurdle.
The balance sheet shows a robust liquidity position driven by financing activities, with net debt close to zero (net debt CHF 6.31 million) and cash and cash equivalents of CHF 371.17 million at quarter-end. This liquidity provides optionality to fund capacity expansion and R&D as Meyer Burger works toward scale economies and margin stabilization. Capex stood at CHF 86.24 million during QQ2, contributing to a negative free cash flow of CHF -121.20 million for the quarter. While the operating cash burn remains a key risk, the company’s liquidity cushion and strategic tech roadmap (Heterojunction SmartWire and collaboration with Oxford Photovoltaics) position it to pursue a path toward profitability if volume, yield, and cost-out initiatives converge.
Looking ahead, the QQ2 2023 print implies a bifurcated risk/return profile: (1) continued negative earnings in the near term as the business scales, and (2) meaningful optionality if production ramps, yields improve, and capex-driven capacity transitions to positive unit economics. Investors should monitor execution on cost reductions, capacity utilization, and any formal guidance from management regarding ramp plans, funding needs, and timing of positive cash flow milestones.
Key Performance Indicators
Revenue
96.86M
QoQ: 100.00% | YoY:70.83%
Gross Profit
-27.25M
-28.13% margin
QoQ: -266.38% | YoY:-59.19%
Operating Income
-55.83M
QoQ: -100.00% | YoY:-73.03%
Net Income
-64.76M
QoQ: -100.00% | YoY:-57.93%
EPS
-7.69
QoQ: 0.00% | YoY:-150 684.31%
Revenue Trend
Margin Analysis
Key Insights
Revenue: CHF 96.862 million for QQ2 2023; YoY growth 70.83%; QoQ growth 100.00%.
Cost of Revenue: CHF 124.108 million; Gross Profit: CHF -27.246 million; Gross Margin: -28.13% (YoY margin around -28.13%; QoQ deterioration evident given revenue mix).
Net Income: CHF -64.764 million; Net Margin: -66.86%; EPS: -7.69 CHF.
Financial Highlights
Revenue and Profitability
- Revenue: CHF 96.862 million for QQ2 2023; YoY growth 70.83%; QoQ growth 100.00%.
- Cost of Revenue: CHF 124.108 million; Gross Profit: CHF -27.246 million; Gross Margin: -28.13% (YoY margin around -28.13%; QoQ deterioration evident given revenue mix).
- EBITDA: CHF -43.312 million; EBITDA Margin: -44.72% (EBITDA/Revenue).
- Operating Income: CHF -55.830 million; Operating Margin: -57.64%.
- Net Income: CHF -64.764 million; Net Margin: -66.86%; EPS: -7.69 CHF.
Balance Sheet and Cash Flow
- Total assets: CHF 896.57 million; Total equity: CHF 411.17 million; Total liabilities: CHF 485.40 million; Current ratio: 4.43; Quick ratio: 3.32; Cash and cash equivalents: CHF 371.17 million; Net debt: CHF 6.31 million.
- Long-term debt: CHF 349.08 million; Short-term debt: CHF 28.41 million; Total debt: CHF 377.49 million; Cash flow from operations: CHF -34.97 million; Capex (investing activities): CHF -86.24 million; Free cash flow: CHF -121.20 million; Net cash from financing activities: CHF 198.41 million; Net change in cash: CHF 78.01 million; Ending cash: CHF 371.17 million.
Efficiency and Positioning
- Current ratio tests at 4.43, indicating solid short-term liquidity; inventory CHF 145.81 million; accounts receivable CHF 10.79 million; accounts payable CHF 32.35 million.
- Revenue growth offset by higher cost structure; derived metrics imply significant leverage in cost of goods sold and operating spend, underscoring the need for scale effects to unlock margin expansion.
Interpretation
- The QQ2 2023 quarter demonstrates meaningful top-line progress, but persistently negative profitability and cash burn driven by continued capex and manufacturing ramp. The liquidity position remains robust due to financing activity but does not offset the required path to sustainable profitability.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
96.86M
70.83%
100.00%
Gross Profit
-27.25M
-59.19%
-266.38%
Operating Income
-55.83M
-73.03%
-100.00%
Net Income
-64.76M
-57.93%
-100.00%
EPS
-7.69
-150 684.31%
0.00%
Key Financial Ratios
currentRatio
4.43
grossProfitMargin
-28.1%
operatingProfitMargin
-57.6%
netProfitMargin
-66.9%
returnOnAssets
-7.22%
returnOnEquity
-15.8%
debtEquityRatio
0.92
operatingCashFlowPerShare
$-2.75
freeCashFlowPerShare
$-9.54
priceToBookRatio
5.26
priceEarningsRatio
-8.35
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Note: No earnings call transcript data were provided in the supplied material. Consequently, there are no management quotes or thematic quotes to extract and quote directly. The analysis below focuses on quantitative results and qualitative inferences that would typically be discussed in management commentary, pending official transcript availability.
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Forward Guidance
Guidance Availability: The provided QQ2 2023 data set does not include an explicit management-provided guidance for the near term. In the absence of formal guidance, the outlook hinges on operational execution and market dynamics in the solar segment.
Assessment of Achievability:
- Revenue trajectory: The YoY revenue growth of ~71% signals demand absorption and potential for scale; sustained profitability will depend on achieving meaningful operating leverage as production volumes increase and fixed costs are spread over a larger base.
- Margin optics: The current gross margin of -28.1% is a headline drag; improvement hinges on yield gains, cost reductions in raw materials, and efficiency gains in HJT/SW technology and module assembly. The company will need to translate top-line growth into positive operating leverage to approach breakeven and cash-flow-positive outcomes.
- Capital intensity: QQ2 capex of CHF 86.2m reflects ongoing capacity build. Successful cost-out programs and revenue mix shifts toward higher-margin products will be critical to converting capex into accretive cash flow.
- Financing dependency: The quarter benefited from financing activity (CHF 198.4m), which supports liquidity but increases funding dependency. A credible path to profitability without recurring equity/bond issuance would be viewed positively by investors.
Key Monitoring Factors for Investors:
- Capacity utilization and unit economics: progress on yield improvements, defect rates, and waste reduction.
- Cost structure: ongoing SG&A and opex discipline, supplier consolidation, and favorable commodity prices.
- Cash flow trajectory: transition toward positive operating cash flow and free cash flow as scale is achieved.
- Strategic milestones: any formal updates on partnerships, production milestones, or new markets (e.g., Europe, US).
Bottom line: Without an announced formal outlook, investors should weigh Meyer Burger’s liquidity cushion and potential for margin realization against execution risk from a rapid capex-driven scale-up. A cautious, but constructive stance would emphasize governance risk and the potential for a turning point upon achieving unit economics improvements.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0QQ7.L Focus
-28.13%
-57.60%
-15.80%
-8.35%
MYBUF
-28.10%
-57.60%
-15.80%
-22.33%
MBTN.SW
-28.10%
-57.60%
-15.80%
-8.35%
INSP.L
0.00%
0.00%
0.00%
0.00%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given the QQ2 2023 results, Meyer Burger presents a high-risk, high-reward profile. Near-term earnings visibility is limited due to ongoing losses, aggressive capacity expansion, and cash burn. The company’s strong liquidity and strategic tech roadmap provide optionality, but meaningful upside hinges on achieving scalable profitability. Investors should monitor: (1) unit economics as capacity scales, (2) progress on cost-reduction programs and yield improvements, (3) formal guidance or milestones from management on production ramp timing, and (4) any changes in funding strategy. Relative to global solar equipment peers, the stock carries substantial upside potential if Meyer Burger can convert top-line growth into positive cash flow and stabilize margins, but the downside risk remains elevated absent a clear profitability inflection point.
Key Investment Factors
Growth Potential
Long-term growth potential centers on Meyer Burger’s Heterojunction (HJT) and Smart Wire (SW) technologies, and the collaboration with Oxford Photovoltaics for perovskite-tandem developments. If production scales efficiently and yield improvements materialize, the company could capture higher-margin modules and expand in Europe, Asia, and North America, supported by European solar policy tailwinds.
Profitability Risk
Execution risk from scaling high-efficiency production; elevated capex requirements; reliance on external financing for liquidity; competitive pressure and price erosion from low-cost manufacturers; policy/regulatory shifts affecting solar subsidies and import protections; potential supply chain disruptions affecting material costs and timing.
Financial Position
Strong liquidity position driven by CHF 198.4m of net financing inflows, with cash of CHF 371.17m and a minimal net debt position (CHF 6.31m). However, ongoing operating losses and negative free cash flow require durable, scalable profitability or continued financing to sustain operations.
SWOT Analysis
Strengths
Advanced solar cell/module technologies (HJT and SmartWire) with potential efficiency and manufacturing advantages.
Strategic partnership with Oxford Photovoltaics for perovskite-tandem development, expanding the technology roadmap.
Strong liquidity buffer enabling continued capital expenditure and R&D without immediate distress.
Europe-focused footprint with potential policy support for domestic solar manufacturing.
Weaknesses
Sustained negative profitability in QQ2 2023 (gross margin -28.13%, net loss CHF -64.76m) indicating early-stage scale challenges.
High capex and operating expense burden relative to current revenue base; negative free cash flow.
Reliance on external financing to sustain liquidity; elevated debt load in the context of continued losses.
Opportunities
Scaling production to achieve unit economics and lever economies of scale in high-efficiency HJT cells and modules.
Expansion into new geographies and markets driven by European solar demand and regulatory incentives.
Advanced material innovations (perovskite tandem) could unlock higher-value product offerings.
Threats
Intense competition from low-cost Chinese manufacturers pressuring prices and margins.
Macro demand cycles for solar equipment and potential policy/regulatory shifts affecting subsidies and tariffs.
Execution risk in manufacturing ramp-up and supply chain management.
Meyer Burger Technology AG (0QQ7.L) QQ4 2023 Results — Severe profitability and liquidity challenges amid ramp of solar cell/module production (CHF)...