Sunna Design, leader in connected solar lighting, has achieved key milestones in 2021, on each of the areas of its strategic plan. First of all, this resulted in strong growth, both through the signing of major projects such as a 40 M€ contract in Togo and a 40% raise in order intakes in North America and Europe. The Group also successfully pursued the activation of commercial synergies resulting from the acquisition of SOL Inc. in 2020 and continued to expand its offering, in particular on service solutions and IoT applications. From an operational perspective and in a global context of strong tension on component supplies, Sunna Design’s teams were able to mobilize in order to ensure the continuity of production while still respecting quality, time and cost objectives. Thanks to these commercial and operational successes, Sunna Design significantly improved its financial performance in 2021, reaching operational profitability in the fourth quarter of the year. With confirmed development prospects on its three markets and an order book ensuring the beginning of an hyper-growth phase over several years, Sunna Design keeps on investing in its technologies and human resources, notably recruiting 7 talents in 2021.
Growth in large-scale projects
The development of large-scale solar lighting projects, initiated three years ago, starts paying dividends with the beginning of a 40 M€ contract to deploy 50.000 autonomous solar street lights in rural Togo along with maintenance services over 12 years, while another important contract was signed in 2021 and is due to start in 2022. These achievements demonstrate both technology excellence of Sunna Design’s solutions and the company know-how to support major contractors in the structuring and financing of large-scale impact infrastructure projects. The Togo project will concretely improve the daily life of several million Togolese in non-electrified areas.
Growth in recurring markets
Commercial investment in recurring markets (North America and Europe) has generated fast growing order intakes, with a growth rate greater than 40%. Sales networks have been significantly densified in the United States and in France, while commercial presence has started in Spain and Italy, with first order flows.
Activation of synergies with SOL
SOL Inc. integration process (historical leader in solar lighting in North America, acquired in 2020) has been completed, allowing the group to offer the most comprehensive range of solar lighting solutions in all its markets, from iSSL+ compact ranges (Sunna Design) to EverGen high-power ranges (from SOL). Cross-selling synergies of both solar ranges accounted for more than 12% of 2021 revenues, revealing their complementarity and providing added value for the clients whose different needs can be addressed through tailored solutions.
The considerable effort deployed by the supply and R&D teams made it possible to cope with the context of a global crisis on components, ensuring the continuity of the supply chain while maintaining quality levels and containing supply costs in an inflationary climate.
Investments in innovation and services
The EverGen offer initiated its first deployments outside the US, allowing clients to make the most accurate lighting choice for each project and each application. Moreover, the Services activity and IoT / Beyond Lighting segments significantly contributed to the 2021 growth, accounting for nearly 15 % of revenues, especially in the fields of security applications (autonomous cameras) and urban furniture. The development of the next generations of electronic cards also reached key milestones in preparation for launches in 2022.
Financial performance and ecosystem development
The company operational result became positive from Q4 2021. The order book suggests a phase of hyper-growth over several years, allowing for significant investments in future growth. Seven talents have joined Sunna Design in 2021, and the management team has been strengthened with the arrival of an experienced and recognized marketing director: Valentine Djidji.
The outlook for the Group’s three market segments is favorable thanks to an offer adapted to buoyant market contexts:
- Access to Energy (deployment in areas with little or no electricity): several hundred million of people in the world remain without any access to energy, creating a strong need for coverage, especially for nationwide deployments. The availability of international financing to support the deployment of such infrastructures allows an increasing number of projects to materialize.
- Urban environment and mature countries: public and private customers have a growing interest for solutions allowing them to reduce both their carbon footprint and their energy bill, a value proposition supported by our solutions; in 2021, this structural movement continues and appears to be accelerating.
- IoT and Beyond Lighting applications (deployment of Sunna Design’s platform for solar self-powering and connecting applications in the fields of security, telecom and urban furniture): the explosion in the number of IoT objects is confirmed and the values provided by our technology (resilience, easy wireless deployment, reliability) allow encouraging first successes, as well as the identification of customer cases that could potentially generate significant future volumes.
In this promising context, Sunna Design accelerates its strategic plan for 2022 and foresees the recruitment of new talents, reinforcement of its historical markets and the opening of new markets, as well as the search for accelerators through partnerships and/or acquisitions.