Prodways Q2 Revenues Increase, Machine Sales Up 100%

Prodways (PWG.PA) reported a 54% revenue increase year over year for its second quarter in 2021 as the global economy recovers from the Covid-19 pandemic. Driven by the recovery of sectors like aeronautics, healthcare, and jewelry, the French industrial 3D printer manufacturer, secured revenues of €17.5 million but did not disclose its earnings figures, and will not do so until September 16, 2021, when CEO Raphaël Gorgé, is slated to comment on Prodways mid-year results.

Since the beginning of the year, the business reported a substantial increase in its revenue, driven by a noticeable uptick in machine sales of more than 100% this quarter, as well as an acceleration in its materials and software segments. As a result, these two activities posted a total growth of more than 40% in Q2 2021 compared to the same period last year, generating record-high revenues, according to the company.

Although revenues have been surprisingly high in 2021 compared to the same period in 2020, quarterly growth was mild at 5%, mainly due to the ongoing economic recovery, whereby international travel is still not fully operational everywhere, limiting business deal-making. This so-called “long economic hangover of the pandemic” has delayed industrial customer investments, machine services, and strategical AM purchases around the globe. However, Prodways management expects to take full advantage of the economic recovery momentum and the growing interest in 3D printing in the context of global supply chains challenges.

Prodways consolidated revenue for the second quarter of 2021. Image courtesy of Prodways.

Founded in 2013, Prodways is a subsidiary business of the high tech enterprise Groupe Gorgé, trading under the ticker symbol “PWG” in the Euronext Paris (ENXTPA) exchange. A specialist in industrial and professional 3D printing, Prodways offers a wide range of 3D printing systems and premium composite, hybrid, and powder materials and manufacturing and markets parts on demand, prototypes, and small production run 3D printed items in plastic and metal. The group’s 3D printing facility houses France’s largest fleet of machinery, comprising 32 printing systems, including 22 plastic printers and 10 metal printers covering all technologies available on the market.

For the second quarter of the year, Prodways revealed an upsurge in its systems and products divisions, numerous commercial successes, and material sales that have almost doubled in three years. The systems division – which includes 3D software, 3D printers, and related materials and services – exceeds its 2019 revenue level by more than 4% and is considered the best second quarter in company history. This is the result of several actions taken in 2020, which include strengthening its software business by expanding its offering to include Dassault Systèmes‘ 3DExperience platform (thanks to an ongoing partnership with the French software corporation) and increasing its production capacity of materials to meet a growing demand that is materializing in 2021.

Prodways’ 3DExperience being used for aerospace. Image courtesy of Prodways.

Similarly, Prodways’ products division – which includes the design and manufacturing of on-demand parts and medical applications – witnessed a dynamic recovery compared to the second quarter of 2020. The strong performance was driven by medical activities, particularly audiology, which posted a record high quarter and semester, exceeding its pre-crisis level. Prodways reorganized this activity in 2020 by merging three companies under the Interson-Protac banner to create a French leader in custom earmolds.

This semester, the group claims its beginning to benefit from the increase in activity thanks to the full reimbursement of hearing aids by the French social security system, coupled with the growing adoption of 3D printing solutions by audiologists. Prodways says it supplies certified audiology products made by leveraging 3D scanning techniques for taking patient impressions and then 3D printing the medical devices. Additionally, to escalate its development strategy, it acquired Creabis, a German company specializing in 3D printing services for plastic parts. The deal is expected to increase the size of its products division by adding a fleet of around 50 printers while penetrating a new growing market in Europe.

Even though the company remains positive about its record-high revenues, it has not yet reported income losses or profits for the period. However, it will likely do so in time for the publication of 2021’s first semester results in September. So far, for the full year 2020, Prodways reported income losses of €13.9 million during the March yearly earnings review. Moreover, although the company achieved an increase in revenues since the last quarter of 2020 and has kept up an accelerated growth throughout the first half of this year, analysts still anticipate an earnings loss during 2021, most likely recuperating towards the end of the year or beginning of 2022.

The total financial picture for the 3D printing industry will be examined in greater detail on September 9, 2021 at the AM Investment Strategies 2021. SmarTech Analysis and Stifel experts will join additive CEOs to discuss the state of the sector and possible investment opportunities. Register for free here.