Prodways Fy-2023 en
Prodways Fy-2023 en
Prodways Fy-2023 en
Overall, the past exercise demonstrated Prodways Group's ability to remain profitable and maintain
sound financial discipline in this transitional year of 2023 and despite the decline in sales of new printers.
The company generated €4 million in cash from operations1 and overall generated a positive cash flow
variation.
Change Change
(in € millions) FY 2023 FY 2022
(M€) (%)
1
Cash from operations after neutralizing the cost of net financial debt and taxes and before variation of working capital requirement (BFR).
2 See the glossary in the appendix for a definition of alternative performance indicators.
1
2023 revenues: €75 million.
The revenues for the year 2023 have decreased compared to last year, mainly due to the change in
recognition of Software activity revenues since July3 (impact of -6.5 million euros, with no effect on
current EBITDA in absolute value). Furthermore, the weakness in sales of new 3D printers and associated
materials, particularly in the fourth quarter, has weighed on Prodways' performance. The Products
division remains well-oriented with a growth of +11% in 2023.
A dedicated press release on the 2023 revenue was published on February 14, 2024 (link to the press
release).
Prodways Group achieved a current EBITDA of €6 million in 2023, below last year's level but in line with
its expectations in this year of transition and investment.
This decrease in profitability of €5 million compared to the year 2022 is explained by:
To get back on track and achieve a two-digit EBITDA margin, Prodways Group has taken a number of
measures in 2023 and early 2024, including:
- The cessation of small printers activity for jewelry (see the dedicated press release on this
subject).
- The expansion of the industrial printer commercial pipeline, resulting from the
professionalization of the Sales & Marketing teams.
- Overall, reducing staff to regain an important operational lever by focusing on the profitable
activities of the group.
Depreciation and non-exceptional impairments remained at a relatively stable level. Therefore, in 2023,
Prodways Group maintains a positive operating income of €1 million.
The other elements of the operating income, for - €13,6 million, correspond to exceptional impacts
related to the decision to focus on the industrial segment for the printer activity. They include - €17
million of non-cash items (including depreciations of tangible and intangible assets and impairment) and
+ €3 million of capital gains related to the sale of Prodways Group's stake in Smilers, which has a positive
effect on cash flow.
3Accounting-wise, the recognition of revenue from this activity is changing due to Prodways Group's classification as an "agent" according to
the IFRS 15 standard starting from July 2023, whereas the company was considered a "principal" until that date. As an agent, Prodways Group
now recognizes the gross margin realized on these sales as revenue. This change therefore decreases the absolute value of recorded revenue
by €6.5 million in the second half of 2023, with no impact on the result.
2
As a reminder, this stake in Smilers was acquired in 2014 for €1.1 million in a context of the emergence
of 3D printing for the production of orthodontic alignment trays. She generated a revenue of €4 million
in April 2023 and a significant capital gain of €2.9 million.
After taking into account financial expenses and tax charges, the net result stands at - €14 million.
Prodways Group has transformed its cash result and generated a self-financing capacity of €4.1 million
in 2023, despite a year of transition and declining printer sales. The group also significantly reduced its
working capital requirement by + €1.4 million, as it had announced at the beginning of the year 2023.
The level of capex remained stable at €3.3 million, and the operations of acquiring and selling
subsidiaries brought in €2.7 million in cash (sale of the stake in Biotech Dental for €4 million and
payment of the purchase price supplement for Auditech).
Thus, Prodways Group achieved a positive cash flow variation of €2.1 million in 2023. The available cash
has therefore increased, reaching €16 million, and the net debt has therefore decreased. It remains at
a low level of - €2.9 million.
The consolidated financial statements are available in the appendix at the end of this press release.
Results by division4
Change Change
(in €million) FY 2023 FY 2022
(M€) (%)
4
The sum of the aggregates of the two divisions must be completed with intra-group eliminations and structure to obtain the consolidated
result presented above.
3
The Systems division generated €40 million in revenue in 2023, mainly impacted by Prodways Group's
change in classification from Principal to Agent as of July 1, 2023. This change results in a decrease in
revenue (- € 6.5 million compared to the old classification) without any impact on the current EBITDA in
absolute value.
The current EBITDA margin of this division was heavily impacted by the decline in printer sales in 2023
and stands at 9%. This division also benefited in 2022 from an exceptional item related to the
abandonment of a receivable in the USA.
The Products division continued to grow in 2023, by +11%, both thanks to the successful integration of
Auditech and organic performance (+5%).
This division recorded a decrease of €0.4 million in its current EBITDA in 2023, mainly due to the
strengthening of the Sales & Marketing teams during the year. These actions will begin to bear fruit in
early 2024 and should contribute to significantly larger results in the future.
The set of measures implemented and the change in revenue recognition in the Software activity
significantly modify the group's revenue profile in 2024, while structurally improving the generation of
current EBITDA in absolute value.
As an indication, if all the measures and changes previously announced had been effective from January
1st, 2023, the revenues generated by Prodways Group in 2023 would have been around €59 million5.
The measures aimed at improving the profitability of the group, combined with the reorganization and
professionalization of the Sales & Marketing teams, should produce structural effects as early as 2024.
The important elements to monitor for the coming semesters are as follows:
- The cessation of jewelry activity and the refocusing on the MovingLight® range should be
finalized by the end of the summer. This action plan will notably weigh on the profitability of
the first half of 2024 (a little over €1 million in exceptional costs), but will have a positive impact
on the current EBITDA from the second semester.
- Revenue recognition for software as an agent on a full-year basis and the transition to SaaS
mode, with a smoothing effect on revenue over time. However, this change opens up an
opportunity to gain new customers in a changing market.
For 2024, the company aims for an increase in its revenue compared to based on €59 million in 2023
and an increase in its current EBITDA rate.
5
This figure provides an indicative estimate of the revenues for the year 2023 adjusted with the following assumptions: Agent classification
in the Software activity for the entire year 2023 (vs only H2 2023 under IFRS), exclusion of the Solidscape scope, exclusion of the Cristal
scope.
4
About Prodways Group
Prodways Group is a specialist in industrial and professional 3D printing with a unique positioning as an integrated
European player. The Group has developed right across the 3D printing value chain (software, machines, materials,
parts & services) with a high value added technological industrial solution. Prodways Group offers a wide range of
3D printing systems and premium composite, hybrid and powder materials (SYSTEMS division). The company also
manufactures and markets parts on demand, prototypes and small production run 3D printed items in plastic and
metal (PRODUCTS division).
Listed on Euronext Paris (FR0012613610 – PWG), the Group reported in 2022 revenue of €81 million.
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Contacts
INVESTOR RELATIONS MEDIA CONTACT
Anne-Pauline Petureaux
Shareholders contact
Tel : +33 (0)1 53 67 36 72 / [email protected]
Disclaimer
Releases from Prodways Group may contain forward-looking declarations with statements of objectives. These forward-looking statements reflect the current
expectations of Prodways Group. Their realization, however, depends on known or unknown risks, uncertainties and other factors that may cause actual results,
performance or events to differ significantly from those previously anticipated. The risks and uncertainties that might affec t the Group's future ability to achieve its
targets are reiterated and presented in detail in our Annual financial report on Prodways Group's website (www.prodways-group.com). This list of risks, uncertainties
and other factors is not exhaustive. Other unanticipated, unknown or unpredictable factors may also have significant negative effects on the achievement of our
objectives. The current release and the information contained therein do not constitute an offer to sell or to subscribe, nor a solicitation for an order to purchase or
subscribe to shares in Prodways Group or in any subsidiaries thereof listed in whatsoever country.
5
Appendix
Definition of alternative performance indicators
- Current EBITDA: Operating income before “depreciation, amortization and provisions”, “other items of
operating income” and “Group share of the earnings of affiliated companies”.
- Income from ordinary activities: Operating income before “other items of operating income” and “Group share
of the earnings of affiliated companies”.
- Net Debt/Net Cash: Net debt/Net cash excluding lease liabilities resulting from the application of IFRS 16 and
including the value of treasury stock.
- Cash-flow from operations: Cash-flow from operating activities before change in working capital.
Quarterly Revenues
6
Consolidated income statement
7
Consolidated statement of cash flows
CASH FLOW FROM OPERATIONS (after neutralization of the net borrowing cost
4 071 10 210
and taxes)
Investing activities
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 14 096 16 897
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 16 216 14 096
8
Consolidated balance sheet
Contract assets 65 53
Lease liabilities – portion due in more than one year 5 069 4 885
Deferred tax liabilities 161 767