French 3D printer manufacturer Prodways restructures

The French 3D printing manufacturer Prodways can look back on a difficult financial year in 2023. According to the latest financial report, turnover fell from 81 million euros in the previous year to 75 million euros. This was due to a change in revenue recognition for software activities and declining printer sales, particularly in the fourth quarter.

The product division with manufactured 3D printed parts recorded an 11 percent increase in turnover. Nevertheless, the challenges led to a net loss of 14 million euros at the bottom line. Earnings before interest, taxes, depreciation and amortization (EBITDA) fell from EUR 11 million to EUR 6 million, which corresponds to a margin of 8%.

Prodways cites one-off effects such as a debt waiver in the previous year, increased distribution costs and losses in the small jewelry printer segment as reasons for the decline in the margin. In order to achieve a double-digit EBITDA margin again, the company is switching its product range to more profitable industrial printers. Small 3D printers for the jewelry market will no longer be sold. Instead, Prodways wants to focus on larger systems such as the MovingLight digital light processing system for the dental sector. In the short term, these measures will impact profitability in the first half of 2024 with around 1 million euros in extraordinary costs, but should have a positive effect in the second half of the year.

Further steps include the sale of the subsidiary Cristal, which was competing with Prodways’ own customers with 3D-printed dental prostheses. Prodways will also reduce its workforce in order to save on personnel costs. Despite the restructuring and lower printer sales, Prodways still generated a positive cash flow of 2.1 million euros in 2023. Cash and cash equivalents amounted to 16 million euros and net debt was -2.9 million euros.

For 2024, the company expects a return to growth and improved margins – partly due to the exit from the jewelry printer business by the end of the year and the switch to software-as-a-service models. Translated with www.DeepL.com/Translator (free version)