3D printing revenue booms in Group Gorgé Q3 2017 report

The 3D printing division of independent high-tech conglomerate Groupe Gorgé (EPA:GOE) has reported a 33.4% increase in revenue for the third quarter of FY 2017. Overall the division recorded earnings of €7.1 million, compared to €5.3 million for the same period in 2016. In the first 9 months of the year, 3D printing revenue has already entered double digits, amounting to a total of €21.8 million. For comparison, 3D printing revenue for the same 9 month period 2016 was €17.7 million.

The latest financial results include by a flat performance from Systems, while Protection recorded a 8.4% decrease. 3D printing at Groupe Gorgé shows the most marked increase in revenue with a 33.4% year on year increase for the third quarter of the year.

A table of Groupe Gorgé’s consolidated revenue for Q3 2017. Image via Groupe Gorgé
Groupe Gorgé’s consolidated revenue for Q3 2017. Image via Groupe Gorgé

Accelerated R&D

Earlier in 2017, Groupe Gorgé successfully raised €50.7 million through an IPO of Prodways. The money raised in this offering has provided the division with ample resources to ramp up 3D printing research and development, and make targeted acquisitions within the sector.

In line with Q3’s report, Groupe Gorgé has confirmed that it will be accelerating effort in its Rapid Additive Forging (RAF) process, adding metal 3D printing to its existing line of laser sintering, and DLP MovingLight systems. According to the company’s official statement, “The acceleration of this programme should support the introduction of an industrial machine in February 2018. This printer, whose selling price will be much higher than that of the current Prodways Group range, will be able to produce titanium parts of 1,200x800x500mm.”

In addition, “Contrary to what had been announced during the IPO, Prodways Group now believes the acceleration of this programme could generate revenue as from 2018 for both the Systems division (machine sale or rental) and the Products division (sale of parts manufactured with Rapid Additive Forging technology).”

Titanium component produced with Prodways' RAF process. Photo via Groupe Gorge.
Titanium component produced with Prodways’ RAF process. Photo via Groupe Gorgé.

Projected annual performance 

3D printing revenue at Groupe Gorgé is attributable to two subdivisions – Systems and Products.

The Systems subdivision of Prodways, responsible for the design and sale/rent of additive manufacturing machines, recorded a 24.0% growth compared with Q3 2016. Noting a expansion in activity from the medical sector, particular in podiatry, the Products subdivision, that handles print on demand requests, was up 42.6% on the previous year.

3D printing’s success has bolstered lower level activity in Groupe Gorgé’s Protection of High-Risk Installations division which was down 10.5% compared with the first nine months of 2016. Overall, the group experienced a 2.3% year-on-year loss for Q3, with consolidated revenue of all four divisions totaling €59.3 million.

A 2017 consolidated revenue target near €300 million is maintained.

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Featured image shows Groupe Gorgé subsidiary Prodways’ range of 3D printing applications.