Group Gorgé reports 30 percent quarterly revenue recovery for Q4 2020

Groupe Gorgé, the French engineering firm and parent company of 3D printer manufacturer and service provider Prodways Group, has continued to see a recovery in revenue during Q4 2020, as indicated by its latest financial results.

The Group posted a 30 percent recovery in its revenue from €54.3 million in Q3 2020 to €70.8 million in Q4 2020. However, by removing seasonality the year-on-year figures tell a different story, with the group’s revenue in Q4 2020 down eight percent on Q4 2019.

Group Gorgé’s 3D printing division follows the same vein, having increased its revenue by 32 percent in Q4 2020 compared to Q3 2020, but is down 13 percent on the same period last year. The company’s share price dropped from €16.40 to €15.74 following the release of its financials but has since rebounded to €16.20.

For the full fiscal year 2020, revenue for the whole group was reported at €233 million, down 13 percent compared to full-year 2019. In a statement issued alongside the results, Group Gorgé claimed the year had been “marked by the strong but brief impact” of the Covid-19 health crisis, but that despite this, its divisions had “continued to recover, almost returning to normal in the fourth quarter.”

Combined revenues across Group Gorge's portfolio, including 3D printing subsidiary Prodways, have declined compared to last year. Photo via Prodways.
Combined revenues across Group Gorge’s portfolio, including 3D printing subsidiary Prodways, have declined compared to last year. Photo via Prodways.

Group Gorgé’s Q4 2020 financial results

At the beginning of 2021, Group Gorgé completed its reorganization and unveiled a new brand identity after concluding a merger-absorption of its subsidiary ECA. Following this, the group has renamed its three divisions to Drones & Systems, Engineering & Protection Systems, and 3D printing.

The group’s Engineering and Protection Systems division posted its best quarter of the year in Q4 with a revenue of €22 million, down nine percent on Q4 2019. For the full fiscal year 2020, the division reported revenue of €80 million, down four percent organically on the full-year 2019 figure of €92 million.

Meanwhile, the Drones & Systems division’s performance was mixed, seeing a sharp decline in aeronautic activities and a hefty increase in its drones business. Revenue for the segment was down 2.5 percent overall, almost returning to Q4 2019 levels. 

(In € millions)Q4 2019Q4 2020Organic change (%)FY2019FY2020Organic change (%)
Drones & Systems32.932.1-3112.596.2-14
Engineering & Protection Systems26.721.8-991.880.1-4
3D printing2017.3-1471.357.2-20
Consolidated revenue79.470.8-8274.6233.1-13

Prodways’ Q4 3D printing performance

The 3D printing division’s Q4 2020 revenue showed a 32 percent recovery over Q3 to €17.3 million, although the statement from the group claims the segment is still “impacted by the macro-economic environment” and “health-related restrictions” seen throughout the year as a result of the pandemic. The division reported a reduction in revenue of 14 percent compared to Q4 2019, and saw higher growth in its Products division over its Systems segment, for which sales only recovered at the end of the year.

For the full year 2020, the group’s 3D printing division reported revenue of €57.2 million, a reduction of 20 percent from the division’s fiscal 2019 revenue of €71.3 million.

Going forwards with its 3D printing division, Group Gorgé is optimistic about the recent signing of contracts with a “leading global player” and two European dental specialists for the sale of liquid resins in the medical field. The partners are expected to consume “dozens of tonnes” of materials once their production stabilizes. 

Featured image shows a selection of Prodways 3D printed parts. Photo via Groupe Gorgé.
Featured image shows a selection of Prodways 3D printed parts. Photo via Groupe Gorgé.

Looking ahead to 2021

In all three of the group’s divisions, the backlog was up from the previous year across the group by three percent, which it says is a sign of strong business momentum. The group says its markets are “well-oriented” with the backlog into 2021 providing a “good level of visibility” for the year.

As a result, the group has set itself a target of sustained revenue growth throughout 2021 of almost 15 percent to €265 million, providing there is no further deterioration in the ongoing global health crisis.

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Featured image shows Groupe Gorgé recovered 30 percent of its revenue during Q4 2020 on a quarterly basis. Photo via Groupe Gorgé.