Groupe Gorgé reports Q2 & H1 2019 financial results, strong Q2 growth for 3D printing

3D printing earnings season is getting underway again.

Groupe Gorgé, the French industrial engineering organization and parent company of 3D printer provider Prodways Group, has published financial statements for the second quarter and the first half of FY2019.

Consolidated revenue for all business segments in Q2 2019 has increased 18.5 percent to €77.4 million, compared to a Q2 2018 consolidated revenue of  €65.3 million. For the first half of 2019, the company reported $136.4 million in revenue, compared to $123 million in H1 2018.

One of three defined divisions Groupe Gorgé’s 3D Printing business, handled by Prodways, experienced strong activity in H1 2019, particularly influenced by materials sales and distribution of SOLIDWORKS software. In Q2 2019, Groupe Gorgé also disposed of Protection of High-Risk Installations subsidiaries NTS and Hoekstra. More recently, closing July 9, 2019, the company sold Cimlec Group, another subsidiary, and it has restructured the share capital of Fire Protection France. Through this activity, the company has gained more than $33 million in cash that it plans to allocate to technology development and potentially to strengthen its 3D printing activities “depending on market conditions.”

Hubcap in Geomagic for SOLIDWORKS 2019. Image via 3D Systems
Distribution of SOLIDWORKS software proved a lucrative area for Groupe Gorgé. Image via 3D Systems

Groupe Gorgé Q2 H1 2019 revenue by division

Activity at Groupe Gorgé is divided into three divisions: Protection of High-Risk Installations, Smart Safety Systems, and 3D Printing.

For Q2 and H1 2019 Smart Safety Systems, which relates to the group’s provision of robotics, aerospace and simulation products to defense, maritime and other industrial sectors, contributed the largest share of Groupe Gorgé consolidate revenue. Increasing 15.2% from €50.4 million in H1 2018, Smart Safety Systems revenue for H1 2019 was reported at €58.1 million. Of that total, Smart Safety Systems Q2 2019 revenue constituted €36.9 million, an increase of 33.4 percent compared to Q2 2018 which was €27.7 million.

Protection of High-Risk Installations, i.e. security and protection for the oil, gas and nuclear power stations, reported the second-largest revenue for Groupe Gorgé in H1 and Q2 2019. Decreasing by 3.9 percent compared to H1 2018, Protection of High-Risk Installations for H1 2019 was reported at €43.5 million. For Q2 2019, the division’s revenue was reported at €22.9 million, compared to €23.5 million in Q2 2018.

The third and final division in Groupe Gorgé’s business is 3D Pritning. Demonstrating the strongest year on year growth of each division, revenue for 3D Printing was reported at €35.3 million for H1 2019, an increase of 28.1 percent compared to H1 2018 which was reported at €27.6 million. For Q2 2019, 3D Printing revenue was reported at €17.9 million, compared to €14.1 million in Q2 2018.

Revenue (in € millions) H1 2019 H1 2018 Variance  € millions Variance percentage
Smart Safety Systems 58.1 50.4 7.7 15.28%
Protection of High-Risk Installations 43.5 45.2 -1.7 -3.76%
3D Printing 35.3 27.6 7.7 27.90%
Structure and disposals -0.5 -0.2 -0.3 150.00%
Total 136.4 123.0 13 10.89%

3D Printing at Groupe Gorgé can be further segmented, by Systems and Products, through consideration of Prodways H1 and Q2 2019 results.

The Prodways Systems division, (machines sales, materials, and software distribution) reported an H1 2019 revenue of €21.3 million, a 33.1 percent difference compared to H1 2018, which was reported at €16 million. Within H1 2019, the company’s strong SOLIDWORKS and materials sales were reinforced by the contribution of Solidscape, acquired by Prodways in Q3 2018. According to the report, Solidscape generated revenue of €3.6 million in H1 2019.

For Q2 2019, Prodways Systems’ revenue was reported at €10.8 million, compared to €8.2 million in Q2 2018.

Revenue (in € millions) H1 2019 H1 2018 Variance € millions Variance percentage
Systems 21.3 16.0 5.3 33.13%
Products 14.2 11.9 2.3 19.33%
Structure and disposals -0.2 -0.3 0.1 -33.33%
Total 35.3 27.6 8 27.90%

Prodways Products, which includes on-demand manufacturing services, and the group’s medical applications, reported a H1 2019 revenue of €14.2 million, compared to €11.9 million in H1 2018. For Q2, Products revenue was reported at €7.2 million, an increase of 18 percent compared to Q2 2018, which was €6.1 million.

Product revenue was supported in H1 2019 by sales from Surdifuse-L’Embout Français, acquired by Prodways in Q1 2019.

Groupe Gorgé outlook for H2 2019

In the outlook for the remaining half of 2019, Groupe Gorgé is targeting over 5 percent revenue growth in Smart Safety Systems, 10 percent in Protection of High-Risk Installations, and at least 15 percent in 3D Printing. According to Prodways, the group’s 3D Printing revenue will be especially pronounced in the Systems division. In Products, the company will continue to focus on medical activities. R&D efforts, particularly for Rapid Additive Forging (RAF) technology and medical sector process digitalization, will continue throughout the year.

As of June 30, 2019, Groupe Gorgé’s backlog was at €640.2 million, the company’s highest level ever, and close to triple what it was at March 31, 2019

Prodways full financial results for H1 and Q2 2019 can be accessed online. Parent company Groupe Gorgé’s earnings for H1 and Q2 2019 can be found here.

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Featured image shows Prodways high precision 3D printing. Photo by Michael Petch.