Business

Groupe Gorgé surges back to growth in Q1 2021 with 9% increase in revenue

Groupe Gorgé (EPA:GOE), the French engineering firm and parent company of 3D printer manufacturer and service provider Prodways Group, has reported a return to growth within its Q1 2021 financials. 

The company generated €63.6 million in consolidated revenue during Q1 2021, a 9% increase on the €58.5 million reported in Q1 2020. While Groupe Gorgé’s first quarter growth was primarily driven by large-scale drone system sales to the Dutch and Belgian navies, its 3D printing revenue also rose by 7% between Q1 2020 and Q1 2021. 

Following a COVID-hit 2020, in which the firm’s total revenue fell by 14%, the result represents its first annual increase during any quarter since Q4 2019. In a statement issued alongside its financials, Groupe Gorgé said that its Q1 performance “confirms the relevance of its strategic orientations,” and projected that its “increased turnover should remain strong” for the year ahead.

A Prodways 3D printer and three devices running Oqton's AI software.
Groupe Gorgé has reported revenue growth of 9% within its Q1 2021 financials. Image via Prodways.

Groupe Gorgé’s Q1 2021 results 

Since Q4 2020, Groupe Gorgé has slightly adjusted its revenue reporting structure, dividing its income into the revised Drones and Systems, Engineering and Protection Systems and 3D printing segments. Thanks to a huge rise in sales generated by naval mine hunting deals, the firm’s Drones and Systems division was its highest earning in Q1 2021, raising €27.2 million and growing by 21% compared to Q1 2020. 

Over the same period, Groupe Gorgé also saw an increase in its 3D printing revenue, which rose from €15.5 million to €16.6 million. In particular, the firm’s growth was driven by a 6% rise in its Systems revenue between Q1 2020 and Q1 2021, as well as its materials and services, both of which generated record-breaking revenue over the quarter. 

Similarly, the company’s Products segment, which includes its on-demand and medical 3D printing portfolio, recorded a sales increase of nearly 10% during Q1 2021. Largely, this improvement was driven by a post-lockdown resumption of clinical services in Europe, with its audiology and customized earmolds business performing particularly well. 

Conversely, Groupe Gorgé’s Engineering & Protection Systems division reported a revenue decline of 3.4% between Q1 2020 and Q1 2021. However, when measured on an organic basis, the segment’s revenue increased by 4.5% thanks to the improved uptake of the firm’s technology consultancy offering, giving it a clean sweep of organic growth for Q1. 

(in € millions)Q1 2020Q1 2021Change (%)Organic Change (%)
Drones and Systems22.6m27.2m+20.8+20.8
Engineering and Protection Systems20.7m20m-3.4+4.5
3D Printing15.5m 16.6m+7.4+7.4
Consolidated Revenue 58.5m63.6m+8.8+11.8

Prodways leads the way 

Prodways has recently made a string of additions and improvements to its portfolio that may have contributed to the relative financial success enjoyed by its parent company during Q1 2020. At Formnext Connect, the firm announced the full roll-out of its ProMaker P1000X 3D printer, along with two revenue-generating sales to unnamed international clients. 

The company has also steadily strengthened its software expertise, announcing the addition of the 3D Super-Resolution algorithm to its MovingLight 3D printers last year. The 2021 update should significantly improve the aesthetic rendering capabilities of its machines beyond their native resolution of 42µm, allowing users to reduce the pixelation of parts without inhibiting their production efficiency.

Prodways’ recent upgrades could serve to improve its position within the dental sector, particularly when it comes to the manufacturing of orthodontic aligners. Since the firm unveiled its MovingLight updates, it has gone on to agree the sale of two machines to Polish aligner producer Brightalign, reflecting the technology’s wider dental potential. 

More recently, Prodways has also started to offer Oqton’s AI-powered software with its machines. Although the financial benefits of the platform’s integration are unlikely to be felt until later in 2021, in the near-term, its ML algorithms are expected to enable clients to further automate their production workflow, and improve machine throughput. 

A batch of Prodways 3D printed dental aligners.
Prodways’ software update should further optimize its MovingLight systems for dental aligner production. Image via Prodways.

Full steam ahead for 2021?

In terms of the year ahead, Groupe Gorgé says that it has “strengthened its presence in high-tech areas” such as robotics, 3D printing and engineering consultancy, allowing it to rely on “structurally well-oriented markets.” As a result, the company believes that it’s now well-positioned to achieve its development ambitions, and continue its sales momentum for the remainder of 2021. 

In particular, Groupe Gorgé says that it’s starting to “assert itself as a leading integrator of 3D modelling software,” and it’s increased industrial base and production capacity, will help drive future growth. At the end of March 2021, the firm’s order backlog also stood at €612 million, a 4% increase compared to March 2020, giving it a strong platform to build on over the coming year. 

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Featured image shows a Prodways 3D printer along with a computer running Oqton’s AI-driven software. Image via Prodways.

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