Groupe Gorgé’s Q3 2020 financials show 26 percent quarter-on-quarter revenue recovery

Groupe Gorgé, the French engineering firm and parent company of 3D printer manufacturer and service provider Prodways Group, has reported a 26 percent recovery in its revenue between consecutive Q2 and Q3 2020. However, comparative quarters, which remove seasonality, paint a different picture.

During Q3 2020, Groupe Gorgé generated €54.3 million in consolidated revenue. When compared to the €59.9 million reported in the same period last year, this figure represents a 9.3 percent decline. By contrast, the firm generated 35.2 percent less in Q2 2020 than it had done in Q2 2019, meaning that compared quarterly, Groupe Gorgé has recovered 26 percent of its revenue between Q2 and Q3 2020.

Groupe Gorgé’s 3D printing division wasn’t part of this recovery though, and its revenue fell 18.3 percent in Q3 2020 against the same period last year. The company’s share price dropped from €12.62 to €11.76 following the release of its financials but has since rebounded to €12.08.

In a statement issued alongside the results, Groupe Gorgé claimed that while its revenue was down, the group’s financials represented a “marked improvement in trends” during Q3 2020. The company went on to credit the “resilience” that its business had shown in an economic environment that was “severely disrupted by the serious health crisis.”

Groupe Gorgé recovered 26 percent of its revenue during Q3 2020 on a quarterly basis. Photo via Groupe Gorgé.
Groupe Gorgé reported a significant revenue recovery during Q3 2020, but its 3D printing subsidiary Prodways still saw an 18.3 percent decline. Photo via Groupe Gorgé.

Groupe Gorgé’s Q3 2020 financial results 

Revenue at Groupe Gorgé is reported across three main segments: Smart Safety Systems, Protection of High-Risk Installations, and 3D printing. Smart Safety Systems, which includes the Group’s revenue from its robotics, aerospace, and simulation products, contributes the largest share of the company’s consolidated revenue.

The group’s Smart Safety Systems division was the least affected by the pandemic, and it reported revenue of €21 million in Q3 2020, a 6.4 percent decline compared to the €22.5 million generated in Q3 2019. Although the segment’s commercial aviation revenue was badly impacted by COVID-19, this was partially offset by a 25.8 percent growth in its robotics business. 

During Q3 2020, Groupe Gorgé’s Protection of High-Risk Installations division improved quarter-on-quarter, and even showed a 4.9 percent increase in sales against Q2 2020. This apparent increase in customer demand wasn’t sufficient to prevent the segment’s Q3 2020 revenue from declining compared to Q3 2019 though, and it fell from €21.6 million to €19.8 million.

(in € millions) Q3 2020 Q3 2019  Change (%) 9M 2020  9M 2019  Change (%)
Smart Safety Systems 21m 22.5m -6.4 64.1m 79.6m -19.4
Protection of High-Risk Installations  19.8m 21.6m -8.3 58.3m 65.1m -10.5
3D Printing 13.1m 16m -18.3 39.9m 51.3m -22.2


Prodways’ additive recovery continues to stutter

In terms of its 3D printing division, the group continued to struggle during the third quarter, and its revenue declined from €16 million in Q3 2019 to €13.1 million in Q3 2020. Although Groupe Gorgé’s material sales benefited from its strong install base during the third quarter, its machine and software businesses failed to recover in the same way. 

The company reports its overall 3D printing figures under its Prodways subsidiary, which showed a 21.3 percent reduction in systems revenue, from €10m in Q3 2019, to €7.8 million in Q3 2020. The group has attributed its fall in machine sales to the “wait-and-see” attitude of its industrial clients towards the pandemic, who have been reluctant to spend until the wider economy is more predictable. 

Similarly, Prodways’ product division, which includes its service bureau and medical product businesses, saw its revenue reduced from €6.1 million in Q3 2019 to €5.2 million in Q3 2020. Demand for the firm’s on-demand parts continued to fall during the quarter, but its medical activities, which were hit hard by the lockdown earlier this year, have now returned to normal levels. 

Moving into Q4, the group expects to see what it describes as a “gradual recovery” in its 3D printing segment “continue in the coming months,” despite the ongoing uncertainty surrounding the pandemic. 

Groupe Gorgé’s medical activities have returned to “normal levels,” but the rest of its 3D printing business is on a “gradual” path to recovery. Photo via Groupe Gorgé.

Groupe Gorgé to continue its comeback into Q4?

Looking ahead to Q4 2020, the company intends to continue seeking growth opportunities, as it goes ahead with its contemplated merger with the ECA Group. The move will allow Groupe Gorgé to make cost-reductions by eliminating the dual listing of the companies, and follows its agreement earlier this year to acquire one of its competitors Interdam

Having recently launched its StedY engineering consultancy service, the company also intends to focus on supporting its uptake and development for the rest of the year. In terms of 3D printing activity, the group hasn’t changed its approach, but maintains that it expects to see its slow return to business growth continue for the foreseeable future. 

In a closing statement, Groupe Gorgé indicated that it was cautiously optimistic about the next quarter, but that its recovery depended on the health of the broader economy. “Groupe Gorgé’s end customers are diversified and should not be most affected by the current crisis in the long term, with the exception of civil aviation,” concluded the briefing. 

“The group’s financial situation and available cash, allow it to continue its ambitious growth with confidence,” added the statement. 

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