Materialise NV (NASDAQ:MTLS), a leading provider of additive
manufacturing and medical software and of sophisticated 3D printing
services, today announced its financial results for the first
quarter ended March 31, 2024.
Highlights – First Quarter 2024
- Total revenue decreased by 3.4% to 63,637 kEUR compared to
65,886 kEUR for the first quarter of 2023.
- Gross profit as a percentage of revenue increased to 56.5% for
the first quarter of 2024 from 55.9% for the 2023 period.
- Adjusted EBIT decreased to 2,656 kEUR for the first quarter of
2024 from 4,998 kEUR for the 2023 period while Adjusted EBITDA
decreased to 8,094 kEUR for the first quarter of 2024 from 10,310
kEUR for the 2023 period.
- Net profit for the first quarter of 2024 was 3,585 kEUR, or
0.06 EUR per diluted share, compared to 3,715 kEUR, or 0.06 EUR per
diluted share, for the 2023 period.
CEO Brigitte de Vet-Veithen commented, “In line with
expectations our consolidated revenue decreased by 3% compared to
the same period of 2023, an exceptionally strong quarter which
showed 24% growth. In the first quarter of 2024, our Materialise
Medical segment continued to lead the way with 8% revenue growth,
while revenue declined in our Manufacturing and Software segments
amidst less favorable market conditions. While continued
investments in sustainable growth and the ongoing conversion to a
recurring revenue business model impacted our operational
profitability, we delivered a positive net result and an improved
net cash position.”
First Quarter 2024 Results
Total revenue for the first quarter of 2024 decreased 3.4% to
63,637 kEUR from 65,886 kEUR for the first quarter of 2023.
Adjusted EBIT decreased to 2,656 kEUR for the first quarter of 2024
from 4,998 kEUR for the 2023 period. The Adjusted EBIT margin
(Adjusted EBIT divided by total revenue) for the first quarter of
2024 was 4.2%, compared to 7.6% for the first quarter of 2023.
Adjusted EBITDA decreased to 8,094 kEUR for the first quarter of
2024 from 10,310 kEUR for the 2023 period.
Revenue from our Materialise Medical segment increased 7.7% to
26,183 kEUR for the first quarter of 2024 compared to 24,317 kEUR
for the same period in 2023. Segment Adjusted EBITDA increased to
7,921 kEUR for the first quarter of 2024 compared to 7,348 kEUR
while the segment Adjusted EBITDA margin remained stable at 30.3%
compared to 30.2% for the first quarter of 2023.
Revenue from our Materialise Software segment decreased by 8.0%
to 10,438 kEUR for the first quarter of 2024 from 11,350 kEUR for
the same quarter last year. Segment Adjusted EBITDA decreased to
1,090 kEUR from 2,427 kEUR while the segment Adjusted EBITDA margin
was 10.4% compared to 21.4% for the prior-year period.
Revenue from our Materialise Manufacturing segment decreased by
10.6% to 27,016 kEUR for the first quarter of 2024 from 30,219 kEUR
for the first quarter of 2023. Segment Adjusted EBITDA decreased to
1,529 kEUR from 3,189 kEUR while the segment Adjusted EBITDA margin
was 5.7% compared to 10.6% for the first quarter of 2023.
Gross profit decreased to 35,935 kEUR compared to 36,837 kEUR
for the same period last year, while gross profit as a percentage
of revenue increased to 56.5% compared to 55.9% for the first
quarter of 2023.
Research and development (“R&D”), sales and marketing
(“S&M”) and general and administrative (“G&A”) expenses
increased, in the aggregate, 5.5% to 34,138 kEUR for the first
quarter of 2024 from 32,358 kEUR for the first quarter of 2023.
Net other operating income increased to 789 kEUR from 519 kEUR
for the first quarter of 2023.
Operating result amounted to 2,585 kEUR compared to 4,998 kEUR
for the first quarter of 2023.
Net financial result increased to 1,510 kEUR compared to (566)
kEUR for the first quarter of 2023.
The first quarter of 2024 contained income tax expenses of (510)
kEUR, compared to (718) kEUR in the first quarter of 2023.
As a result of the above, net profit for the first quarter of
2024 was 3,585 kEUR, compared to 3,715 kEUR for the same period in
2023. Total comprehensive income for the first quarter of 2024,
which includes exchange differences on translation of foreign
operations, was 3,312 kEUR compared to 4,490 kEUR for the 2023
period.
At March 31, 2024, we had cash and cash equivalents of 128,899
kEUR compared to 127,573 kEUR at December 31, 2023. Gross debt
amounted to 59,686 kEUR, compared to 64,398 kEUR at December 31,
2023. As a result, our net cash position (gross debt less cash and
cash equivalents) increased by 6,038 kEUR to 69,213 kEUR.
Cash flow from operating activities for the first quarter of
2024 decreased to 9,970 kEUR from 11,044 kEUR for the same period
in 2023. Total cash out from capital expenditures for the first
quarter of 2024 amounted to 2,830 kEUR.
Net shareholders’ equity at March 31, 2024 was 239,977 kEUR
compared to 236,594 kEUR at December 31, 2023.
2024 Guidance
Mrs. de Vet-Veithen concluded, “The fundamentals of our three
business segments are strong and we remain confident that we are
well positioned to deliver on our growth objectives. We continue to
expect to report consolidated revenue for the full fiscal year 2024
within the 265,000 to 275,000 kEUR range we communicated in our
year-end 2023 earnings announcement in February 2024. We are also
maintaining our Adjusted EBIT guidance of 11,000 kEUR to 14,000
kEUR for fiscal year 2024.”
Non-IFRS Measures
Materialise uses EBIT, EBITDA, Adjusted EBIT and Adjusted EBITDA
as supplemental financial measures of its financial performance.
EBIT is calculated as net profit plus income taxes, financial
expenses (less financial income) and shares of profit or loss in a
joint venture. EBITDA is calculated as net profit plus income
taxes, financial expenses (less financial income), shares of profit
or loss in a joint venture and depreciation and amortization.
Adjusted EBIT and Adjusted EBITDA are determined by adding
share-based compensation expenses, acquisition-related expenses of
business combinations, impairments and revaluation of fair value
due to business combinations to EBIT and EBITDA, respectively.
Management believes these non-IFRS measures to be important
measures as they exclude the effects of items which primarily
reflect the impact of financing decisions and, in the case of
EBITDA and Adjusted EBITDA, long term investment, rather than the
performance of the company’s day-to-day operations. The company
also uses segment Adjusted EBITDA to evaluate the performance of
its three business segments. As compared to net profit, these
measures are limited in that they do not reflect the cash
requirements necessary to service interest or principal payments on
the company’s indebtedness and, in the case of EBITDA and Adjusted
EBITDA, these measures are further limited in that they do not
reflect the periodic costs of certain capitalized tangible and
intangible assets used in generating revenues in the company’s
business, or the changes associated with impairments. Management
evaluates such items through other financial measures such as
financial expenses, capital expenditures and cash flow provided by
operating activities. The company believes that these measurements
are useful to measure a company’s ability to grow or as a valuation
measurement. The company’s calculation of EBIT, EBITDA, Adjusted
EBIT and Adjusted EBITDA may not be comparable to similarly titled
measures reported by other companies. EBIT, EBITDA, Adjusted EBIT
and Adjusted EBITDA should not be considered as alternatives to net
profit or any other performance measure derived in accordance with
IFRS. The company’s presentation of EBIT, EBITDA, Adjusted EBIT and
Adjusted EBITDA should not be construed to imply that its future
results will be unaffected by unusual or non-recurring items.
Exchange Rate
This document contains translations of certain euro amounts into
U.S. dollars at specified rates solely for the convenience of
readers. Unless otherwise noted, all translations from euros to
U.S. dollars in this document were made at a rate of EUR 1.00 to
USD 1.0811, the reference rate of the European Central Bank on
March 28, 2024.
Conference Call and Webcast
Materialise will hold a conference call and simultaneous webcast
to discuss its financial results for the first quarter of 2024 on
Thursday, April 25, 2024, at 8:30 a.m. ET/2:30 p.m. CET. Company
participants on the call will include Brigitte de Vet-Veithen,
Chief Executive Officer and Koen Berges, Chief Financial Officer. A
question-and-answer session will follow management’s remarks.
To access the call by phone, please click the link below at
least 15 minutes prior to the scheduled start time and you will be
provided with dial-in details. Participants can choose to dial in
or receive a call to connect to Materialise’s conference call.
-
https://register.vevent.com/register/BIb413a8f0638448a2b9b49116612e00d9
The conference call will also be broadcast live over the
Internet with an accompanying slide presentation, which can be
accessed on the company’s website at
http://investors.materialise.com. A webcast of the conference call
will be archived on the company's website for one year.
About Materialise
Materialise incorporates over 30 years of 3D printing experience
into a range of software solutions and 3D printing services, which
form the backbone of the 3D printing industry. Materialise’s open
and flexible solutions enable players in a wide variety of
industries, including healthcare, automotive, aerospace, art and
design, and consumer goods, to build innovative 3D printing
applications that aim to make the world a better and healthier
place. Headquartered in Belgium, with branches worldwide,
Materialise combines one of the largest groups of software
developers in the industry with one of the largest and most
complete 3D printing facilities in the world. For additional
information, please visit: www.materialise.com.
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, regarding, among other things, our intentions, beliefs,
assumptions, projections, outlook, analyses or current
expectations, plans, objectives, strategies and prospects, both
financial and business, including statements concerning, among
other things, our estimates for the current fiscal year’s revenue
and Adjusted EBIT, our results of operations, cash needs, capital
expenditures, expenses, financial condition, liquidity, prospects,
growth and strategies (including how our business, results of
operations and financial condition could be impacted by the current
armed conflicts in the Middle East and Ukraine and governmental
responses thereto, inflation, increased labor, energy and materials
costs), and the trends and competition that may affect the markets,
industry or us. Such statements are subject to known and unknown
uncertainties and risks. When used in this press release, the words
“estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,”
“believe,” “forecast,” “will,” “may,” “could,” “might,” “aim,”
“should,” and variations of such words or similar expressions are
intended to identify forward-looking statements. These
forward-looking statements are based upon the expectations of
management under current assumptions at the time of this press
release. These expectations, beliefs and projections are expressed
in good faith and the company believes there is a reasonable basis
for them. However, the company cannot offer any assurance that our
expectations, beliefs and projections will actually be achieved. By
their nature, forward-looking statements involve risks and
uncertainties because they relate to events, competitive dynamics
and industry change, and depend on economic circumstances that may
or may not occur in the future or may occur on longer or shorter
timelines than anticipated. We caution you that forward-looking
statements are not guarantees of future performance and involve
known and unknown risks, uncertainties and other factors that are
in some cases beyond our control. All of the forward-looking
statements are subject to risks and uncertainties that may cause
the company's actual results to differ materially from our
expectations, including risk factors described in the company's
most recent annual report on Form 20-F filed with the U.S.
Securities and Exchange Commission. There are a number of risks and
uncertainties that could cause the company's actual results to
differ materially from the forward-looking statements contained in
this press release.
The company is providing this information as of the date of this
press release and does not undertake any obligation to update any
forward-looking statements contained in this press release as a
result of new information, future events or otherwise, unless it
has obligations under the federal securities laws to update and
disclose material developments related to previously disclosed
information.
Consolidated income statements (Unaudited)
for the three months endedMarch 31, In '000
2024
2024
2023
U.S.$ € € Revenue
68,798
63,637
65,886
Cost of Sales
(29,949
)
(27,702
)
(29,049
)
Gross Profit
38,849
35,935
36,837
Gross profit as % of revenue
56.5
%
56.5
%
55.9
%
Research and development expenses
(11,061
)
(10,231
)
(9,014
)
Sales and marketing expenses
(15,782
)
(14,598
)
(14,288
)
General and administrative expenses
(10,064
)
(9,309
)
(9,056
)
Net other operating income (expenses)
853
789
519
Operating (loss) profit
2,795
2,585
4,998
Financial expenses
(863
)
(798
)
(1,375
)
Financial income
2,495
2,308
809
(Loss) profit before taxes
4,427
4,096
4,432
Income Taxes
(552
)
(510
)
(718
)
Net (loss) profit for the period
3,875
3,585
3,715
Net (loss) profit attributable to:
-
The owners of the parent
3,883
3,591
3,721
Non-controlling interest
(6
)
(6
)
(7
)
Earning per share attributable to owners of the
parent Basic
0.07
0.06
0.06
Diluted
0.07
0.06
0.06
Weighted average basic shares outstanding
59,067
59,067
59,067
Weighted average diluted shares outstanding
59,088
59,088
59,070
Consolidated statements of comprehensive income
(Unaudited)
for the three months endedMarch 31, In 000€
2024
2024
2023
U.S.$ € € Net profit (loss) for the
period
3,875
3,585
3,715
Other comprehensive income Recycling Exchange
difference on translation of foreign operations
(295
)
(273
)
776
Other comprehensive income (loss), net of taxes
(295
)
(273
)
776
Total comprehensive income (loss) for the year, net of taxes
3,581
3,312
4,490
Total comprehensive income (loss) attributable to: The owners of
the parent
3,588
3,319
4,496
Non-controlling interests
(7
)
(6
)
(6
)
Consolidated statement of financial position
(Unaudited)
As ofMarch 31, As ofDecember 31, In 000€
2024
2023
Assets Non-current assets Goodwill
43,238
43,158
Intangible assets
30,275
31,464
Property, plant & equipment
96,297
95,400
Right-of-Use assets
8,203
8,102
Deferred tax assets
2,773
2,797
Investments in convertible loans
3,805
3,744
Other non-current assets
6,052
5,501
Total non-current assets
190,643
190,166
Current assets Inventories
17,013
17,034
Trade receivables
48,599
52,698
Other current assets
9,084
9,160
Cash and cash equivalents
128,899
127,573
Total current assets
203,595
206,465
Total assets
394,238
396,630
As ofMarch 31, As ofDecember 31, In 000€
2024
2023
Equity and liabilities Equity Share capital
4,487
4,487
Share premium
234,013
233,942
Retained earnings and other reserves
1,537
(1,783
)
Equity attributable to the owners of the parent
240,037
236,646
Non-controlling interest
(60
)
(53
)
Total equity
239,977
236,594
Non-current liabilities Loans & borrowings
29,099
33,582
Lease liabilities
5,641
5,333
Deferred tax liabilities
3,567
3,725
Deferred income
7,927
10,701
Other non-current liabilities
1,259
1,745
Total non-current liabilities
47,493
55,086
Current liabilities Loans & borrowings
22,502
22,873
Lease liabilities
2,444
2,610
Trade payables
19,744
21,196
Tax payables
2,152
1,777
Deferred income
44,228
40,791
Other current liabilities
15,698
15,703
Total current liabilities
106,768
104,950
Total equity and liabilities
394,238
396,630
Consolidated statement of cash flows (Unaudited)
for the three months endedMarch 31, In 000€
2024
2023
Operating activities Net (loss) profit for the period
3,585
3,715
Non-cash and operational adjustments
4,637
6,112
Depreciation of property plant & equipment
3,765
3,637
Amortization of intangible assets
1,672
1,674
Impairment of goodwill and intangible assets
-
-
Share-based payment expense
71
-
Loss (gain) on disposal of intangible assets and property, plant
& equipment
(132
)
(22
)
Movement in provisions
79
(618
)
Movement reserve for bad debt and slow moving inventory
188
109
Financial income
(2,309
)
(767
)
Financial expense
797
1,375
Impact of foreign currencies
(5
)
6
(Deferred) income taxes
510
717
Working capital adjustments
1,029
850
Decrease (increase) in trade receivables and other receivables
3,712
3,363
Decrease (increase) in inventories and contracts in progress
(10
)
262
Increase (decrease) in deferred revenue
643
1,368
Increase (decrease) in trade payables and other payables
(3,315
)
(4,142
)
Income tax paid & Interest received
718
367
Net cash flow from operating activities
9,970
11,044
for the three months endedMarch 31, In 000€
2024
2023
Investing activities Purchase of property, plant &
equipment
(2,525
)
(2,532
)
Purchase of intangible assets
(306
)
(738
)
Proceeds from the sale of property, plant & equipment &
intangible assets (net)
206
100
Acquisition of subsidiary (net of cash)
-
-
Net cash flow used in investing activities
(2,624
)
(3,171
)
Financing activities Repayment of loans & borrowings
(4,876
)
(5,635
)
Repayment of leases
(757
)
(859
)
Capital increase
-
-
Interest paid
(358
)
(417
)
Other financial income (expense)
(5
)
(108
)
Net cash flow from (used in) financing activities
(5,997
)
(7,019
)
Net increase/(decrease) of cash & cash equivalents
1,348
854
Cash & Cash equivalents at the beginning of the year
127,573
140,867
Exchange rate differences on cash & cash equivalents
(22
)
(1
)
Cash & cash equivalents at end of the period
128,899
141,720
Reconciliation of Net Profit (Loss) to EBIT and Adjusted EBIT
(Unaudited)
Reconciliation to Adjusted EBIT
for the three months ended,March 31, In 000€
2024
2023
Net profit (loss) for the period
3,585
3,715
Income taxes
510
718
Financial expenses
798
1,375
Financial income
(2,308
)
(809
)
EBIT
2,585
4,998
Share-based compensation expense (1)
71
-
Adjusted EBIT
2,656
4,998
(1) Share-based compensation expense represents the cost of
equity-settled and share-based payments to employees.
Reconciliation of Net Profit (Loss) to EBITDA and Adjusted
EBITDA (Unaudited)
Reconciliation to Adjusted
EBITDA for the three months endedMarch 31, In
000€
2024
2023
Net profit (loss) for the period
3,585
3,715
Income taxes
510
718
Financial expenses
798
1,375
Financial income
(2,308
)
(809
)
Depreciation and amortization
5,438
5,311
EBITDA
8,023
10,310
Share-based compensation expense (1)
71
-
Adjusted EBITDA
8,094
10,310
(1) Share-based compensation expense represents the cost of
equity-settled and share-based payments to employees.
Segment P&L (Unaudited)
In 000€
MaterialiseMedical MaterialiseSoftware
MaterialiseManufacturing Totalsegments Unallocated
(1) Consolidated For the three months ended March 31,
2024 Revenues
26,183
10,438
27,016
63,637
0
63,637
Segment (adj) EBITDA
7,921
1,090
1,529
10,540
(2,446
)
8,094
Segment (adj) EBITDA %
30.3
%
10.4
%
5.7
%
16.6
%
12.7
%
For the three months ended March 31, 2023 Revenues
24,317
11,350
30,219
65,886
0
65,886
Segment (adj) EBITDA
7,348
2,427
3,189
12,964
(2,655
)
10,310
Segment (adj) EBITDA %
30.2
%
21.4
%
10.6
%
19.7
%
15.6
%
(1) Unallocated segment adjusted EBITDA consists of corporate
research and development and corporate other operating income
(expense), and the added share-based compensation expenses,
acquisition related expenses of business combinations, impairments
and fair value of business combinations that are included in
Adjusted EBITDA.
Reconciliation of Net Profit (Loss) to Segment adjusted
EBITDA (Unaudited)
for the three months endedMarch 31, In 000€
2024
2023
Net profit (loss) for the period
3,585
3,715
Income taxes
510
718
Financial cost
798
1,375
Financial income
(2,308
)
(809
)
Operating (loss) profit
2,585
4,998
Depreciation and amortization
5,438
5,311
Corporate research and development
808
722
Corporate headquarter costs
2,484
2,640
Other operating income (expense)
(776
)
(707
)
Segment adjusted EBITDA
10,540
12,964
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240425876730/en/
Investor Relations Harriet Fried LHA 212.838.3777
hfried@lhai.com
Materialise NV (NASDAQ:MTLS)
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