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 second
quarter ended June 30, 2024.
Highlights – Second Quarter 2024
- Total revenue increased 6.2% to 68,797 kEUR compared to 64,810
kEUR for the second quarter of 2023.
- Gross profit as a percentage of revenue for the second quarter
of 2024 was 57.0%, in line with 57.2% for the corresponding 2023
period.
- Adjusted EBIT increased to 3,872 kEUR for the second quarter of
2024 from (597) kEUR for the 2023 period, while Adjusted EBITDA
increased to 9,188 kEUR for the second quarter of 2024 from 4,755
kEUR for the 2023 period.
- Net profit for the second quarter of 2024 was 3,875 kEUR, or
0.07 EUR per diluted share, compared to (494) kEUR, or (0.01) EUR
per diluted share, for the corresponding 2023 period.
CEO Brigitte de Vet-Veithen commented, “In the second quarter of
2024 Materialise continued on its growth path, generating
record-high quarterly revenue of 68,797 kEUR. This represents
growth of more than 6% compared to an already strong second quarter
in 2023. We are especially pleased that all three of our business
segments reported increased revenue. Materialise Medical turned in
another strong performance, growing by 13%, while also Materialise
Software and Materialise Manufacturing posted higher revenues. This
solid topline performance enabled us to intensify our investments
while maintaining net profitability. In another step forward, in
July 2024 we acquired FEops, a Belgian company that develops
AI-driven simulation technology to improve procedure efficiency and
clinical outcomes for structural heart interventions. The
acquisition positions Materialise to advance the personalized
treatment of patients with heart diseases.”
Second Quarter 2024 Results
Total revenue for the second quarter of 2024 increased 6.2% to
68,797 kEUR from 64,810 kEUR for the second quarter of 2023.
Adjusted EBIT increased to 3,872 kEUR for the second quarter of
2024 from (597) kEUR for the 2023 period. The Adjusted EBIT margin
(Adjusted EBIT divided by total revenue) for the second quarter of
2024 was 5.6%, compared to (0.9)% for the second quarter of 2023.
Adjusted EBITDA increased to 9,188 kEUR for the second quarter of
2024 from 4,755 kEUR for the 2023 period.
Revenue from our Materialise Medical segment increased 12.8% to
28,141 kEUR for the second quarter of 2024 compared to 24,945 kEUR
for the same period in 2023. Segment Adjusted EBITDA amounted to
8,199 kEUR for the second quarter of 2024 compared to 2,683 kEUR
while the segment Adjusted EBITDA margin was 29.1% compared to
10.8% for the second quarter of 2023.
Revenue from our Materialise Software segment increased 1.8% to
11,226 kEUR for the second quarter of 2024 from 11,030 kEUR for the
same quarter last year. Segment Adjusted EBITDA decreased to 1,374
kEUR from 1,973 kEUR while the segment Adjusted EBITDA margin was
12.2% compared to 17.9% for the corresponding prior-year period
reflecting the impact of increased development investments.
Revenue from our Materialise Manufacturing segment increased
2.1% to 29,429 kEUR for the second quarter of 2024 from 28,835 kEUR
for the second quarter of 2023. Segment Adjusted EBITDA amounted to
2,416 kEUR compared to 2,708 kEUR for last year’s same period,
while the segment Adjusted EBITDA margin was 8.2% compared to 9.4%
for the second quarter of 2023.
Gross profit was 39,227 kEUR for the second quarter of 2024
compared to 37,047 kEUR for the same period last year, while gross
profit as a percentage of revenue remained stable at 57.0% compared
to 57.2% for the second quarter of 2023.
Research and development (“R&D”), sales and marketing
(“S&M”) and general and administrative (“G&A”) expenses
increased in the aggregate by 10.4% to 36,631 kEUR for the second
quarter of 2024 from 33,176 kEUR for the second quarter of
2023.
Net other operating income was 1,205 kEUR compared to (4,468)
kEUR for the second quarter of 2023.
Operating result amounted to 3,801 kEUR compared to (597) kEUR
for the second quarter of 2023.
Net financial result was 1,033 kEUR compared to 635 kEUR for the
second quarter of 2023.
The second quarter of 2024 contained income tax expenses of
(959) kEUR, compared to (532) kEUR in the second quarter of
2023.
As a result of the above, net result for the second quarter of
2024 was 3,875 kEUR, compared to (494) kEUR for the same period in
2023. Total comprehensive income for the second quarter of 2024,
which includes exchange differences on translation of foreign
operations, was 3,093 kEUR compared to 140 kEUR for the
corresponding 2023 period.
At June 30, 2024, we had cash and cash equivalents of 125,492
kEUR compared to 127,573 kEUR at December 31, 2023. Gross debt
amounted to 57,968 kEUR, compared to 64,398 kEUR at December 31,
2023. As a result, our net cash position (cash and cash equivalents
less gross debt) was 67,524 kEUR, an increase of 4,349 kEUR
compared to December 31, 2023.
Cash flow from operating activities for the second quarter of
2024 was 8,400 kEUR compared to 775 kEUR for the same period in
2023. Total cash out from capital expenditures for the second
quarter of 2024 amounted to 8,459 kEUR.
Net shareholders’ equity at June 30, 2024 was 243,140 kEUR
compared to 236,594 kEUR at December 31, 2023.
2024 Guidance
Mrs. de Vet-Veithen concluded, “Given the strength of our
operational performance half-way through 2024 we believe that we
are well on track to deliver the growth targets we set earlier.
Accordingly, 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 earlier. 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 1.0705, the reference rate of the European Central Bank on June
28, 2024.
Conference Call and Webcast
Materialise will hold a conference call and simultaneous webcast
to discuss its financial results for the second quarter of 2024 on
Wednesday, July 31, 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/BI718bb17ca997447a95a1485df6eef011
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 endedJune 30, for the six months
endedJune 30, In '000
2024
2024
2023
2024
2023
U.S.$ € € € € Revenue
73,647
68,797
64,810
132,434
130,702
Cost of Sales
(31,654)
(29,570)
(27,764)
(57,270)
(56,814)
Gross Profit
41,992
39,227
37,047
75,164
73,888
Gross profit as % of revenue
57.0%
57.0%
57.2%
56.8%
56.5%
Research and development expenses
(11,872)
(11,090)
(9,489)
(21,322)
(18,506)
Sales and marketing expenses
(16,738)
(15,636)
(14,159)
(30,234)
(28,459)
General and administrative expenses
(10,603)
(9,905)
(9,528)
(19,214)
(18,573)
Net other operating income (expenses)
1,290
1,205
(4,468)
1,994
(3,948)
Operating (loss) profit
4,069
3,801
(597)
6,387
4,402
Financial expenses
(1,543)
(1,441)
(670)
(2,239)
(2,045)
Financial income
2,649
2,474
1,305
4,783
2,114
(Loss) profit before taxes
5,175
4,834
38
8,930
4,471
Income Taxes
(1,026)
(959)
(532)
(1,469)
(1,249)
Net (loss) profit for the period
4,149
3,875
(494)
7,461
3,221
Net (loss) profit attributable to:
-
The owners of the parent
4,156
3,882
(488)
7,474
3,234
Non-controlling interest
(7)
(7)
(6)
(13)
(13)
Earning per share attributable to owners of the
parent Basic
0.07
0.07
(0.01)
0.13
0.05
Diluted
0.07
0.07
(0.01)
0.13
0.05
Weighted average basic shares outstanding
59,067
59,067
59,067
59,067
59,067
Weighted average diluted shares outstanding
59,067
59,067
59,067
59,077
59,070
Consolidated statements of comprehensive income
(Unaudited)
for the three months endedJune 30, for the six months
endedJune 30, In 000€
2024
2024
2023
2024
2023
U.S.$ € € € € Net profit
(loss) for the period
4,149
3,875
(494)
7,461
3,221
Other comprehensive income Recycling Exchange
difference on translation of foreign operations
(838)
(783)
634
(1,056)
1,242
Other comprehensive income (loss), net of taxes
(838)
(783)
634
(1,056)
1,242
Total comprehensive income (loss) for the year, net of taxes
3,311
3,093
140
6,406
4,463
Total comprehensive income (loss) attributable to: The owners of
the parent
3,318
3,100
144
6,419
4,473
Non-controlling interests
(8)
(7)
(4)
(14)
(10)
Consolidated statement of financial position
(Unaudited)
As ofJune 30, As ofDecember 31, In 000€
2024
2023
Assets Non-current assets Goodwill
43,286
43,158
Intangible assets
29,119
31,464
Property, plant & equipment
102,424
95,400
Right-of-Use assets
8,238
8,102
Deferred tax assets
2,699
2,797
Investments in convertible loans
3,868
3,744
Other non-current assets
6,462
5,501
Total non-current assets
196,096
190,166
Current assets Inventories
17,846
17,034
Trade receivables
49,655
52,698
Other current assets
8,545
9,160
Cash and cash equivalents
125,492
127,573
Total current assets
201,538
206,465
Total assets
397,635
396,630
As ofJune 30, As ofDecember 31, In 000€
2024
2023
Equity and liabilities Equity Share capital
4,487
4,487
Share premium
234,084
233,942
Retained earnings and other reserves
4,635
(1,783)
Equity attributable to the owners of the parent
243,206
236,646
Non-controlling interest
(66)
(53)
Total equity
243,140
236,594
Non-current liabilities Loans & borrowings
27,576
33,582
Lease liabilities
5,587
5,333
Deferred tax liabilities
3,424
3,725
Deferred income
7,302
10,701
Other non-current liabilities
947
1,745
Total non-current liabilities
44,836
55,086
Current liabilities Loans & borrowings
22,219
22,873
Lease liabilities
2,586
2,610
Trade payables
23,764
21,196
Tax payables
2,903
1,777
Deferred income
42,455
40,791
Other current liabilities
15,732
15,703
Total current liabilities
109,659
104,950
Total equity and liabilities
397,635
396,630
Consolidated statement of cash flows (Unaudited)
for the six months endedJune 30, In 000€
2024
2023
Operating activities Net (loss) profit for the period
7,461
3,221
Non-cash and operational adjustments
10,203
11,403
Depreciation of property plant & equipment
7,539
7,364
Amortization of intangible assets
3,204
3,334
Share-based payment expense
142
-
Loss (gain) on disposal of intangible assets and property, plant
& equipment
(77)
(106)
Movement in provisions
191
(591)
Movement reserve for bad debt and slow moving inventory
272
272
Financial income
(4,762)
(2,095)
Financial expense
2,241
2,055
Impact of foreign currencies
(10)
(84)
(Deferred) income taxes
1,462
1,254
Working capital adjustments
(574)
(3,336)
Decrease (increase) in trade receivables and other receivables
3,134
4,269
Decrease (increase) in inventories and contracts in progress
(1,029)
81
Increase (decrease) in deferred revenue
(1,768)
(1,772)
Increase (decrease) in trade payables and other payables
(911)
(5,914)
Income tax paid & Interest received
1,280
531
Net cash flow from operating activities
18,370
11,818
for the six months endedJune 30, In 000€
2024
2023
Investing activities Purchase of property, plant &
equipment
(10,475)
(4,333)
Purchase of intangible assets
(814)
(1,056)
Proceeds from the sale of property, plant & equipment &
intangible assets (net)
-
218
Acquisition of subsidiary (net of cash)
185
-
Net cash flow used in investing activities
(11,104)
(5,172)
Financing activities Repayment of loans & borrowings
(6,841)
(8,617)
Repayment of leases
(1,517)
(1,744)
Interest paid
(800)
(891)
Other financial income (expense)
169
(33)
Net cash flow from (used in) financing activities
(8,989)
(11,285)
Net increase/(decrease) of cash & cash equivalents
(1,723)
(4,639)
Cash & Cash equivalents at the beginning of the year
127,573
140,867
Exchange rate differences on cash & cash equivalents
(358)
57
Cash & cash equivalents at end of the period
125,492
136,284
Reconciliation of Net Profit (Loss) to EBIT and Adjusted EBIT
(Unaudited)
Reconciliation to Adjusted EBIT
for the three months endedJune 30, for the six months
endedJune 30, In 000€
2024
2023
2024
2023
Net profit (loss) for the period
3,875
(494)
7,461
3,221
Income taxes
959
532
1,469
1,249
Financial expenses
1,441
670
2,239
2,045
Financial income
(2,474)
(1,305)
(4,783)
(2,114)
EBIT
3,801
(597)
6,387
4,402
Share-based compensation expense (1)
71
-
142
-
Adjusted EBIT
3,872
(597)
6,529
4,402
(1) Share-based compensation expense represents the cost of
equity-settled payments to employees.
Reconciliation of Net Profit (Loss) to EBITDA and Adjusted
EBITDA (Unaudited)
Reconciliation to Adjusted
EBITDA for the three months endedJune 30, for
the six months endedJune 30, In 000€
2024
2023
2024
2023
Net profit (loss) for the period
3,875
(494)
7,461
3,221
Income taxes
959
532
1,469
1,249
Financial expenses
1,441
670
2,239
2,045
Financial income
(2,474)
(1,305)
(4,783)
(2,114)
Depreciation and amortization
5,316
5,353
10,754
10,664
EBITDA
9,117
4,755
17,141
15,066
Share-based compensation expense (1)
71
-
142
-
Adjusted EBITDA
9,188
4,755
17,283
15,066
(1) Share-based compensation expense represents the cost of
equity-settled payments to employees.
Segment P&L (Unaudited)
In 000€
MaterialiseMedical MaterialiseSoftware
MaterialiseManufacturing Totalsegments
Unallocated(1) Consolidated For the three months
ended June 30, 2024 Revenues
28,141
11,226
29,429
68,797
0
68,797
Segment (adj) EBITDA
8,199
1,374
2,416
11,990
(2,802)
9,188
Segment (adj) EBITDA %
29.1%
12.2%
8.2%
17.4%
13.4%
For the three months ended June 30, 2023 Revenues
24,945
11,030
28,835
64,810
0
64,810
Segment (adj) EBITDA
2,683
1,973
2,708
7,364
(2,608)
4,755
Segment (adj) EBITDA %
10.8%
17.9%
9.4%
11.4%
7.3%
In 000€
MaterialiseMedical MaterialiseSoftware
MaterialiseManufacturing Totalsegments
Unallocated(1) Consolidated For the six months
ended June 30, 2024 Revenues
54,324
21,665
56,445
132,434
0
132,434
Segment (adj) EBITDA
16,120
2,464
3,947
22,531
(5,248)
17,283
Segment (adj) EBITDA %
29.7%
11.4%
7.0%
17.0%
13.1%
For the six months ended June 30, 2023 Revenues
49,265
22,381
59,056
130,702
0
130,702
Segment (adj) EBITDA
10,035
4,409
5,906
20,350
(5,285)
15,066
Segment (adj) EBITDA %
20.4%
19.7%
10.0%
15.6%
11.5%
(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 endedJune 30, for the six months
endedJune 30, In 000€
2024
2023
2024
2023
Net profit (loss) for the period
3,875
(494)
7,461
3,221
Income taxes
959
532
1,469
1,249
Financial cost
1,441
670
2,239
2,045
Financial income
(2,474)
(1,305)
(4,783)
(2,114)
Operating (loss) profit
3,801
(597)
6,387
4,402
Depreciation and amortization
5,316
5,353
10,754
10,664
Corporate research and development
955
737
1,763
1,459
Corporate headquarter costs
2,601
2,576
5,083
5,238
Other operating income (expense)
(682)
(705)
(1,456)
(1,412)
Segment adjusted EBITDA
11,990
7,364
22,531
20,350
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240731287016/en/
Investor Relations Harriet Fried LHA 212.838.3777
hfried@lhai.com
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