Introduction: French engineering company Groupe Gorgé (GOE) in the third quarter of 2021incomeIncrease 8% and attribute revenue growth to3D printingSubsidiaryProdways (PWG) outstanding sales performance.
Groupe Gorgé announced the third quarter of 2021 on October 28, 2021
financial report
. The report shows that Q3 sales were 59 million euros (approximately 438 million yuan), an increase of 8% from the 54 million euros (approximately 401 million yuan) reported in the third quarter of 2020.According to Groupe Gorgé, this growth is due to its robotics and3D printingDepartment promoted. Prodways also reported the company’s
Dentistry
And technology in the field of jewelry is particularly active.
△Prodways3D printingOrthodontic appliance
As part of the business restructuring, 3D printingThe revenue results of the business were announced immediately following Prodways’ dissolution plan (rather than a complete sale). In view of the sales growth of Prodways in the quarter, this added rationality to Groupe Gorgé’s decision to retain Prodways after the announcement of the restructuring plan.Since the announcement of the results, the subsidiary’sshare priceIt has risen by about 5%. Prodways stated in its financial report that the structural trends that underpin our activities this year will continue to accelerate in the coming years: industrial andMedical treatmentThe digitization of activities is closer to the implementation of household and more responsible production methods, or the increasingly strong expectations of individualized consumer products. This booming environment, coupled with Prodways Group’s strong positioning in the industry, has strengthened the group’s ambitions for future growth.
Groupe Gorgé’s 2021 Q3 results
Broadly speaking, Groupe Gorgé’s revenue is divided into three main sectors: drones and systems, engineering and protection systems, and3D printingThe latter includes any sales generated by Prodways subsidiaries.In the third quarter of 2021, the company’s3D printingRevenue from the department was 16 million euros (approximately 119 million yuan), an increase of 26% from the 13 million euros (approximately 96.49 million yuan) in the same period in 2020. When further subdivided into Prodways’ system and product divisions, the results showed that its two key divisions also increased by 24% and 28% between the third quarter of 2020 and the third quarter of 2021, respectively.
△Gorgé Group’s performance in the third quarter of 2021
In particular, the company’s system sales, includingsoftware,3D printingSales of machines and related materials and services are driven by dental customers’ demand for resins. Prodways added that the company’s software products “continued to enjoy good sales momentum” in the third quarter, and that the “economic rebound in the luxury goods industry”, especially the jewelry industry, led to machine revenue growth.
In the other financial divisions of Groupe Gorgé, robot sales increased by 11% from the third quarter of 2020 to the third quarter of 2021, driving a 10% increase in revenue from the UAV and systems division. This business area continues to be driven by naval contracts. It is understood that a major naval deal between the Netherlands and Belgium is underway, and negotiations with other countries on demining services are still ongoing.
△Gorgé Group 2021 third quarter results
In contrast, the Group’s engineering and protection systems division performed poorly in the third quarter of 2021, with revenues flat at 19.7 million euros (approximately 146 million yuan). Groupe Gorgé acknowledged that the stagnant growth was due to “continued underperformance” in the nuclear business, but after the appointment of the new general manager of the division in October 2021, it expects to “recover this business”.
Prodways drives group growth in the third quarter
In the third quarter of 2021, Prodways stated that due to its solid revenue base, it has been able to return to its pre-epidemic revenue levels, including recurring customers and a growing demand mix in vertical areas. As far as the traditional dental business is concerned, the company’s revenue continues to be supported by transactions with the Straumann Group (the group’s material sales doubled in the second quarter). In addition, Prodways did not directly report the sales of wax-printed Solidscape products.But it said that the brand has now sold 5,000 machines, adding that these transactions not only drove revenue growth for the quarter, but also enabled it to establish a “jewelry3D printing“One of the world leaders in the field”.
△Raphaël Gorgé, Executive Chairman of Prodways Group and Chairman and CEO of Groupe Gorgé. Photo courtesy of Groupe Gorge
Another major growth driver for Prodways was its acquisition of Germany at the beginning of the third quarter3D printingService provider Créabis, which helped increase on-demand production and medical-related revenue by 28%. It is said that this move has resulted in some cross-selling between the company’s French and German operations, which Prodways hopes to move forward as part of its external growth strategy.
Regarding future products, Prodways announced the “Futur3D” project in early 2021, which aims to develop next-generation products and services and promote the digitalization of production and services in a wider range.This company hopes that “Industry 4.0” can serve as3D printingDevelopment opportunities to help promote the sustainable development of the entire manufacturing industry. Prodways said that it is a basic trend to promote the re-industrialization of the economic structure and more responsible production methods. In addition, Prodways Group is actively responding to the French government’s announcement of the tensions in the supply chain and the urgent need for innovation in response to global warming.
Prodways stock: worth watching?
Since 2018, GroupeGorgé has been hoping to carry out business restructuring, focusing more on the core robotics business, and announced plans to split Prodways shortly before the financial report. This move will effectively enable the company’s owners to relist 26% of the shares on the open market, creating 80 million euros (approximately 594 million yuan) for shareholders and 55 million euros (approximately 408 million yuan) for the company.
△Prodways
Although there is no mention of the proposed transaction in this company’s performance, Prodways’ strong sales may convince Groupe Gorgé’s leadership in the continued potential of the subsidiary. For its part, before splitting from Groupe Gorgé, Prodways stated that the move provided it with greater visibility, and the growing machine sales are expected to drive it to achieve 20% growth in the 2021 fiscal year. Prodways said that starting from the fourth quarter, the recovery of commercial exhibitions will become a catalyst for future orders. For 2021, Prodways Group confirmed that the company’s sales and profit levels have increased by about 20%, and the results of the transformation plan can make the group level the same as in the first half of the year.
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