Zortrax presents financial results for Q2 2024
It's very bad, but the management says it will only get better
Zortrax SA published its financial results for the second quarter of 2024 late yesterday evening, along with the results for the first half of this year. The company generated revenue of 1.6 million PLN (~374k EUR), a -55% decrease compared to the same period last year (3.5 million PLN / ~822k EUR). For the entire first half of 2024, Zortrax generated revenue of just over 4 million PLN (~952k EUR), representing a -50% decline compared to the first half of 2023 (8.2 million PLN / ~1.9 million EUR).
The total net loss for the second quarter was -2.96 million PLN (-691k EUR), which was 22% lower than in the same period last year. For the entire first half, the loss has already reached -6 million PLN (-1.4 million EUR) compared to -7.5 million PLN (-1.7 million EUR) in the first half of 2023. This shows that the restructuring plan announced by the company in May this year is slowly starting to take effect.
However, it should be noted that in the first half of 2024, total revenues (4.1 million PLN) were more than twice as low as total costs (9.7 million PLN), resulting in a net loss that is 32% higher than the company's revenue…
Some other “interesting” things from the financial report for the second quarter of 2024:
Revenue from product sales: 1.1 million PLN (~257k EUR)
Revenue from goods and materials sales: 0.5 million PLN (~117k EUR)
Operating loss: -3.1 million PLN (~716k EUR)
Cash at the end of the period: 43,962.36 PLN (~10k EUR)
Employment as of June 30, 2024: 30 people
Provisions for liabilities: 4 million PLN (~935k EUR)
Short-term liabilities: 20.6 million PLN (~4.8 million EUR)
No long-term liabilities
Assets: 48.97 million PLN (~11.4 million EUR)
Liabilities: 41.59 million PLN (~9.7 million EUR).
In a letter to shareholders, the management focuses primarily on the previously mentioned restructuring process and the approval of the arrangement with creditors. As part of this process, Zortrax is implementing the following restructuring measures:
Reduction of employment and outsourcing of processes
Cost reduction related to office space rental
Renegotiation of commercial agreements and acquisition of new contracts
Active product sales
Continuation of the debt collection process
Debt restructuring under the agreed arrangement.
Zortrax claims it is already in talks with creditors, which are promising for the acceptance of the arrangement and the swift conclusion of the proceedings.
The company also presented forecasts for improving its situation, outlining two scenarios: pessimistic and optimistic. But that deserves a separate article...
Source: www.newconnect.pl