Zortrax Q4 and 2024 financial results (for those who even care)
The Atomic Layers: S7E16 (00194)
Atomic Layer of the Day:
Polish Zortrax published its official financial results for Q4 2024 late on Friday night, giving us an informal insight into the company’s full-year performance.
It looks bad, and it’s really hard to be optimistic about the future of what was once the champion of the Polish AM industry.
I mean, if we were to detach the company’s operations from the global market, who knows…? But considering the current state of the desktop-grade FFF and SLA segment, what am I supposed to say…? That they’ll pull through?
Raise your hand if you still remember Zortrax exists!
Yeah… It’s all very sad…
Alright. Let’s look at the numbers.
DISCLAIMER: The values in EUR are approximate and calculated based on today’s average exchange rate of 4.1617 PLN per 1 EUR.
Net sales revenue in Q4 2024 amounted to 1,017,409.40 PLN (approximately 244,400 EUR), a significant decline of 72.4% compared to Q4 2023, when revenue stood at 3,689,902.78 PLN (approximately 886,500 EUR).
On a full-year basis, 2024 revenue fell by 57.5%, reaching 6,390,875.94 PLN (approximately 1,535,300 EUR) compared to 15,037,016.24 PLN (approximately 3,612,500 EUR) in 2023.
This drastic revenue decline highlights severe difficulties in generating sales, which are, of course, tied to the company's ongoing restructuring process.
Operating expenses in Q4 2024 amounted to 3,392,974.29 PLN (approximately 815,100 EUR), down from Q4 2023, when costs stood at 6,052,241.07 PLN (approximately 1,453,800 EUR). On a full-year basis, 2024 operating expenses totaled 14,749,416.23 PLN (approximately 3,543,000 EUR), also lower than in 2023, when they reached 25,347,202.33 PLN (approximately 6,089,000 EUR).
So, while the reduction in losses is a positive sign, the fact that the company continues to report losses despite cutting costs indicates that its cost management remains insufficient relative to its declining revenue.
The operating loss in Q4 2024 was -2,375,564.89 PLN (approximately -570,600 EUR), similar to Q4 2023, when the loss stood at -2,362,338.29 PLN (approximately -567,500 EUR). On a full-year basis, the 2024 operating loss amounted to -8,358,540.29 PLN (approximately -2,008,000 EUR), slightly better than 2023, when it reached -10,310,186.09 PLN (approximately -2,477,000 EUR). Despite some improvement, the company continues to generate significant operating losses.
The net loss in Q4 2024 was -2,526,220.18 PLN (approximately -606,800 EUR), slightly better than in Q4 2023, when the net loss was -3,394,292.89 PLN (approximately -815,400 EUR). On a full-year basis, 2024 net loss was -9,155,921.19 PLN (approximately -2,199,500 EUR), also slightly better than 2023, when it reached -14,735,755.18 PLN (approximately -3,540,000 EUR).
Operating cash flow in Q4 2024 was -162,481.09 PLN, and for the entire 2024, it stood at -1,009,522.35 PLN (approximately -242,500 EUR). While there is noticeable improvement compared to the previous year, the company continues to generate negative cash flow, indicating liquidity issues.
Equity at the end of 2024 amounted to 38,938,037.84 PLN (approximately 9,353,000 EUR), significantly lower than at the end of 2023, when it stood at 119,784,697.06 PLN (approximately 28,775,000 EUR). This decline is a result of accumulated net losses and restructuring processes, which have affected the company’s capital structure.
Here you can read the report by yourself (polish only).
To summarize, Zortrax’s financial condition is very difficult. It reports significant revenue declines, continues to generate operating and net losses, and faces liquidity problems.
While there are some improvements in loss reduction and cash flow, the company's situation remains uncertain. The restructuring process may bring some benefits in the future, but… This downward spiral has been going on for so many years that it’s really hard to remain optimistic.
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News & Gossip:
From the other hand, another polish company listed on stock exchange - Sygnis SA, reported a positive financial performance in Q4 2024, achieving a net profit of PLN 226,000, marking a significant improvement compared to the same period in 2023. The company's revenue reached PLN 3.29 million, driven by seasonal factors and cost optimization efforts. Key projects like DEPO and Syglass showed promising progress, with DEPO advancing in collaboration with Swiss partner SARIX and Syglass generating intellectual property and modest profits. But don’t be fooled. The company is burdened with massive debt. And this is the very same company that took over and quickly killed off the legendary Zmorph.
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