Prodways Group achieved consolidated revenues of over €17 million, up 54% during Q2 of fiscal year 2021/. This performance is the combined result of a favorable base effect combined with an acceleration of the pace of the recovery in key sectors. This resulted in the Systems Division closing a record second fiscal quarter with +60% growth, with 3D printer sales doubling in the quarter.
The Systems division – which includes 3D software, 3D printers and related materials and services – is exceeding its 2019 pre-pandemic revenue level by +4% and achieving both its best second quarter and its best first semester in its history. 3D printer sales are up by an impressive 100%.
This performance is even more positive as it takes place in a context of partial economic recovery and where international travel is still restricted, delaying investment decisions by industrial customers. Thus, machine sales, up sharply by more than 100% this quarter, are gradually recovering. In addition, the growth trajectory of the Materials and Software activities is well underway and accelerated during the second quarter. These two activities had already demonstrated their resilience last year thanks to the recurring profile of their revenues. They posted a total growth of more than 40% this quarter compared to last year and thus generated record-high revenues.
The company considers this performance as a direct result of its strategic positioning and competitive advantages developed in the past few years. In 2020, Prodways strengthened its Software business by expanding its offering to include Dassault Systèmes’ 3DExperience platform. The group is now positioned as one of the leaders in 3D modeling software integration in France, relying on three pillars: diversification of areas of expertise, industrial sectors, and an attractive positioning on Cloud solutions.
Prodways had increased its production capacity of Materials in 2020 to meet growing demand, which is coming to fruition in 2021. Building on its expertise in medical applications certification and the intensive use of the installed base of Prodways machines, the sales momentum is accelerating thanks to new customers and strengthening relations with existing partners.
Thus, in the second quarter, Straumann Group, one of the world’s leading dental companies, chose Prodways to be its supplier for a premium product line in 3D printing. The two companies are strengthening their partnership with a three-year agreement covering the development and supply of 3D resins for medical applications.
Through the intensification of this activity and numerous commercial successes, material sales have almost doubled in three years.
The Products Division also showed a dynamic recovery with a +51% increase. The division – which includes the design and manufacturing of on-demand parts and medical applications – reported revenues of €6.4 million, up 51%. This increase is explained by a favorable base effect, a catch-up effect of the activity and the division’s sustained recovery pace, which continues to accelerate with the lifting of restrictions.
This strong performance was driven by medical activities (growth of more than 100% year-on-year), in particular audiology, which posted a record high quarter and semester, exceeding its pre-crisis level. Prodways reorganized this activity in 2020 with the merger of three companies under the Interson-Protac banner to create the French leader in custom earmolds. This semester, the group is beginning to benefit from the increase in activity thanks to the full reimbursement of hearing aids by the French social security system, coupled with the growing adoption of 3D printing solutions by audiologists.
The dynamism of the first semester supports Prodways’ short- and medium-term growth ambitions: 60% of Prodways activities achieved record-high revenues as a result of the strategic reinforcements implemented in 2020. These include Materials, Software and Audiology. Thanks to the highly recurring profile of these activities, the group has a solid revenue base that will continue to grow in the years to come, supported by major structural trends: the increase in the installed base of printers, the digitalization of medical activities and the growing adoption of 3D technologies.
In addition, 40% of activities are experiencing a sustained and gradual recovery. The commercial momentum of these activities, which include machine sales and the manufacturing of on-demand parts for industrial customers, is set to continue in 2021 and 2022. This acceleration is already materializing in June in the context of easing restrictions.
At the beginning of the third quarter, Prodways resumed its external growth dynamic by entering a new geographical area with its Products division through the acquisition of 100% of Creabis, a German company specializing in 3D printing services for plastics parts. The size of the new entity, with a fleet of around 50 printers, will allow the creation of one of the largest 3D printing services in Europe. The group is also strengthening its position in the German market, Europe’s main industrial engine and a fertile ground for 3D printing services thanks to its highly developed network of industrial SMEs. Besides, Prodways is already present in Germany through its Materials business, which has grown strongly since its acquisition in 2014.
With this transaction, the group is ideally positioned to take full advantage of the undergoing economic recovery momentum and the growing interest in 3D printing in the context of global supply chains challenges. Prodways thus confirms its position as a leading player in 3D printing specializing in plastics and its development ambitions in Europe.