Materialise has published a report for the second quarter of 2023, showing an increase in revenues in all sectors of activity. At the same time, the company recorded a net loss, which is largely related to the unfavorable result of the arbitration lost to Zimmer Biomet, to which it must pay compensation for the advertised service. Notwithstanding this setback, Materialise has a successful quarter with revenue growth of +11.6% to EUR 64.8 million, compared to EUR 58 million in Q2 2022.
In the second quarter of 2023, Materialise’s revenue structure consisted of 17% from software, 38% from medical projects and 45% from manufacturing activities. The Software segment recorded revenue growth of +3.6% to a total of EUR 11 million. The medical sector grew at a double-digit pace, at the level of approx. +20%, which consisted of revenues from the sale of software, which increased by +26%, and solutions for medical devices, which increased by +17%. In turn, revenues from manufacturing services increased by +8.5%, reaching EUR 28.8 million.
In terms of profitability, Materialise made a loss of EUR 494 thousand from last year’s net profit. The main source of the change in trend was the unfavorable arbitration outcome in a compensation dispute with Zimmer Biomet, a musculoskeletal healthcare company. The dispute concerned the manufacture of joint replacement equipment and, according to the outcome of the arbitration, imposed a fine of EUR 5.2 million on Materialise. Despite this, the medical segment is doing very well – in addition to the above-mentioned +20% increase in revenues year-on-year, the production of personalized medical implants on the American market is becoming the main growth driver for the company.
In terms of profitability, Materialise recorded an increase in adjusted EBITDA, which amounted to EUR 4.8 million, which translates into more than +12% increase compared to last year. The adjusted EBITDA margin was 7.3%, which the company says is evidence of revenue growth coupled with continued investment in research and development. Materialise confirms its previous forecasts and expects to achieve annual revenues in the range of EUR 255 – 260 million.
Source: www.materialise.com