SLM Solutions, a German manufacturer of industrial metal 3D printers, recorded another successful quarter. In the published financial report, it recorded a + 7% increase in revenues year-on-year. The company generated EUR 16.9 million, EUR 3.5 million more than in the first quarter of 2021. According to the company’s president – Sam O’Leary, the increase was mainly due to an increase in the number of orders by + 26%, which also allowed it to increase its order backlog for the fourth quarter in a row.
SLM Solutions reports its revenues in two segments: machine sales and after-sales service. In the first quarter of 2022, the first segment was the most profitable, generating EUR 11.4 million. At the same time, it was practically the same result as a year ago (the increase was minimal and amounted to EUR 200,000) – the company claims that the shortage in the availability of components for building 3D printers, in particular electronic components, turned out to be an obstacle to achieving higher revenues.
These disruptions, which delayed the fulfillment of SLM Solutions’ orders, led to it not using its production capacity, which also affected its profitability. In the first quarter of 2022, the company posted EBITDA of -4.4 million euros, a -110% decrease from the -2.1 million euros it booked in the first quarter of 2021, and its working capital also increased to 38.5 million euros due to inventory costs.
On the other hand, the SLM Solutions aftermarket segment managed to grow in the first quarter of 2022, bringing in 5 million euros, 21% more than in the first quarter of 2021, as the manufacturer sold more consumables and services to existing customers.
While SLM Solutions predicts it expects to be under “continued supply chain pressure” for the remainder of the financial year, it says it has taken mitigation measures and attracted the demand needed to achieve annual revenues of € 100 million.
By deciding to expand its supplier base, produce more parts in-house and increase its “safe stock” levels, the company believes it can now better combat the disruptions that delayed its first-quarter deliveries. With an order backlog of 49 million euros and a series of in-house efficiency initiatives in which SLM Solutions is committed, CFO Dirk Ackermann also anticipates an improvement in EBITDA in the second half of 2022.