Zortrax S.A. – the largest Polish manufacturer of FDM / FFF and UV SLA 3D printers, published financial results for the third quarter of 2021. This is the first quarterly report that the Olsztyn-based company published after entering the New Connect stock exchange after merging with Corelens S.A. The company recorded a revenue of PLN 7 million, recording the so-called loss on sales at the level of PLN -1.99 million and loss on operating activities at the level of PLN -3.48 million. The losses are mainly due to various accounting costs and depreciation charges related to the settlement of the merger between Zortrax and Corelens.
Due to the fact that the quarterly report concerns the combined financial results of two companies operating last year on completely different markets (and a completely different scale of operations), comparing individual items on a year-to-year basis is not justified, as this year’s results mainly concern the activities of Zortrax itself, and last year’s Corelens. The supplementary information to the report states that “after the merger, the dominant activity of the Issuer is the 3D printing industry, which after 3 quarters of 2021 accounts for 94.8% of the Company’s sales revenues.”
In the period from 01/07/2021 to 30/09/2021, the company’s revenues amounted to PLN 7,037,408.00, and operating costs amounted to PLN 9,037,208.00. The loss on sales amounted to PLN -1,999,800.00, however, as much as PLN 1,254,843.00 is depreciation. Other operating income amounted to PLN 137,290.00, and other operating expenses amounted to PLN -1,626,379.00. The total gross loss for the third quarter of 2021 amounted to PLN -3,625,412.00. It should also be noted here that ~ PLN 1.4 million related to the above-mentioned other operating costs relates to the amortization of positive goodwill, which is the result of the settlement of the merger with Corelens. The balance sheet as at June 30, 2021 shows positive goodwill in the amount of PLN 116 million, which, starting from July 2021, is reduced by depreciation charges recognized in other operating expenses.
As for the operating costs that have a direct impact on the day-to-day operation of Zortrax, the costs of transport and research and development activities are given:
A significant cost in the Issuer’s operations, the fluctuations of which have an impact on the generated gross margin on sales, is the cost of forwarding. Currently, due to the ongoing COVID-19 pandemic, there is an increasing need to organize air transport for selected deliveries, which, compared to rail transport, is more than 3 times more expensive.
In the business model of Zortrax S.A. research and development activities are also included, which require constant, relatively high financial outlays (…) The effects of these works in the form of product implementations are visible only after a year or even several years.
Source: ZORTRAX Q3 2021 unit report
At the end of the third quarter of 2021, 98 people were employed at Zortrax.
Other important things that were mentioned in the report concern:
- information about the signing in July this year. a tripartite agreement between Zortrax, represented by the company’s main shareholders (Marcin Olchanowski, Rafał Tomasiak and Mariusz Babula), and Russian Rusatom – Additive Technologies; the agreement concerns talks regarding a future transaction, as a result of which RusAT would take up no more than 50% of the share capital of Zortrax for the amount of USD 65 million
- the activities of the subsidiary – Zortrax Dental, which in August this year. acquired PLN 889,000.00 as part of a crowdinvesting offer for the development of a line of photopolymer 3D printers dedicated to the prosthetic industry
- research and development projects carried out jointly with ESA (European Space Agency).
Regardless of the above, an interesting information that appeared a few days ago in the context of Zortrax’s operations is the message of the company’s partner – Skriware, in which it informs about 5,000 Zortrax M200 Plus 3D printers and 10,000 Skribot sets that are being prepared for delivery to Poland schools as part of the Laboratories of the Future project.