SLM Solutions reports 37% YoY revenue growth to EUR 45.9 million for the first nine months of 2020
- Revenue increased by 37% to EUR 45.9 million in 9M 2020 (9M 2019: EUR 33.4 million)
- EBITDA for 9M 2020 improved to EUR –12.2 million (9M 2019: EUR –19.7 million)
- New orders of EUR 11.9 million in Q3 2020, slightly above new orders in Q2 2020 of EUR 10.7 million and EUR 2.9 million in Q1 2020, in a difficult operating environment due to the COVID 19 pandemic. New orders for 9M 2020 of EUR 25.6 million below 9M 2019 (EUR 38.2 million)
- Order backlog at EUR 19.5 million, 6% above the order backlog at the end of Q3 2019
- Inventory review completed in Q3 2020 with an impairment leading to a one-off negative effect on EBITDA in the amount of EUR 2.3 million
- Virtual launch event of the next generation machine – the most productive selective laser melting system available in the market – on 10 November 2020
Lübeck, November 5, 2020 – SLM Solutions Group AG (“SLM Solutions” or the “Company”), a leading supplier of metal-based additive manufacturing technology, reported revenue of EUR 45.9 million for the first nine months of the 2020 financial year and EBITDA of EUR –12.2 million. Both figures improved significantly compared to the same period last year, despite the unfavourable market environment due to the COVID-19 pandemic.
In the third quarter of 2020, SLM Solutions recognized revenue of EUR 14.8 million, a slight increase over the revenue recorded in Q2 2020 of EUR 13.3 million but below the revenue recorded in Q3 2019 of EUR 17.1 million. The main driver of the YoY decrease in Q3 continues to be the effects of the COVID-19 pandemic such as travel limitations, restrictions on access to customer premises to install and test new machines but also softer capital spending by customers in times of significant uncertainty. Due to COVID-19 related restrictions, not all machines that were ready for delivery could be installed and put into operation at the customers’ premises.
Incoming orders amounted to EUR 11.9 million in Q3 2020, continuing the positive trend in order intake in 2020, with Q2 order intake of EUR 10.7 million and EUR 2.9 million in Q1 2020. Overall, the total order intake in the first nine months of EUR 25.6 million (9M 2019: EUR 38.2 million) slowed down compared to the previous year given the significant restrictions imposed by COVID-19 and the resulting global economic slowdown. The order backlog of EUR 19.5 million as of 30 September 2020 compares to EUR 18.4 million on 30 September 2019.
EBITDA (earnings before interest, taxes, depreciation and amortization) improved by EUR 7.5 million to EUR –12.2 million for the reporting period (9M 2019: EUR –19.7 million). The key driver for the EBITDA improvement was the increase in revenue.
Meddah Hadjar, CEO of SLM Solutions: “SLM Solutions showed a solid performance in the third quarter. Although the COVID-19 pandemic burdens our target markets and has led to a clearly noticeable reluctance of customers to invest, we nevertheless were able to improve revenue and order intake compared to the second quarter. Despite the adverse environment the development program of our next generation SLM® machine is fully on track, which is of particular strategic importance to us. The upcoming market launch of this new machine is a significant milestone for the entire metal manufacturing industry, as it will revolutionize the industrialization of metal additive manufacturing using SLM® technology. We are very pleased to present the most productive selective laser melting system available in the market on 10 November 2020.”
Dirk Ackermann, CFO of SLM Solutions: “In the third quarter, we also completed the review of our inventories, which has been ongoing since the beginning of the year. This led to a negative EBITDA effect of EUR 2.3 million in the past quarter. We do not expect any further significant balance sheet or P&L effects from this measure in the future, which means that we will see our operating performance much more clearly in our results from Q4 2020 onwards.”
The Management Board confirms the guidance communicated on 12 August 2020, expecting a revenue increase of at least 20% compared to the previous year for the full year 2020 (revenue 2019: EUR 49.0 million). For Group EBITDA, SLM Solutions expects an improvement to a level between
EUR –13 million and EUR –18 million (EBITDA 2019: EUR –26.0 million). This forecast is based on the assumption that there will be no significant deterioration of the COVID-19 situation with extensive lockdown measures in the Company’s key sales markets during the remainder of 2020.
SLM Solutions launches its next generation SLM® machine on 10 November 2020, 4PM CET. The entire event will happen online. Please find further details here: https://www.slm-pushing-the-limits.com
SLM Solutions Group AG’s report on the first nine months of the financial year 2020 will be made available for download at www.slm-solutions.com in the “Investor Relations” section in German and English.
About the company:
Lübeck-based SLM Solutions Group AG is a leading provider of metal-based additive manufacturing technology. The company’s shares are traded in the Prime Standard of the Frankfurt Stock Exchange. SLM Solutions focuses on the development, assembly and sale of machines and integrated system solutions in the field of selective laser melting. SLM Solutions currently employs over 400 members of staff in Germany, France, Italy, the USA, Singapore, Russia, India and China. The products are utilised worldwide by customers in particular from the aerospace, energy, healthcare and automotive industries.
SLM Solutions Group AG