Kodak optimistic at Q2 results

Kodak has released its figures for its second quarter of 2023, showing a drop in consolidated revenues from $321 million to $295 million year on year, but matched by a 24 percent rise in gross profit from $51 million to $63 million.

This translated into net income, according to Generally Accepted Accounting Principles, of $35 million, up from $20 million in Q2 2022. The operational EBITDA at $22 million doubled the previous year’s Q2 figure, mostly in the Advanced Materials and Chemicals division. Kodak attributes this to improved profitability related to pricing pass-through and improved operational efficiency, partially offset by continued global cost increases.

Jim Continenza, Kodak’s Executive Chairman and CEO, explained: “A number of factors have contributed to our success: a strong leadership team, dedicated employees and a clearly defined long-term plan focused on driving innovation, productivity and smart revenue in our core businesses of print and advanced materials & chemicals. We are proud to be an industrial manufacturer and we are concentrating on what we do best.”

The bulk of Kodak’s income – $215 million – comes from its Print business, which now includes both digital and analogue, with plates, inks and other consumables accounting for $148 million. These consumables fell from $182 million in Q1, with demand falling more noticeablyin the United States and EMEA regions.

Continenza added: “As part of the controlled introduction of our new inkjet presses, we placed our first two new machines during the quarter, one Kodak Prosper Ultra 520 Press and one Prosper 7000 Turbo Press, and we expect them to be in production in the third quarter.”

Kodak reported a cash balance of $223 million at the end of Q2, which Kodak’s press release helpfully points out is $6 million better than the position on December 31, 2022. However, Kodak neglects to say that the Q2 figure is $2 million less than at the end of Q1 2023, switching instead to comparing the first half instead of quarters.

David Bullwinkle, Kodak’s CFO. “Our quarter-end balance of $223 million reflects a year-over-year improvement in cash flow from operations of $124 million for the first half of 2023. We also increased our year-over-year gross profit in Q2 for the third consecutive quarter while continuing to invest in print technology and the emerging businesses in our Advanced Materials & Chemicals group. For the second half of 2023 we’ll continue to execute our long-term strategic plan with an emphasis on driving innovation, productivity and smart revenue.”

Continenza noted: “We also continued to invest in our print business, acquiring Graphic Systems Services, Inc. (GSS), whose expertise and resources will help us provide our customers with more complete inkjet solutions.”

He added: “More recently, we proactively refinanced our term debt to strengthen our financial foundation and we announced a perpetual brand licensing agreement with EssilorLuxottica, a global vision care industry leader. Looking forward, we will continue to focus on executing our strategic plan and serving our customers, which is the key to building long-term value for our employees and shareholders.”

You can find further details from kodak.com.


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