Kodak reports decreased revenue for the second quarter of 2024 - Image Magazine

Latest News

Kodak reports decreased revenue for the second quarter of 2024

Second-quarter 2024 highlights include:

  • Consolidated revenues of $267 million, compared with $295 million for Q2 2023, a decrease of $28 million or 9 per cent
  • Gross profit of $58 million, compared with $63 million for Q2 2023, a decrease of $5 million or 8 per cent
  • Gross profit percentage of 22 per cent, compared with 21 per cent for Q2 2023, an increase of 1 percentage point
  • GAAP net income of $26 million, compared with net income of $35 million for Q2 2023, a decrease of $9 million or 26 per cent
  • Operational EBITDA of $12 million, compared with $22 million for Q2 2023, a decrease of $10 million or 45 per cent
  • A quarter-end cash balance of $251 million, compared with $255 million on December 31, 2023, a decrease of $4 million

"Our results for the second quarter were in line with our long-term strategic plan: we delivered a year-over-year increase in gross profit percentage for the seventh consecutive quarter despite an anticipated decline in revenue. We are getting leaner, introducing new products and partnering with the right customers," said Jim Continenza, Kodak's Executive Chairman and CEO. "Building for the future, we continue to invest in our Advanced Materials & Chemicals group and are seeing results in terms of growing revenue in key product areas. The cGMP facility for manufacturing diagnostic test reagents under construction at Eastman Business Park is scheduled to begin production in 2025. In our commercial print business, our participation in the drupa tradeshow earlier this year demonstrated our ability to provide leading-edge solutions for both offset and digital print. We are starting to gain momentum with our groundbreaking continuous inkjet press portfolio, announcing commitments for several KODAK PROSPER ULTRA 520 Presses from the show. Looking forward, we will continue to execute the long-term plan which has created a foundation for growth: increasing efficiency, investing in innovation and infrastructure and focusing on generating smart revenue."

For the quarter ended June 30, 2024, revenues were $267 million, a decrease of $28 million or 9 per cent compared to the same period in 2023. Excluding the impact of foreign exchange, revenue declined $24 million or 8 per cent.

GAAP net income was $26 million for the quarter, compared to $35 million in Q2 2023, a decrease of $9 million or 26 per cent. Operational EBITDA for the quarter ended June 30, 2024, was $12 million, compared to $22 million in Q2 2023, a decrease of $10 million or 45 percent. The decrease was primarily driven by lower volumes and higher manufacturing costs, as well as costs associated with investments in information technology systems and organisational structure to drive further operational efficiencies, costs associated with the drupa trade show and certain litigation matters.

Kodak ended the quarter with a cash balance of $251 million, a decrease of $4 million from December 31, 2023. The decrease was driven by capital expenditures primarily to fund growth initiatives, investments in technology systems and organisational structure and lower profitability from operations, partially offset by improvements in working capital primarily due to cash proceeds of $40 million from brand licensing in the first quarter of 2024.

"Kodak continued to see an improvement in gross profit margins year-over-year for the quarter, reaching 22 per cent in Q2," said David Bullwinkle, Kodak's CFO. "The decline in revenue was driven by our focus on generating smart revenue to strengthen the profitability of our businesses. Our quarter-end cash balance of $251 million represented a decrease of $4 million from December 31, 2023, reflecting continued investment in capital additions as well as the drupa trade-show and back-office optimisation, which we expect to pay off as we continue to execute on our long-term strategy. For the second half of the year, we plan to continue to focus on the fundamentals which have contributed to our turnaround: streamlining operations, investing in new products and businesses and helping our customers stay productive and profitable."

Revenue and Operational EBITDA by Reportable Segment Q2 2024 vs. Q2 2023

($ millions)

Q2 2024 Actuals

Print

Advanced Materials
& Chemicals

Brand

Total

Revenue

Operational EBITDA *

$186

$-

$73

$8

$4

$4

$263

$12

Q2 2023 Actuals

Print

Advanced Materials
& Chemicals

Brand

Total

Revenue

Operational EBITDA *

$215

$8

$72

$11

$4

$3

$291

$22

Q2 2024 vs. Q2 2023 Actuals 
B/(W)

Print

Advanced Materials
& Chemicals

Brand

Total

Revenue

Operational EBITDA *

$(29)

$(8)

$1

$(3)

$-

$1

$(28)

$(10)

Q2 2024 Actuals on constant currency ** vs. vs. Q2 2023 Actuals 
B/(W)

Print

Advanced Materials
& Chemicals

Brand

Total

Revenue

Operational EBITDA *

$(25)

$(8)

$1

$(3)

$-

$1

$(24)

$(10)

Total Operational EBITDA is a non-GAAP financial measure. The reconciliation between GAAP and non-GAAP measures is provided in Appendix A of this press release.

 

 

Previous Article oOh!media acquires Blue Tongue Outdoor
Next Article UPM Raflatac moves into graphics solutions with the acquisition of Grafityp

If you have a news story, or story about an interesting project or installation please contact [email protected]

Sign up to Image Magazine Newsletter.

Print