Global Graphics PLC announces it has published its half-year report and unaudited condensed consolidated interim financial statements for the six months ending 30 June 2021 which show significant revenue and EBITDA growth.
Revenue (unaudited) from continuing operations for the period was up 99.7% to €23.77 million, compared with €11.90 million for the same period in 2020 and EBITDA (unaudited) increased 48.6% to €5.81 million from €3.91 million in 2020.
Mike Rottenborn, Global Graphics CEO comments, “Global Graphics started 2021 with the acquisition of HYBRID Software, a strategic technology partner which effectively doubled our headcount and revenue. It brings extensive expertise in labels and packaging, a worldwide sales and technical organization, a growing recurring revenue component, and most importantly, a very profitable end-user sales presence to the group. Revenues from HYBRID for the first half of 2021 were €10.4 million, an increase of more than 30% from 2020, with EBITDA at 35% of revenue.
“Meteor Inkjet outperformed its revenue targets again, with continued strong sales in the Chinese ceramics market," he continues. "However, sales from outside of China continue to grow, both due to increased orders from existing customers worldwide and from many new customers, especially in the 3D printing and additive manufacturing segment.
“Xitron’s sales have been bolstered both by increased OEM business and by end users upgrading older Navigator RIPs to the newest version built on Harlequin V13. As the industry resumes physical, in-person trade shows in the US later this quarter, we expect Xitron’s revenues to continue to increase.
“Global Graphics Software (GGS) has started to see an uptick in the royalties from key OEM customers as the pandemic recedes, although this is a lagging indicator of the recovery since royalties are not reported until printing devices are installed and signed off by customers. The cancellation of drupa earlier this year also resulted in the postponement of some OEM product launches. However, GGS with other Group companies, pressed ahead with the introduction of our first co-developed product, the SmartDFE, a turnkey Digital Front End for inkjet printers of labels and product packaging which has stimulated much interest in the industry.
“Our results set us on the right path for future growth and I anticipate the remainder of 2021 to show a strong performance also.”
Global Graphics Chairman Guido Van der Schueren adds, “These results underline how HYBRID Software and Global Graphics together are a winning combination. HYBRID Software has immediately contributed to the Group’s results and cash position and I have been delighted with the smooth integration of the businesses following the completion of the acquisition.
“Together we occupy a unique position in the industry as provider of hardware and software components to OEM and end-user customers required to drive digital printing equipment. We have many customers in common who are excited about the opportunities presented by a broader range of innovative solutions. These are encouraging signals for future growth and value for shareholders.”
Financial highlights (unaudited)
Following the acquisition of HYBRID Software Group S.à r.l. (“HYBRID Software”) on 12 January 2021 and significant year-on-year growth from the Printhead Solutions segment, revenue and EBITDA from continuing operations for the six months ended 30 June 2021 have improved significantly over the same period in 2020.
Please refer to the half year report and unaudited condensed consolidated interim financial statements for the six months ended 30 June 2021 for more detailed information and analysis. The full document is available to download from investor.globalgraphics.com/investors/financial-reports.
• Revenue from continuing operations for the period was up 99.7% to €23.77 million, compared with €11.90 million for the same period in 2020.
• IFRS profit before tax from continuing operations for the period remained stable at €1.98 million (2020: €1.91 million).
• EBITDA from continuing operations increased 48.6% to €5.81 million from €3.91 million in 2020.
• Cash increased during the period by €6.78 million and was valued at €13.61 million at 30 June 2021.
With the addition of HYBRID Software to the Group, the Group’s reporting segments are now:
• Printing Software (previously named Software), for digital printing software;
• Printhead Solutions, for electronics and software developed for industrial inkjet printing;
• Enterprise Software (a new segment), for enterprise workflow software used primarily for the production of labels & packaging; and
• Group (previously named Unallocated), for group related expenses that are not allocated to another segment.
Segment financial highlights for the 6 months ending 30 June 2021 (unaudited):
Euro millions Printing Software Printhead Solutions Enterprise Software Group Total
External revenue 5.17 8.22 10.38 - 23.77
EBITDA 0.24 2.37 3.72 (0.52) 5.81
Revenue (unaudited) from continuing operations for the period was up 99.7% to €23.77 million, compared with €11.90 million for the same period in 2020 and EBITDA (unaudited) increased 48.6% to €5.81 million from €3.91 million in 2020.
Mike Rottenborn, Global Graphics CEO comments, “Global Graphics started 2021 with the acquisition of HYBRID Software, a strategic technology partner which effectively doubled our headcount and revenue. It brings extensive expertise in labels and packaging, a worldwide sales and technical organization, a growing recurring revenue component, and most importantly, a very profitable end-user sales presence to the group. Revenues from HYBRID for the first half of 2021 were €10.4 million, an increase of more than 30% from 2020, with EBITDA at 35% of revenue.
“Meteor Inkjet outperformed its revenue targets again, with continued strong sales in the Chinese ceramics market," he continues. "However, sales from outside of China continue to grow, both due to increased orders from existing customers worldwide and from many new customers, especially in the 3D printing and additive manufacturing segment.
“Xitron’s sales have been bolstered both by increased OEM business and by end users upgrading older Navigator RIPs to the newest version built on Harlequin V13. As the industry resumes physical, in-person trade shows in the US later this quarter, we expect Xitron’s revenues to continue to increase.
“Global Graphics Software (GGS) has started to see an uptick in the royalties from key OEM customers as the pandemic recedes, although this is a lagging indicator of the recovery since royalties are not reported until printing devices are installed and signed off by customers. The cancellation of drupa earlier this year also resulted in the postponement of some OEM product launches. However, GGS with other Group companies, pressed ahead with the introduction of our first co-developed product, the SmartDFE, a turnkey Digital Front End for inkjet printers of labels and product packaging which has stimulated much interest in the industry.
“Our results set us on the right path for future growth and I anticipate the remainder of 2021 to show a strong performance also.”
Global Graphics Chairman Guido Van der Schueren adds, “These results underline how HYBRID Software and Global Graphics together are a winning combination. HYBRID Software has immediately contributed to the Group’s results and cash position and I have been delighted with the smooth integration of the businesses following the completion of the acquisition.
“Together we occupy a unique position in the industry as provider of hardware and software components to OEM and end-user customers required to drive digital printing equipment. We have many customers in common who are excited about the opportunities presented by a broader range of innovative solutions. These are encouraging signals for future growth and value for shareholders.”
Financial highlights (unaudited)
Following the acquisition of HYBRID Software Group S.à r.l. (“HYBRID Software”) on 12 January 2021 and significant year-on-year growth from the Printhead Solutions segment, revenue and EBITDA from continuing operations for the six months ended 30 June 2021 have improved significantly over the same period in 2020.
Please refer to the half year report and unaudited condensed consolidated interim financial statements for the six months ended 30 June 2021 for more detailed information and analysis. The full document is available to download from investor.globalgraphics.com/investors/financial-reports.
• Revenue from continuing operations for the period was up 99.7% to €23.77 million, compared with €11.90 million for the same period in 2020.
• IFRS profit before tax from continuing operations for the period remained stable at €1.98 million (2020: €1.91 million).
• EBITDA from continuing operations increased 48.6% to €5.81 million from €3.91 million in 2020.
• Cash increased during the period by €6.78 million and was valued at €13.61 million at 30 June 2021.
With the addition of HYBRID Software to the Group, the Group’s reporting segments are now:
• Printing Software (previously named Software), for digital printing software;
• Printhead Solutions, for electronics and software developed for industrial inkjet printing;
• Enterprise Software (a new segment), for enterprise workflow software used primarily for the production of labels & packaging; and
• Group (previously named Unallocated), for group related expenses that are not allocated to another segment.
Segment financial highlights for the 6 months ending 30 June 2021 (unaudited):
Euro millions Printing Software Printhead Solutions Enterprise Software Group Total
External revenue 5.17 8.22 10.38 - 23.77
EBITDA 0.24 2.37 3.72 (0.52) 5.81