Kodak has released its third quarter financial results.
The company recorded a seven per cent decline in revenues for the quarter ended September 30, 2023, compared to the same period in 2022. Operational EBITDA for the third quarter of 2023 rose to US$12m (19.8m) compared with US$7m in the prior-year period. Kodak says improved profitability related to pricing rationalisation and improved operational efficiency executing on cost controls partially offset by higher continued ongoing global cost increases and lower volumes all drove the increase.
Jim Continenza, executive chairman and chief executive officer at Kodak, sees the results in a positive light. He says, “Kodak continued to execute its long-term plan and deliver strong results in the third quarter despite ongoing, extraordinary challenges including inflation, high interest rates, bank failures, labour shortages and now a new war.
“As business conditions continued to worsen, we continued to improve our performance, adapting to circumstances never encountered before and making the changes necessary to deliver increases in gross profit and Operational EBITDA year over year for the fourth consecutive quarter.
“Through it all, we have continued to focus on driving operational efficiency and smart revenue and investing in initiatives that leverage our strengths as an industrial manufacturer. Our investments in growth initiatives in our advanced materials and chemicals group have resulted in increasing contributions from those businesses, and our investments in print have resulted in the introduction of groundbreaking inkjet presses capable of replacing offset technology.
“I am extremely proud of our remarkable ability to build a strong foundation and continue our momentum in the face of unprecedented headwinds, and I’d like to thank our employees for their hard work and resilience and our customers for their loyalty and support during this period.”
The company ended the third quarter with a cash balance of US$246m, compared with US$217m on December 31, 2022. David Bullwinkle, chief financial officer at Kodak, says, “Kodak’s cash performance continued to show improvement for the year-to-date period. “For the nine months ended September 30, 2023, cash increased US$29m, compared with a decrease of US$146m in the prior-year period.
“Following two years of revenue growth, we have shifted our focus to generating smart revenue which, along with productivity gains, enabled us to improve our year-over-year gross profit percentage for the third quarter from 15 per cent to 19 per cent. Although there are more headwinds on the horizon, we will stay committed to executing our long-term strategic plan: investing in innovation, improving efficiency and focusing on meeting the needs of our customers.”
