UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of October 2024

 

Commission File Number: 001-36515

 

 

Materialise NV

 

 

Technologielaan 15

3001 Leuven

Belgium

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F  x            Form 40-F  ¨

 

This Form 6-K is incorporated by reference into the registrant’s Registration Statement on Form F-3 (File No. 333-213649).

 

 

 

Third Quarter 2024 Financial Results

 

Except as otherwise required by the context, references to “Materialise,” “Company,” “we,” “us” and “our” are to Materialise NV and its subsidiaries.

 

Third Quarter 2024 Results

 

Total revenue for the third quarter of 2024 increased 14.2% to 68,652 kEUR from 60,130 kEUR for the third quarter of 2023.

 

Revenue from our Materialise Medical segment increased by 24.5% to 30,197 kEUR for the third quarter of 2024 compared to 24,263 kEUR for the same period in 2023.

 

Revenue from our Materialise Software segment increased by 2.8% to 11,111 kEUR for the third quarter of 2024 compared to 10,811 kEUR for the same quarter last year.

 

Revenue from our Materialise Manufacturing segment increased by 9.1% to 27,344 kEUR for the third quarter of 2024 compared to 25,056 kEUR for the third quarter of 2023.

 

Gross profit was 39,297 kEUR compared to 33,696 kEUR for the same period last year, while gross profit as a percentage of revenue increased to 57.2% compared to 56.0% for the third quarter of 2023.

 

Research and development (“R&D”), sales and marketing (“S&M”) and general and administrative (“G&A”) expenses increased in the aggregate by 11.8% to 35,856 kEUR for the third quarter of 2024 from 32,076 kEUR for the third quarter of 2023.

 

Net other operating income increased to 872 kEUR from 710 kEUR for the third quarter of 2023.

 

Operating result amounted to 4,313 kEUR compared to 2,330 kEUR for the third quarter of 2023.

 

Net financial result was (1,137) kEUR compared to 1,319 kEUR for the third quarter of 2023 reflecting the impact of unfavorable currency exchange effects.

 

The third quarter of 2024 contained income tax results of (138) kEUR compared to 363 kEUR in the third quarter of 2023.

 

As a result of the above, net profit for the third quarter of 2024 was 3,038 kEUR, compared to 4,013 kEUR for the same period in 2023. Total comprehensive income for the third quarter of 2024, which includes exchange differences on translation of foreign operations, was 3,777 kEUR compared to 3,242 kEUR for the corresponding 2023 period.

 

At September 30, 2024, we had cash and cash equivalents of 116,163 kEUR, compared to 127,573 kEUR at December 31, 2023. Gross debt amounted to 53,037 kEUR compared to 64,398 kEUR at December 31, 2023. As a result, our net cash position (cash and cash equivalents less gross debt) was 63,126 kEUR compared to 63,175 kEUR at December 31, 2023.

 

Cash flow from operating activities for the third quarter of the year 2024 was 6,870 kEUR, compared to 8,143 kEUR for the same period in 2023. Total capital expenditures for the third quarter of the year 2024 amounted to 7,328 kEUR.

 

Net shareholders’ equity at September 30, 2024 was 246,989 kEUR compared to 236,594 kEUR at December 31, 2023.

 

Adjusted EBIT increased to 4,408 kEUR for the third quarter of 2024 from 2,330 kEUR for the 2023 period. The Adjusted EBIT margin (Adjusted EBIT divided by total revenue) for the third quarter of 2024 was 6.4%, compared to 3.9% for the third quarter of 2023. Adjusted EBITDA increased to 9,895 kEUR for the third quarter of 2024 from 7,857 kEUR for the 2023 period.

 

 

Adjusted EBITDA from our Materialise Medical segment increased by 38.5% to 9.895 kEUR for the third quarter of 2024 compared to 7,143 kEUR while the Adjusted EBITDA margin for the segment (segment Adjusted EBITDA divided by segment revenue) was 32.8% compared to 29.4% for the third quarter of 2023.

 

Adjusted EBITDA from our Materialise Software segment increased by 10.9% to 1,975 kEUR from 1,781 kEUR while the Adjusted EBITDA margin for the segment was 17.8% compared to 16.5% for the corresponding prior-year period.

 

Adjusted EBITDA from our Materialise Manufacturing segment amounted to 701 kEUR compared to 1,074 kEUR for the same period last year, while the Adjusted EBITDA margin for the segment was 2.6% compared to 4.3% for the third quarter of 2023.

 

Non-IFRS Measures

 

Materialise uses EBIT, EBITDA, Adjusted EBIT and Adjusted EBITDA as supplemental financial measures of its financial performance. EBIT is calculated as net profit plus income taxes, financial expenses (less financial income) and shares of profit or loss in a joint venture. EBITDA is calculated as net profit plus income taxes, financial expenses (less financial income), shares of profit or loss in a joint venture and depreciation and amortization. Adjusted EBIT and Adjusted EBITDA are determined by adding share-based compensation expenses, acquisition-related expenses of business combinations, impairments and revaluation of fair value due to business combinations to EBIT and EBITDA, respectively. Management believes these non-IFRS measures to be important measures as they exclude the effects of items which primarily reflect the impact of financing decisions and, in the case of EBITDA and Adjusted EBITDA, long term investment, rather than the performance of the company’s day-to-day operations. The company also uses segment Adjusted EBITDA to evaluate the performance of its three business segments. As compared to net profit, these measures are limited in that they do not reflect the cash requirements necessary to service interest or principal payments on the company’s indebtedness and, in the case of EBITDA and Adjusted EBITDA, these measures are further limited in that they do not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the company’s business, or the changes associated with impairments. Management evaluates such items through other financial measures such as financial expenses, capital expenditures and cash flow provided by operating activities. The company believes that these measurements are useful to measure a company’s ability to grow or as a valuation measurement. The company’s calculation of EBIT, EBITDA, Adjusted EBIT and Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. EBIT, EBITDA, Adjusted EBIT and Adjusted EBITDA should not be considered as alternatives to net profit or any other performance measure derived in accordance with IFRS. The company’s presentation of EBIT, EBITDA, Adjusted EBIT and Adjusted EBITDA should not be construed to imply that its future results will be unaffected by unusual or non-recurring items.

 

Exchange Rate

 

This document contains translations of certain euro amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from euros to U.S. dollars in this document were made at a rate of EUR 1.00 to USD 1.1196, the reference rate of the European Central Bank on September 30, 2024.

 

About Materialise

 

Materialise incorporates over 30 years of 3D printing experience into a range of software solutions and 3D printing services, which form the backbone of the 3D printing industry. Materialise’s open and flexible solutions enable players in a wide variety of industries, including healthcare, automotive, aerospace, art and design, and consumer goods, to build innovative 3D printing applications that aim to make the world a better and healthier place. Headquartered in Belgium, with branches worldwide, Materialise combines one of the largest groups of software developers in the industry with one of the largest and most complete 3D printing facilities in the world.

 

 

Consolidated income statements (Unaudited)

 

		for the three months ended September 30,												for the nine months ended September 30,
In '000		2024				2024				2023				2024				2023
		U.S.$				€				€				€				€
Revenue			76,862				68,652				60,130				201,085				190,832
Cost of Sales			(32,866	)			(29,355	)			(26,435	)			(86,625	)			(83,249	)
Gross Profit			43,997				39,297				33,696				114,461				107,583
Gross profit as % of revenue			57.2	%			57.2	%			56.0	%			56.9	%			56.4	%
Research and development expenses			(12,292	)			(10,979	)			(9,476	)			(32,301	)			(27,982	)
Sales and marketing expenses			(16,678	)			(14,896	)			(13,960	)			(45,130	)			(42,418	)
General and administrative expenses			(11,175	)			(9,981	)			(8,640	)			(29,195	)			(27,213	)
Net other operating income (expenses)			977				872				710				2,866				(3,238	)
Operating (loss) profit			4,829				4,313				2,330				10,700				6,732
Financial expenses			(2,063	)			(1,843	)			(1,554	)			(4,082	)			(3,599	)
Financial income			791				706				2,873				5,489				4,987
(Loss) profit before taxes			3,557				3,176				3,649				12,106				8,120
Income Taxes			(154	)			(138	)			363				(1,607	)			(886	)
Net (loss) profit for the period			3,403				3,038				4,013				10,500				7,234
Net (loss) profit attributable to:
The owners of the parent			3,409				3,045				4,017				10,520				7,251
Non-controlling interest			(8	)			(7	)			(5	)			(20	)			(17	)
Earning per share attributable to owners of the parent
Basic			0.06				0.05				0.07				0.18				0.12
Diluted			0.06				0.05				0.07				0.18				0.12
Weighted average basic shares outstanding			59,067				59,067				59,067				59,067				59,067
Weighted average diluted shares outstanding			59,067				59,067				59,068				59,067				59,070

 

 

Consolidated statements of comprehensive income (Unaudited)

 

		for the three months ended September 30,												for the nine months ended September 30,
In 000€		2024				2024				2023				2024				2023
		U.S.$				€				€				€				€
Net profit (loss) for the period			3,403				3,038				4,013				10,500				7,234
Other comprehensive income
Recycling
Exchange difference on translation of foreign operations			827				739				(770	)			(317	)			471
Other comprehensive income (loss), net of taxes			827				739				(770	)			(317	)			471
Total comprehensive income (loss) for the year, net of taxes			4,229				3,777				3,242				10,183				7,705
Total comprehensive income (loss) attributable to:
The owners of the parent			4,237				3,785				3,248				10,204				7,721
Non-controlling interests			(8	)			(7	)			(5	)			(21	)			(15	)

 

 

Consolidated statement of financial position (Unaudited)

 

		As of September 30,				As of December 31,
In 000€		2024				2023
Assets
Non-current assets
Goodwill			43,355				43,158
Intangible assets			30,987				31,464
Property, plant & equipment			104,856				95,400
Right-of-Use assets			7,889				8,102
Deferred tax assets			2,673				2,797
Investments in convertible loans			3,931				3,744
Other non-current assets			5,829				5,501
Total non-current assets			199,520				190,166
Current assets
Inventories			17,400				17,034
Trade receivables			49,761				52,698
Other current assets			11,814				9,161
Cash and cash equivalents			116,163				127,573
Total current assets			195,138				206,465
Total assets			394,658				396,630

 

 

		As of September 30,				As of December 31,
In 000€		2024				2023
Equity and liabilities
Equity
Share capital			4,487				4,487
Share premium			234,155				233,942
Retained earnings and other reserves			8,419				(1,783	)
Equity attributable to the owners of the parent			247,061				236,646
Non-controlling interest			(72	)			(53	)
Total equity			246,989				236,594
Non-current liabilities
Loans & borrowings			23,880				33,582
Lease liabilities			5,403				5,333
Deferred tax liabilities			3,324				3,725
Deferred income			6,528				10,701
Other non-current liabilities			697				1,745
Total non-current liabilities			39,832				55,086
Current liabilities
Loans & borrowings			21,294				22,873
Lease liabilities			2,460				2,610
Trade payables			21,225				21,196
Tax payables			2,924				1,777
Deferred income			40,878				40,791
Other current liabilities			19,056				15,703
Total current liabilities			107,837				104,950
Total equity and liabilities			394,658				396,630

 

 

Consolidated statement of cash flows (Unaudited)

 

		for the nine months ended September 30,
In 000€		2024				2023
Operating activities
Net (loss) profit for the period			10,500				7,234
Non-cash and operational adjustments			16,964				15,136
Depreciation of property plant & equipment			11,370				11,162
Amortization of intangible assets			4,838				5,046
Share-based payment expense			213				-
Loss (gain) on disposal of intangible assets and property, plant & equipment			(114	)			(401	)
Movement in provisions			311				(434	)
Movement reserve for bad debt and slow moving inventory			202				445
Financial income			(5,492	)			(4,811	)
Financial expense			4,066				3,389
Impact of foreign currencies			(15	)			(152	)
(Deferred) income taxes			1,584				892
Working capital adjustments			(3,860	)			(3,601	)
Decrease (increase) in trade receivables and other receivables			1,666				8,965
Decrease (increase) in inventories and contracts in progress			(672	)			(751	)
Increase (decrease) in deferred revenue			(4,284	)			(4,532	)
Increase (decrease) in trade payables and other payables			(569	)			(7,283	)
Income tax paid & Interest received			1,635				1,194
Net cash flow from operating activities			25,239				19,963

 

 

		for the nine months ended September 30,
In 000€		2024				2023
Investing activities
Purchase of property, plant & equipment			(17,305	)			(6,862	)
Purchase of intangible assets			(1,312	)			(2,448	)
Proceeds from the sale of property, plant & equipment & intangible assets (net)			232				645
Acquisition of subsidiary (net of cash)			(2,670	)			-
Net cash flow used in investing activities			(21,055	)			(8,665	)
Financing activities
Repayment of loans & borrowings			(11,470	)			(14,334	)
Repayment of leases			(2,314	)			(2,640	)
Capital increase			-				-
Interest paid			(1,052	)			(1,334	)
Other financial income (expense)			(240	)			(25	)
Net cash flow from (used in) financing activities			(15,077	)			(18,334	)
Net increase/(decrease) of cash & cash equivalents			(10,892	)			(7,037	)
Cash & Cash equivalents at the beginning of the year			127,573				140,867
Exchange rate differences on cash & cash equivalents			(517	)			123
Cash & cash equivalents at end of the period			116,163				133,953

 

 

Reconciliation of Net Profit (Loss) to EBITDA and Adjusted EBITDA (Unaudited)

 

		for the three months ended September 30,								for the nine months ended September 30,
In 000€		2024				2023				2024				2023
Net profit (loss) for the period			3,038				4,013				10,500				7,234
Income taxes			138				(363	)			1,607				886
Financial expenses			1,843				1,554				4,082				3,599
Financial income			(706	)			(2,873	)			(5,489	)			(4,987	)
Depreciation and amortization			5,487				5,527				16,241				16,191
EBITDA			9,800				7,857				26,941				22,923
Share-based compensation expense (1)			71				-				213				-
Acquisition-related expenses of business combinations (2)			24				-				24				-
Adjusted EBITDA			9,895				7,857				27,178				22,923

(1) Share-based compensation expense represents the cost of equity-settled and share-based payments to employees.
(2) Acquisition-related expenses of business combinations represent expenses incurred in connection with the acquisition of Feops.

 

Reconciliation of Net Profit (Loss) to EBIT and Adjusted EBIT (Unaudited)

 

		for the three months ended September 30,								for the nine months ended September 30,
In 000€		2024				2023				2024				2023
Net profit (loss) for the period			3,038				4,013				10,500				7,234
Income taxes			138				(363	)			1,607				886
Financial expenses			1,843				1,554				4,082				3,599
Financial income			(706	)			(2,873	)			(5,489	)			(4,987	)
EBIT			4,313				2,330				10,700				6,732
Share-based compensation expense (1)			71				-				213				-
Acquisition-related expenses of business combinations (2)			24				-				24				-
Adjusted EBIT			4,408				2,330				10,937				6,732

 

(1) Share-based compensation expense represents the cost of equity-settled and share-based payments to employees.

(2) Acquisition-related expenses of business combinations represent expenses incurred in connection with the acquisition of Feops.

 

 

Segment P&L (Unaudited)

 

In 000€		Materialise Medical				Materialise Software				Materialise Manufacturing				Total segments				Unallocated (1)				Consolidated
For the three months ended September 30, 2024
Revenues			30,197				11,111				27,344				68,652				(0	)			68,652
Segment (adj) EBITDA			9,895				1,975				701				12,572				(2,677	)			9,895
Segment (adj) EBITDA %			32.8	%			17.8	%			2.6	%			18.3	%							14.4	%
For the three months ended September 30, 2023
Revenues			24,263				10,811				25,056				60,130				0				60,130
Segment (adj) EBITDA			7,143				1,781				1,074				9,998				(2,141	)			7,857
Segment (adj) EBITDA %			29.4	%			16.5	%			4.3	%			16.6	%							13.1	%

 

In 000€		Materialise Medical				Materialise Software				Materialise Manufacturing				Total segments				Unallocated (1)				Consolidated
For the nine months ended September 30, 2024
Revenues			84,522				32,775				83,789				201,085				0				201,085
Segment (adj) EBITDA			26,015				4,439				4,648				35,103				(7,925	)			27,178
Segment (adj) EBITDA %			30.8	%			13.5	%			5.5	%			17.5	%							13.5	%
For the nine months ended September 30, 2023
Revenues			73,528				33,192				84,112				190,832				0				190,833
Segment (adj) EBITDA			17,179				6,190				6,980				30,349				(7,426	)			22,923
Segment (adj) EBITDA %			23.4	%			18.7	%			8.3	%			15.9	%							12.0	%

 

(1)  Unallocated segment adjusted EBITDA consists of corporate research and development and corporate other operating income (expense), and the added share-based compensation expenses, acquisition related expenses of business combinations, impairments and fair value of business combinations that are included in Adjusted EBITDA.

 

 

Reconciliation of Net Profit (Loss) to Segment adjusted EBITDA (Unaudited)

 

		for the three months ended September 30,								for the nine months ended September 30,
In 000€		2024				2023				2024				2023
Net profit (loss) for the period			3,038				4,013				10,500				7,234
Income taxes			138				(363	)			1,607				886
Financial cost			1,843				1,554				4,082				3,599
Financial income			(706	)			(2,873	)			(5,489	)			(4,987	)
Operating (loss) profit			4,313				2,330				10,700				6,732
Depreciation and amortization			5,487				5,527				16,241				16,191
Corporate research and development			912				604				2,675				2,063
Corporate headquarter costs			2,454				2,399				7,537				7,636
Other operating income (expense)			(618	)			(862	)			(2,073	)			(2,274	)
Segment EBITDA adjustments (1)			24								24
Segment adjusted EBITDA			12,572				9,998				35,103				30,349

 

(1) Acquisition-related expenses of business combinations represent expenses incurred in connection with the acquisition of Feops.

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	MATERIALISE NV
	By:	/s/ Brigitte de Vet-Veithen
	Name:	Brigitte de Vet-Veithen
		De Vet Management BV
	Title:	Chief Executive Officer

 

Date: October 24, 2024