The acquisition of Hybrid Software effectively doubled Global Graphics’ headcount and revenue, resulting in the company reporting a near-100% increase in unaudited revenue from continuing operations in the first half (H1) of 2021.
Specifically, revenue (unaudited) from continuing operations for the period was up 99.7% to €23.77 million, compared with €11.9 million for the same period in 2020. EBITDA (unaudited) increased 48.6% to €5.81 million from €3.91 million in 2020.
Global Graphics completed its acquisition of Hybrid Software in early 2021, opening it up to ‘tremendous opportunities’ as the packaging industry continues to migrate towards digital printing. These now appear to have begun to be realised, as it reports its financial performance in the first half of the year – the six months to 30 June, 2021.
Global Graphics CEO Mike Rottenborn commented, ‘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 organisation, a growing recurring revenue component, and most importantly, a very profitable end user sales presence to the group. Revenues from Hybrid Software for the first half of 2021 were €10.4 million, an increase of more than 30% from 2020, with EBITDA at 35% of revenue.’
Global Graphics chairman Guido Van der Schueren added, ‘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.’
The period also included the launched of SmartDFE, the first product co-developed by the member companies of Global Graphics Group – Global Graphics Software, Meteor Inkjet, Xitron and Hybrid Software. All group companies contributed to the company’s strong H1 2021 performance, as Mr Rottenborn noted.
‘Meteor Inkjet outperformed its revenue targets again,’ he said, ‘with continued strong sales in the Chinese ceramics market. 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 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.’
Mr Rottenborn concluded, ‘Our results set us on the right path for future growth and I anticipate the remainder of 2021 to show a strong performance also.’
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