Kodak is poised for growth after several years of reshaping the business chairman and CEO Jim Continenza has told financial analysts.
In a conference call to mark the publication of Q4 and full year results, Continenza declared that “long term investments we have made are really starting to pay off” and that “both sides of the company are now contributing to our growth and our success. Our investment in commercial print has been paying off. We continue to be heavily committed to print”.
That has been focused on its Sonara process-free plate and developments in inkjet technology. Prosper printheads for imprinting applications on both conventional printing presses and non traditional applications are experiencing significant growth.
The Prosper Ultra 520 which is the flagship in terms of quality and its offer for the offset to inkjet transition, is now into full production. Platesetters are also selling well, Continenza notes in a letter to shareholders.
The growth in printing has come in the second half of the year, almost recouping ground lost over the year. In Q4, print revenues reached $195 million ($187 million) but for the full year, print revenues slipped from $737 million to $715 million.
The future growth engine is its Advanced Materials & Chemicals division which includes both photographic and movie films, a burgeoning investment in pharmaceuticals while its branding division has resulted in Kodak shops in Asia and its name applied to miniature camera. The AMC division reported sales of $316 million for the year ($271 million), contributing to full year revenue of $1,069 million ($1,043 million). Its operating product for the year was $62 million ($26 million) while there was a net loss of $128 million compared to a net income of $102 million for 2024.
The year was marked by a reorganisation of the company’s pension scheme resulting in a cash boost to the business allowing it to pay off loans and to cut its interest payments by $40 million.
This is the culmination of a plan starting in 2019 aimed at deleveraging the company while investing in product development. “Those investments are now paying dividends. Today Kodak has a stronger balance sheet than we’ve had in years, and we have reduced our annual interest expense by approximately $40 million,” says Continenza.
“Our print business has launched 14 new products in the past few years, and our AM&C unit has introduced a range of still films and developed a number of growth initiatives in promising new businesses. We have updated our internal IT and reporting systems which allow us to streamline processes, reduce operating expenses and better serve our customers. I am optimistic about taking the next step by operating and selling our way to sustainable growth.“
