Kodak Alaris financial report reveals heavy reliance on film business

Kodak Alaris Holding Ltd., the parent company of Kodak Moments, released its Fiscal Year 2023 earnings in the United Kingdom, for the year ending March 31, 2023. The report sheds light on the company’s financial condition and adds context to recent reports the business is up for sale. Among the highlights of the 111-page document was this section below, revealing the company’s loss widened on slowing sales. Revenue was $496 million in fiscal 2023, compared to $510 in fiscal 2022. Gross profit declined to $148 million from $168 million in the same period. The after-tax loss was $33 million, compared to $17 million for the same period last year. Net liabilities, fueled by the addition of $158 million in loan notes, doubled to $50 million.

Despite the decade-long efforts by the company to transform into a primarily a document software and services company, Kodak Alaris is still heavily reliant on photo output and film.

In the key Kodak Moments segment – comprised of film, kiosks, apps,  and other consumer photography lines – sales increased $332 million from $314 million last year, driven primarily by higher volumes of photographic film and higher prices, the company said. By region, the U.S. and Canada comprise 35% of the total business, followed by Latin America at 5%, Europe and other countries in the region (43%), and Asia-Pacific (17%). The company said demand for film is still strong and sales are constrained only by the limited supply (from Eastman Kodak Co.)

On the kiosk side, the company said “Kodak Moments business successfully renewed long-term supply agreements with three key retail customers confirming retail photo services revenue into the future. The business saw modest growth in revenue in fiscal 2023 despite significant currency headwinds and supply chain disruptions. It is not practical to obtain reasonable fair value estimates for Kodak Moments without including Film.”