Kodak Reports 1Q 2023 Financial Results

Eastman Kodak Company reported financial results for the first quarter 2023.

For the quarter ended March 31, 2023, revenues were $278 million, a decline of $12 million or 4% compared to the same period in 2022. Adjusting for the unfavorable impact of foreign exchange of $10 million, revenues decreased by $2 million, or 1% compared to the prior year.

GAAP net income was $33 million for the quarter, compared with negative $3 million in Q1 2022, an increase of $36 million. Operational EBITDA for the first quarter 2023 was $9 million, compared with negative $7 million in the prior-year period, an increase of $16 million. The increase was primarily driven by improved profitability related to pricing passthrough and improved operational efficiency, partially offset by continued global cost increases.

“Kodak continued to make progress in the first quarter, generating cash and increasing our gross profit year over year in the face of significant headwinds,” said Jim Continenza, Kodak’s executive chairman and CEO. “These improvements didn’t just happen. They are the result of a wide range of actions we have taken over the last four years to put us on a path to sustainable growth and profitability.

“We are continuing to invest in four long-term growth initiatives in our Advanced Materials and Chemicals group, and we are starting to see contributions from that business,” Continenza added. “We have successfully introduced two groundbreaking inkjet presses and KODACHROME Inks, the gold standard for color. And, most importantly, we continue to execute on our go-to-market strategy, staying close to our customers and developing solutions that address their challenges and create new opportunities. We put our customers first because we know we only win when our customers win.”

“Kodak got off to a strong start in the first quarter, increasing our cash balance from $217 million to $225 million and increasing our gross profit by 52% year over year while continuing to invest in both product innovation and our long-term growth initiatives,” said David Bullwinkle, Kodak’s CFO. “Our ability to make these improvements despite continuing challenges of inflation and supply chain disruptions reflects the positive impact of changes we have made as part of our strategic plan to drive operational efficiency and smart revenue.”