The transformation of Kodak’s business over the last five years is starting to pay off says the company as profitability is improving and the company shapes its future.

Kodak’s focus on cost control and what it calls smart revenue is starting to deliver results for the company. It means that, five years after CEO and executive chairman Jim Continenza and a largely hand picked team of directors, the company has turned the corner from a loss making business into one that is cash generative and reporting growing profits.

This is despite a continuing fall in revenue across the print side of the business, while the Advanced Materials and Chemicals arm is growing.

In all the company reported a fall in revenue to $1.117 billion for 2023, down from $1.205 billion for the previous year. Print remains the bulk of the business with revenue of $828 million for the year compared to $928 million a year earlier, accounting for 74% of the total.

This is accounted for by drop in sales of prepress consumables, inkjet and especially in toner and electrophotographic presses. Kodak had ceased manufacture of the Nexfinity press at the end of 2022, causing a drop in sales revenue and in consumables as customers reduced their exposure to the press type.

Pretax profits for the company increased to $87 million for the year from $31 million and Ebitda for the print arm to $20 million, previously $5 million. The AMC division moved from an Ebitda loss of $1 million to a $10 million surplus. The remainder of the profit comes from Kodak’s licensing activities. Operational Ebitda reached $45 million ($18 million). A drop of $25 million in the price paid for aluminium as world prices settled, helped to compensate for the reduction in sales volume.

As well as the termination of Nexfinity, the cost cutting resulted in 130 fewer people of the 4,000 staff employed at the end of the year.

Continenza says that the performance validates “our conscious decision we are making to prioritise increasing productivity, investing in innovation and driving smart revenue”. He adds: “Our efforts are starting to come to fruition in 2023 delivering year over year improvements in gross profit and operational Ebitda and building a strong foundation for growth.”

The company anticipates a strong Drupa where it will show the latest version of the Prosper inkjet press as well as platesetters and Sonora processless plates. “We see plate demand consistent for many years into the future,” says Continenza. Likewise cine film remains in demand. The company is investing in additional capacity and is celebrating the Oscars awarded to Oppenheimer which director Christopher Nolan chose to shoot on Kodak film.