I’ve reviewed the year end 2023 financials for Kodak. Why? Really no reason except 1) financial analysis was one of the things I did during my corporate life & 2) curiosity as a film photographer. The important facts about financial analysis are to avoid the corporate PR & scripted talking points and simply focus on the facts and numbers. The numbers tell all.
After examining Kodak's year-end financials for 2023, Kodak’s consumer and motion picture film business, housed within its Advanced Materials & Chemicals unit (AMC), comprise 2 of 4 segments: Industrial Film & Chemicals (IFC) and Motion Picture film.
Kodak manufactures and directly markets Motion Picture film (Vision3), whereas consumer 35mm and 120 photographic films are NOT SOLD by Kodak but by Kodak Alaris, a separate entity owned by the UK Kodak Pension Plan. Kodak Alaris holds the exclusive contract for selling all consumer film. Kodak Alaris is listed as a CUSTOMER within Kodak’s AMC unit.
In terms of financial performance, Kodak's total revenue for the 2023 was $1.17 billion, reflecting a 7% decline from the previous year. The AMC unit totaled $255 million of Kodak’s total sales. Earnings from operations are a modest $4 million, with a reported net income of $75 million, largely attributed to non-business related activities. The IFC unit totaled $201 million. On a positive note, Kodak maintains a healthy cash balance, crucial for business operations.
Within the AMC unit, IFC contributes $201.1 million, with sales to Kodak Alaris totaling $86.7 million, representing a small fraction (7.8%) of Kodak's total sales. Additionally, Vision3 sales, part of the AMC but outside of IFC, likely amount to less than $20 million.
Despite Kodak's acknowledgment of the importance of consumer and motion picture film, challenges such as equipment condition, staffing levels, and supply chain constraints have hindered capacity, necessitating additional future capital for improvement.
In conclusion, while Kodak remains a very important player in the film industry, producing film both for consumers (sold to you through Kodak Alaris) and motion pictures, the business's financial returns are not substantial. However, as long as demand persists, Kodak will continue to support the business. The next step will be to review the financial condition of Kodak Alaris.
Stay tuned!
