“Following a strong fourth quarter in 2016, the impact of inventory adjustments in Agfa HealthCare’s hardcopy business somewhat overshadowed the good performance of its IT business. Based on good inkjet sales and an improving trend in printing plate volumes, Agfa Graphics’ top line trend improved compared to the previous quarters. For the Group, we reiterate our target of reducing the top line decline and ultimately returning to growth in the medium term. On average, recurring EBITDA should be kept around 10% of revenue in the coming years. We have initiated several top line projects, aimed at limiting the decline of our traditional businesses and at boosting the success of our growth engines,” said Christian Reinaudo, President and CEO of the Agfa-Gevaert Group.
“As expected, we have met our main objective for 2016: we brought our recurring EBITDA margin above 10% of revenue. Furthermore, our strong focus on cash flow generation enabled us to turn our net debt position into a net cash position. These two achievements will now allow us to shift our focus to the top line evolution of our businesses. As we did when we started to focus on the improvement of our gross profit margin a few years ago, we have initiated several top line projects. With these projects, we will aim at limiting the decline of our traditional businesses and at boosting the success of our growth engines. In that respect, the continuous success of our HealthCare IT business acts as an example for our other growth businesses,” said Christian Reinaudo, President and CEO of the Agfa-Gevaert Group.
“Driven by the success of our efficiency measures and by favorable raw material effects, the positive profitability trend continued in the third quarter. We expect our full year recurring EBITDA to reach 10% of revenue, which is the main target we set ourselves for 2016. That allows us to partly shift our focus to the top line. We are very pleased with the continued strong performance of HealthCare IT. We will implement various projects aiming at limiting the decline of our traditional businesses and at boosting the success of our growth engines. Reversing the organic top line erosion is our top priority,” said Christian Reinaudo, President and CEO of the Agfa-Gevaert Group.
J.P. Morgan Asset Management Holdings Inc.