Agfa-Gevaert publishes its third quarter 2015 results – regulated information

Press Release / Mortsel - Belgium / 13th November 2015

Agfa-Gevaert today announced its third quarter 2015 results.
  • Continued revenue growth
  • Positive gross profit margin trend confirmed
  • Net profit of 33 million Euro
  • Further decrease in net debt

“Our third quarter results are in line with our expectations. As stopping top line erosion was one of our major focus points for this year, I am satisfied to report a continuous revenue increase. Pursuing this trend, we should be able to grow our full year revenue to 3 billion Euro in the medium term. Continuing the evolution of the previous quarters, our gross profit margin and recurring EBITDA margin improved versus last year. We reiterate our target of delivering a recurring EBITDA percentage close to 10 percent of revenue in 2015. Furthermore, I am very pleased with our solid net profit, which reflects our operational improvements, as well as the success of our restructuring efforts,” said Christian Reinaudo, President and CEO of the Agfa-Gevaert Group.

Agfa-Gevaert Group – third quarter 2015
Euro millions Q3 2014 Q3 2015 % change
Revenue 636 661 +3.9%
Gross Profit (*) 196 209 +6.6%
% of revenue 30.8% 31.6%
Recurring EBITDA (*) 51 60 +17.6%
% of revenue 8.0% 9.1%
Recurring EBIT (*) 34 46 +35.3%
% of revenue 5.3% 7.0%
Result from operating activities 29 43 +48.3%
Result for the period 9 33 +266.7%

(*) before restructuring and non-recurring items.

The Agfa-Gevaert Group’s revenue grew by 3.9 percent to 661 million Euro. Like in the previous quarters, the top line growth was driven by positive currency effects, as well as by the Group’s growth engines (including the Agfa Graphics business group’s inkjet business and the Agfa HealthCare business group’s Direct Radiography and IT solutions).

As targeted efficiency programs more than counterbalanced the substantial adverse raw material effects (which mainly impacted the Agfa Graphics business group), the Group succeeded in improving its gross profit margin from 30.8 percent in the third quarter of 2014 to 31.6 percent.

As a percentage of revenue, Selling and General Administration expenses remained about stable at 19.1 percent of revenue.

R&D expenses amounted to 36 million Euro, or 5.4 percent of revenue.

Recurring EBITDA (the sum of Graphics, HealthCare, Specialty Products and the unallocated portion) and recurring EBIT improved to 9.1 percent and 7.0 percent of revenue respectively.

The expense related to the restructuring and non-recurring items amounted to 3 million Euro, versus 5 million Euro in the third quarter of 2014.

The net finance costs amounted to 12 million Euro.

Income taxes resulted in an income of 2 million Euro, versus an expense of 5 million Euro in the previous year.

As a result of the elements mentioned above, the Agfa-Gevaert Group posted a strong net profit of 33 million Euro.

Financial position and cash flow
  • At the end of the quarter, total assets were 2,529 million Euro, compared to 2,548 million Euro at the end of 2014.
  • Inventories amounted to 563 million Euro (111 days), versus 580 million Euro (114 days) in the third quarter of 2014. Trade receivables (minus deferred revenue and advanced payments from customers) amounted to 363 million Euro (50 days), versus 388 million Euro (55 days) in 2014, and trade payables were 238 million Euro (47 days), versus 225 million Euro (44 days).
  • Net financial debt amounted to 83 million Euro, versus 126 million Euro at the end of 2014.
  • Net cash from operating activities amounted to 34 million Euro.
Agfa Graphics – third quarter 2015
Euro millions Q3 2014 Q3 2015  % change
Revenue 328 338  +3.0%
Recurring EBITDA (*) 22.1 24.4  +10.4%
% of revenue 6.7% 7.2%
Recurring EBIT (*) 14.7 16.8  +14.3%

(*) before restructuring and non-recurring items.

Agfa Graphics posted a revenue increase for the second quarter in a row, despite the softness in the emerging markets and the political instability in certain regions.

The top line growth was driven by the solid double-digit growth of the inkjet segment, the improving volume trend in the prepress segment’s digital computer-to-plate (CtP) business and positive currency effects. The analog computer-to-film (CtF) business continued to decline strongly.

Agfa Graphics’ gross profit margin decreased from 28.4 percent of revenue in the third quarter of 2014 to 27.5 percent, as the business group’s efficiency projects were not able to fully offset the substantial adverse raw material and competitive pressure effects. Recurring EBITDA amounted to 24.4 million Euro (7.2 percent of revenue), versus 22.1 million Euro (6.7 percent of revenue) in the third quarter of 2014. Recurring EBIT improved from 14.7 million Euro (4.5 percent of revenue) to 16.8 million Euro (5.0 percent of revenue).

In the field of inkjet, the Anapurna and Jeti wide-format print engines and the related ink portfolio continued to convince printers all over the world of their many advantages. Among the new Jeti users are Graphica Display (UK), White Light (Belgium), DACAR (Belgium), TVE (the Netherlands), Graphics & Signs (Canada), Compugrafix (Romania), GW and Printserve (both Nigeria). In Brazil, the Zoom Imagem company installed its third Jeti Titan print engine. Often, new and existing customers combine their Jeti and Anapurna systems with Acorta cutting and finishing plotters and Asanti workflow software. A good example is Johnsons Printers (UK), which opened a new print site dedicated to wide-format printing using Agfa Graphics’ Anapurna M2500i engine, Asanti software and Acorta plotter.

The customer base for the ink portfolio for industrial applications continued to grow according to plan.  

In the field of prepress, eye-catching contracts were signed with commercial print companies including Albe de Coker (Belgium), Stephens & George (UK), Nexo Industria Gráfica (Argentina), Sattler Media Press (Germany) and Bluemedia (Germany).

Also in prepress, Agfa Graphics launched a number of important new products and product updates. A major innovation is N95-VCF, the next generation chemistry-free violet printing plate for newspaper printers. Among other advantages, the new universal plate offers improved robustness on press and much higher run lengths. Agfa Graphics is a market and technology leader in chemistry-free plate technology for newspapers. Since the launch of the N94-VCF plate in 2011, more than 70 percent of Agfa Graphics’ newspaper customers worldwide made the switch to chemistry-free technology.

Targeted at both the commercial printing and the sign & display markets, Agfa Graphics launched a new version of its StoreFront cloud-based web-to-print workflow system. StoreFront allows printers to set up e-stores and to reach new markets on-line.

Agfa HealthCare – third quarter 2015
Euro millions Q3 2014  Q3 2015  % change
Revenue 259  276  +6.6%
Recurring EBITDA (*) 26.2  33.9  +29.4%
% of revenue 10.1%  12.3%
Recurring EBIT (*) 17.6  27.6  +56.8%

(*) before restructuring and non-recurring items.

Partly due to positive currency effects, Agfa HealthCare posted solid top line growth for the third consecutive quarter.

In the Imaging segment’s digital radiography business (consisting of Computed Radiography (CR), Direct Radiography (DR) and the hardcopy business), the DR product range’s revenue continued to grow strongly, while the hardcopy product range also performed well.

In the IT segment, the HealthCare Information Solutions range posted revenue growth. In the field of Imaging IT Solutions, the business group is making good progress with the rollout of its new Enterprise Imaging platform.

Mainly due to the success of its efficiency programs, Agfa HealthCare was able to increase its gross profit margin from 35.9 percent of revenue in the third quarter of 2014 to 38.8 percent. Recurring EBITDA improved from 26.2 million Euro (10.1 percent of revenue) in the third quarter of 2014 to 33.9 million Euro (12.3 percent of revenue). Recurring EBIT increased from 17.6 million Euro (6.8 percent of revenue) to 27.6 million Euro (10.0 percent of revenue).

In the field of Imaging, Agfa HealthCare signed several eye-catching contracts for its advanced digital radiography solutions. In the US, a new three-year group purchasing contract was signed with the leading healthcare improvement company Premier, Inc. The agreement allows Agfa HealthCare to offer its DR solutions to Premier’s approximately 3,600 member hospitals and 120,000 other alternate healthcare sites. The Ministry of Health of Saudi Arabia ordered 29 DX-D 100 mobile DR units. The systems will be employed in hospitals in the southern region of the country. In Jordan, the Ministry of Health ordered 29 CR systems and hardcopy printers to digitize imaging in hospitals across the country. In the UK, the Bristol Royal Infirmary teaching hospital replaced its existing CR equipment with nine Agfa HealthCare CR solutions.

For the second year in a row, Agfa HealthCare is the Technical Sponsor of the Mobile Horse Vet Clinic for the annual Longines Global Champions Tour show jumping series. The ‘Horse Ambulance Group’ uses Agfa HealthCare’s CR and DR technology to screen and care for the horses participating in the tour.

In the field of Imaging IT Solutions, Agfa HealthCare signed a cooperation agreement with the Institut und Poliklinik für Radiologische Diagnostik of the university hospital in Cologne. Both parties will join forces to further develop Agfa HealthCare’s radiology information systems. In the US, Northwestern Medicine selected Agfa HealthCare’s Enterprise Imaging for Radiology platform. Northwestern Medicine serves more than 90 locations in Illinois, including six hospitals. In Canada, eHealth Ontario – an agency of the Ontario Ministry of Health and Long-Time Care – selected Agfa HealthCare’s XERO viewer to support its strategy to enable access to medical images and reports throughout the province. The decision will impact 28,000 physicians.

Furthermore, Agfa HealthCare was selected to update and upgrade the RIS (Radiology Information System) and imaging infrastructure of the Area Vasta Centro region in Tuscany, Italy. The region comprises five hospital groups. Other important imaging IT contracts in Europe were signed with – among other organizations – AZ Alma Sijsele (Belgium), Centre Hospitalier Du Nord Ettelbruck (Luxemburg) and Klinikum Augsburg (Germany).

In the field of HealthCare Information Solutions, Agfa HealthCare confirmed its leading position in the German speaking region of Europe. Furthermore, the business group has been selected as one of the approved suppliers in the NHS Shared Business Services’ Healthcare Clinical Information Systems Framework. This four-year framework, which can be extended by an additional two years, speeds up and simplifies the healthcare IT systems tender process for healthcare providers in the UK. Agfa HealthCare will now be able to participate in tenders for complex IT projects organized by NHS care providers with its modular and customizable ORBIS suite. ORBIS supports medical, diagnostic and care workflows. It is designed to provide fast availability of patients’ histories, including images and clinical and administrative data.

Agfa Specialty Products – third quarter 2015
Euro millions Q3 2014 Q3 2015 % change
Revenue 49 47 -4.1%
Recurring EBITDA (*) 3.4 3.5 +2.9%
% of revenue 6.9% 7.4%
Recurring EBIT (*) 2.4 2.5 +4.2%

(*) before restructuring and non-recurring items.

Agfa Specialty Products’ revenue amounted to 47 million Euro. The good performances of the Orgacon Electronic Materials business, the Synaps Synthetic Paper business and the Printed Circuit Board business partly counterbalanced the decline of the traditional film businesses.

The business group’s recurring EBITDA reached 3.5 million Euro (7.4 percent of revenue). Recurring EBIT increased to 2.5 million Euro (5.3 percent of revenue).

In the third quarter, Agfa Specialty Products announced the signing of an agreement with Blue Rhine General Trading for the distribution of the Synaps synthetic paper range in the United Arab Emirates.

Results after nine months
Agfa-Gevaert Group – year to date
Euro millions   9m 2014 9m 2015 % change
Revenue  1,909 1,974 +3.4%
Gross Profit (*)  585 635 +8.5%
% of revenue  30.6% 32.2%
Recurring EBITDA (*)  148 175 +18.2%
% of revenue  7.8% 8.9%
Recurring EBIT (*)  96 130 +35.4%
% of revenue  5.0% 6.6%
Result from operating activities  88 115 +30.7%
Result for the period  38 61 +60.5%

(*) before restructuring and non-recurring items. 

Agfa Graphics – year to date
Euro millions 9m 2014 9m 2015 % change
Revenue 994 1,008 +1.4%
Recurring EBITDA (*) 71.4 65.8 -7.8%
% of revenue 7.2% 6.5%
Recurring EBIT (*) 48.8 43.1 -11.7%

(*) before restructuring and non-recurring items.

Agfa HealthCare – year to date
Euro millions 9m 2014 9m 2015  % change
Revenue 766 824  +7.9%
Recurring EBITDA (*) 71.2 99.8  +40.2%
% of revenue 9.3% 12.1%
Recurring EBIT (*) 44.8 79.8  +78.1%

(*) before restructuring and non-recurring items.

Agfa Specialty Products – year to date
Euro millions 9m 2014 9m 2015 % change
Revenue 149 142 -4.7%
Recurring EBITDA (*) 8.5 13.8 +62.4%
% of revenue 5.7% 9.7%
Recurring EBIT (*) 5.2 10.8 +107.7% 

(*) before restructuring and non-recurring items.

Management Certification of Financial Statements and Quarterly Report

This statement is made in order to comply with new European transparency regulation enforced by the Belgian Royal Decree of 14 November 2007 and in effect as of 2008.

“The Board of Directors and the Executive Committee of Agfa-Gevaert NV, represented by Mr. Julien De Wilde, Chairman of the Board of Directors, Mr. Christian Reinaudo, President and CEO, and Mr. Kris Hoornaert, CFO, jointly certify that, to the best of their knowledge, the consolidated financial statements included in the report and based on the relevant accounting standards, fairly present in all material respects the financial condition and results of Agfa-Gevaert NV, including its consolidated subsidiaries. Based on our knowledge, the report includes all information that is required to be included in such document and does not omit to state all necessary material facts.”

Statement of risk

This statement is made in order to comply with new European transparency regulation enforced by the Belgian Royal Decree of 14 November 2007 and in effect as of 2008.

“As with any company, Agfa is continually confronted with – but not exclusively – a number of market and competition risks or more specific risks related to the cost of raw materials, product liability, environmental matters, proprietary technology or litigation.”

Key risk management data is provided in the annual report available on

Click here for Agfa’s consolidated statements. 

Viviane Dictus
Director Corporate Communication
Tel nr.: +32 (0) 3 444 7124
Fax nr.: +32 (0) 3 444 4485

Johan Jacobs
Corporate Press Relations Manager
Tel nr.: +32 (0) 3 444 8015
Fax nr.: +32 (0) 3 444 4485