Agfa-Gevaert today announced its first quarter 2015 results.
  • Top line drop stopped – Good performance of the growth engines
  • Significant improvement in gross profit margin and recurring EBIT
  • Strong cash flow generation resulted in historically low net financial debt

“Our first quarter results show that we are on track to achieve the targets we recently expressed. Together with the weaker Euro, the good performance of our growth engines allowed us to stop the downward top line trend. This strengthens our belief that – supported by cautiously targeted acquisitions – we will succeed in growing our revenue to 3 billion Euro in the medium term. Our gross profit margin and our recurring EBITDA improved significantly compared to last year’s first quarter. We are confident that we will be able to deliver a recurring EBITDA percentage close to 10 percent of revenue in 2015. I am also pleased to be able to report a positive net result for the sixth quarter in a row. This achievement proves that our efforts to keep our restructuring and operational costs under control are leading to a sustainable improvement of our profitability. The strong cash flow generation resulted in a further decrease of our net debt,” said Christian Reinaudo, President and CEO of the Agfa-Gevaert Group.

Agfa-Gevaert Group – first quarter 2015
Euro millions Q1 2014 Q1 2015 % change
Revenue 622 622 0.0%
Gross Profit (*) 182 197 +8.2%
% of revenue 29.3% 31.7%
Recurring EBITDA (*) 34 43 +26.5%
% of revenue 5.5% 6.9%
Recurring EBIT (*) 16 28 +75.0%
% of revenue 2.6% 4.5%
Result from operating activities 15 24 +60.0%
Result for the period 3

(*) before restructuring and non-recurring items.

The Agfa-Gevaert Group’s revenue remained stable at 622 million Euro. After slowing down quarter after quarter in 2014, the downward top line trend was stopped in the first quarter of 2015. The Agfa Graphics business group’s inkjet business and the Agfa HealthCare business group’s Direct Radiography and Imaging IT Solutions businesses reported significant revenue growth. Together with positive currency effects, the success of the growth engines counterbalanced the effects of the continuous decline of the traditional film businesses, the softness in the emerging markets, and the unstable political situation in certain regions.

The Group’s gross profit margin amounted to 31.7 percent of revenue. This significant improvement versus the previous quarters is contributable to the success of the targeted efficiency programs and positive raw material effects.

As a percentage of revenue, Selling and General Administration expenses amounted to 21.2 percent.

R&D expenses amounted to 36 million Euro, or 5.8 percent of revenue.

Recurring EBITDA (the sum of Graphics, HealthCare, Specialty Products and the unallocated portion) and recurring EBIT improved to 6.9 percent and 4.5 percent of revenue respectively.

The expense related to the restructuring and non-recurring items amounted to 4 million Euro, versus 1 million Euro in the first quarter of 2014.

Entirely due to negative exchange results, the net finance costs increased to 17 million Euro, versus 14 million Euro in last year’s first quarter.

Tax expenses amounted to 4 million Euro, compared to 0 million Euro in the previous year.

For the sixth consecutive quarter, the Group succeeded in booking a positive net result. Net profit improved from 1 million Euro in the first quarter of 2014 to 3 million Euro.

Financial position and cash flow
  • At the end of the quarter, total assets were 2,697 million Euro, compared to 2,548 million Euro at the end of 2014.
  • Inventories amounted to 577 million Euro (115 days), versus 544 million Euro (100 days) in the first quarter of 2014. Trade receivables (minus deferred revenue and advanced payments from customers) amounted to 384 million Euro (55 days), versus 421 million Euro (61 days) in 2014, and trade payables were 257 million Euro (51 days), versus 225 million Euro (41 days).
  • Net financial debt decreased to 94 million Euro, versus 126 million Euro at the end of 2014.
  • Net cash from operating activities amounted to 53 million Euro.
Agfa Graphics – first quarter 2015
Euro millions Q1 2014  Q1 2015  % change
Revenue 327  321  -1.8%
Recurring EBITDA (*) 20.4  21.4  4.9%
% of revenue 6.2%  6.7%
Recurring EBIT (*) 12.6  13.8  9.5%

(*) before restructuring and non-recurring items.

Continuing the positive evolution seen in the last months of 2014 and helped by the weaker Euro, Agfa Graphics’ revenue decrease was limited to 1.8 percent. The soft business environment in most of the emerging markets and the unstable political situation in certain regions continued to weigh on the business group’s top line. In the prepress segment, the analog business continued to decline strongly. The digital computer-to-plate (CtP) business suffered from competitive pressure. Building on the success of the wide-format print systems, the inkjet segment reported strong top line growth.

Reaching 29.3 percent of revenue, Agfa Graphics’ gross profit margin improved considerably versus the previous quarter (28.0 percent of revenue), as well as versus the first quarter of 2014 (27.5 percent of revenue). This positive evolution is mainly due to the success of targeted projects to improve efficiency on the one hand and positive raw material effects on the other hand. Recurring EBITDA grew to 21.4 million Euro (6.7 percent of revenue). Recurring EBIT improved to 13.8 million Euro (4.3 percent of revenue).

In the first quarter, Agfa Graphics added two new machines to its innovative range of Jeti inkjet printers. Geared to high productivity and high quality output, both the hybrid Jeti Tauro printer and the true flatbed Jeti Mira printer target the mid- and higher-end segment of the sign & display market.

Also in inkjet, the new Acorta automatic cutting and finishing plotter was introduced to the market. It helps sign & display printers turn a wide variety of printed rigid and flexible sheet media into finished decoration, containers, banners, etc.

Another important innovation is the new Asanti 2.0 wide format workflow software, which controls the entire process from the prepress stage to production and finishing. Furthermore, Agfa Graphics launched a number of new UV-curable inks for its Jeti and Anapurna printers, as well as a series of new Duratex inkjet media.

Among the first customers for the new Jeti Tauro inkjet printer are the French PVP company and the German Comdatek company. The Australian Longbeach Printing company was the first company globally to commit to a Jeti Mira machine.

In the field of prepress, Agfa Graphics signed a major contract with the Südwestdeutsche Medienholding (SWMH), which is one of the largest media companies in Germany. In the first quarter, the company decided to upgrade three of its production sites with Agfa Graphics’ CtP solutions. In each site, Agfa Graphics will install three high-speed Advantage platesetters and three Attiro clean-out units. The sites will use chemistry-free N94-VCF printing plates, as well as Arkitex workflow software. Editorial Prensa Ibérica – one of the largest regional newspaper groups in Spain – decided to upgrade its production process with Agfa-Graphics’ chemistry-free CtP technology. In South-America, eye-catching prepress agreements were signed with – among other companies – GrupoSinos (Brazil), InfoGlobo (Brazil), Platt Grupo Impresor (Argentina), Editorial Rio Negro (Argentina) and Impresora Polo (Uruguay).

Agfa HealthCare – first quarter 2015
Euro millions Q1 2014  Q1 2015  % change
Revenue 244  254  +4.1%
Recurring EBITDA (*) 12.7  20.4  +60.6%
% of revenue 5.2%  8.0%
Recurring EBIT (*) 3.7  13.3  +259.5%

(*) before restructuring and non-recurring items.

Supported by positive currency effects, Agfa HealthCare’s revenue increased by 4.1 percent to 254 million Euro. In the Imaging segment’s digital radiography business (consisting of Computed Radiography, Direct Radiography and the hardcopy business), the DR and hardcopy product ranges grew strongly. The Imaging segment’s traditional film products continued to decline. The IT segment’s revenue grew considerably. The segment’s Imaging IT Solutions performed strongly, showing the first indications of success of Agfa HealthCare’s measures to respond to the changing conditions in the US healthcare market.

Agfa HealthCare’s gross profit margin grew from 34.5 percent of revenue in the first quarter of 2014 to 36.6 percent of revenue. Profitability was supported by the business group’s successful efficiency programs (mainly in the field of services) and favorable raw material effects. Recurring EBITDA and recurring EBIT improved strongly to 20.4 million Euro (8.0 percent of revenue) and 13.3 million Euro (5.2 percent of revenue) respectively.

In the field of Imaging, Agfa HealthCare launched its new DR 400 solution at the ECR event in Vienna. The floor mounted system offers hospitals a customizable and affordable path to digital radiography. Furthermore, Agfa HealthCare introduced a new version of its proven MUSICA image processing software with dedicated functions for neonatal imaging. MUSICA for Neonatal can assist caregivers in controlling and reducing the radiation dose for these highly sensitive patients, while offering very high image quality and consistency.

Also at the ECR event, Agfa HealthCare highlighted the success of its Fast Forward Digital Radiography Upgrade Program, which was launched in 2014. The program aims to support and improve hospitals’ and imaging departments’ digital imaging evolution. Agfa HealthCare has a global installed base of more than 50,000 digital radiography systems, all integrated with the MUSICA software.

Still in imaging, Agfa HealthCare entered into a sales and marketing agreement with Hitachi Medical Systems America Inc. Hitachi will promote Agfa HealthCare’s complete portfolio of CR and DR systems to its large and growing community of MRI and CT customers in the US.

In the field of Imaging IT Solutions, Agfa HealthCare has added new collaboration, reporting and viewing functionalities to its Enterprise Imaging for Radiology solution. The unified imaging informatics solution is now live at 100 healthcare sites across 13 countries worldwide.

Agfa HealthCare also launched its Enterprise Imaging for Cardiology solution and announced a strategic relationship with TomTec to provide a unified cardiology diagnostic and clinical imaging solution. Furthermore, the business group introduced an enhanced version of its HeartStation ECG Management System. The system facilitates access and sharing of electrocardiograms across the hospital enterprise. Another important innovation is the Agfa HealthCare Portal. This web-enabled software platform allows health information to be stored, retrieved and shared among patients, Care Delivery Organizations and stakeholders within a community, region, state, country and throughout the world.

An eye-catching Imaging IT contract was signed in Italy, where Agfa HealthCare will realize a cloud solution for the Azienda Ospedaliera di Perugia. The solution will make it possible to securely store data from the various hospital departments in the cloud. In the UK, Agfa HealthCare signed an agreement with Sheffield Teaching Hospitals NHS Foundation Trust for the implementation of its Enterprise Imaging for Radiology solution. The Trust is the first hospital site in the UK to implement the solution and will become a UK reference site for Agfa HealthCare’s Imaging IT portfolio. In France, GCS Télésanté Lorraine awarded Agfa HealthCare – in a consortium with Santeos – the contract for the Médiale project. Through the project, the medical images produced in care facilities in the Lorraine region, will be indexed in a regional registry. So far, 71 facilities will be part of the project, which will cover 95% of the image production in the region. The project allows Agfa HealthCare to play a key role in giving medical image sharing a truly regional dimension in France.

In the field of Healthcare Information Solutions, Agfa HealthCare confirmed the strong position of its ORBIS solution in the German speaking region of Europe. In Germany, contracts were signed with – among other organizations – the Westpfalz-Klinikum Kaiserslautern and the Missionsärztliche Klinik Würzburg. In France, an important contract was signed with the Centre hospitalier intercommunal André Grégoire (Montreuil-sous-Bois).

Agfa Specialty Products – first quarter 2015
Euro millions Q1 2014 Q1 2015 % change
Revenue 51 47 -7.8%
Recurring EBITDA (*) 1.8 3.0 +66.7%
% of revenue 3.5% 6.4%
Recurring EBIT (*) 0.6 2.0 +233.3%

(*) before restructuring and non-recurring items.

Agfa Specialty Products’ revenue decreased to 47 million Euro. The revenue growth of the future-oriented Synaps Synthetic Paper business and the Printed Circuit Board business partly counterbalanced the adverse effects of the lower silver price and the decline of the traditional film businesses.

The business group’s recurring EBITDA amounted to 3.0 million Euro (6.4 percent of revenue). Recurring EBIT improved to 2.0 million Euro (4.3 percent of revenue).

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