Agfa-Gevaert today announced its second quarter 2015 results.
  • Upward revenue trend – Growth engines performed well
  • Gross profit margin further improved to 33.1 percent
  • Net profit reached 25 million Euro
  • Continuously low level of net financial debt

“I am very pleased to see that the positive signs we saw in the first three months of the year were confirmed in the second quarter. This strengthens our belief that we are on the right track to reach the targets we expressed when we published our full year 2014 results. Based on the strong performances of our main growth engines and helped by the weaker Euro, we were able to post significant revenue growth. I trust that in the medium term a revenue of 3 billion Euro is achievable. Largely due to our successful efficiency programs, we were able to bring our gross profit margin above 33 percent of revenue for the first time in five years. It is also clear that we are well on our way to achieving a recurring EBITDA percentage close to 10 percent of revenue in 2015,” said Christian Reinaudo, President and CEO of the Agfa-Gevaert Group.

Agfa-Gevaert Group – second quarter 2015
Euro millions Q2 2014 Q2 2015 % change
Revenue 651 691 +6.1%
Gross Profit (*) 207 229 +10.6%
% of revenue 31.8% 33.1%
Recurring EBITDA (*) 63 72 +14.3%
% of revenue 9.7% 10.4%
Recurring EBIT (*) 46 56 +21.7%
% of revenue 7.1% 8.1%
Result from operating activities 44 48 +9.1%
Result for the period 28 25 -10.7%

(*) before restructuring and non-recurring items.

Continuing the trend of the previous quarters, the Agfa-Gevaert Group’s revenue grew by 6.1 percent to 691 million Euro. The top line growth was supported by the good performances of 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 well as by positive currency effects.

Targeted efficiency programs allowed the Group to improve its gross profit margin to 33.1 percent of revenue, compared to 31.8 percent in the second quarter of 2014 and 31.7 percent in the first quarter of 2015.

As a percentage of revenue, Selling and General Administration expenses remained stable at 19.2 percent.

R&D expenses amounted to 37 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 10.4 percent and 8.1 percent of revenue respectively.

The expense related to the restructuring and non-recurring items amounted to 8 million Euro, versus 2 million Euro in the second quarter of 2014.

The net finance costs remained stable at 14 million Euro. The Agfa-Gevaert Group closed a new revolving facility of 400 million Euro, which will run until July, 2020.

Tax expenses amounted to 9 million Euro, compared to 3 million Euro in the previous year.

As a result of the elements mentioned above, the Agfa-Gevaert Group posted a strong net profit of 25 million Euro.

Financial position and cash flow
  • At the end of the quarter, total assets were 2,551 million Euro, compared to 2,548 million Euro at the end of 2014.
  • Inventories amounted to 575 million Euro (114 days), versus 561 million Euro (107 days) in the second quarter of 2014. Trade receivables (minus deferred revenue and advanced payments from customers) amounted to 371 million Euro (48 days), versus 399 million Euro (55 days) in 2014, and trade payables were 239 million Euro (47 days), versus 241 million Euro (46 days).
  • Net financial debt amounted to 102 million Euro, versus 126 million Euro at the end of 2014.
  • Net cash from operating activities amounted to minus 1 million Euro.
Agfa Graphics – second quarter 2015
Euro millions Q2 2014 Q2 2015  % change
Revenue 339 349  +2.9%
Recurring EBITDA (*) 28.9 20.0  -30.8%
% of revenue 8.5% 5.7%
Recurring EBIT (*) 21.5 12.5  -41.9%

(*) before restructuring and non-recurring items.

Helped by the weaker Euro and based on the good performance of the inkjet segment, Agfa Graphics was able to reverse the downward revenue trend. In the prepress segment, the digital computer-to-plate (CtP) business suffered from competitive pressure. The analog computer-to-film (CtF) business continued to decline strongly. Overall, the Agfa Graphics business group also continued to feel the effects of the softness in the emerging markets and the political instability in certain regions.

As Agfa Graphics’ efficiency projects were not able to fully offset the adverse raw material and competitive pressure effects, the business group’s gross profit margin decreased from 28.5 percent of revenue in the second quarter of 2014 to 28.1 percent. Recurring EBITDA amounted to 20.0 million Euro (5.7 percent of revenue). Recurring EBIT reached 12.5 million Euro (3.6 percent of revenue).

In the field of inkjet, the ink portfolio for industrial applications and the new Jeti Mira and Jeti Tauro wide format print engines started to contribute to the business group’s top line.

At the FESPA trade event, largely targeted at sign and display producers and wide format printers, an important inkjet contract was signed with the Danish Scanprint A/S company (part of Stibo Graphics). Already being the business group’s largest commercial prepress customer in the Nordic region, Scanprint A/S now also selected Agfa Graphics’ inkjet solutions – including the Jeti Tauro printer, the Acorta cutting and finishing plotter and the Asanti workflow software – for its new wide format production department.

Also in the field of inkjet, Agfa Graphics won EDP Awards for its Asanti Color Management solution and its Anapurna M3200i RTR wide format printer. The European Digital Press Association grants the awards to the best products of the year introduced in the European market.

In the field of prepress, Agfa Graphics signed a number of eye-catching contracts with commercial print companies including Daeryuk Can (South Korea), Impresos Específicos (Mexico), Gulf News (United Arab Emirates) and Caxton (South Africa).

South Korea’s main business newspaper – Maeil Business Newspaper – is now printed with Agfa Graphics’ N94-V printing plates. Maeil Business Newspaper operates from three production sites.

Targeting the high-volume newspaper market, Agfa Graphics introduced its new Advantage N TR VHS high-speed platesetter in June. Producing up to 400 printing plates per hour, the platesetter allows newspaper publishers to use their equipment more efficiently and to deliver their latest news and last-minute offers with sharper production deadlines.

Furthermore, the business group introduced two innovations for the security printing market. Fortuna 9 is the new version of Agfa Graphics’ design software for high-end security printing of – among other applications – passports, ID documents, tax stamps and lottery tickets. The new Arziro plugin for Adobe Illustrator is the ideal design software for companies involved in het design and production of applications such as packaging and labels, tickets, post stamps, bank cards, certificates and diplomas.

Agfa HealthCare – second quarter 2015
Euro millions Q2 2014  Q2 2015  % change
Revenue 263  294  +11.8%
Recurring EBITDA (*) 32.3  45.5  +40.9%
% of revenue 12.3%  15.5%
Recurring EBIT (*) 23.5  38.9  +65.5%

(*) before restructuring and non-recurring items.

Supported by positive currency effects, Agfa HealthCare posted solid double digit revenue growth. In the Imaging segment’s digital radiography business (consisting of Computed Radiography (CR), Direct Radiography (DR) and the hardcopy business), the DR product range continued to grow strongly, while the hardcopy product range also performed well. Furthermore, the IT segment posted considerable revenue growth. The strong performance of the segment’s Imaging IT Solutions proves the success of Agfa HealthCare’s measures to respond to the changing conditions, in particular in the US healthcare market.

Continuing the trend of the previous quarters, Agfa HealthCare’s gross profit margin reached 39.8 percent of revenue, compared to 37.6 percent of revenue in the second quarter of 2014. Profitability was supported by the business group’s successful efficiency programs (mainly in the field of services) and – to a lesser extend – to favorable raw material effects. Recurring EBITDA and recurring EBIT improved strongly to 45.5 million Euro (15.5 percent of revenue) and 38.9 million Euro (13.2 percent of revenue) respectively.

In the field of Imaging, Agfa HealthCare launched the fully automated DR 600 digital X-ray room at the Deutscher Röntgenkongress in Hamburg, Germany. The ceiling mounted DR 600 offers a broad range of options that allow hospitals to tailor their solution to their needs.

In the US, a multi-million dollar imaging contract was signed with the leading Prime Healthcare Services hospital management company. The company will install a minimum of 50 DX-D 100 mobile DR systems at its 34 acute care hospitals. The Canadian Sunnybrook Health Sciences Centre selected the DX-D 600 solution to transition two X-ray rooms from analog imaging to DR. In the UK, Agfa HealthCare has won the contract to install a number of CR and DR solutions for the Plymouth Hospitals NHS Trust.

In the field of Imaging IT Solutions, Agfa HealthCare introduced its Enterprise Imaging Exchange Program which establishes a secure health information exchange network between collaborating health providers, allowing them to exchange and share medical imaging data. A major imaging IT contract was signed in Russia, where the Moscow City Department of Healthcare chose Agfa HealthCare Enterprise Imaging as its central imaging and teleradiology solution. The solution will consolidate the radiology results of 63 sites and make them accessible across the Moscow health infrastructure. In Austria, Agfa HealthCare will install a central Vendor Neutral Archive for the storage of the medical images and related data of 21 hospitals in the Lower Austria region. In the UK, contracts for the installation of the Agfa HealthCare Enterprise Imaging platform were signed with the City Hospitals Sunderland NHS Foundation Trust and the Birmingham Dental Hospital and School of Dentistry. In Saudi Arabia, the King Khaled Eye Specialist Hospital started using Agfa HealthCare’s picture archiving and communication system (PACS) and DR X-ray room. In Poland, Agfa HealthCare will install PACS and CR solutions in a number of hospitals in the Kujawsko-Pomorskie and Lubuskie regions.

In the field of Healthcare Information Solutions, Agfa HealthCare announced the integration of the speech recognition software of the Nuance company in its ORBIS clinical information system. Agfa HealthCare also announced the commercial launch of a new version of its Enterprise Content Management (ECM) system. The ECM solution allows care facilities to digitally archive their paper-based and electronic documentation. For its Healthcare Information Solutions, Agfa HealthCare reported strong order intake in the German speaking region of Europe. Important contracts were signed with e.g. KPlus Gruppe GmbH in Solingen and the private hospital group Schön in Prien am Chiemsee.

Agfa Specialty Products – second quarter 2015
Euro millions Q2 2014 Q2 2015 % change
Revenue 49 48 -2.0%
Recurring EBITDA (*) 3.3 7.3 +121.2%
% of revenue 6.7% 15.2%
Recurring EBIT (*) 2.2 6.3 +186.4%

(*) before restructuring and non-recurring items.

Agfa Specialty Products’ revenue remained almost stable at 48 million Euro. The revenue growth of the Orgacon Electronic Materials business, the Security business and the Printed Circuit Board business almost counterbalanced the decline of the traditional film businesses.

The business group’s recurring EBITDA improved to 7.3 million Euro (15.2 percent of revenue). Recurring EBIT reached 6.3 million Euro (13.1 percent of revenue).

Results after six months
Agfa-Gevaert Group – year to date
Euro millions   H1 2014 H1 2015 % change
Revenue  1,273 1,313 +3.1%
Gross Profit (*)  389 426 +9.5%
% of revenue  30.6% 32.4%
Recurring EBITDA (*)  97 115 +18.6%
% of revenue  7.6% 8.8%
Recurring EBIT (*)  62 84 +35.5%
% of revenue  4.9% 6.4%
Result from operating activities  59 72 +22.0%
Result for the period  29 28 -3.4%

(*) before restructuring and non-recurring items. 

Agfa Graphics – year to date
Euro millions H1 2014 H1 2015 % change
Revenue 666 670 +0.6%
Recurring EBITDA (*) 49.3 41.4 -16.0%
% of revenue 7.4% 6.2%
Recurring EBIT (*) 34.1 26.3 -22.9%

(*) before restructuring and non-recurring items.

Agfa HealthCare – year to date
Euro millions H1 2014 H1 2015  % change
Revenue 507 548  +8.1%
Recurring EBITDA (*) 45.0 65.9  +46.4%
% of revenue 8.9% 12.0%
Recurring EBIT (*) 27.2 52.2  +91.9%

(*) before restructuring and non-recurring items.

Agfa Specialty Products – year to date
Euro millions H1 2014 H1 2015 % change
Revenue 100 95 -5.0%
Recurring EBITDA (*) 5.1 10.3 +102.0%
% of revenue 5.1% 10.8%
Recurring EBIT (*) 2.8 8.3 +196.4% 

(*) 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. 

Click here for the Condensed Interim Financial Statements as of June 30, 2015.

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