Agfa-Gevaert today announced its third quarter 2014 results.
  • Positive cash flow generation resulted in a low level of net financial debt
  • Net result was positive for the fourth consecutive quarter
  • Gross profit margin improved significantly to 30.8 percent
  • Adaptation of the product portfolio should allow the Group to limit the revenue decline in the quarters to come

“Quarter after quarter, we continue to improve the efficiency of our operations and to increase our gross profit margin. In spite of the weak global economy, the rigorous management of our operational costs brings us closer to our short-term target of reaching a 10 percent recurring EBITDA percentage. Our top line decline is the result of the soft investment climate in mature markets, while our traditional consumable business suffers from the lower growth rates in most of the emerging markets. The measures we recently took to address our restructuring costs clearly help to deliver a sustained positive net result. Finally, our working capital management adds to the delivery of a positive net operating cash flow. We are confident that the adaptation of our product portfolio to the new economic situation will allow us to even better cater to the needs of our customers in the near future. This should enable us to limit the erosion of our top line in the quarters to come,” said Christian Reinaudo, President and CEO of the Agfa-Gevaert Group.

Agfa-Gevaert Group – third quarter 2014
Euro millions Q3 2013 Q3 2014 % change
Revenue 689 636 -7.7%
Gross Profit (*) 192 196 +2.1%
% of revenue 27.9% 30.8%
Recurring EBITDA (*) 46 51 +10.9%
% of revenue 6.7% 8.0%
Recurring EBIT (*) 26 34 +30.8%
% of revenue 3.8% 5.3%
Result from operating activities 17 29 +70.6%
Result for the period (6)  9

(*) before restructuring and non-recurring items.

The Agfa-Gevaert Group’s third quarter revenue declined by 7.7 percent. Like in the previous quarters, the Group’s top line suffered from the overall economic weakness and the unstable political situation in certain regions. The uncertain investment climate in the US healthcare sector continued to weigh on the Agfa HealthCare business group’s revenue.

The success of its efficiency programs and positive raw material effects allowed the Group to improve its gross profit margin by almost 3 percentage points to 30.8 percent of revenue.

As a percentage of revenue, Selling and General Administration expenses amounted to 19.2 percent.

R&D expenses amounted to 37 million Euro, versus 35 million Euro in last year’s third quarter.

Recurring EBITDA (the sum of Graphics, HealthCare, Specialty Products and the unallocated portion) and recurring EBIT improved to 8.0 percent and 5.3 percent of revenue respectively.

Restructuring and non-recurring items resulted in an expense of 5 million Euro, versus an expense of 9 million Euro in the third quarter of 2013. This decrease resulted from the success of a number of targeted actions in this field.

The net finance costs amounted to 15 million Euro, versus 17 million Euro in the third quarter of 2013.

Tax expenses amounted to 5 million Euro, compared to 6 million Euro in the third quarter of 2013.

In spite of the tough economic conditions in most of its markets, the Group achieved a positive net result for the fourth consecutive quarter. Net profit amounted to 9 million Euro. In last year’s third quarter, a net loss of 6 million Euro was booked.

Financial position and cash flow
  • At the end of the quarter, total assets were 2,572 million Euro, compared to 2,568 million Euro at the end of 2013.
  • Inventories amounted to 580 million Euro (114 days), versus 597 million Euro (102 days) in the third quarter of 2013. Trade receivables (minus deferred revenue and advanced payments from customers) amounted to 388 million Euro (55 days), versus 436 million Euro (57 days) in the third quarter of 2013, and trade payables were 225 million Euro (44 days), versus 230 million Euro (39 days).
  • Net financial debt amounted to 175 million Euro, versus 261 million Euro at the end of last year’s third quarter, and 217 million Euro at the end of 2013.
  • Net cash from operating activities amounted to 16 million Euro.
Agfa Graphics – third quarter 2014
Euro millions Q3 2013  Q3 2014  % change
Revenue 365  328  -10.1%
Recurring EBITDA (*) 23.8  22.1  -7.1%
% of revenue 6.5%  6.7%
Recurring EBIT (*) 14.4  14.7  +2.1%

(*) before restructuring and non-recurring items.

Agfa Graphics’ revenue decreased by 10.1 percent to 328 million Euro. The overall economic weakness weighed on the business group’s top line. In the prepress segment, the analog business continued to decline strongly, while the digital computer-to-plate (CtP) business suffered from competitive pressure. Although to a lesser extent than the prepress segment, the inkjet segment also suffered from the global weak economy.

Due to the success of targeted projects to improve efficiency and positive raw material effects, Agfa Graphics’ gross profit margin improved from 25.8 percent in the third quarter of 2013 to 28.4 percent. Recurring EBITDA reached 22.1 million Euro (6.7 percent of revenue). Recurring EBIT amounted to 14.7 million Euro (4.5 percent of revenue).

In the third quarter, Agfa Graphics introduced a number of innovative solutions to the newspaper segment of the prepress market. As the new Advantage N-TR HS platesetter runs at speeds of up to 350 plates per hour, it helps newspaper publishers to extend their editorial and advertizing deadlines. Also in this segment, the new Attiro clean-out unit is aimed at publishers running Agfa Graphics’ N94-VCF violet chemistry-free printing plates. Attiro saves users money on maintenance and gum, while contributing to a more sustainable prepress process.

In the commercial segment of the prepress market, Agfa Graphics introduced Apogee 9, the latest release of its PDF-based workflow solution. Apogee 9 allows commercial printers to automate their workflow and it helps them to expand into the wide-format inkjet market. Furthermore, the new high-end thermal platesetter Avalon N16-80 XT offers high-production commercial printers and packaging printers high production speeds and superb image quality.

Also in the commercial segment, Agfa Graphics launched the ‘Ten Years of Azura’ campaign, celebrating the 10th anniversary of the innovative and sustainable chemistry-free printing plate. The campaign was kicked-off during a joint press conference with the Japanese Daicolo company, which is the world’s No.1 Azura user. They are the first company in the world to achieve a 1 million m² total of Azura use. Azura is the most used chemistry-free printing plate in the world.

Agfa Graphics signed several comprehensive prepress contracts with commercial printers in the third quarter. Examples are EPC Direct (UK); WmD and Johnen Druck (Germany); Pequigraf (Argentina); Grafica Brasil (Brazil); G-Box & Grafotec (Mexico); Docklands Press, New Creation Print, UniPrint and Tekprint & Design (Australia).

In the field of digital printing, Agfa Graphics announced that it will start distributing the MGI company’s solutions in the United States. This agreement follows similar successful partnerships in Switzerland, Italy, France, Sweden, and Australia.

In the third quarter, Agfa Graphics’ innovative high-speed Jeti Titan HS inkjet printing system continued its success. The first Jeti Titan HS in the Oceania region will be installed at Catalyst Graphics (Australia). Examples of other companies that selected the Jeti Titan HS system are XL Media (Congo), De Lite Engineering / Al Hubedyia (Kuwait) and Albion Screen Printing (Canada). Recently, the Jeti Titan HS wide-format inkjet printing system was selected as ‘Product of the Year’ at the 2014 SGIA Expo in Las Vegas.

Agfa HealthCare – third quarter 2014
Euro millions Q3 2013  Q3 2014  % change
Revenue 274  259  -5.5%
Recurring EBITDA (*) 23.6  26.2  +11.0%
% of revenue 8.6%  10.1%
Recurring EBIT (*) 13.9  17.6  +26.6%

(*) before restructuring and non-recurring items.

Still impacted by adverse currency effects, Agfa HealthCare’s revenue decreased by 5.5 percent. On a currency comparable basis, the decrease amounted to 4.3 percent, which is a clear improvement compared to the previous quarters of the year. The economic weakness in most of the emerging markets continued to impact the business group’s top line. Sales of the Imaging segment’s traditional film products continued to decline strongly. In the segment’s digital radiography business (consisting of Computed Radiography, Direct Radiography and the hardcopy business), the DR product range continued its strong revenue growth. The IT segment’s radiology IT solutions continued to suffer from the uncertainty in the US healthcare market, where the government is inciting hospitals to invest in Electronic Medical Records (EMR), rather than departmental IT. Agfa HealthCare responds to these changing market conditions with Enterprise Content Management Solutions and Enterprise Imaging Solutions that enrich the EMR with documents and medical images. This strategy is starting to bear fruit.

Agfa HealthCare’s gross profit margin improved by over 2 percentage points from 33.6 percent of revenue to 35.9 percent. Its successful efficiency programs and favorable raw material effects allowed the business group to considerably improve its profitability. Recurring EBITDA reached 26.2 million Euro (or 10.1 percent of revenue). Recurring EBIT improved by more than 26 percent to 17.6 million Euro (or 6.8 percent of revenue).

In the field of Imaging, Agfa HealthCare announced its Fast Forward Digital Radiography Upgrade Program. The program aims to support and improve hospitals’ and imaging departments’ digital imaging evolution. Furthermore, Agfa HealthCare signed several major imaging contracts. The Loma Linda University Medical Center (California, USA) will upgrade to Direct Radiography (DR) through Agfa HealthCare’s upgrade program. The center will install 11 DX-D Retrofit DR systems to convert existing CR-based X-ray rooms to DR, as well as five wireless DX-D 100 mobile DR systems. Also in the USA, Summa Health System (Ohio) aims to achieve improved image quality and X-ray dose management, as well as cost savings with Agfa HealthCare’s Computed Radiography (CR) and DR solutions.

In the UK, the Northern Devon Healthcare NHS Trust’s main hospital and eight of its community hospitals have replaced their existing digital radiography systems with Agfa HealthCare’s CR 30-X and DX-G CR-solutions, including the MUSICA image processing software.

The newly opened Beirut Medical Centre – Saint Antoine de Padoue (Beirut, Lebanon), has installed Agfa HealthCare’s DX-D 400 DR and CR 10-X CR systems.

In the field of radiology IT, Agfa HealthCare continued the global launch of its new Agility medical imaging management platform. The solution is now live at 87 hospital sites across 13 countries in South America, North America, Africa, Europe, Russia and the Middle East.

Furthermore, the business group is positioning its Enterprise Imaging Solutions and its Enterprise Content Management Solutions as powerful additions to EMR’s. Agfa HealthCare has been selected to equip the major Dutch academic hospitals Vrije Universiteit Medisch Centrum (VUmc) and Academisch Medisch Centrum (AMC) with a Vendor Neutral Archive and an Enterprise Imaging Solution, which enriches the EMR with images.

In the field of Healthcare Information Solutions, Agfa HealthCare further improved its strong position in the German speaking region of Europe. Among the German care organizations that started using ORBIS hospital and clinical information solutions are St-Jozefshospital (Krefeld), Maria-Hilf Krankenhaus der Alexianer (Krefeld), Klinik Nürtingen, Gemeinschaftsklinikum Mayen Koblenz, Psychiatrischen Dienste Aargau AG, and SRH Wald-Klinikum Gera.

Agfa Specialty Products – third quarter 2014
Euro millions Q3 2013 Q3 2014 % change
Revenue 50 49 -2.0%
Recurring EBITDA (*) 0.6 3.4
% of revenue 1.2% 6.9%
Recurring EBIT (*) (0.5) 2.4

(*) before restructuring and non-recurring items.

Mainly due to the lower silver price, Agfa Specialty Products’ revenue decreased to 49 million Euro. Agfa Specialty Products’ future-oriented businesses (mainly Security, Synaps Synthetic Paper and Orgacon Electronic Materials), as well as the Printed Circuit Board business performed well.

The business group’s recurring EBITDA amounted to 3.4 million Euro (6.9 percent of revenue) and recurring EBIT to 2.4 million Euro (4.9 percent of revenue).

Results after nine months
Agfa-Gevaert Group – year to date
Euro millions   9m 2013 9m 2014 % change
Revenue  2,126 1,909 -10.2%
Gross Profit (*)  606 585 -3.5%
% of revenue  28.5% 30.6%
Recurring EBITDA (*)  143 148 +3.5%
% of revenue  6.7% 7.8%
Recurring EBIT (*)  83 96 +15.7%
% of revenue  3.9% 5.0%
Result from operating activities  96 88 -8.3%
Result for the period  5 38

(*) before restructuring and non-recurring items. 

Agfa Graphics – year to date
Euro millions 9m 2013 9m 2014 % change
Revenue 1,116 994 -10.9%
Recurring EBITDA (*) 59.3 71.4 +20.4%
% of revenue 5.3% 7.2%
Recurring EBIT (*) 31.5 48.8 +54.9%

(*) before restructuring and non-recurring items.

Agfa HealthCare – year to date
Euro millions 9m 2013  9m 2014  % change
Revenue 844  766  -9.2%
Recurring EBITDA (*) 73.7 71.2  -3.4%
% of revenue 8.7%  9.3%
Recurring EBIT (*) 44.4 44.8  +0.9%

(*) before restructuring and non-recurring items.

Agfa Specialty Products – year to date
Euro millions 9m 2013 9m 2014 % change
Revenue 166 149 -10.2%
Recurring EBITDA (*) 13.6 8.5 -37.5%
% of revenue 8.2% 5.7%
Recurring EBIT (*) 10.4 5.2 -50.0%

(*) 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