· Good performance of the main growth engines, counterbalanced by lower hardcopy sales
· Recurring EBITDA at 39 million Euro
· Net profit of 8 million Euro
· Further increase of the net cash position to 37 million Euro
Mortsel (Belgium), May 9, 2017 - Agfa-Gevaert today announced its first quarter 2017 results. "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.
Agfa-Gevaert Group - first quarter 2017
| in million Euro | Q1 2016 | Q1 2017 | % change |
| Revenue | 603 | 588 | -2.5% |
| Gross profit (*) | 195 | 193 | -1.0% |
| % of revenue | 32.3% | 32.8% | |
| Recurring EBITDA (*) | 48 | 39 | -18.8% |
| % of revenue | 8.0% | 6.6% | |
| Recurring EBIT (*) | 34 | 26 | -23.5% |
| % of revenue | 5.6% | 4.4% | |
| Result from operating activities | 30 | 23 | -23.3% |
| Result for the period | 10 | 8 | -20.0% |
| Net cash from (used in) operating activities | 39 | 35 | -10.3% |
(*) before restructuring and non-recurring items
In spite of the strong impact of inventory adjustments in Agfa HealthCare's hardcopy business, the Agfa-Gevaert Group's revenue decreased by only 2.5% to 588 million Euro. The main growth engines of all three business groups performed well. In the Agfa Graphics business group, the volume trend for printing plates started to improve.
In spite of the lower top line, the Group's gross profit remained almost stable at 193 million Euro. The gross profit margin improved to 32.8% of revenue.
As a percentage of revenue, Selling and General Administration expenses amounted to 21.9%.
R&D expenses amounted to 38 million Euro, or 6.5% of revenue.
Recurring EBITDA (the sum of Graphics, HealthCare, Specialty Products and the unallocated portion) amounted to 6.6% of revenue, versus 8.0% in the first quarter of 2016. Recurring EBIT reached 4.4% of revenue, versus 5.6% in the previous year.
Restructuring and non-recurring items resulted in an expense of 3 million Euro, versus an expense of 4 million Euro in the first quarter of 2016.
The net finance costs increased from 8 million Euro in the first quarter of 2016 to 12 million Euro.
Income tax expenses amounted to 3 million Euro, versus 12 million Euro in the previous year.
As a result of the elements mentioned above, the Agfa-Gevaert Group posted a net profit of 8 million Euro.
Financial position and cash flow
- At the end of the first quarter of 2017, total assets were 2,438 million Euro, compared to 2,352 million Euro at the end of 2016.
- Inventories amounted to 531 million Euro (115 days), versus 528 million Euro (106 days) in the first quarter of 2016. Trade receivables (minus deferred revenue and advanced payments from customers) amounted to 324 million Euro (50 days), versus 349 million Euro (52 days) in the first quarter of 2016, and trade payables were 260 million Euro (56 days), versus 242 million Euro (49 days).
- The net cash position further improved to 37 million Euro, versus 18 million Euro at the end of 2016.
- Net cash from operating activities amounted to 35 million Euro.
