· Top line decline of 3.6% excluding currency effects and prepress portfolio rationalization
· Strong performance of Agfa Specialty Products and further recovery of Agfa HealthCare's hardcopy business
· Recurring EBITDA at 49 million Euro
· Net profit at 6 million Euro
· Net financial debt at 55 million Euro
Mortsel (Belgium), August 22, 2018 - Agfa-Gevaert today announced its second quarter 2018 results.
"The first six months of 2018 did not yield any major surprise. Excluding the portfolio reorganization in the Agfa Graphics business group's prepress business and currency effects, our top line evolved as expected with a decline rate lower than in last year's first half. Agfa Graphics continued to face challenges in the prepress market: ongoing decline for analog computer-to-film products, competitive pressure, market-driven volume declines for digital computer-to-plate products, and high aluminum prices. We therefore announced a global price increase program for our prepress printing plates in May. Furthermore, we will continue to look into initiatives to actively participate in the necessary consolidation of the industry. We also made good progress with the reorganization of our HealthCare IT activities into a stand-alone legal entity structure within the Group. This major step in our history addresses the complexity of our company. When completed, the project will allow both the HealthCare IT activities and the remaining part of the Group to pursue growth in the years to come. Repeating the guidance included in the first quarter publication, we do not expect our full year recurring EBITDA margin to be above the margin reached in 2017. However, we stick to our ambition to target a recurring EBITDA margin of around 10% of revenue on average in the years to come," said Christian Reinaudo, President and CEO of the Agfa-Gevaert Group.
Agfa-Gevaert Group - second quarter 2018
| in million Euro | Q2 2017 | Q2 2018 | % change |
| Revenue | 622 | 559 | -10.0% |
| Gross profit (*) | 213 | 180 | -15.5% |
| % of revenue | 34.3% | 32.2% | |
| Recurring EBITDA (*) | 60 | 49 | -19.5% |
| % of revenue | 9.7% | 8.7% | |
| Recurring EBIT (*) | 45 | 35 | -24.9% |
| % of revenue | 7.6% | 6.3% | |
| Result from operating activities | 45 | 26 | -41.3% |
| Result for the period | 27 | 6 | |
| Net cash from (used in) operating activities | (39) | (11) |
(*) before restructuring and non-recurring items
The Agfa-Gevaert Group's top line evolution was strongly impacted by the previously announced product portfolio reorganization in the Agfa Graphics business group's prepress business and by the strength of the Euro. Excluding these elements, the Group's revenue decline was limited to 3.6%. The Agfa HealthCare business group's hardcopy film business continued to recover following the reorganization of the Chinese distribution channels in 2017. Based on the success of several of its future-oriented products, the Agfa Specialty Products business group performed well.
The Group's gross profit margin amounted to 32.2% of revenue, which is in line with the first quarter of the year.
As a percentage of revenue, Selling and General Administration expenses remained almost stable at 21.2% of revenue.
R&D expenses amounted to 35 million Euro, or 6.3% of revenue.
Recurring EBITDA reached 8.7% of revenue, versus 9.7% in the second quarter of 2017. Recurring EBIT reached 6.3% of revenue.
Restructuring and non-recurring items resulted in an expense of 9 million Euro, versus an expense of 2 million Euro in the previous year.
The net finance costs increased from 8 million Euro in the second quarter of 2017 to 10 million Euro. Income tax expenses remained stable at 10 million Euro.
As a result of the elements mentioned above, the Agfa-Gevaert Group posted a net profit of 6 million Euro.
Financial position and cash flow
- At the end of the second quarter of 2018, total assets were 2,293 million Euro, compared to 2,233 million Euro at the end of 2017.
- Trade working capital moved from 644 million Euro (26% of sales) at the end of 2017 to 646 million Euro (27% of sales) at the end of the second quarter of 2018.
- Net financial debt amounted to 55 million Euro, versus 18 million Euro at the end of 2017.
- Net cash from operating activities amounted to minus 11 million Euro.
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