·
Good top line performance of most of the growth engines
·
Top line impacted by the reorganization of the hardcopy
distribution channels in China
·
Net profit of 27 million Euro
·
Net financial debt of 27 million Euro
Mortsel (Belgium), August 23,
2017 - Agfa-Gevaert today announced its second quarter 2017
results.
"Excluding the expected impact of the reorganization of the
hardcopy distribution channels in China, we have delivered a decent
set of results. The fundamentals of our business are intact. Most
of our growth engines performed well and Agfa HealthCare's order
book for its IT solutions is well-filled. Our costs are under
control and we stick to our ambition to keep the recurring EBITDA
margin around 10% of revenue on average in the years to come. The
decision to reorganize Agfa HealthCare's hardcopy distribution in
China was taken to strengthen our position in this healthy market
and to improve the efficiency of our supply chain. These actions
are part of our growth program, which includes a project aimed at
resisting the decline of our traditional businesses. After a year
of transition in 2017, our hardcopy business should normalize in
2018.
Based on the specificity of Agfa HealthCare's IT portfolio, the
Board of Directors requested the management to study how to
organize the HealthCare IT activities into a stand-alone legal
entity structure and organization within the Agfa-Gevaert Group.
This study should lead to a better position for all parts of the
Group to pursue growth," said Christian Reinaudo, President and CEO
of the Agfa-Gevaert Group.
Agfa-Gevaert Group - second
quarter 2017
in million Euro |
Q2 2016 |
Q2 2017 |
% change |
Revenue |
645 |
622 |
-3.6% |
Gross profit (*) |
230 |
212 |
-7.8% |
% of revenue |
35.7% |
34.1% |
|
Recurring EBITDA (*) |
78 |
60 |
-23.1% |
% of revenue |
12.1% |
9.6% |
|
Recurring EBIT (*) |
64 |
47 |
-26.6% |
% of revenue |
9.9% |
7.6% |
|
Result from operating activities |
74 |
45 |
-39.2% |
Result for the period |
40 |
27 |
-32.5% |
Net cash from (used in) operating activities |
8 |
(36) |
|
(*) before restructuring and non-recurring
items
Although most of the growth engines performed well
in the second quarter, the Agfa-Gevaert Group's top line decreased
by 3.6% to 622 million Euro. In the Agfa HealthCare business group,
the impact of the reorganization of the hardcopy distribution
channels in China counterbalanced the revenue growth of the IT and
Direct Radiography businesses. The Agfa Graphics business group's
inkjet segment posted double-digit growth.
The Group's gross profit amounted to 212 million
Euro, or 34.1% of revenue.
As a percentage of revenue, Selling and General
Administration expenses amounted to 20.7%.
R&D expenses amounted to 36 million Euro, or
5.8% of revenue.
Recurring EBITDA (the sum of Graphics, HealthCare,
Specialty Products and the unallocated portion) amounted to 9.6% of
revenue, versus 12.1% in the second quarter of 2016. Recurring EBIT
reached 7.6% of revenue, versus 9.9% in the previous year.
Restructuring and non-recurring items resulted in
an expense of 2 million Euro, versus an income of 10 million Euro
in the second quarter of 2016. The latter was mainly due to the
sale of the properties of the Korean manufacturing site, which was
closed in 2015.
The net finance costs decreased from 21 million
Euro in the second quarter of 2016 to 8 million Euro. In 2016, the
net finance costs were impacted by a one-off reclassification from
translation reserve to profit and loss related to the decision to
mothball the operations in Venezuela.
Income tax expenses amounted to 10 million Euro,
versus 13 million Euro in the previous year.
As a result of the elements mentioned above, the
Agfa-Gevaert Group posted a net profit of 27 million Euro.
Financial position and cash
flow
-
At the end of the second quarter of 2017, total
assets were 2,312 million Euro, compared to 2,352 million Euro at
the end of 2016.
-
Inventories amounted to 534 million Euro (116
days), versus 542 million Euro (112 days) in the second quarter of
2016. Trade receivables (minus deferred revenue and advanced
payments from customers) amounted to 330 million Euro (48 days),
versus 351 million Euro (51 days) in the second quarter of 2016,
and trade payables were 235 million Euro (51 days), versus 253
million Euro (52 days).
-
Net financial debt amounted to 27 million Euro,
versus a net cash position of 18 million Euro at the end of
2016.
-
Net cash used in operating activities amounted
to 36 million Euro.
Agfa Graphics - second quarter
2017
in million Euro |
Q2 2016 |
Q2 2017 |
% change |
Revenue |
321 |
309 |
-3.7% |
Recurring EBITDA (*) |
28.9 |
22.9 |
-20.8% |
% of revenue |
9.0% |
7.4% |
|
Recurring EBIT (*) |
22.3 |
16.8 |
-24.7% |
% of revenue |
6.9% |
5.4% |
|
(*) before restructuring and non-recurring
items
Based on the strong performance of the Anapurna
wide-format equipment product range and the substantial increase in
ink volumes for both wide-format and industrial applications, the
Inkjet segment posted double-digit top line growth. In the prepress
segment, the sustainable chemistry-free solutions continued to
perform well, but due to competitive pressure in the offset
markets, Agfa Graphics' revenue decreased by 3.7% compared to the
second quarter of 2016.
Agfa Graphics' gross profit margin decreased from
31.2% in the second quarter of 2016 to 30.1%, mainly due to adverse
raw material effects. Recurring EBITDA amounted to 22.9 million
Euro (7.4% of revenue), versus 28.9 million Euro (9.0% of revenue)
in last year's second quarter and recurring EBIT reached 16.8
million Euro (5.4% of revenue), versus 22.3 million Euro (6.9% of
revenue).
In the field of inkjet, Agfa Graphics introduced a
LED version of the Jeti Tauro wide-format printer. The Jeti Tauro
H2500 LED becomes the flagship of the business group's wide-format
UV inkjet printer portfolio. It features continuous and automated
feeding of a wide range of flexible and rigid media, including
several types of corrugated board. The LED curing technology is an
environmentally friendly and cost effective alternative for curing
with high energy-consuming mercury bulb lamps.
At the FESPA 2017 trade event, the European Digital Press
Association (EDP) awarded Agfa Graphics for its UV LED inks. With
these inks, customers can produce high-quality prints on a wide
variety of rigid and flexible substrates.
The recently launched Anapurna and Jeti Mira print engines with LED
technology found their way to customers around the world. Among the
new customers are long-standing prepress customer Sungwon Adpia
(Korea); Bodoni AS and PJ Trykk AS (both in Norway);
Comercializadora Carbesa, Merchandising Systems de México, Style
Print, PM Packaging and Luis Murguia (all in Mexico); BOO Group and
LC Digital (Australia).
In the field of prepress, Agfa Graphics'
eco-friendly chemistry-free printing plate technologies continued
to convince print companies of their many advantages all over the
world. Important new contracts were signed in - among other
countries - Australia, Mexico, Brazil, Argentina and Japan.
Targeted at both the commercial printing and the
sign & display markets, Agfa Graphics launched version 4.0 of
its StoreFront cloud-based web-to-print solution. StoreFront allows
printers to set up e-stores and to reach new markets on-line.
In the field of security printing, Agfa Graphics
introduced new versions of two elements of the Arziro software for
the general security printing market. Arziro Design 3.0 offers new
security design features and integration with Arziro Authenticate
2.0, the updated version of the ultra-safe, encrypted distribution
platform.
Agfa HealthCare - second quarter
2017
in million Euro |
Q2 2016 |
Q2 2017 |
% change |
Revenue |
277 |
264 |
-4.7% |
Recurring EBITDA (*) |
43.9 |
32.1 |
-26.9% |
% of revenue |
15.8% |
12.2% |
|
Recurring EBIT (*) |
37.3 |
25.7 |
-31.1% |
% of revenue |
13.5% |
9.7% |
|
(*) before restructuring and non-recurring
items
The Direct Radiography (DR) growth engine
performed well, while the HealthCare Information Solutions range
posted continuous top line and order book growth. The Imaging
IT Solutions range saw a temporary slowdown, but the continuously
strong order book for the Enterprise Imaging platform ensures
future top line growth. The success of the platform incites Agfa
HealthCare to speed up investments in its service organization.
As in the previous quarter, Agfa HealthCare's top
line decrease was mainly attributable to the hardcopy and classic
X-ray products. The reorganization of the distribution channels in
China continued to weigh on the hardcopy business, which performed
well in the other growth markets. After a year of transition in
2017, the effect of the reorganization should start to abate in
2018.
The business group's gross profit margin amounted
to 39.8% of revenue. Recurring EBITDA amounted to 32.1 million Euro
(12.2% of revenue), versus 43.9 million Euro (15.8% of revenue) in
the second quarter of 2016. Recurring EBIT reached 25.7 million
Euro (9.7% of revenue), versus 37.3 million Euro (13.5% of revenue)
in last year's second quarter.
In the second quarter, Agfa HealthCare announced
that it successfully completed the re-certification audit cycle for
its Information Security Management System (ISMS). With its ISMS,
Agfa HealthCare shows its commitment to support care providers in
protecting the privacy of their patients.
In the field of Imaging, Agfa HealthCare signed
several important contracts for its high-end DR solutions. The West
Suffolk Hospital (UK), for instance, is implementing three DR 600
X-ray rooms and one DR Retrofit solution.
In the field of Imaging IT Solutions, Agfa
HealthCare's Enterprise Imaging platform continued to convince
important customers all over the world. For instance, Agfa
HealthCare has won a tender issued by the Australian Capital
Territory (ACT) Health Directory.
In the field of Integrated Care, Agfa HealthCare
launched the new version of its Integrated Care Suite, which is a
web-based platform that supports personal care management and
access to patient health information beyond hospital walls for
patients as well as care providers.
Also in Integrated Care, Imelda Hospital (Bonheiden, Belgium), will
implement Agfa HealthCare's 24/7 online appointment scheduling
solution for patients and care providers. With the solution,
patients can manage their own appointments.
In HealthCare Information Solutions, Agfa
HealthCare's customer medius Klinik Nürtingen became the first
hospital in Germany to be certified EMRAM (Electronic Medical
Record Adoption Model) stage 6. The hospital uses Agfa HealthCare's
ORBIS hospital information system. EMRAM is an initiative of HIMSS
Analytics, a subsidiary of the US Healthcare Information and
Management Systems Society. EMRAM is an 8-level model to score
hospitals from 0 to 7 on their stage of IT adoption, based on their
utilization of electronic patient records and related IT
systems.
Agfa Specialty Products - second
quarter 2017
in million Euro |
Q2 2016 |
Q2 2017 |
% change |
Revenue |
47 |
49 |
4.3% |
Recurring EBITDA (*) |
6.9 |
6.1 |
-11.6% |
% of revenue |
14.7% |
12.4% |
|
Recurring EBIT (*) |
5.9 |
5.4 |
-8.5% |
% of revenue |
12.6% |
11.0% |
|
(*) before restructuring and non-recurring
items
Agfa Specialty Products' revenue increased to 49
million Euro. The future-oriented businesses (mainly Synaps
Synthetic Paper and Orgacon Electronic Materials), the Printed
Circuit Board business, as well as a number of classic film product
ranges performed well.
The business group's recurring EBITDA reached 6.1
million Euro (12.4% of revenue). Recurring EBIT amounted to 5.4
million Euro (11.0% of revenue).
In the second quarter, Agfa Specialty Products
announced that it successfully developed and delivered the voting
cards for the General Parliament elections in Malta. The company's
polyester-based PETix PPF solution replaced the traditional
laminated paper voting cards.
At the SNEC 2017 event in Shanghai, Agfa Specialty Products
launched UNIQOAT, its next generation high reflective backsheet
product range. Backsheet films are used in the photovoltaic solar
module industry to protect solar panels against environmental
threats and to avoid power loss and electric hazard.
Results after six
months
Agfa-Gevaert Group - year to date
in million Euro |
H1 2016 |
H1 2017 |
% change |
Revenue |
1,248 |
1,210 |
-3.0% |
Gross profit (*) |
425 |
405 |
-4.7% |
% of revenue |
34.1% |
33.5% |
|
Recurring EBITDA (*) |
126 |
99 |
-21.4% |
% of revenue |
10.1% |
8.2% |
|
Recurring EBIT (*) |
98 |
73 |
-25.5% |
% of revenue |
7.9% |
6.0% |
|
Result from operating activities |
104 |
68 |
-34.6% |
Result for the period |
50 |
35 |
-30.0% |
Net cash from (used in) operating activities |
47 |
(1) |
|
(*) before restructuring and non-recurring
items
Agfa Graphics - year to
date
in million Euro |
H1 2016 |
H1 2017 |
% change |
Revenue |
628 |
609 |
-3.0% |
Recurring EBITDA (*) |
53.6 |
42.8 |
-20.1% |
% of revenue |
8.5% |
7.0% |
|
Recurring EBIT (*) |
40.3 |
30.5 |
-24.3% |
% of revenue |
6.4% |
5.0% |
|
(*) before restructuring and non-recurring
items
Agfa HealthCare - year to
date
in million Euro |
H1 2016 |
H1 2017 |
% change |
Revenue |
531 |
503 |
-5.3% |
Recurring EBITDA (*) |
66.4 |
48.4 |
-27.1% |
% of revenue |
12.5% |
9.6% |
|
Recurring EBIT (*) |
53.4 |
35.8 |
-33.0% |
% of revenue |
10.1% |
7.1% |
|
(*) before restructuring and non-recurring
items
Agfa Specialty Products - year to
date
in million Euro |
H1 2016 |
H1 2017 |
% change |
Revenue |
89 |
98 |
10.1% |
Recurring EBITDA (*) |
8.9 |
9.6 |
7.9% |
% of revenue |
10.0% |
9.8% |
|
Recurring EBIT (*) |
7.0 |
8.0 |
14.3% |
% of revenue |
7.9% |
8.2% |
|
(*) before restructuring and non-recurring
items
End of message
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 www.agfa.com.
Contact:
Viviane Dictus
Director Corporate Communication
Septestraat 27
2640 Mortsel - Belgium
T +32 (0) 3 444 71 24
E viviane.dictus@agfa.com
Johan Jacobs
Corporate Press Relations Manager
T +32 (0)3/444 80 15
E johan.jacobs@agfa.com
The full press release and financial information
is also available on the company's website: www.agfa.com
Full Press release
HY Report
Financial statements Q2 2017
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Agfa-Gevaert via Globenewswire
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