· Top line decline limited to 1.3%, excluding strong currency effects
· Strong performance of Agfa HealthCare and Agfa Specialty Products
· Recurring EBITDA at 37 million Euro
· Net result at 7 million Euro, in line with the first quarter of 2017
· Net financial debt at 19 million Euro
Mortsel (Belgium), May 8, 2018 - Agfa-Gevaert today announced its first quarter 2018 results.
"Our first quarter results are in line with our expectations. As anticipated, strong currency effects and the decision to rationalize Agfa Graphics' prepress portfolio weighed on our top line. These elements somewhat overshadowed the good performances of the Agfa HealthCare and Agfa Specialty Products business groups. We still 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 - first quarter 2018
| in million Euro | Q1 2017 | Q1 2018 | % change |
| Revenue | 588 | 549 | -6.7% |
| Gross profit (*) | 193 | 178 | -7.5% |
| % of revenue | 32.7% | 32.4% | |
| Recurring EBITDA (*) | 39 | 37 | -3.5% |
| % of revenue | 6.6% | 6.8% | |
| Recurring EBIT (*) | 26 | 24 | -5.3% |
| % of revenue | 4.3% | 4.4% | |
| Result from operating activities | 23 | 20 | -14.4% |
| Result for the period | 8 | 7 | |
| Net cash from (used in) operating activities | 38 | 7 |
(*) before restructuring and non-recurring items
The strength of the Euro versus other currencies had a strong impact on the Agfa-Gevaert Group's top line. Excluding these currency effects, the revenue decline was limited to 1.3%. The Agfa HealthCare and Agfa Specialty Products business groups performed well. Agfa HealthCare's hardcopy film business reported improved sales volumes following the reorganization of the Chinese distribution channels in 2017. The Agfa Graphics business group's top line was impacted by the previously announced product portfolio reorganization in prepress and by the market-driven decline for analog computer-to-film products.
The Group's gross profit margin remained almost stable at 32.4% of revenue.
As a percentage of revenue, Selling and General Administration expenses stay well under control at 21.9% of revenue.
R&D expenses amounted to 37 million Euro, or 6.8% of revenue.
Recurring EBITDA reached 6.8% of revenue, versus 6.6% in the first quarter of 2017. Recurring EBIT reached 4.4% of revenue.
Restructuring and non-recurring items resulted in an expense of 4 million Euro.
The net finance costs decreased from 12 million Euro in the first quarter of 2017 to 10 million Euro.
Income tax expenses amounted to 3 million Euro, the same amount as in the previous year.
As a result of the elements mentioned above, the Agfa-Gevaert Group posted a net profit of 7 million Euro.
Financial position and cash flow
- At the end of the first quarter of 2018, total assets were 2,270 million Euro, compared to 2,233 million Euro at the end of 2017.
- Trade working capital moved from 644 million Euro (26.4% of sales) at the end of 2017 to 635 million Euro (26.4% of sales) at the end of the first quarter of 2018.
- Net financial debt amounted to 19 million Euro, versus 18 million Euro at the end of 2017.
- Net cash from operating activities amounted to 7 million Euro.
