·         Strong performance of the growth engines ·         Gross profit and recurring EBITDA margin improvement ·         Net result at 10 million Euro ·         Net financial debt further down to 40 million Euro

 

Mortsel (Belgium), May 10, 2016 - Agfa-Gevaert today announced its first quarter 2016 results.  

 "Our first quarter was roughly in line with our expectations. I am particularly pleased with the strong performance of our business groups' growth engines. Agfa HealthCare's Direct Radiography and IT businesses, Agfa Graphics' inkjet business and Agfa Specialty Products' future-oriented activities all posted solid revenue growth. Furthermore, our recurring EBITDA margin improved by over one percentage point compared to last year's first quarter. This strengthens my belief that we are on track to reach our 10 percent target in 2016," said Christian Reinaudo, President and CEO of the Agfa-Gevaert Group.

 

Agfa-Gevaert Group - first quarter 2016

in million Euro Q1 2015 Q1 2016 % change
Revenue 622 603 -3.1%
Gross profit (*) 197 195 -1.0%
% of revenue 31.7% 32.3%  
Recurring EBITDA (*) 43 48 11.6%
% of revenue 6.9% 8.0%  
Recurring EBIT (*) 28 34 21.4%
% of revenue 4.5% 5.6%  
Result from operating activities 24 30 25.0%
Result for the period 3 10     233.3%
Net cash from (used in) operating activities 53 39  

(*) before restructuring and non-recurring items

 

The Agfa-Gevaert Group's revenue decreased by 3.1% to 603 million Euro. The strong performance of the growth engines partly counterbalanced the effects of the ongoing adverse geopolitical and economic conditions and the remaining effects of the measures taken in the fourth quarter of 2015 to align the inventory policy for Agfa HealthCare's hardcopy film business with the economic situation in the emerging markets.

Due to targeted efficiency measures, the Group was able to improve its gross profit margin to 32.3% of revenue.  

As a percentage of revenue, Selling and General Administration expenses amounted to 21.1%.

 

R&D expenses amounted to 35 million Euro, or 5.8 percent of revenue.

 

Recurring EBITDA (the sum of Graphics, HealthCare, Specialty Products and the unallocated portion) improved by more than one percentage point to 8.0% of revenue, versus 6.9% in the first quarter of 2015. Recurring EBIT improved from 4.5% of revenue to 5.6%.

The expense related to the restructuring and non-recurring items remained stable at 4 million Euro.

 

The net finance costs decreased from 17 million Euro in the first quarter of 2015 to 8 million Euro, as a result of lower bank interest expenses and positive exchange rate effects.

 

Income tax expenses amounted to 12 million Euro, versus 4 million Euro in the previous year.

As a result of the elements mentioned above, the Agfa-Gevaert Group posted a strong net profit of 10 million Euro.

Financial position and cash flow

  • At the end of the first quarter of 2016, total assets were 2,394 million Euro, compared to 2,402 million Euro at the end of 2015.
  • Inventories amounted to 528 million Euro (106 days), versus 577 million Euro (115 days) in the first quarter of 2015. Trade receivables (minus deferred revenue and advanced payments from customers) amounted to 349 million Euro (52 days), versus 384 million Euro (55 days) in the first quarter of 2015, and trade payables were 242 million Euro (49 days), versus 257 million Euro (51 days).
  • Net financial debt amounted to 40 million Euro, versus 58 million Euro at the end of 2015.
  • Net cash from operating activities amounted to 39 million Euro. 
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Source: Agfa-Gevaert via Globenewswire
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