Agfa Announces Full Year 2012 Results, Graphics Revenue Up .7%
Thursday, March 07, 2013
Press release from the issuing company
Mortsel (Belgium) - Agfa-Gevaert today announced its full year and fourth quarter 2012 results.
"In spite of the difficult economic environment, our 2012 performance is well in line with expectations. We succeeded in growing our top line and - more importantly - we reversed the previously negative gross margin trend in spite of the considerable negative effect of raw material prices. Our efficiency improvement program delivered its first significant results, helping the company to achieve a positive net result in the fourth quarter of 2012 for the first time since the second quarter of 2011. I am convinced that Agfa is now on a better track and I reiterate the company's target of delivering a double digit recurring EBITDA percentage in the medium term. In 2013, we will continue to focus our efforts on keeping our SG&A costs under control; improving our gross margin; and growing the top line of Agfa Graphics' inkjet business and Agfa HealthCare's digital radiography and IT businesses," said Christian Reinaudo, President and CEO of the Agfa-Gevaert Group.
Agfa-Gevaert Group - full year 2012
(*) before restructuring and non-recurring items
Supported by the relative weakness of the Euro versus most other currencies in 2012, the Agfa-Gevaert Group's full year revenue increased by 2.2 percent to 3,091 million Euro. Both the Agfa Graphics and the Agfa HealthCare business groups contributed to the growth. In the emerging markets, the Group achieved strong revenue growth: double digit growth for Agfa HealthCare and strong single digit growth for Agfa Graphics.
In spite of the considerable negative raw material effects, the gross profit margin improved throughout the year. This evolution was driven by efficiency improvements, volume increases and price effects.
As a percentage of revenue, Selling and General Administration expenses improved from 19.0 percent to 18.5 percent, reflecting the Group's continuous focus on cost reduction.
The Group's recurring EBITDA (the sum of Graphics, HealthCare, Specialty Products and the unallocated portion) increased from 218 million Euro to 225 million Euro. Recurring EBIT grew from 129 million Euro to 139 million Euro: the downward trend was reversed in the second half of the year, resulting in excellent growth rates in the third and fourth quarter.
Restructuring and non-recurring items resulted in an expense of 43 million Euro, versus an expense of 93 million Euro in 2011.
The net finance costs amounted to 107 million Euro, versus 84 million Euro in 2011. This increase is mainly explained by the increase in pension costs due to the lower discount rates.
Tax expenses amounted to 20 million Euro.
Reflecting the positive evolution in the course of the year, the result for the period improved from minus 71 million Euro to minus 31 million Euro. The result attributable to the owners of the Company improved from minus 73 million Euro in 2011 to minus 41 million Euro.
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