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Agfa Reports Improved Results for 2013, Lowers Debt

Wednesday, March 12, 2014

Press release from the issuing company

Mortsel (Belgium) - Agfa-Gevaert today announced its full year 2013 results.  

"Once again, the economic environment was difficult in 2013. The exchange rates between the Euro and most other currencies were unfavorable to Agfa. In some emerging markets, GDP growth somewhat slowed down. Furthermore, sales of our analog businesses declined strongly versus a very solid year 2012, when these businesses recovered from the silver crisis of 2011. In these conditions, we chose to focus our efforts on improving our operational efficiency and our balance sheet. We succeeded in increasing our gross profit margin throughout the year. The strong improvement in the fourth quarter shows that we are on the right track to achieve one of our main goals: to restore our gross profit margin to a level in line with our recurring EBITDA target. The IT and Direct Radiography growth engines of Agfa HealthCare performed well and in line with expectations. In Agfa Graphics, our Inkjet business not only reached its target of crossing the break-even line during the year. For the first time ever, it even delivered a slightly positive full year recurring EBIT. This result shows that rationalizing the product portfolio was the right decision. As far as the balance sheet is concerned, we managed to significantly reduce our working capital and to deliver a strong operational cash flow, which resulted in a healthy reduction of our net financial debt. Due to targeted benefit reduction programs, we also reduced our pension liabilities. In 2014, we aim at making good progress towards our medium term target of delivering a double digit recurring EBITDA percentage. In that respect, our fourth quarter results are very encouraging," said Christian Reinaudo, President and CEO of the Agfa-Gevaert Group. 

Agfa-Gevaert Group - full year 2013

in million Euro



% change





Gross profit (*)




% of revenue




Recurring EBITDA (*)




% of revenue




Recurring EBIT (*)




% of revenue




Result from operating activities




Result for the period

(9) (**)



Net cash from (used in) operating activities




(*) before restructuring and non-recurring items

(**) restated according to IAS 19R

The Group's full year revenue declined by 7.3 percent to 2,865 million Euro. On a currency comparable basis, the decline amounted to 4.8 percent. The top line evolution is mainly due to strong currency effects, the weak investment climate, the product portfolio rationalization and the decline of the analog businesses. In 2012,  the analog businesses recovered from a very slow 2011.

Benefiting from efficiency programs in the business groups and positive raw material effects towards the end of the year, the Group's gross profit margin improved by one percentage point to 29.1 percent of revenue.

As a percentage of revenue, Selling and General Administration expenses remained almost stable at 18.8 percent.

R&D expenses were substantially lower than in 2012 as a result of the Group's efforts to improve efficiency and to rationalize its product portfolio.

Recurring EBITDA (the sum of Graphics, HealthCare, Specialty Products and the unallocated portion) improved from 7.3 percent of revenue to 7.8 percent. Recurring EBIT reached 5.0 percent of revenue, versus 4.5 percent in 2012.

Restructuring and non-recurring items resulted in an income of 19 million Euro, versus an expense of 43 million Euro in 2012. The Group booked the effects of the closure of the post-retirement medical plan in the US and of other targeted pension benefit actions.

The net finance costs amounted to 71 million Euro, versus 85 million Euro in 2012.

Tax expenses amounted to 43 million Euro.

The Group posted a net profit of 49 million Euro, versus a restated (according to IAS 19R) net loss of 9 million Euro in 2012.

Financial position and cash flow

  • At the end of the year, total assets were 2,568 million Euro, compared to 2,830 million Euro at the end of 2012.
  • Inventories amounted to 542 million Euro (or 96 days). Trade receivables (minus deferred revenue and advanced payments from customers) amounted to 464 million Euro (or 56 days) and trade payables were 239 million Euro, or 42 days.
  • Net financial debt amounted to 217 million Euro, versus 291 million Euro at the end of 2012.
  • In 2013, net pension liabilities were reduced by 313 million Euro, leading to a strong increase in equity.
  • Net cash from operating activities amounted to 107 million Euro. 


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