Agfa-Gevaert Posts Q3 Results
Wednesday, November 09, 2016
Press release from the issuing company
Mortsel, Belgium - Agfa-Gevaert today announced its third quarter 2016 results.
"Driven by the success of our efficiency measures and by favorable raw material effects, the positive profitability trend continued in the third quarter. We expect our full year recurring EBITDA to reach 10% of revenue, which is the main target we set ourselves for 2016. That allows us to partly shift our focus to the top line. We are very pleased with the continued strong performance of HealthCare IT. We will implement various projects aiming at limiting the decline of our traditional businesses and at boosting the success of our growth engines. Reversing the organic top line erosion is our top priority," said Christian Reinaudo, President and CEO of the Agfa-Gevaert Group.
Agfa-Gevaert Group - third quarter 2016
(*) before restructuring and non-recurring items
The Agfa-Gevaert Group's revenue decreased by 5.4% (4.9% excluding currency effects) to 625 million Euro. For the Agfa HealthCare business group, the revenue trend improved compared to the previous quarters of the year. The HealthCare IT growth engines continued to perform strongly. The Agfa Graphics business group continued to face the strong competitive pressure in the offset markets and the market softness in certain emerging countries.
Due to targeted efficiency measures and positive raw material effects (mainly in the Agfa Graphics business group), the gross profit margin improved by almost two percentage points to 33.4% of revenue.
As a percentage of revenue, Selling and General Administration expenses amounted to 19.8%.
R&D expenses amounted to 35 million Euro, or 5.6% of revenue.
Recurring EBITDA (the sum of Graphics, HealthCare, Specialty Products and the unallocated portion) improved by 1 percentage point from 9.1% of revenue in the third quarter of 2015 to 10.1%. Recurring EBIT improved from 7.0% of revenue to 7.8%.
Restructuring and non-recurring items resulted in an expense of 6 million Euro, versus an expense of 3 million Euro in the third quarter of 2015.
The net finance costs decreased from 12 million Euro in the third quarter of 2015 to 11 million Euro.
Income tax expenses amounted to 7 million Euro, versus an income of 2 million Euro in the previous year.
As a result of the elements mentioned above, the Agfa-Gevaert Group posted a net profit of 25 million Euro.
Financial position and cash flow
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