Agfa-Gevaert today announced its third quarter 2013 results.
"Our third quarter top line is distorted by the very strong adverse currency impact. In addition, analog film revenue was much lower than in the third quarter of last year, when the analog businesses performed exceptionally strong, recovering from a weak period in 2011 and in the first months of 2012. Our future oriented digital and IT products, on the other hand, evolved positively. Agfa Graphics' industrial inkjet business confirmed the crossing of the break-even line, resulting in a slightly positive year-to-date recurring EBIT. Our gross profit margin improved compared to last year's third quarter. Furthermore, the improvement of our operational cash flow and the reduced net debt show the success of our working capital efforts," said Christian Reinaudo, President and CEO of the Agfa-Gevaert Group.
Mainly due to adverse currency effects, the weak investment climate and the decline of the analog businesses, the Group's revenue decreased by 10.1 percent. Excluding currency effects, the decline amounted to 5.9 percent.
The Group's gross profit margin improved from 27.3 percent in the third quarter of 2012 to 27.9 percent. Part of the improvement is attributable to positive raw material effects in the last month of the quarter.
As a percentage of revenue, Selling and General Administration expenses amounted to 18.6 percent.
Continuing the trend of the previous quarter, R&D expenses were substantially lower than in the third quarter of 2012 as a result of the Group's efforts to improve efficiency and to rationalize its product portfolio.
As a percentage of revenue, recurring EBITDA (the sum of Graphics, HealthCare, Specialty Products and the unallocated portion) improved to 6.7 percent. Recurring EBIT remained stable at 3.8 percent.
Restructuring and non-recurring items resulted in an expense of 9 million Euro, versus an expense of 2 million Euro in the third quarter of 2012.
The net finance costs amounted to 17 million Euro, versus 19 million Euro in 2012.
Tax expenses amounted to 6 million Euro.
The Group posted a net result of minus 6 million Euro, versus a restated (according to IAS 19R) net result of 2 million Euro in the third quarter of 2012.
Financial position and cash flow
At the end of the quarter, total assets were 2,641 million Euro, compared to 2,830 million Euro at the end of 2012.
Inventories amounted to 597 million Euro (or 102 days). Trade receivables (minus deferred revenue and advanced payments from customers) amounted to 436 million Euro (or 57 days) and trade payables were 230 million Euro, or 39 days.
- Net financial debt amounted to 261 million Euro, versus 291 million Euro at the end of 2012.
- Net cash from operating activities amounted to 42 million Euro.