Agfa gross profit down in Half Year 2022 Results

Agfa-Gevaert (Agfa) has released its half year results.

• Top line growth driven by Digital Print & Chemicals and Offset Solutions

• Order book HealthCare IT at very healthy level – strong growth in order intake

• Gross profit decreased due to inflationary pressure and volume losses in medical film related to COVID lockdowns in China

• Adjusted EBITDA amounted to 32 million Euro

• Seasonal increase in working capital, amplified by supply chain issues, cost inflation and inclusion of Inca Digital Printers acquisition

• Positive effect of 142 million Euro on net pension liability for the material countries versus year-end 2021

• Acquisition of Inca Digital Printers yields first integration results: Agfa’s inks being certified to be used on Onset print engines

“In these turbulent economic and geopolitical times, we continue to focus on the future. We have launched engineering studies to prepare an investment in a new production facility for our Zirfon membranes for hydrogen production at our Mortsel site, which will allow us to meet the strong increase in demand. We acquired and integrated Inca Digital Printers, a leading developer and manufacturer of advanced high speed printing and production technologies. Our inks are being certified to be used on the Onset printer range. Increased investments in R&D and commercial resources should enable the HealthCare IT division to generate profitable growth. Furthermore, the partnership with Atos for our internal IT activities and the actions to re-organize our internal financial services are expected to bring agility and simplification to Agfa’s operating model. These major steps in our transformation journey will enable us to increase our focus on our growth businesses, which is crucial to our future success in our markets.

“Operationally, the second quarter reflects the current inflationary environment as well as the impact of China lockdowns. The Group’s top line growth was driven by volume growth in the Digital Print & Chemicals division and pricing actions in the Offset Solutions division. We experienced the full impact of cost inflation and supply chain issues on our profitability and working capital in the second quarter,” said Pascal Juéry, President and CEO of the Agfa-Gevaert Group.

Share buyback program completed

March 10, 2021, the Agfa-Gevaert Group announced a share buyback program with a volume of up to 50 million Euro. The program was launched April 1, 2021. From the beginning of the share buyback program until the completion on June 9th, 2022, the Agfa-Gevaert Group cancelled 12,930,662 own shares (7.71% of total shares).

Agfa-Gevaert Group – Q2 2022 Results