Agfa Group Q1 2025 Results

Agfa has released its Q1 results noting the following summaries:

Group Performance - Continued Success of the Strategic Transformation

• Improved sales mix between growth engines and mature businesses and good cost control compensated for the negative impact of the market decline for traditional film.
• Adjusted EBITDA stable versus last year at 2 million euro in a seasonally weaker quarter.

Digital Print & Chemicals Growth

• Revenue up 5.8% versus Q1 2024 to 97 million euro, mainly driven by Specialty Films & Chemicals.
• Ink sales grew by 16%; equipment sales were impacted by a weaker investment climate.
• Adjusted EBITDA increased from 1.0 million euro to 2.3 million euro.

HealthCare IT Success

• Strong Q1 and continued successful transition to cloud-enabled Enterprise Imaging.
• 63% increase in 12-month rolling order intake, with a high share of net new customers and cloud-related contracts.
• Revenue up 12.0% versus Q1 2024 to 57 million euro.
• Adjusted EBITDA rose from 1.3 million euro to 5.0 million euro.

Challenges in Radiology Solutions

• Revenue declined by mid-teens percentage versus Q1 2024, affecting profitability.
• The decline in the medical film market, particularly in China, had a strong impact.
• Cost optimisation plans for traditional film are on track, with savings expected from H2 2025.

“The first quarter of 2025 was marked by the continued strong performance of our HealthCare IT division, driven by customer adoption of our leading cloud technology. While our Digital Printing Solutions equipment business faced challenges due to economic uncertainty, and the market for our ZIRFON membranes for green hydrogen production slowed down in Europe and North America, the long-term outlook for these businesses remains promising. We are actively addressing the decline in traditional film markets through our cost optimization program, with initial savings expected in the second half of 2025,” says Pascal Juéry, President and CEO, Agfa-Gevaert Group

Financial Highlights (in million euro)

Additional Financial Highlights

• Gross Profit: 74 million euro (30.7% of revenue, up from 29.9%).
• Operating Expenses: 81 million euro (down from 84 million euro).
• Adjusted EBIT: -7 million euro (Q1 2024: -9 million euro).
• Net Result: -20 million euro (Q1 2024: -21 million euro).

Cash Flow and Financial Position

• Working capital increased to 32% of revenue (358 million euro), up from 29% (335 million euro).
• Free cash flow: -27 million euro due to higher inventories and investment in ZIRFON plant.
• Net financial debt (excl. IFRS 16): increased from 37 million euro to 72 million euro.
• Revolving credit facility: 230 million euro, maturing May 2026.
• Leverage ratio: 1.4 (vs max covenant 3).
• Interest coverage ratio: 11.1 (vs min covenant 5).