Agfa-Gevaert publishes its full year 2015 results

·         Top line growth largely due to the success of the growth engines and the weaker Euro

·         Gross profit margin improved to 31.9 percent of revenue

·         Positive net result for third consecutive year

·         Low level of net financial debt due to positive cash flow generation

Mortsel (Belgium), March 10, 2016 - Agfa-Gevaert today announced its full year 2015 results.  

"Although 2015 was characterized by the further economic slowdown in several growth markets, we succeeded in stopping the top line erosion. The revenue growth was supported by the weaker Euro, as well as by the good performance of our growth engines, including Agfa Graphics' inkjet business and Agfa HealthCare's Direct Radiography and IT solutions. Furthermore, we also delivered on the other main targets we set ourselves. Mainly due to the improvement of our gross profit margin, we managed to bring our recurring EBITDA percentage closer to 10 percent of revenue. We will build on this achievement to reach the 10 percent target we have set ourselves for 2016. Our operational improvements and the success of our efficiency programs contributed to the improvement of our profitability. As a result of all this, we delivered a positive net result for the third year in a row. Together with the strict management of working capital, the net profit led to a positive cash flow generation and a strong decrease in our net financial debt. This set of results strengthens my belief that we are now set to achieve profitable growth in the years to come," said Christian Reinaudo, President and CEO of the Agfa-Gevaert Group.

Agfa-Gevaert Group - full year 2015

(*) before restructuring and non-recurring items

The Agfa-Gevaert Group's revenue grew by 1.0 percent to 2,646 million Euro. The top line growth was supported by the good performance of most of the growth engines (including the Agfa Graphics business group's inkjet business and the Agfa HealthCare business group's Direct Radiography and IT solutions), as well as by the improved exchange rate situation. Adverse elements were the continuous decline of the traditional film businesses, the economic weakness in several emerging markets and the unstable geopolitical situation.

Targeted efficiency programs more than counterbalanced the adverse raw material effects (which mainly impacted the Agfa Graphics business group). As a result, the Group improved its gross profit margin from 30.8 percent of revenue in 2014 to 31.9 percent.  

As a percentage of revenue, Selling and General Administration expenses remained almost stable at 19.7 percent.

R&D expenses amounted to 144 million Euro, or 5.4 percent of revenue.

Recurring EBITDA (the sum of Graphics, HealthCare, Specialty Products and the unallocated portion) reached 9.1 percent of revenue, versus 8.5 percent in 2014. Recurring EBIT improved by one percentage point to 6.8 percent of revenue.

The expense related to the restructuring and non-recurring items amounted to 19 million Euro, versus 16 million Euro in 2014.

The net finance costs amounted to 74 million Euro, versus 59 million Euro in 2014. A substantial part of this amount - about 20 million Euro - is due to a reclassification in the fourth quarter from translation reserve to profit or loss with regard to the closure of two production plants. This reclassification has no cash impact.

Income taxes resulted in an expense of 16 million Euro, versus an expense of 18 million Euro in the previous year.

As a result of the elements mentioned above, the Agfa-Gevaert Group posted a strong net profit of 71 million Euro.