Agfa’s full year results for last year show some improvement in its gross profit margin and a positive cash flow. However, actual revenue declined by 8.6 percent from €2,865 million to €2620m, while gross profit fell 3.1 percent from €833m to €807m. Agfa acknowledges “the pace of the top line drop slowed down quarter after quarter due to targeted programs to support the growth engines of the business groups on the one hand and the gradually improving exchange rate situation on the other hand.”
Agfa has continued to suffer from the general decline of its film business as well as rationalisation to its product portfolio and instability in some geographical markets.
But the recurring EBIT, or Earnings Before Interest and Taxes rose 5.6 percent to €152m, while the gross profit margin went up from 29.1 percent to 30.8 percent of revenue. Agfa attributed this to “the success of the targeted efficiency programs and positive raw material effects.”
Agfa’s Graphics division saw a 9.1 percent drop in revenue to €1,355m while the recurring EBIT rose 15.3 percent to €70m with a 5.2 percent gross profit margin.
Agfa says that it sees improvements in its European and US markets and that it has now reorganised the healthcare side of its business, while inkjet is also starting to see some recovery. Christian Reinaudo, President and CEO of the Agfa-Gevaert Group, commented: “Our financial debt situation also allows us to look into external growth opportunities, should they occur. Our second main target for 2015 is to deliver a recurring EBITDA percentage close to 10 percent of revenue.”
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