Agfa has published its first quarter results for 2014, which show a drop in revenue from €705 million in the first quarter of last year to €622 million this year, with a corresponding 10 percent drop in profit to €182 million, which Agfa has blamed on weaknesses in the emerging markets and currency effects.
However, despite the effects of a strike at the company’s Belgian manufacturing sites, Agfa has implemented some efficiency programs so that gross profit as a percentage of revenue has risen from 28.8 percent last year to 29.3 percent for this year’s first quarter. Agfa also benefited from strong cash flow generation, which it put down to its working capital management program, and which allowed the company to reduce its net financial debt.
Christian Reinaudo, President and CEO of the Agfa-Gevaert Group, commented: “We believe the first half of the year 2014 will continue to show a soft business environment, but we will continue to improve our gross profit margin and we will continue to focus on cash flow generation. We stick to our medium term target of delivering a double-digit recurring EBITDA percentage.”
Yesterday, Agfa held its annual general meeting where the 2013 financial statements were approved, though the Remuneration Report included in the Annual Report was not approved. The company has said that it will engage with its shareholders to understand their reasons for voting against the proposed resolution for the approval of the remuneration report.