Agfa-Gevaert (AGFB) H1 2024 earnings summary

Executive summary

• Solid Q2 performance with strong order intake in Healthcare IT, robust growth in DPC and ZIRFON, and a positive net profit, offset by continued weakness in radiology film.

• Revenue for Q2 2024 was €286M, nearly flat year-over-year; H1 2024 revenue declined 4% to €536M compared to H1 2023.

• Q2 2024 net profit was €5M, reversing a €14M loss in Q2 2023; H1 2024 net loss narrowed to €17M from €81M in H1 2023.

• Launch of a €50 million productivity program targeting film-related activities to address cost base and competitiveness.

• Cash outflow driven by seasonal working capital build-up, expected to normalize by year-end.

Financial highlights

• Sales remained flat year-over-year, with growth in DPC and ZIRFON and decline in radiology.

• Gross profit rose to €96M in Q2 2024 from €87M in Q2 2023, with margin improvement driven by better business mix and cost control.

• Adjusted EBIT improved to €12M in Q2 2024 from €2M in Q2 2023; operational expenses were lower, supporting positive EBITDA and EBIT.

• Free cash flow was negative at €40M outflow in Q2 2024, due to working capital outflow and peak CapEx, but six-month cash flow aligns with guidance.

• Earnings per share from total operations was €0.03 in Q2 2024, up from a €0.09 loss per share in Q2 2023.

Outlook and guidance

• Expectation of continued growth in Healthcare IT and DPC, with Q4 anticipated as the strongest quarter.

• Radiology Solutions expected to remain weak; cost reduction plan is key to offsetting this.

• Working capital expected to return to normal levels by year-end.

• Cloud transition in Healthcare IT will impact short-term revenue recognition but improve long-term visibility.