· Historically low net financial debt level due to positive cash flow generation
· Positive net result for second consecutive year
· Significant improvement of gross profit margin
· Top line decline eased towards the end of the year
Mortsel (Belgium), March 11, 2015 - Agfa-Gevaert today announced its full year 2014 results.
"In 2014, our activities continued to be challenged by the global economic situation and the unstable political situation in certain regions. I am proud to say that we have been able to improve the efficiency of our operations in spite of these tough conditions. I see four major achievements. First of all, we have generated a strong net operating cash flow. This allowed us to reduce the net financial debt to a very decent level. Furthermore, our dedicated efficiency programs and positive raw material effects resulted in a significant improvement of our gross margin. Thirdly, we have been able to keep the restructuring costs and the operational costs under control. All that allowed us to book a positive net result for the second year in a row. And last but not least, I would like to mention the success of our efforts to refinance the company.
In 2015, one of our key targets is to stop the erosion of the top line. We will therefore further strengthen our focus on our organic growth initiatives. I am confident that our efforts in this field will start to bear fruit. 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," said Christian Reinaudo, President and CEO of the Agfa-Gevaert Group.
Agfa-Gevaert Group - full year 2014
| in million Euro | 2013 | 2014 | % change |
| Revenue | 2,865 | 2,620 | -8.6% |
| Gross profit (*) | 833 | 807 | -3.1% |
| % of revenue | 29.1% | 30.8% | |
| Recurring EBITDA (*) | 224 | 222 | -0.9% |
| % of revenue | 7.8% | 8.5% | |
| Recurring EBIT (*) | 144 | 152 | 5.6% |
| % of revenue | 5.0% | 5.8% | |
| Result from operating activities | 163 | 136 | -16.6% |
| Result for the period | 49 | 59 | 20.4% |
| Net cash from (used in) operating activities | 107 | 151 |
(*) before restructuring and non-recurring items
The Agfa-Gevaert Group's revenue declined by 8.6 percent compared to the previous year. 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. Excluding currency effects, the revenue decrease amounted to 7.5 percent. The Group's top line suffered from the continuous decline of the traditional film businesses, the product portfolio rationalization, the overall economic weakness and the unstable political situation in certain regions. The uncertain investment climate in the radiology segment of the US healthcare sector weighed on the Agfa HealthCare business group's revenue.
The Group's gross profit margin reached 30.8 percent of revenue. This significant improvement is contributable to the success of the targeted efficiency programs and positive raw material effects.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Agfa-Gevaert via Globenewswire
