Agfa-Gevaert (AGFB) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales were €277 million, down 1.2% year-over-year, with adjusted EBITDA at €15 million, down 10.8% from Q3 2023; DPC delivered double-digit revenue and profit growth, while Healthcare IT saw a significant rise in cloud-related order intake.

• Radiology Solutions faced an accelerated market decline, especially in medical film and China, prompting a major transformation program including workforce reductions and a €50 million cost savings plan.

• Net loss for Q3 2024 was €13 million, compared to €15 million in Q3 2023; 9M 2024 net loss was €29 million, a significant improvement from €96 million in 9M 2023.

• Healthcare IT achieved record order intake, with 45% of new orders cloud-related and 57% net new customers; first cloud-enabled Enterprise Imaging software deployed in the U.S.

• DPC segment benefited from new partnerships, product launches, and the first significant Zirfon order in India.

Financial highlights

• Q3 2024 sales: €277m (-1.2% year-over-year); adjusted EBITDA: €15m (-10.8% year-over-year); adjusted EBIT: €4m (-27.1% year-over-year); gross profit margin for Q3 2024 was 29.5%.

• Free cash flow for Q3 2024 was negative €6 million, impacted by working capital and higher CapEx for the green membrane plant.

• Net result for Q3 2024 was a loss of €13m, compared to a €15m loss in Q3 2023.

• Working capital remained stable at €333m, despite a €15m impact from silver prices and freight.

• Net debt increased to €118m at the end of Q3 2024, up from €33m a year earlier.

Outlook and guidance

• Q4 expected to be the strongest quarter, especially for DPC and Healthcare IT, with order intake momentum to continue.

• No short-term improvement expected in Radiology; benefits from transformation program to materialize mainly in 2025 and beyond.

• Working capital expected to normalize by year-end, mirroring last year’s pattern.

• Digital Print & Chemicals anticipates significant top-line and profitability growth, while Healthcare IT performance is expected roughly in line with last year and order intake growth slightly above 20%.

• The €50m cost reduction program for film-related activities is on track, with first savings in H2 2025 and full impact by 2027.