Agfa-Gevaert: disappointing financial results

Agfa-Gevaert: disappointing financial results
Agfa-Gevaert believes it has suffered in the 2017 financial year, due to the effects of change and the decline of its traditional operations.© Belga

The Belgian imaging group, Agfa-Gevaert, produced a turnover in 2017 which was 3.7% lower than the previous year, being a total of €2.44 billion.
It posted net profits which were down by 43%, at €45 million. The organisation Bloomberg says that the earnings per share of 22 cents for 2017 are a great disappointment to analysts.

The group, based in Mortsel, is putting forward as reasons both the effects of change and the decline of its traditional operations. Agfa says that a sharp improvement may have been noted by analysts during the fourth quarter.

Agfa-Gevaert suffered from the effects of a single fiscal expenditure of €25 million, owing to regulatory change in Belgium and the United States. There was thus a negative impact on its net result.

Its earnings before interest, tax, depreciation and amortization (EBITDA) decreased by 16% to €222 million. Its profit margin reduced from 10.4% to 9.1%.

The company’s profitability is currently under pressure owing to the high prices of raw materials and restructuring costs.

The Brussels Times

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