Agfa has reported declines in both its revenue and gross profit in the first quarter of 2018.  The Belgian manufacturer recorded sales of €549m  in the period, down 6.7% on Q1 2017, while its gross profit dropped by 7.5% to €178m. The groups gross profit margin dipped slightly to 32.4%, from 32.7% in Q1 2017.
Group recurring EBITDA was down by 3.5% to €37m but represented 6.8% of revenue, up from 6.6% in Q1 2017.
Agfa attributed its top-line decrease to the strength of the euro versus other currencies. It said its revenue decline was limited to 1.3% when excluding these currency effects.
By division, Agfa Graphics’ revenue fell by 13.7% in Q1 to €259m, while sales in the Healthcare division dropped by 0.1% to €239m, with recurring EBITDA up by 42.1% to €23.2m. The Specialty Products unit, which develops items such as printed circuit boards and synthetic paper, grew by 4.1% to €51m, with EBITDA up by 93% to €6.7m.
Agfa Graphics’ top line was impacted by the previously announced product portfolio reorganisation in pre-press and the market-driven decline for analogue computer-to-film products, the group said. The group’s net financial debt amounted to €19m at the end of Q1, vs. €18m at 2017-end.
New Q1 product launches in the Graphics business included the Anapurna H1650i wide-format hybrid printer, Fortuna 11 – the latest version of Agfa’s security printing software, and the Adamas eco-friendly plate.
Christian Reinaudo, president and chief executive of the Agfa-Gevaert Group, said: “Our first-quarter results are inline with our expectations. As anticipated, strong currency effects and the decision to rationalise Agfa Graphics’ pre-press portfolio weighed on our top line.