Agfa 2H22 is expected to be better thanks to additional pricing actions

We learned from the Agfa conference call that 2Q22 reflected the current inflationary environment as well as the impact of the China lockdowns. Agfa's top line growth was driven by volume growth in DCP (Digital Print & Chemicals) division and pricing actions in the Offset Solutions division. Agfa experienced the full impact of cost inflation and supply chain issues on its profitability and working capital in 2Q22.

Additional price actions are being taken to tackle cost inflation. Assuming that the uncertainty in most markets will not deteriorate, 2H22 is expected to be better thanks to additional pricing actions coming into effect.

Agfa also highlighted that the ongoing transformation actions are well on track and are expected to bring more agility and to further simplify Agfa's operations. Agfa indicated that they will also allow them to further reduce its costs from FY23 onwards. So we assume the sale of Offset is for the next 4 months.

On the financials, the conference call learned that although the 2Q22 Free Cash Flow was negative for €-59m there are some items that should be mentioned.

Agfa also gave an update on the pensions as there was a lot of movement : The result is a reduction of €142m versus the end of last year.