Agfa 3Q24 below forecasts & €50m savings program to align the cost base
3Q24 numbers were below our and CSS forecasts. We will update our model but we already lower our Target Price from € 2.0 to € 1.4.3Q24 sales came in at € 277m (KBCSe € 291, CSS 286) and 3Q24 REBIT was
€4m (KBCSe € 8.1m, CSS € 7m) with especially a poor performance in
Radiology Solutions. Agfa hinted at a strong profitability step up in Digital
Printing and Chemicals, and a significant increase in order intake in
HealthCare IT, with a high share of cloud-based and net new customer
contracts. This was counterbalanced by an accelerated market decline in
traditional film activities.
A €50m savings program to align the cost base with the accelerated market
decline of the film-related business is in full preparation. Agfa indicated that
savings will start to materialize in 2H25, with the full potential to be realized
in FY27.
Agfa-Gevaert develops, produces and distributes various analog and digital imaging systems and IT solutions, mainly for the printing industry and the healthcare sector, as well as for specific industrial applications. Co.'s operations can be divided into three business segments: Agfa Graphics, which provides integrated prepress products and services to the printing industry; Agfa HealthCare, which provides diagnostic imaging and healthcare IT products for hospitals and care centers around the world; and Agfa Specialty Products, which supplies a variety of film-based products to business- to-business customers outside the graphic and healthcare markets.
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