Agfa FIRST LOOK – Satisfying 1Q23 performance of growth engines and in DPC

Satisfying 1Q23 performance and Agfa expects a recovery in profitability in FY23 versus FY22.



Early April, Agfa took an important step in its transformation journey with the divestment of its Offset Solutions division. This transaction will allow Agfa to focus on its growing market segments.

Businesswise, Agfa is very satisfied with the 1Q23 performance of the growth engines in its Digital Print & Chemicals division. The huge potential of its Zirfon membranes for green hydrogen production is starting to materialize, as this business' 1Q23 revenue already exceeded that of FY22. However, Agfa admits that as it is still in an industrial ramp-up and development phase, the Zirfon business is not yet contributing to the results. In the Radiology Solutions division, Agfa saw further top line and profitability improvements for DR (Direct Radiography). Although HealthCare IT saw a 25% increase in order intake, we are not to worried to see that its profit growth was influenced by a delay in order book implementation, as the increased portion of managed services implies revenue recognition over a longer period of time.

We will update our model but maintain for the moment our € 4.0 Target Price and Buy rating.