In This Article:
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Q4 Revenue Growth: 8% growth in Healthcare IT and 15% growth in Digital Printing Solutions (DPS).
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Full-Year Revenue Trend: Significant decrease in film activity offset by growth in Digital Printing Solutions.
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EBITDA Contribution: 43% of EBITDA generated in Q4 due to seasonality.
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Restructuring Costs: EUR 32 million in P&L, with an expected cash out of EUR 37 million.
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Net Financial Debt: EUR 37 million with a leverage of 0.7%.
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Free Cash Flow: Positive EUR 35 million in Q4, but a full-year negative of EUR 46 million.
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Pension Liabilities: Reduced by EUR 53 million at the end of 2024.
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Healthcare IT Order Intake: Increased by 22%, with 30% cloud-related orders.
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Digital Printing Solutions Growth: 13% growth in digital printing and 27% growth in ZIRFON.
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Radiology Solutions Decline: 16% decrease in film sales, partially offset by 8% growth in digital radiography (DR).
Release Date: March 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Agfa-Gevaert NV (XBRU:AGFB) reported record sales and growth in Q4 2024 for its key segments: HealthCare IT, Digital Printing Solutions, and ZIRFON.
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The company successfully launched cloud solutions, contributing to increased customer satisfaction and order intake.
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Digital Printing Solutions (DPS) experienced a 15% growth, driven by new product launches and strategic partnerships.
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The company has implemented a transformation program to address the decline in its film business, with expected cost savings of over EUR 50 million.
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Agfa-Gevaert NV (XBRU:AGFB) maintained stable gross profit margins despite volume losses, thanks to effective cost control and operational efficiency.
Negative Points
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The film business experienced a significant decline, impacting overall company performance and necessitating a transformation program.
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Transition to cloud-based models in HealthCare IT delayed revenue and margin recognition, affecting short-term financial performance.
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Radiology solutions faced a steep decline in medical film sales, which could not be fully offset by growth in digital radiography.
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The company reported a net financial loss of EUR 75 million for the year, partly due to restructuring and impairment costs.
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Free cash flow for the full year was negative at EUR 46 million, despite a positive Q4 cash flow, due to higher working capital and capital investments.
Q & A Highlights
Q: Based on your intake, it seems that the order book in healthcare IT is up with about 30%, 40%. You highlight the excellent momentum in healthcare IT with the higher sales and the revenue which has already become a sizeable part of the day. So I'm a bit confused as to why you guys are stable performance in 2025. Could you clarify that, please? A: Yes. But just because of the nature of the order intake has changed and again, if I was in a project-based, you could roughly say that whatever you take in order intake for the zero and will be revenue recognized in the year N+1. But it's not anymore the case, and when you recognize the cell, you recognize the margin and that if you have now a recurring project instead of putting these projects, this order intake, as cells, it will be spread out five, six, seven, eight years depending on the length of the contracts. So going from a project model to a subscription model has a mechanical impact to delay revenue and margin recognition. So if we were in an environment where we were not growing, actually we would see sales decreasing significantly and it decreasing significantly before. During the transition year, it's not the case here due to the fact that we are growing.