Agfa boosts revenue as ‘extraordinary inflation’ hits profits


Printing technology maker Agfa-Gevaert Group, which recently announced its intention to buy Inca Digital Printers, reported a 22% year-on-year increase in pre-tax profit to 19 million euros in the first quarter of 2022 Turnover increased by 7.2% to 424 million euros but the group posted a net loss of 7 million euros. Agfa’s signage and display business “continued its upward trend”.

Agfa’s award-winning Jeti Tauro H3300 UHS LED large format hybrid printing press

Agfa Pascal Juery filling 180x162
“An extraordinary period
Pascal Juery,
CEO Agfa-Gevaert

“We live in a time of extraordinary inflation, geopolitical uncertainties and in particular the Russian-Ukrainian conflict, unprecedented volatility in our supply chains and persistent COVID effects, particularly in China,” said Pascal Juéry. , Chairman and CEO of Agfa-Gevaert. Group based in Mortsel, Belgium.

“All raw material, energy, packaging, transport and wage costs continue to rise significantly and supply chain disruptions are having a significant impact on our business,” Juéry said. “In this complex inflationary environment, we are able to maintain our margins thanks to pricing and cost control actions.

“Driven by the good performance of the Offset Solutions division, we have significantly improved our recurring EBITDA, which shows that our pricing strategy and our strict cost control are paying off.

“Furthermore, we have again taken important steps in our transformation program over the past few months. The steps we have taken recently regarding our internal IT services and our internal financial services are examples of how we are simplifying our operating model.

“Just a few weeks ago, we announced our plans to acquire Inca Digital Printers. This investment will strengthen our position in the high-speed large format market as a whole and in particular in the promising packaging segment. Digital printing is a profitable growth engine for us with enormous potential which will be further accelerated by the addition of Inca.

Group sales increased by 7.2%, mainly driven by the Digital Print & Chemicals and Offset Solutions divisions. Despite prolonged inflationary pressure and supply chain issues, adjusted EBITDA fell from €15 million (3.9% of revenue) in the first quarter of 2021 to €19 million (4. 4% of turnover). Adjusted EBIT reached €4 million, compared to minus €1 million in the first quarter of 2021.

“Due to the items mentioned above, the Agfa-Gevaert group recorded a net loss of €7 million,” the company said.

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Agfa-Gevaert Group expects the full impact of cost inflation in the second quarter, which will also be affected by the uncertain geopolitical situation and COVID-related lockdowns in China. Additional price measures are taken to combat cost inflation. Assuming that the uncertainty in most markets does not deteriorate, the second half of the year should be better thanks to the entry into force of additional tariff measures.

Digital printing and chemicals – Q1 2022

Digital Print & Chemicals Division revenue increased significantly compared to the first quarter of 2021. Price increases were implemented in almost all business areas to address rising material costs raw materials, packaging, energy and freight. The full impact of these price increases will be felt in the second half of the year. Further price increases will be communicated shortly.

In the field of digital printing, the Sign & Display business continued its upward trend, both in terms of turnover and profit. Ink ranges for sign and display applications continued to perform well, clearly exceeding pre-COVID levels. Despite industry-wide logistical challenges, the large format printing equipment business continued to recover from the strong impact of COVID-19.

In January, the European Digital Press Association recognized three Agfa innovations introduced in 2021: the Jeti Tauro H3300 Large format hybrid UHS LED printing press, the InterioJet water-based decor paper printing press for laminate surfaces and the Alussa leather printing system.


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