Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Healthcare IT showed an extremely good performance, with a 63% increase in order intake, indicating strong market momentum.
- The company is successfully transitioning to a more recurring revenue business model, particularly in healthcare IT.
- Agfa-Gevaert NV (XBRU:AGFB, Financial) has maintained stable adjusted EBITDA despite a challenging market environment, aided by positive exchange rates.
- The company has made significant progress in reducing net pension debt, which has decreased from EUR511 million to below EUR400 million over the past two years.
- Agfa-Gevaert NV (XBRU:AGFB) is actively investing in future growth areas, such as R&D for healthcare IT, and has maintained tight cost controls.
Negative Points
- The company is experiencing a continuous decline in its film business, particularly in China, with a 15% to 16% decrease in volumes.
- There is a weaker investment climate impacting equipment sales in the Digital Print & Chemicals (DPC) segment, leading to delayed investment decisions.
- The radiology market is facing a more pronounced decline than anticipated, affecting overall sales and profitability.
- Agfa-Gevaert NV (XBRU:AGFB) is consuming EUR27 million in cash flow in Q1 due to seasonality and increased working capital.
- The company is facing challenges in the green hydrogen market, with delays in project implementations and a changing industry structure.
Q & A Highlights
Q: Are you losing market share in the Zit phone market, or is it a general market issue? What measures are you taking, and when do you expect the market to regain strength?
A: We are not losing market share; it's the market itself that is stalling. We expect growth to pick up in the second half of 2026 and into 2027. In the meantime, we are controlling costs and improving production efficiencies. (Pascal Juery, CEO; Vincent Wille, President - Digital Print & Chemicals)
Q: Is the production facility for Zit phone on schedule, and what are your expectations for 2026?
A: The production facility is on schedule and will be operational before the end of the year. However, it's too early to provide specific guidance for 2026 as customer visibility is limited. (Pascal Juery, CEO; Vincent Wille, President - Digital Print & Chemicals)
Q: Can you provide insight into your top customers and the status of European subsidies for Zit phone?
A: Our top five customers represent a significant portion of our business. Regarding subsidies, we are on track and in discussions with the European Innovation Agency, with no surprises expected. (Pascal Juery, CEO)
Q: How will the more bullish outlook for healthcare IT balance with lower expectations for DPC and radiology?
A: While healthcare IT is performing well, it may not fully offset the decline in film and radiology. The rate of decline in film is stronger than anticipated, which poses a challenge. (Pascal Juery, CEO)
Q: What is the overall outlook for the rest of the year given the current performance of different segments?
A: The business is seasonal, with Q1 being the weakest. Healthcare IT shows excellent momentum, while DPS and radiology face temporary challenges. We expect cost measures to mitigate the decline in radiology during the second half of the year. (Pascal Juery, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
