In the first quarter, Agfa-Gevaert recorded 501 million euros in revenue, slightly over 4 percent less than in the same period of 2019. According to the Mortsel-based imaging specialist, the decrease is due to the issues in the offset printing industry, the refocus on higher-margin activities in several business areas and the first effects of the COVID-19 pandemic. Bottom-line this resulted in a profit of 1 million euros. The company also reports that it has now successfully completed the sale of part of its healthcare IT business.
On the one hand, Agfa’s Radiology Solutions division and the remaining Healthcare IT business showed resilience in the uncertain global economic conditions. Certain activities in the printing segment, on the other hand, were starting to be impacted by the pandemic. This new challenge adds to the already tough conditions in this industry. “Despite some impact of COVID-19 on our activities in the printing industry, we delivered a solid set of results and we generated strong cash flows,” comments group president and CEO Pascal Juéry.
“We’re taking all measures necessary to guarantee that we can continue supplying and supporting our customers during the COVID-19 pandemic,” adds Juéry. “To mitigate as much as possible the impact of the pandemic on our liquidity and bottom-line result, we’re controlling our working capital levels, capital expenditure and costs even more rigorously. As the printing industry – which was already under pressure – is being impacted by the pandemic, we’re adapting our production capacity to the worsened market conditions, resorting to temporary unemployment where applicable.”