Agfa Gevaert: Tough start as Q1 falls short of expectations

Agfa Gevaert NV

11/05/2021 09:00

** Shares in Agfa Gevaert  AGFB.BR  slump 9% after the
digital imaging systems producer's Q1 earnings fell short of
expectations, mainly due to the radiology division
    ** The division faced volume and price pressure for its
medical film products due to the new centralised procurement
practices in China, Agfa said
    ** ING flags concern in regards to China, as it's a critical
market for the division's profitability, it says
    ** It also points to "another miss" in Agfa's revenues of
EUR 396 million, standing 6.6% below the company-compiled
consensus
    ** Agfa's Q1 adj EBIT turned to a loss of EUR 1 million
($1.2 million), while adj EBITDA fell 36.3% to EUR 15 million
 urn:newsml:reuters.com:*:nASN0016HA
    ** "Some declines are structural and in 2021 Agfa will
suffer from firm cost inflation," Degroof Petercam adds,
expecting 2021 to still be a tough year after a tough start
    ** Yet Agfa expects its price increase programmes to counter
inflationary pressure added to the COVID-19 impact
    ** Stock is heading for its worst day since late Aug

($1 = 0.8239 euros)

 ((juliette.portala@thomsonreuters.com))