Brief: Agfa-Gevaert Q2 Adjusted EBITDA Down At 31 Million Euros

Agfa Gevaert NV

26/08/2020 07:03

Aug 26 (Reuters) - AGFA GEVAERT NV  AGFB.BR :
    * IN Q2 2020, STRONG IMPROVEMENT OF IMAGING IT BUSINESS'
PROFITABILITY, SIGNIFICANT COVID-19 IMPACT ON PRINTING
ACTIVITIES
    * ADJUSTED EBITDA DECREASED FROM 48 MILLION EURO (9.7% OF
REVENUE)
IN Q2 2019 TO 31 MILLION EURO (7.9% OF REVENUE)
    * Q2 REVENUE EUR 397 MILLION VERSUS EUR 497 MILLION YEAR AGO
    * I ALSO WANT TO RE-AFFIRM OUR CONFIDENCE THAT OUR COVID-19
RESILIENT HEALTHCARE BUSINESSES ARE WELL POSITIONED FOR FUTURE
GROWTH - CEO
    * DUE TO PROCEEDS OF SALE OVER PART OF HEALTHCARE IT
ACTIVITIES,
NET FINANCIAL DEBT EVOLVED FROM 219 MILLION EURO AT END OF 2019
TO A NET CASH POSITION OF 677 MILLION EURO
    * IN Q2, NET CASH FROM OPERATING ACTIVITIES AMOUNTED TO
MINUS 68
MILLION EURO
    * IMPACTED BY COVID-19, TRADE WORKING CAPITAL EVOLVED FROM
579
MILLION EURO (26% OF SALES) AT END OF 2019 TO 539 MILLION EURO
(29% OF SALES) AT END OF JUNE 2020
    * SALE OF PART OF HEALTHCARE IT ACTIVITIES: AROUND 350
MILLION
EURO OF PROCEEDS WILL BE USED TO INCREASE FUNDING RATIO OF
FUNDED PENSION PLANS IN BELGIUM, UK AND USA AND IMPLEMENT
DE-RISKING ACTIONS
    * TODAY'S SITUATION DOES NOT ALLOW GROUP TO ASSESS A
QUANTIFIED
IMPACT OF COVID-19 PANDEMIC ON ITS 2020 FINANCIAL PERFORMANCE
AND TO PROVIDE A FULL YEAR OUTLOOK FOR 2020
    * NET FINANCIAL DEBT EVOLVED FROM 219 MILLION EURO AT END OF
2019
TO A NET CASH POSITION OF 677 MILLION EURO IN END-Q2
    * IN MEDIUM TERM, MOST ACTIVITIES OF GROUP WILL FULLY
RECOVER FROM
DISRUPTION CAUSED BY COVID-19 AND EVEN BENEFIT FROM POST-COVID
OPPORTUNITIES AND MARKET DEVELOPMENTS
    * MAINLY ACTIVITIES IN OFFSET INDUSTRY WILL CONTINUE TO FEEL
A
NEGATIVE IMPACT IN MEDIUM TERM
    * SITUATION DOES NOT ALLOW GROUP TO ASSESS A QUANTIFIED
IMPACT OF
COVID-19 PANDEMIC ON 2020 FINANCIAL PERFORMANCE AND TO PROVIDE
FY 2020 OUTLOOK
    * Q2 2020 GROUP'S GROSS PROFIT MARGIN AMOUNTED TO 30.2% OF
REVENUE, VERSUS 31.8% IN Q2 OF 2019
    * Q2 NET PROFIT OF 668 MILLION EURO

Source text for Eikon:  ID:nGNE48T7dG 
Further company coverage:  AGFB.BR 

 (Gdansk Newsroom)
 ((gdansk.newsroom@thomsonreuters.com; +48 58 7785110;))