The Agfa-Gevaert Group in Q2 2024: solid quarter, powered by growth engines - regulated information - inside information
28 August 2024 - 3:45PM
UK Regulatory
The Agfa-Gevaert Group in Q2 2024: solid quarter, powered by growth
engines - regulated information - inside information
Regulated information – Inside information
August 28, 2024 - 7:45 a.m. CET
The Agfa-Gevaert Group in Q2 2024: solid quarter, powered
by growth engines
- HealthCare IT:
- Highest ever quarterly order intake recorded: 22% increase in
the 12 months rolling order intake versus the year before, mainly
based on cloud-related contracts
- Digital Print & Chemicals:
- Continuous double digit growth for Green Hydrogen
Solutions
- Digital Printing Solutions: top line growth and strong
profitability improvement
- Film activities: continuous pressure from macro-economic
conditions
- Radiology Solutions:
- Continued reorganization of go-to-market processes for medical
film in China
- Program to improve competitiveness of film-related
activities through transformation of supply chain and operations –
expected to reduce cost base by 50 million euro by end of
2027
- Adjusted EBITDA improved strongly to 22 million
euro
- Net profit of 5 million euro
Mortsel (Belgium), August 28, 2024 – 7:45 a.m. CET –
Agfa-Gevaert today commented on its results in the second quarter
of 2024.
“The growth engines of the Digital Print & Chemicals division
recorded healthy top line growth. In HealthCare IT, we recorded the
highest ever order intake volume, based on our cloud offering and
net new customer gains. Furthermore, we saw significant
quarter-on-quarter profitability improvement across all business
areas. As part of our strategy to optimally manage mature markets
for cash, we recently launched a transformation program to improve
the competitiveness of our film-related operations. The program
aims to structurally reduce the cost base of the film business by
50 million euro by the end of 2027,” said Pascal Juéry, President
and CEO of the Agfa-Gevaert Group.
in million euro |
Q2 2024
|
Q2 2023
|
% change (excl. FX effects) |
H1 2024
|
H1 2023
|
% change (excl. FX effects) |
REVENUE |
|
|
|
|
|
|
HealthCare IT |
58 |
62 |
-6.4% (-6.9%) |
109 |
119 |
-8.7% (-8.6%) |
Digital Print & Chemicals |
112 |
104 |
7.7% (8.4%) |
203 |
200 |
1.3% (2.1%) |
Radiology Solutions |
98 |
103 |
-4.6% (-4.8%) |
185 |
205 |
-9.9% (-9.2%) |
Contractor Operations and Services – former Offset |
18 |
18 |
1.0% (1.0%) |
39 |
32 |
22.0% (22.0%) |
GROUP |
286 |
287 |
-0.2% (-0.1%) |
536 |
557 |
-3.8% (-3.2%) |
ADJUSTED EBITDA (*) |
|
|
|
|
|
|
HealthCare IT |
5.6 |
4.6 |
23.9% |
6.9 |
7.3 |
-4.6% |
Digital Print & Chemicals |
11.6 |
2.7 |
334.5% |
12.6 |
9.2 |
36.4% |
Radiology Solutions |
7.1 |
9.9 |
-28.6% |
6.3 |
16.3 |
-61.6% |
Contractor Operations and Services – former Offset |
1.2 |
0.3 |
276.1% |
5.0 |
1.6 |
206.9% |
Unallocated |
(3.1) |
(3.9) |
|
(6.7) |
(7.9) |
|
GROUP |
22 |
13 |
67.1% |
24 |
27 |
-9.0% |
(*) before
restructuring expenses and non-recurring results
Definitions of non-IFRS financial measures (APMs): see page
7-8.
Agfa-Gevaert Group
in million euro |
Q2 2024
|
Q2 2023
|
% change (excl. FX effects) |
H1 2024
|
H1 2023
|
% change (excl. FX effects) |
Revenue |
286 |
287 |
-0.2% (-0.1%) |
536 |
557 |
-3.8% (-3.2%) |
Gross profit (*) |
96 |
87 |
10.8% |
171 |
173 |
-1.5% |
% of revenue |
33.5% |
30.2% |
|
31.8% |
31.1% |
|
Adjusted EBITDA (*) |
22 |
13 |
67.1% |
24 |
27 |
-9.0% |
% of revenue |
7.9% |
4.7% |
|
4.5% |
4.8% |
|
Adjusted EBIT (*) |
12 |
2 |
517.6% |
3 |
4 |
-23.4% |
% of revenue |
4.2% |
0.7% |
|
0.6% |
0.7% |
|
Net result |
5 |
(14) |
|
(17) |
(81) |
|
Profit from continuing operations |
(1) |
(17) |
|
(17) |
(37) |
|
Profit from discontinued operations |
5 |
3 |
|
- |
(43) |
|
(*) before
restructuring expenses and non-recurring results
Second quarter
- Following a seasonally weaker first quarter 2024, the
Agfa-Gevaert Group’s revenue remained stable in the second quarter
(excluding currency effects) based on the resurgence of sales for
the Digital Printing Solutions growth engine. The Green Hydrogen
Solutions business continued its top line growth, while HealthCare
IT sales started to pick up following the weak first quarter. The
traditional film activities continued to be under pressure from the
weakness in the electronics market and the new central procurement
practices and Agfa’s related reorganization for medical film in
China.
- The Group’s gross profit margin improved from 30.2% of revenue
in the second quarter of 2023 to 33.5%.
- Adjusted EBITDA increased to 22 million euro (7.9% of
revenue).
- Restructuring and non-recurring items resulted in a charge of 5
million euro versus 10 million euro in the second quarter of
2023.
- The net finance costs amounted to 8 million euro.
- Income tax expenses decreased to 0 million euro versus 4
million euro in the previous year.
- The Agfa-Gevaert Group posted a net profit of 5 million
euro.
Financial position and cash flow
- Net financial debt (including IFRS 16) evolved from 47 million
euro in Q1 2024 to 99 million euro.
- Working capital (CONOPS included) amounted to 33% in Q2 2024.
In absolute numbers, working capital evolved from 381 million euro
at the end of Q2 2023 to 369 million euro. Working capital was
influenced by the usual seasonal inventory build-up, the freight
issues in the Middle East and the silver price impact in
inventories.
- In the second quarter of 2024, the Group generated a free cash
flow of minus 40 million euro.
Outlook
In 2024, the Agfa-Gevaert Group expects a continuation of the
trends seen in the previous year, with continued growth and further
profitability improvements for the growth engines. The weakness in
Radiology Solutions is expected to continue in the second half of
the year, further impacted by higher silver prices.
2024 outlook per division:
- HealthCare IT: A continued progress in profitability is
expected, although strong investments in cloud technology are
planned. The same pattern as in the previous year is expected. For
the full year, the division expects an increase in the 12 months
rolling order intake in the mid to high teens %.
- Digital Print & Chemicals: The division expects significant
top line and profitability growth, driven by Digital Printing
Solutions and Green Hydrogen Solutions.
- Radiology Solutions: The progress in Direct Radiography is
expected to continue, but is not expected to offset the negative
impact of the film market evolution.
The working capital situation is expected to return back to
normal by the end of 2024.
The outstanding receivable in connection with the sale of the
Offset Solutions division to Aurelius Group is still partly under
discussion. The issue has been submitted to an independent expert,
who will have to establish the final purchase price. The conclusion
is expected at the earliest in September 2024, the final cash
payment is expected in the fourth quarter of 2024.
HealthCare IT
in million euro |
Q2 2024
|
Q2 2023
|
% change
(excl. FX effects) |
H1 2024
|
H1 2023
|
% change
(excl. FX effects) |
Revenue |
58 |
62 |
-6.4% (-6.9%) |
109 |
119 |
-8.7% (-8.6%) |
Adjusted EBITDA (*) |
5.6 |
4.6 |
23.9% |
6.9 |
7.3 |
-4.6% |
% of revenue |
9.7% |
7.3% |
|
6.4% |
6.1% |
|
Adjusted EBIT (*) |
3.8 |
2.7 |
37.9% |
3.2 |
3.7 |
-13.7% |
% of revenue |
6.5% |
4.4% |
|
2.9% |
3.1% |
|
(*) before restructuring expenses and non-recurring results
Second quarter
- The accelerated market momentum in the first half of 2024
contributed to a significant order intake volume (excluding
Support/Software Maintenance Agreements) in the second quarter, in
fact the highest ever recorded. Mainly based on cloud-related
contracts, the division recorded a 22% increase in the 12 months
rolling order intake starting from 126 million euro the year before
to 153 million euro. 41% of total Q2 order intake is cloud-related.
Net new customers represent 35% of total Q2 order intake. In Q2,
58% of total order intake is related project contracts and 42% to
recurring revenue contracts.
- With a market demand rapidly shifting to cloud solutions
(larger deals, longer term of contract, recurring revenue vs
project revenue), the demand for hardware has decreased and the
volume of recurring revenue (vs project revenue) has increased.
With that, the division’s top line decreased by 6.9% versus the
second quarter of 2023 (excluding currency effects). The majority
of the sales decline is related to hardware, which is concurring
with a shift to cloud technology. As an increasing share of total
order intake is related to recurring revenue, the high order intake
will not immediately translate in higher sales in the coming
quarters.
- Thanks to the increased service contribution and favorable
product mix effects, HealthCare IT’s gross profit margin improved
from 43.5% in the second quarter of 2023 to 46.6%. The adjusted
EBITDA margin improved from 7.3% to 9.7%.
- Following the release of Enterprise Imaging Cloud at RSNA last
November, Agfa HealthCare has experienced growing and steady
momentum in the healthcare market, translating into an accelerated
demand for new Cloud-based Enterprise Imaging contracts.
- Early in June, Agfa HealthCare announced the signing of a
significant new deal with Alliance Medical to implement an advanced
cloud-based Enterprise Imaging solution at 120 Alliance Medical
sites across the UK.
- Later that month, Agfa HealthCare Enterprise Imaging Cloud was
selected to serve a 1.4 million patients North American Regional
Health System as its medical imaging solution across the entire
region for its ability to deliver a turn-key platform, thus,
solving infrastructure limitations and providing fast access to
medical images.
- Other major Enterprise Imaging contracts were signed with among
others St. Vincent’s Private Hospital in Dublin, Ireland and
Technoray, a premier radiology center in Jordan.
- Investment towards innovation: expected to amount to 10 million
euro in 2024-2025 – will be capitalized and will come on top of the
current R&D expenditure.
- The KLAS Research Enterprise Imaging Report 2024 states “Agfa
HealthCare Makes Relationship & Delivery Strides”, showcasing
the significant steps as an Enterprise Imaging partner Agfa
HealthCare has delivered over the past year.
Digital Print & Chemicals
in million euro |
Q2 2024
|
Q2 2023
|
% change
(excl. FX effects) |
H1 2024
|
H1 2023
|
% change
(excl. FX effects) |
Revenue |
112 |
104 |
7.7% (8.4%) |
203 |
200 |
1.3% (2.1%) |
Adjusted EBITDA (*) |
11.6 |
2.7 |
334.5% |
12.6 |
9.2 |
36.4% |
% of revenue |
10.4% |
2.6% |
|
6.2% |
4.6% |
|
Adjusted EBIT (*) |
7.4 |
(1.7) |
|
4.4 |
1.3 |
230.2% |
% of revenue |
6.6% |
-1.7% |
|
2.2% |
0.7% |
|
(*) before restructuring expenses and non-recurring results
Second quarter
Digital Printing Solutions
- The Digital Printing Solutions business’ top line grew by 8%
versus the second quarter of 2023.
- Ink top line grew by 24%, driven by higher sales across all
segments as well as the ongoing program to convert former Inca
customers to Agfa’s ink sets.
- First effects of recent product launches and of the global
strategic partnership between Agfa and EFI for digital printing
equipment. Based on these elements, Agfa expects to build further
momentum with its digital printing portfolio in the second half of
the year.
- In the UK, the 1st SpeedSet Orca installation at Delta Display
has progressed well with print production becoming a reality.
- Agfa received two prestigious European Digital Press
Association (EDP) Awards for two of its recently introduced inkjet
innovations:
- Anapurna Ciervo H3200 – Category: Flatbed/Hybrid printer
<150 m²/h
- SpeedSet Orca 1060 – Category: Folding Carton,
Digital/Hybrid
- The Delta Group - one of the largest printers of point of sales
materials and display graphics in the UK - invested in two Tauro
wide-format print engines. Earlier this year, The Delta Group
became the first official customer site for Agfa’s SpeedSet Orca
1060 single-pass inkjet press.
Green Hydrogen Solutions
- ZIRFON sales grew by 62% versus the second quarter of 2023,
driven by the promising green hydrogen market. Establishment of new
industrial-scale ZIRFON production plant in Mortsel, Belgium is on
track. Continued manufacturing efficiency improvement.
- Market developments have been growing slower globally in the
last 12 months due to delaying of Final Investment Decisions at
customers. However, these delayed implementations have been taken
into account in Agfa’s business plan, for which the company has
taken a cautious approach.
- Overall market momentum is improving with increasing interest
in alkaline water electrolysis projects for green hydrogen in North
America, India and the Middle East; as well as important
investments expected to be launched in Europe on the back of new
IPCEI and Hydrogen Bank funded projects.
Division performance
- The Digital Print & Chemicals division’s top line grew by
8.4% (excluding currency effects).
- Continued growth for Green Hydrogen Solutions, with
considerable profitability progress thanks to improved
manufacturing efficiency.
- Digital Printing Solutions’ top line grew by 8%. Ink sales grew
by 24% versus Q2 2023, partly due to the ongoing program to convert
former Inca customers to Agfa’s ink sets. Printing equipment sales
started to pick up following new product releases and the
partnership with EFI.
- The weakness in the electronics industry continued to impact
volumes of the ORGACON conductive materials and the products for
the production of printed circuit boards.
- The division’s gross profit margin improved strongly from 24.1%
of revenue in the second quarter of 2023 to 31.9%, partly due to
improved manufacturing efficiencies.
- The division’s recurring EBITDA margin increased from 2.6% in
the second quarter of 2023 to 10.4%.
Radiology Solutions
in million euro |
Q2 2024
|
Q2 2023
|
% change
(excl. FX effects) |
H1 2024
|
H1 2023
|
% change
(excl. FX effects) |
Revenue |
98 |
103 |
-4.6% (-4.8%) |
185 |
205 |
-9.9% (-9.2%) |
Adjusted EBITDA (*) |
7.1 |
9.9 |
-28.6% |
6.3 |
16.3 |
-61.6% |
% of revenue |
7.2% |
9.6% |
|
3.4% |
8.0% |
|
Adjusted EBIT (*) |
3.4 |
4.9 |
-31.3% |
(1.4) |
7.1 |
|
% of revenue |
3.4% |
4.8% |
|
-0.8% |
3.5% |
|
(*) before restructuring expenses and non-recurring results
Second quarter
- The gradual implementation of new centralized procurement
practices in China continued to impact the medical film business.
Agfa continued to reorganize its go-to-market approach in that
country. Recently, a new President for Radiology Solutions in
Greater China was appointed and a new sales organization was
installed.
- The Direct Radiography business posted a mid-single digit top
line increase, partly driven by the pick-up of the business in
North America. In Europe, consolidation exercises in healthcare
groups are leading to postponed investment plans, while a further
trend toward big tenders is increasing the fluctuations between
quarters.
- At the UKIO 2024 event, Agfa showcased its innovative
DensityScan tool, powered by the Bone Health software of IBEX
Innovations Ltd. DensityScan can turn an ordinary X-ray exam into
an opportunity to identify patients at risk of osteoporosis who
might benefit from a bone density scan.
- The division’s second quarter profitability was negatively
impacted by the volume decrease. This was partly offset by measures
to control costs and to streamline the business. The division’s
gross profit margin decreased slightly from 32.5% of revenue in the
second quarter of 2023 to 32.0%. In Q1 2024, the margin was at
26.3%. The adjusted EBITDA margin decreased from 9.6% of revenue in
Q2 2023 to 7.2% (minus 0.8% in Q1 2024.).
- Benefits from the above mentioned program to structurally
reduce the cost base of Agfa’s film business are expected to show
as from 2025.
Contractor Operations and Services – former
Offset
in million euro |
Q2 2024
|
Q2 2023
|
% change
(excl. FX effects) |
H1 2024
|
H1 2023
|
% change
(excl. FX effects) |
Revenue |
18 |
18 |
1.0% (1.0%) |
39 |
32 |
22.0% (22.0%) |
Adjusted EBITDA (*) |
1.2 |
0.3 |
276.1% |
5.0 |
1.6 |
206.9% |
% of revenue |
6.8% |
1.8% |
|
13.0% |
5.2% |
|
Adjusted EBIT (*) |
0.6 |
0.1 |
706.0% |
3.9 |
0.1 |
|
% of revenue |
3.5% |
0.4% |
|
9.9% |
0.4% |
|
(*) before restructuring expenses and non-recurring results
- Early April 2023, the Agfa-Gevaert Group completed the sale of
its Offset Solutions division to Aurelius Group. The division
contains results related to supply and manufacturing agreements
that the Agfa-Gevaert Group signed with its former division, now
rebranded as ECO3.
End of message
Management Certification of Financial Statements and
Quarterly Report
This statement is made in order to comply with new European
transparency regulation enforced by the Belgian Royal Decree of
November 14, 2007 and in effect as of 2008.
"The Board of Directors and the Executive Committee of Agfa-Gevaert
NV, represented by Mr. Frank Aranzana, Chairman of the Board of
Directors and Mr. Pascal Juéry, President and CEO, jointly certify
that, to the best of their knowledge, the consolidated financial
statements included in the report and based on the relevant
accounting standards, fairly present in all material respects the
financial condition and results of Agfa-Gevaert NV, including its
consolidated subsidiaries. Based on our knowledge, the report
includes all information that is required to be included in such
document and does not omit to state all necessary material
facts.”
Statement of risk
This statement is made in order to comply with European
transparency regulation enforced by the Belgian Royal Decree of
November 14, 2007 and in effect as of 2008.
"As with any company, Agfa is continually confronted with – but not
exclusively – a number of market and competition risks or more
specific risks related to the cost of raw materials, product
liability, environmental matters, proprietary technology or
litigation."
Key risk management data is provided in the annual report available
on www.agfa.com.
Definitions of non-IFRS financial measures
(APMs)
- Adjusted EBIT: The result from continuing
operating activities before restructuring expenses and
non-recurring results.
- Adjusted EBITDA: The result from continuing
operating activities before depreciation, amortization,
restructuring expenses and non-recurring results.
- Gross profit (margin): Gross profit (margin)
before restructuring expenses and non-recurring results.
- Restructuring expenses: Expenses related to
detailed and formal restructuring plans approved by management.
Related expenses comprise expenses recognized when accounting for a
‘Provision for restructuring’ but could also comprise other
expenses that are directly linked to a formal restructuring plan
(e.g. exceptional write-downs on inventories and impairment losses
on receivables when specifically linked to / resulting from a
decision to restructure). Restructuring expenses mainly relate to
employee termination costs.
- Non-recurring results: Income and expenses
related to activities or events which are not indicative as arising
from normal, recurring business operations and are not related to a
restructuring plan. These non-recurring results comprise expenses
related to important transformation programs, material changes in
the measurement estimates of assets or liabilities related to
infrequent events (such as the sale of a building), material gains
or losses related to infrequent events or transactions (e.g.
mergers and acquisitions) as well as substantial litigations which
are not part of the normal recurring business activities. In case
the activities or events are not directly linked to a specific
segment but are related to Agfa as a Group, the costs are not
attributed to the reportable segments.
- Free Cash Flow: The sum of ‘Net cash from /
(used in) operating activities’ and ‘Net cash from / (used in)
investing activities excluding the impact of ‘Acquisitions of
subsidiaries, net of cash acquired’, ‘Interests received’ and the
‘Net cash from / (used in) operating and investing activities that
relates to discontinued operations’.
- Adjusted Free Cash Flow: Free Cash Flow
‘Adjusted’/ excluded for the impact of: the ‘Cash out for pensions
below EBIT’, the ‘Cash out for long-term termination benefits’ and
the cash out for ‘Restructuring and non-recurring items’.
- Cash out for pensions below EBIT: The sum of
Expenses for defined benefit plans & long-term termination
benefits (see ‘Consolidated Statement of Cash Flows’) and the cash
out for defined benefit plans & long-term termination benefits
that are part of the ‘Cash out for employee benefits’ as presented
in the Consolidated Statement of Cash Flows.
- Restructuring expenses and non-recurring
results: Cash in- and outflows resulting from income and
expenses that are either in the current or previous reporting
periods recognized in ‘Non-recurring results’ or ‘Restructuring
expenses’.
- Working Capital: the sum of Inventories plus
trade receivables plus contract assets minus contract liabilities
and minus trade payables.
- Net financial debt incl IFRS 16: the sum of
Liabilities to banks-Current portion plus Lease liabilities-Current
portion plus Bank overdraft plus Revolving Credit
Facility-Non-current portion plus Lease liabilities-Non-current
portion minus Cash and cash equivalents.
- Net financial debt excl IFRS 16: the sum of
Liabilities to banks-Current portion plus Bank overdraft plus
Revolving Credit Facility-Non-current portion minus Cash and cash
equivalents.
- Order intake: The financial value of all new
orders accepted by Agfa HealthCare IT during the period, including
Licenses, Implementation services, Hardware and/or Cloud computing,
but excluding Support/Software Maintenance Agreements.
- Support/Software Maintenance Agreements (SMA):
Service contracts entitling Agfa HealthCare IT Perpetual License
customers to software updates and patches as well as service and
support. Order Intake is not recorded for SMA contracts.
- Net new order intake: Order Intake accepted
from customers who were not using Agfa HealthCare IT software prior
to the order. (aka “New Logo” sales), usually with such an order
the customer replaces a system from a competitor with a system from
Agfa HealthCare IT.
- Cloud order intake: Order Intake accepted for
deployments of Agfa HealthCare IT’s solution on a Cloud Computing
infrastructure instead of the traditional deployment on dedicated
Hardware on the customers premises (“on Premise”).
- Recurring order intake: Order Intake for
services with a recurring transaction model (Revenue recognition
over time as opposed to one-off). Examples include: License
Subscriptions, Managed services, Cloud computing services, SaaS
contracts).
- Project order intake: Order Intake for goods
and services delivered and revenue recognized at a single point in
time. Examples include: Perpetual Licenses, Implementation
services, Hardware.
Contact:
Viviane Dictus
Director Corporate Communication
Septestraat 27
2640 Mortsel - Belgium
T +32 (0) 3 444 71 24
E viviane.dictus@agfa.com
The full press release and financial information is also
available on the company's website: www.agfa.com.
Consolidated Statement of Profit or Loss (in million
euro)
Unaudited, consolidated figures following IFRS
accounting policies.
Continued operations |
Q2 2024
|
Q2 2023
|
H1 2024
|
H1 2023
|
Revenue |
286 |
287 |
536 |
557 |
Cost of sales |
(190) |
(200) |
(365) |
(384) |
Gross profit |
96 |
87 |
171 |
173 |
Selling expenses |
(42) |
(42) |
(82) |
(86) |
Administrative expenses |
(34) |
(35) |
(67) |
(71) |
R&D expenses |
(18) |
(19) |
(36) |
(39) |
Net impairment loss on trade and other receivables, including
contract assets |
- |
- |
- |
1 |
Other operating income |
10 |
13 |
21 |
26 |
Other operating expenses |
(5) |
(11) |
(11) |
(20) |
Results from operating activities |
7 |
(8) |
(4) |
(16) |
Interest income (expense) - net |
(1) |
- |
(2) |
1 |
Interest income |
3 |
3 |
6 |
6 |
Interest expense |
(4) |
(3) |
(8) |
(5) |
Other finance income (expense) - net |
(6) |
(6) |
(12) |
(13) |
Other finance income |
- |
- |
1 |
2 |
Other finance expense |
(7) |
(7) |
(13) |
(15) |
Net finance costs |
(8) |
(6) |
(13) |
(12) |
Share of profit of associates, net of tax |
- |
- |
- |
- |
Profit (loss) before income taxes |
- |
(14) |
(17) |
(28) |
Income tax expenses |
- |
(4) |
- |
(9) |
Profit (loss) from continued operations |
(1) |
(17) |
(17) |
(37) |
Profit (loss) from discontinued operations, net of
tax |
5 |
3 |
- |
(43) |
Profit (loss) for the period |
5 |
(14) |
(17) |
(81) |
Profit (loss) attributable to: |
|
|
|
|
Owners of the Company |
5 |
(14) |
(17) |
(82) |
Non-controlling interests |
- |
- |
- |
1 |
|
|
|
|
|
Results from operating activities |
7 |
(8) |
(4) |
(16) |
Restructuring expenses and non-recurring results |
(5) |
(10) |
(7) |
(20) |
Adjusted EBIT |
12 |
2 |
3 |
4 |
|
|
|
|
|
Earnings per Share Group – continued operations (euro) |
- |
(0.11) |
(0.11) |
(0.24) |
Earnings per Share Group – discontinued operations (euro) |
0.03 |
0.02 |
- |
(0.29) |
Earnings per Share Group – total (euro) |
0.03 |
(0.09) |
(0.11) |
(0.53) |
Consolidated Statement of Comprehensive Income for the
quarter ending June 2023 / June 2024 (in million
euro)
Unaudited, consolidated figures following IFRS accounting
policies.
|
Q2 2024
|
Q2 2023
|
Profit / (loss) for the period |
5 |
(14) |
Profit / (loss) for the period from continuing
operations |
- |
(17) |
Profit / (loss) for the period from discontinuing
operations |
5 |
3 |
Other Comprehensive Income, net of tax |
|
|
Items that are or may be reclassified subsequently to
profit or loss: |
|
|
Exchange differences: |
(5) |
1 |
Exchange differences on translation of foreign operations |
1 |
3 |
Release of exchange differences of discontinued operations to
profit or loss |
(6) |
(2) |
Cash flow hedges: |
- |
- |
Effective portion of changes in fair value of cash flow hedges |
- |
- |
Changes in the fair value of cash flow hedges reclassified to
profit or loss |
- |
- |
Adjustments for amounts transferred to initial carrying amount of
hedged items |
- |
- |
Income taxes |
- |
- |
Items that will not be reclassified subsequently to profit
or loss: |
|
|
Equity investments at fair value through OCI – change in fair
value |
- |
- |
Remeasurements of the net defined benefit liability |
- |
- |
Income tax on remeasurements of the net defined benefit
liability |
- |
- |
Total Other Comprehensive Income for the period, net of
tax |
(5) |
1 |
Total other comprehensive income for the period from
continuing operations |
- |
2 |
Total other comprehensive income for the period from
discontinuing operations |
(6) |
(1) |
|
|
|
Total Comprehensive Income for the period, net of tax
attributable to |
(1) |
(13) |
Owners of the Company |
(1) |
(14) |
Non-controlling interests |
- |
2 |
Total comprehensive income for the period from continuing
operations attributable to: |
- |
(15) |
Owners of the Company (continuing operations) |
- |
(15) |
Non-controlling interests (continuing operations) |
- |
- |
Total comprehensive income for the period from
discontinuing operations attributable to: |
(1) |
2 |
Owners of the Company (discontinuing operations) |
(1) |
- |
Non-controlling interests (discontinuing operations) |
- |
2 |
Consolidated Statement of Comprehensive Income for the
period ending June 2023 / June 2024 (in million
euro)
Unaudited, consolidated figures following IFRS accounting
policies.
|
H1 2024
|
H1 2023
|
Profit / (loss) for the period |
(17) |
(81) |
Profit / (loss) for the period from continuing
operations |
(17) |
(37) |
Profit / (loss) for the period from discontinuing
operations |
- |
(43) |
Other Comprehensive Income, net of tax |
|
|
Items that are or may be reclassified subsequently to
profit or loss: |
|
|
Exchange differences: |
3 |
(6) |
Exchange differences on translation of foreign operations |
3 |
(4) |
Release of exchange differences of discontinued operations to
profit or loss |
(1) |
(2) |
Cash flow hedges: |
(1) |
2 |
Effective portion of changes in fair value of cash flow hedges |
(1) |
1 |
Changes in the fair value of cash flow hedges reclassified to
profit or loss |
- |
2 |
Adjustments for amounts transferred to initial carrying amount of
hedged items |
- |
- |
Income taxes |
- |
- |
Items that will not be reclassified subsequently to profit
or loss: |
|
|
Equity investments at fair value through OCI – change in fair
value |
(1) |
- |
Remeasurements of the net defined benefit liability |
- |
- |
Income tax on remeasurements of the net defined benefit
liability |
- |
- |
Total Other Comprehensive Income for the period, net of
tax |
1 |
(4) |
Total other comprehensive income for the period from
continuing operations |
2 |
(3) |
Total other comprehensive income for the period from
discontinuing operations |
(1) |
(1) |
|
|
|
Total Comprehensive Income for the period, net of tax
attributable to |
(15) |
(85) |
Owners of the Company |
(15) |
(87) |
Non-controlling interests |
- |
2 |
Total comprehensive income for the period from continuing
operations attributable to: |
(15) |
(40) |
Owners of the Company (continuing operations) |
(15) |
(40) |
Non-controlling interests (continuing operations) |
- |
- |
Total comprehensive income for the period from
discontinuing operations attributable to: |
(1) |
(45) |
Owners of the Company (discontinuing operations) |
(1) |
(46) |
Non-controlling interests (discontinuing operations) |
- |
2 |
Consolidated Statement of Financial Position (in million
euro)
Unaudited, consolidated figures following IFRS
accounting policies.
|
30/06/2024
|
31/12/2023
|
Non-current assets |
599 |
576 |
Goodwill |
217 |
215 |
Intangible
assets |
25 |
24 |
Property, plant
and equipment |
121 |
115 |
Right-of-use
assets |
44 |
39 |
Investments in
associates |
1 |
1 |
Other financial
assets |
3 |
4 |
Assets related to
post-employment benefits |
30 |
29 |
Trade
receivables |
3 |
2 |
Receivables under
finance leases |
71 |
69 |
Other assets |
4 |
4 |
Deferred tax
assets |
79 |
74 |
Current
assets |
821 |
792 |
Inventories |
343 |
289 |
Trade
receivables |
166 |
175 |
Contract
assets |
87 |
83 |
Current income
tax assets |
51 |
51 |
Other tax
receivables |
25 |
20 |
Receivables under
finance lease |
22 |
31 |
Other
receivables |
41 |
48 |
Other current
assets |
14 |
13 |
Derivative
financial instruments |
1 |
2 |
Cash and cash
equivalents |
69 |
77 |
Non-current
assets held for sale |
2 |
2 |
TOTAL ASSETS |
1,420 |
1,368 |
|
30/06/2024
|
31/12/2023
|
Total
equity |
381 |
396 |
Equity
attributable to owners of the Company |
380 |
395 |
Share
capital |
187 |
187 |
Share
premium |
210 |
210 |
Retained
earnings |
927 |
945 |
Other
reserves |
(1) |
- |
Translation
reserve |
(19) |
(22) |
Post-employment
benefits: remeasurements of the net defined benefit liability |
(925) |
(926) |
Non-controlling interests |
2 |
1 |
Non-current liabilities |
655 |
584 |
Liabilities for
post-employment and long-term termination benefit plans |
473 |
486 |
Other employee
benefits |
6 |
5 |
Loans and
borrowings |
153 |
69 |
Provisions |
5 |
7 |
Deferred tax
liabilities |
9 |
9 |
Trade
payables |
1 |
3 |
Other non-current
liabilities |
8 |
4 |
Current
liabilities |
384 |
388 |
Loans and
borrowings |
15 |
14 |
Provisions |
13 |
13 |
Trade
payables |
130 |
132 |
Contract
liabilities |
98 |
97 |
Current income
tax liabilities |
22 |
23 |
Other tax
liabilities |
19 |
24 |
Other
payables |
11 |
9 |
Employee
benefits |
72 |
73 |
Other current
liabilities |
2 |
1 |
Derivative
financial instruments |
2 |
- |
TOTAL
EQUITY AND LIABILITIES |
1,420 |
1,368 |
Consolidated Statement of Cash Flows (in million
euro)
Unaudited, consolidated figures following IFRS accounting
policies.
|
Q2 2024
|
Q2 2023
|
H1 2024
|
H1 2023
|
Profit (loss) for the period |
5 |
(14) |
(17) |
(81) |
Income taxes |
- |
4 |
- |
12 |
Share of (profit)/loss of associates, net of tax |
- |
- |
- |
- |
Net finance costs |
2 |
6 |
13 |
13 |
Operating result |
7 |
(4) |
(4) |
(56) |
|
|
|
|
|
Depreciation & amortization |
7 |
7 |
13 |
13 |
Depreciation & amortization on right-of-use assets |
4 |
5 |
8 |
10 |
Impairment losses on intangibles and PP&E |
- |
- |
- |
- |
Impairment losses on right-of-use assets |
- |
4 |
- |
7 |
|
|
|
|
|
Exchange results and changes in fair value of derivates |
- |
- |
- |
- |
Recycling of hedge reserve |
- |
- |
- |
2 |
Government grants and subsidies |
(1) |
(1) |
(2) |
(2) |
Result on the disposal of discontinued operations |
1 |
(3) |
1 |
44 |
Expenses for defined benefit plans & long-term termination
benefits |
10 |
11 |
15 |
16 |
Accrued expenses for personnel commitments |
9 |
10 |
26 |
30 |
Write-downs/reversal of write-downs on inventories |
3 |
3 |
5 |
8 |
Impairments/reversal of impairments on receivables |
- |
- |
- |
(1) |
Additions/reversals of provisions |
2 |
(1) |
2 |
1 |
|
|
|
|
|
Operating cash flow before changes in working
capital |
41 |
29 |
63 |
70 |
|
|
|
|
|
Change in inventories |
(23) |
(2) |
(59) |
(34) |
Change in trade receivables |
(9) |
(3) |
9 |
(4) |
Change in contract assets |
(2) |
(5) |
(3) |
(5) |
Change in working capital assets |
(34) |
(10) |
(53) |
(42) |
Change in trade payables |
(4) |
2 |
(4) |
(26) |
Change in contract liabilities |
(2) |
(3) |
- |
11 |
Changes in working capital liabilities |
(6) |
(1) |
(4) |
(15) |
Changes in working capital |
(39) |
(11) |
(57) |
(57) |
|
Q2 2024
|
Q2 2023
|
H1 2024
|
H1 2023
|
Cash out for employee benefits |
(42) |
(43) |
(63) |
(73) |
Cash out for provisions |
(2) |
(7) |
(5) |
(12) |
Changes in lease portfolio |
5 |
- |
9 |
10 |
Changes in other working capital |
8 |
(8) |
- |
(21) |
Cash settled operating derivatives |
- |
- |
1 |
- |
|
|
|
|
|
Cash from / (used in) operating activities |
(30) |
(39) |
(52) |
(83) |
|
|
|
|
|
Income taxes paid |
- |
1 |
(3) |
- |
Net cash from / (used in) operating
activities |
(31) |
(37) |
(55) |
(83) |
of which related to discontinued operations |
- |
- |
- |
(10) |
|
|
|
|
|
Capital expenditure |
(10) |
(8) |
(21) |
(14) |
Proceeds from sale of intangible assets and PP&E |
1 |
1 |
1 |
1 |
Acquisition of subsidiaries, net of cash acquired |
- |
- |
- |
3 |
Disposal of discontinued operations, net of cash disposed of |
- |
(5) |
- |
(5) |
Acquisition of associates |
- |
(1) |
- |
(1) |
Interests received |
3 |
3 |
6 |
6 |
|
|
|
|
|
Net cash from / (used in) investing
activities |
(7) |
(9) |
(14) |
(9) |
of which related to discontinued operations |
- |
(5) |
- |
(5) |
|
|
|
|
|
Interests paid |
(4) |
(3) |
(8) |
(5) |
Dividends paid to non-controlling interests |
- |
- |
- |
(9) |
Proceeds from borrowings |
66 |
- |
80 |
31 |
Repayment of borrowings |
- |
(10) |
- |
(1) |
Payment of finance leases |
(5) |
- |
(10) |
(12) |
Proceeds / (payment) of derivatives |
- |
(5) |
- |
(4) |
Other financing income / (costs) received/paid |
(1) |
(1) |
(2) |
- |
|
|
|
|
|
Net cash from / (used in) financing
activities |
55 |
(19) |
59 |
- |
of which related to discontinued operations |
- |
- |
- |
(11) |
|
|
|
|
|
Net increase / (decrease) in cash & cash
equivalents |
17 |
(65) |
(10) |
(92) |
|
|
|
|
|
Cash & cash equivalents at the start of the
period |
50 |
108 |
77 |
138 |
Net increase / (decrease) in cash & cash equivalents |
17 |
(65) |
(10) |
(92) |
Effect of exchange rate fluctuations on cash held |
- |
1 |
1 |
(2) |
Cash & cash equivalents at the end of the
period |
68 |
44 |
68 |
44 |
The Group has elected to present a statement of cash flows that
includes all cash flows, including both continuing and
discontinuing operations.
Consolidated Statement of changes in Equity (in million
euro)
Unaudited, consolidated figures following IFRS accounting
policies.
in million euro |
Share capital |
Share premium |
Retained earnings |
Reserve for own shares |
Revaluation reserve |
Hedging reserve |
Remeasurement of the net defined benefit
liability |
Translation reserve |
TOTAL |
NON-CONTROLLING INTERESTS |
TOTAL EQUITY |
Balance at January 1, 2023 |
187 |
210 |
1,042 |
- |
(1) |
(2) |
(908) |
(9) |
520 |
41 |
561 |
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income for the period |
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) for the period |
- |
- |
(82) |
- |
- |
- |
- |
- |
(82) |
1 |
(81) |
Other comprehensive income, net of tax |
- |
- |
- |
- |
- |
2 |
- |
(7) |
(5) |
1 |
(4) |
Total comprehensive income for the period |
- |
- |
(82) |
- |
- |
2 |
- |
(7) |
(87) |
2 |
(85) |
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners, recorded directly in
equity |
|
|
|
|
|
|
|
|
|
|
|
Dividends |
- |
- |
- |
- |
- |
- |
- |
- |
- |
(9) |
(9) |
Transfer of amounts recognised in OCI to retained earnings
following loss of control |
- |
- |
11 |
- |
- |
- |
(11) |
- |
- |
- |
- |
Derecognition of NCI following loss of control |
- |
- |
- |
- |
- |
- |
- |
- |
- |
(32) |
(32) |
Total transactions with owners, recorded directly in
equity |
- |
- |
11 |
- |
- |
- |
(11) |
- |
- |
(41) |
(41) |
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2023 |
187 |
210 |
971 |
- |
(1) |
- |
(919) |
(16) |
433 |
2 |
434 |
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2024 |
187 |
210 |
945 |
- |
(1) |
1 |
(926) |
(22) |
395 |
1 |
396 |
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income for the period |
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) for the period |
- |
- |
(17) |
- |
- |
- |
- |
- |
(17) |
- |
(17) |
Other comprehensive income, net of tax |
- |
- |
- |
- |
(1) |
(1) |
- |
3 |
1 |
- |
1 |
Total comprehensive income for the period |
- |
- |
(17) |
- |
(1) |
(1) |
- |
3 |
(15) |
- |
(15) |
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners, recorded directly in
equity |
|
|
|
|
|
|
|
|
|
|
|
Dividends |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Transfer of amounts recognised in OCI to retained earnings
following loss of control |
- |
- |
(1) |
- |
- |
- |
1 |
- |
- |
- |
- |
Total transactions with owners, recorded directly in
equity |
- |
- |
(1) |
- |
- |
- |
1 |
- |
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2024 |
187 |
210 |
927 |
- |
(2) |
1 |
(925) |
(19) |
380 |
2 |
381 |
Reconciliation of non-IFRS information (in million
euro)
(Adjusted) Free Cash Flow
|
Q2 2024
|
Q2 2023
|
H1 2024
|
H1 2023
|
Adjusted EBITDA |
22 |
13 |
24 |
27 |
Working capital - net |
(34) |
(12) |
(48) |
(43) |
CAPEX |
(10) |
(8) |
(21) |
(14) |
Provisions & other |
2 |
(23) |
7 |
(16) |
Income taxes |
- |
1 |
(3) |
1 |
Adjusted Free Cash Flow |
(20) |
(28) |
(40) |
(45) |
Pensions (below EBIT) & long term termination benefits |
(12) |
(7) |
(21) |
(20) |
Restructuring and non-recurring items |
(8) |
(10) |
(14) |
(21) |
Free Cash Flow |
(40) |
(45) |
(75) |
(86) |
|
|
|
|
|
Adjustments for: |
|
|
|
|
Payment of finance leases |
(5) |
(5) |
(10) |
(10) |
Proceeds from borrowings |
66 |
(10) |
80 |
31 |
Repayment of borrowings |
- |
- |
- |
(1) |
Acquisition of subsidiaries, net of cash acquired |
- |
- |
- |
3 |
Interests received |
3 |
3 |
6 |
6 |
Interests paid |
(4) |
(3) |
(8) |
(5) |
Other financial flows |
(2) |
(1) |
(2) |
(5) |
|
58 |
(16) |
66 |
20 |
Cash flows from continuing operations |
18 |
(61) |
(10) |
(66) |
|
|
|
|
|
Net cash from/(used in) operating activities related to
discontinued operations |
- |
- |
- |
(10) |
Net cash from/(used in) investing activities related to
discontinued operations |
- |
(5) |
- |
(5) |
Net cash from/(used in) financing activities related to
discontinued operations |
- |
- |
- |
(11) |
Cash flows from discontinued operations |
- |
(5) |
- |
(26) |
|
|
|
|
|
Net increase / (decrease) in cash & cash
equivalents |
17 |
(65) |
(10) |
(92) |
Reconciliation of non-IFRS information (in million
euro)
Adjusted EBIT
|
Q2 2024
|
Q2 2023
|
H1 2024
|
H1 2023
|
Segment Adjusted EBIT |
15 |
6 |
10 |
12 |
Adjusted EBIT from operating activities not allocated to a
reportable segment: mainly related to ‘Corporate Services’ |
(3) |
(4) |
(7) |
(8) |
|
|
|
|
|
Adjusted EBIT |
12 |
2 |
3 |
4 |
|
|
|
|
|
Restructuring |
(1) |
(1) |
(1) |
(5) |
Non-recurring |
(4) |
(9) |
(6) |
(15) |
|
|
|
|
|
Results from operating activities |
7 |
(8) |
(4) |
(16) |
- Press release in pdf
- Half Year report in pdf
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