2024-03-13 23:45:21 ET
AGFA Gevaert NV (AFGVF)
Q4 2023 Earnings Conference Call
March 13, 2024, 06:00 AM ET
Company Participants
Pascal Juery - President, CEO, President, Radiology Solutions & Director
Dirk De Man - CFO
Vincent Wille - President, Digital Print & Chemicals
Jeroen Spruyt - New President of Radiology
Conference Call Participants
Alexander Craeymeersch - Kepler Cheuvreux
Guy Sips - KBC Securities
Maxime Stranart - ING Group
Presentation
Operator
[starts abruptly]
Dirk De Man
… positive top-line growth when adjusted for currency.
Significant EBITDA growth. And I think the message is very clear. It's all coming from growth engines. And actually, we are going to show you in the next slide, maybe a different way to look at the numbers compared to our published division to illustrate when I'm saying, look at this slide, when I look at what I call our future-oriented businesses, meaning to make a long torso or digital solutions and thereon.
In Digital Solutions, you've got Healthcare IT, of course, we've got digital printing as well as direct radar and they are on enemy. So if you look at the top-line and here, we took four years, plus 24% from growth-oriented businesses and the message is the growth is accelerating between '22 and '23. As you know, the maturity of these growth engines is improving. And at the same time, we have, of course, a specific decline of what we call the film and legacy business.
When we turn to profit and when we look at actually the underlying improvement of the growth engines within the group, you can see that it was EUR 32 million in just one year. So the message here is we are positioned in the right segment and the growth is accelerating actually the underlying growth is accelerating, which is, of course, validating the transformation of the company.
If I turn to the P&L right now, what I want to stress here is, again, we are improving our gross profit, not only in absolute terms, but also in margin percent, better mix. And again, the impact of -- we are growing the right part of our. And I want also to stress that we are doing that in a very good mastery of our operational expenses. This is due to the transformation program. That we have launched already some years ago that are multiyear programs that continue to deliver, and it's a very good illustration.
But even in an environment that is still inflationary we are able to better tell this. So overall, I think a very good project recovery during the year. If we turn to the lower part of the P&L, of course, we still have a significant loss for the year. But half of this loss is actually related to the asset divestments. So that's rather something that is now behind us, I would say. And the rest of the loss is still very much influenced by the cost of the transformation of the company. You see the restructuring nonrecurring charge at EUR 40 million....
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AGFA Gevaert NV (AFGVF) Q4 2023 Earnings Call Transcript