AGFA, Radiology Solutions, Q3 2019 Results

Agfa-Gevaert Group, the Belgian-German multinational, announced it’s consolidated financial results for its third quarter 2019 this morning. Due to changes implemented to it’s reporting structure at the beginning of the year, it’s results now reporting on “Radiology Solutions” which encompasses the imaging activities of the former Agfa HealthCare business segment. Radiology solutions include the companies portfolio of direct radiography (DR) and computed radiography (DR) imaging solutions as well as it’s industry-leading proprietary image processing solution, MUSICA. It also includes its portfolio of diagnostic printing solutions or “hardcopy” business. The latest finanical results show that sales revenue from radiology solutions continued to grow and accelerated during the third quarter. The quarterly nominal sales revenue reached €132 million, compared with €118 million in 2018, an increase of +11.8% year-on-year (YoY). On a calendar year-to-date basis, nominal sales revenue reached €383 million, compared with €364 million in 2018, an increase of +5.2% YoY.

The sales growth year-to-date has been driven by a combination of high growth from hardcopy solutions, marginal growth from DR and CR solutions as well as favourable currency movements. This growth was partially offset by a decline in classical radiology solutions.

For the first nine months of 2019, sales growth from hardcopy solutions grew by approximately +18%* YoY. This was centred around China and the company attributes this to be as a result of reorganising its distribution channels within the country. Sales growth from DR and CR solutions grew by approximately +1%* YoY, with top-line growth from DR being driven by both an increase in equipment and service revenues. The contraction in sales from classical radiology solutions is currently approximately -35%* YoY. Favourable currency movements had an impact of approximately +0.5% on nominal sales revenue, resulting in comparable growth of +4.7% YoY on a calendar year-to-date basis.

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* = figures from analyst calculation and inference from quarterly financial results