Sales in Q2 were up 6.4% to €469m, while adjusted EBITDA fell by nearly 21% to €32m.
Agfa said that supply chain issues had amplified a seasonal increase in working capital, which also increased due to the acquisition of Inca Digital Printers which completed in June.
The Belgium-headquartered manufacturer said that integration of Inca was “evolving as planned” and that Inca’s Onset will be shown printing using Agfa’s own certified inks for the first time at the upcoming Printing United show in Las Vegas in October.
The group’s overall restructuring and one-off costs were €14m, which included organising its Offset Solutions business into a standalone legal entity.
Top line sales grew strongly at its Digital Print & Chemicals division, up 20.9% year-on-year to €98m, although adjusted EBITDA fell by 38% to €4.2m.
“Price increases have been implemented in almost all business areas to tackle the increasing raw material, packaging, energy and freight costs. The full impact of these price increases will become visible towards the end of the year,” Agfa stated.
The group has taken orders for two of its new InterioJet 2250i systems for décor printing, and said that “a further ramp up of the order intake for InterioJet is expected over the next quarters”.
At Offset Solutions, Q2 sales were up 9.2% to €199m, “fuelled by successful price increases that have been implemented to tackle the raw material, packaging and freight cost inflation”.
Despite the cost inflation, gross margins at the division – still Agfa’s largest – went up from 22.7% to 23.8%. Agfa filed a big increase in adjusted EBITDA at the unit, which jumped from €8m to €14.2m.
Agfa also launched SolidTune, a pre-press software package that reduced ink consumption for offset packaging printers, during the quarter.
The group said that work on turning Offset Solutions into a standalone business was proceeding according to plan.
President and CEO Pascal Juéry said: “In these turbulent economic and geopolitical times, we continue to focus on the future.
“Operationally, the second quarter reflects the current inflationary environment as well as the impact of China lockdowns. The group’s top line growth was driven by volume growth in the Digital Print & Chemicals division and pricing actions in the Offset Solutions division. We experienced the full impact of cost inflation and supply chain issues on our profitability and working capital in the second quarter.”
Its other business divisions are Healthcare IT and Radiology Solutions.
Agfa’s share price slipped by 8.24% on the news, and was at €3.23 at the time of writing. (52-week high: €4.58, low: €2.92.)
