Agfa’s core offset plates division has enjoyed a return to growth in both sales and profits in the second quarter to continue a strong performance for a division that is on its way to becoming a separate legal entity.
However while offset has done well, it is the digital print and chemicals division where sales volumes in the second quarter have exceeded pre Covid levels the company says in its interim statement.
Inkjet ink sales will rise further with volumes coming through from Inca. The first Agfa inks qualified to run on the high productivity presses following the acquisition of Inca Digital Printers in June. The company plans to show the inks in combination with the latest Onset press at the Print United show in the US this autumn.
There are supply chain delays in moving equipment from its place of manufacture in Asia to Europe. Despite this the company says that the order book for the Tauro presses has experienced a double digit increase. It has sold two InterioJet presses for printing transfers for wood laminates and other home decor applications with further sales in the pipeline.
This means that the digital and chemicals division delivered a 21% increase in sales in Q2 to €98 million (€81 million) though Ebitda slipped. In the first six months, the operation produced sales of €178 million (€154 million) achieving an Ebitda of €8.3 million (€12.1 million).
The company increased prices for plates and switched focus to higher value regions for its sales effort. This helped increase sales in Q2 to €199 million (€183 million) and to €388 million (€352 million) for the first six months. The focus on prices combined with a reduction in admin and general expenses delivered an increase in Ebitda to €22.2 million (€9.6 million) for the first half of the year.
Overal Agfa took sales to €893 million (€836 million) for the first six months of the year with an Ebitda of €51 million (€56 million).
The company incurred costs associated with the restructuring of the offset division and was hit by continuing Covid related lockdowns in China which affected supply chains for the digital division and meant lower orders for its radiology division. Sales in healthcare remain very healthy.
