Owners
Agfa Radiology Solutions (formerly Agfa HealthCare), part of the Agfa-Gevaert group, supplies data management solutions to healthcare organizations. The company is one of the pioneers of the IT solutions market for medicine that arose in the 1990s. For 2016, Agfa HealthCare's sales offices are located in more than 100 countries.
Performance indicators
2022: 0.4% drop in sales to €462 million
At the end of 2022, Agfa Radiology Solutions, part of the Agfa-Gevaert group, showed revenues of €462 million. This is approximately 0.4% less than in the previous year, when the figure was €464 million. Such figures are given in the financial report released on March 8, 2023.
It is noted that restrictions in China related to the ongoing COVID-19 pandemic had a negative impact on business. In addition, difficulties arose due to disruptions in the operation of supply channels, the macroeconomic situation and high inflation. Agfa Radiology Solutions optimizes operations to meet established market conditions.
The direction of digital printing during 2022 brought 57% of total revenue. Another 39% fell on the CR/DR segment, about 4% - on traditional radiology.
The report also states that medical technological solutions allocated to a separate HealthCare IT structure in 2022 provided revenue of €244 million. This is 11.5% more than in the previous year, which brought €219 million. It is said about the improvement of the situation in the markets of North America and Europe. At the same time, it was necessary to adjust the costs of research and development work in accordance with new realities and economic challenges.
In general, the revenue of the Agfa group in 2022 reached €1.86 billion against €1.76 billion a year earlier. Thus, growth was recorded at 5.5%.
 | 2022 was a year of unprecedented economic and geopolitical instability. Inflation, supply chain disruptions and quarantine in China have impacted our operations. We completed the acquisition of Inca Digital Printers, which will strengthen our position in high-speed digital printing. In an effort to create a simple, flexible and future-oriented organizational model, we have reorganized our internal financial services, the company said in a report.[1] |  |
2019: Revenue growth 4.2% to €536m
At the end of 2019, the Radiology Solutions division of Agfa registered sales in the amount of 536 million euros, which is 4.2% more than a year earlier.
In 2019, the revenue of the Agfa HealthCare IT division amounted to 505 million euros, an increase of 3% compared to the previous year. These results are based on the assets sold in the field of IT medicine.
In 2019, Agfa's HealthCare division was renamed Radiology Solutions. Medical technology solutions have been transferred to a separate HealthCare IT structure, which is sold to Dedalus Holding. The deal is planned in the second quarter of 2020.
The main specialization of Radiology Solutions is equipment and technological solutions for traditional and digital radiography, including printers, film and chemical materials
The company noted an improvement in profitability due to significant growth in the service business, software sales and reorientation of the Imaging IT Solutions business, according to the financial statements.
The main sources of revenue growth for Radiology Solutions were solutions for printing medical images and direct digital radiography. This rise was able to compensate for the decline in computational radiographic systems. Thanks to the reorganization of distribution channels in China, the company was able to increase revenue from printing equipment in double-digit tep. The Direct Radiography direction was stimulated by the service business, the manufacturer notes.
In 2019, Agfa-Gevaert Group raised 2.24 billion euros, which is 2.2% higher than a year ago. Thus, Agfa HealthCare IT accounted for 22.5% of sales, and Radiology Solutions - 24%. The net profit/loss indicators of the divisions in Agfa-Gevaert Group did not provide.[2]
History
2019: €1bn IT asset sale
In early December 2019, Agfa-Gevaert Group announced the Dedalus Holding deal, which will sell the IT HealthCare division, which includes the IT Healthcare Solutions and Integrated Care areas. This business brought the company about 260 million euros annually.
The proposed deal must be approved by regulators. It is planned to close it in the second quarter of 2020. After this happens, Dedalus Holding will become the owner of the assets of Agfa HealthCare for 975 million euros, taking into account the working capital and debts of the company being sold.
Agfa-Gevaert Group CEO Christian Reinaudo noted the following:
| | The expected sale will be another milestone on our road to transforming the company. We look forward to this important step. I hope that under the management of Dedalus Holding, the business will continue to develop and become a leading European player in the IT healthcare market. | |
According to Christian Reinaudo, after the deal closes, the company will become more assembled and focused. Going forward, Agfa HealthCare plans to focus on imaging solutions led by its flagship Enterprise Imaging platform while continuing to follow the announced strategy.
Agfa-Gevaert Group develops, manufactures and distributes a wide range of analog and digital image processing systems and IT solutions, mainly for the printing industry and the healthcare sector, as well as for individual industrial enterprises.
In turn, Dedalus Holding is an international company specializing in the segment of diagnostic and clinical solutions for healthcare. The company is headquartered in Florence (Italy).[3]
2018: Revenue decline 4.6% to €1bn
In 2018, Agfa HealthCare's revenue amounted to 1 billion euros, down 4.6% compared to 2017. Excluding currency fluctuations, sales at the company decreased by 1%. The medical unit brought the Agfa group about 9.1% of annual revenue against 10.1% in 2017. Agfa HealthCare's net income is not stated.
Almost half (49%) of Agfa HealthCare's turnover was in the direction of IT medicine. This includes technological solutions for medical imaging (share of annual revenue was 30%) and IT systems for healthcare (19%). Medical printing equipment and films for him accounted for 27% of income, on devices for computer and direct radiography - 20%, on classic X-ray devices - 4%.
As reported in the financial statements, in the market for printing medical images, Agfa HealthCare began to recover from the reorganization of distribution channels in China, which is supposed to make a profit in 2019. In the meantime, one of the drivers of the company's revenue growth is direct radiography (DR) technologies.
In the medical IT solutions segment, HealthCare Information Solutions performed well, recording near double-digit growth (more than 10%). In the direction of IT imaging solutions, there were good results in major regions, but there was a decline in dynamics in the US.
During 2018, the company worked to introduce a new Enterprise Imaging platform among its customers - the equivalent of an EMR system for visual information. In addition, the company refocused its business on major geographic areas and also adapted to more customer-managed infrastructure, Agfa HealthCare noted.[4]
2017: IT systems for medical imaging generate 30% of revenue
In 2017, Agfa HealthCare's revenue declined to €1.05 billion from €1.09 billion a year earlier. Such data is contained in the financial report of the Agfa-Gevaert group.
Earnings before taxes, interest, depreciation and amortisation (EBITDA) generated from regular sources of income in the medical unit decreased by 10.5%, amounting to 131.1 million euros. The fall in this profit in the company was explained by the continuing decline in sales of classic X-ray products and the decision to reorganize the distribution channel in China. By the end of 2017, the consequences of these transformations were almost never manifested.
Most of the revenue (about 30%) of Agfa HealthCare at the end of 2017 was occupied by IT systems in the field of medical imaging. Medical printing equipment and films for it accounted for 27% of the turnover, computer radiography and other imaging devices - 20%, hospital information systems - 17%, classic X-ray devices - 6%.
There are high sales rates of the Enterprise Imaging platform in the American market and the reorganization of distribution channels in China, which contributed to the stabilization of sales of the manufacturer's printing solutions.
Agfa-Gevaert Group President and CEO Christian Reinaudo says 2017 was the first year of the two-year transition period. The company has begun preparations for the restructuring of the medical unit, which is planned to be made an independent legal structure within the group. In addition, the company invests in the development of sales and services to accelerate the growth of the Enterprise Imaging platform.
| | These efforts are beginning to bear fruit, and our business in the field of IT systems for medical imaging is now on the verge of a breakthrough, the head said.[5] | |
2016: Medical business brought in 44% of revenue
In March 2017, Agfa-Gevaert Group published an annual financial report, from which the performance of the company's medical division, Agfa HealthCare, became known. Revenue in this business decreased by almost 1%.
In 2016, sales of Agfa HealthCare were measured at €1.09 billion against €1.1 billion a year earlier. Earnings before tax, interest, depreciation and amortisation (EBITDA) generated from regular revenue sources increased 9.3% to €146.5 million, corresponding to 13.4% of revenue. Annual earnings before interest and taxes (EBIT) jumped 12% to €120.3 million.
Most of Agfa HealthCare's revenue (about 30%) at the end of 2016 came from medical printing equipment and films for it. IT systems in the field of medical imaging occupied 29% of the company's turnover, devices for computer radiography and other imaging - 20%, hospital information systems - 15%, classic X-ray devices - 6%. 44% of Agfa HealthCare's revenue comes from the HealthCare IT line.
The reporting said measures to improve the efficiency of the company's structure and the positive impact from assortment diversity helped Agfa HealthCare increase gross profit - by 4.6% to €435 million in 2016.
| | We launched several top projects, as we did a few years ago, when we began to focus on improving gross profit. As part of these projects, we will strive to reduce the decline in traditional business areas and improve the efficiency of our growth engines. In this regard, the continued success in the HealthCare IT business is an example for our other growing businesses, "said Christian Reinaudo, President and CEO of Agfa-Gevaert Group[6] | |
2010
At the end of 2010, the company's revenue amounted to 1.18 billion euros.
Business in Russia
2018: Regulation of distributor participation in competitions
In March 2018, Novye Vedomosti published a correspondence between the Russian representative office of AGFA and its dealers, which indicates to whom and in which auction or tender to supply their products to Russian hospitals to participate, or, on the contrary, not participate, as well as to whom you can sell the concern's products and to whom you cannot.
For example, here is an electronic circular that looks like a letter to one and a half dozen AGFA dealers, in which it is forbidden to sell Dreistar X-ray and thermographic medical film to independent companies not associated with AGFA (the style and spelling of the original are preserved):
"Good afternoon, dear colleagues!!! The Voronezh representative office of Parity-Center LLC (AGFA dealer - ed.) Supplied printers to Barel LLC, but these comrades got used to buying Dreistar film from other comrades, such as Photograd, TorgAlliance, who are not at all Agfa's dillers and drive the film from nowhere with a significantly low price than ours, thereby taking away our clients. Please do not sell Dreistar film to Barel LLC, Europharm LLC, MRI Expert LLC, TorgAlliance.
Sincerely, Deputy Director of Voronezh Representative Office, LLC "Parity Center," Geregel Vitaly. "
Another example:
«Good afternoon,
Next week, our client will have an auction. On the film Drystar DT 5000B 35 * 43 -25 ups. For the City Clinical Urological Hospital No. 47. We ask other distributors of Agfa not to participate and not to give offers to other companies.
Sincerely,
Serebryakova Julia Alexandrovna
Key Account Specialist ZAO Sante Medical Systems
2016: Conflict with Comtech over film supplies
In 2016, a conflict broke out between suppliers of Agfa film as part of one of the projects, which led to the initiation of a criminal case against the general director of one of the companies. Read more here.
Notes
- ↑ The Agfa-Gevaert Group in full year 2022 – regulated information
- ↑ Agfa-Gevaert in 2019: Strong cash generation – Group margins resilient in spite of offset headwinds – regulated information
- ↑ Agfa-Gevaert Group enters into exclusive negotiations for the sale of a part of its HealthCare IT activities to Dedalus Holding S.p.A. - Regulated information
- ↑ Agfa-Gevaert comments on its achievements in 2018 – regulated information
- ↑ Agfa-Gevaert publishes its full year 2017 results – regulated information
- ↑ events/2017/CO 20170308 Q4 results UK.jsp Agfa-Gevaert publishes its full year 2016 results - regulated information
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