Offset Solutions

Agfa intends to further restructure its print business by spinning off its Offset Solutions division into a separate legal entity and streamlining its product portfolio.
Offset Solutions, which includes printing plates and films, was Agfa’s largest business unit in 2019 with sales of 843 million euros (£746 million), accounting for 38 percent of the group’s sales of 2.24 billion euros.
Prior to the Covid-19 pandemic, Agfa was battling a number of challenges in this segment and was the only Agfa business unit that did not post underlying earnings growth in 2019. Adjusted EBITDA of Offset Solutions decreased from €41 million to €16.5 million, while the division’s Adjusted EBITDA loss was €1.4 million.
Presenting Agfa’s third quarter 2020 results, Group President and CEO Pascal Jury said: “The Group’s profitability has been impacted by the current challenges in the offset printing industry, exacerbated by the Covid-19 pandemic. We are taking the necessary steps to secure our position in the industry and restore profitability.”
Yesterday (January 20), Agfa’s board of directors agreed to spin Offset Solutions’ operations into a separate legal entity within the Agfa-Gevaert group.
“In order to improve profitability and respond to a sharp drop in market demand, Agfa is revisiting its offset printing business model by simplifying its organization and streamlining its product offerings.
“The restructuring is part of Agfa-Gevaert Group’s strategic transformation plan,” the company said in a statement.
However, Eddie Williams, head of commercial print sales at Agfa, said the focus was on getting the business unit in good shape for the future and preparing it for further changes that could come in the industry.
“Business will not return to what it was. It starts with understanding how we can bring the division back to profitability.
“The big three – us, Kodak and Fujifilm – can’t go on like this. Overcapacity, price pressure and volume cuts every year,” Williams said.
“We’re not chasing volume, we’re focusing on the value-added business, not the customers who only see the sheet as a commodity.”
Agfa’s Offset Solutions division includes offset plates, CTP systems, software systems including color management and web-to-print, pressroom consumables, contacts, cameras and films, and proofing media.
The group’s large format and industrial inkjet systems are part of the independent Digital Printing and Chemicals divisions.
A spokesman for the company said it was “too early” to say what the review would lead to as work had just begun.
“However, this will now allow us to focus more on the profitability of the Offset division. In the long term, this will give us the flexibility to participate in changes in the industry,” the representative said.
It is understood that Agfa has been collaborating with the Boston Consulting Group as part of the group since last year.
Since the summer of 2018, the manufacturer has entered into a partnership with the Chinese state-owned panel manufacturer Lucky Huaguang.
Printweek welcomes informed debate, but all comments must comply with our internal policies, which can be read here: AZ of using the Printweek forums
Agfa reported a decline in revenue and gross margin in the third quarter due to the impact of the coronavirus pandemic…
Agfa Reports Decline in Q2 2020 Revenue and Gross Margin, but Talks of Cost Containment Measures…
Agfa described its first quarter results as “strong” despite the fact that its offset business was just getting started…
Agfa has completed the sale of its healthcare information solutions business, new CEO Pascal…
© MA Business Limited 2022. Published by MA Business Limited, St Jude’s Church, Dulwich Road, London, SE24 0PB, a company registered in England and Wales. 06779864. MA Business is part of the Mark Allen Group.