Quarterly Report August 2017: Carl Zeiss Meditec continues its growth trend

Jena/Germany | Carl Zeiss Meditec AG

Carl Zeiss Meditec AG continued its growth trend in the first nine months of 2016/17: Revenue increased by 8.3 percent (adjusted for currency effects, 7.2 percent), to €864.7m (prior year: €798.6m). Earnings before interest and taxes (EBIT) rose significantly, to €132.6m (prior year: €110.5m). The adjusted EBIT margin increased to 14.7 percent (prior year: 14.2 percent). Earnings per share reached €1.10 (prior year: €0.83).

“Once again, we achieved further growth after nine months of 2016/17 and are therefore well on our way to achieving our revenue forecast of €1,150 - 1,200m for the fiscal year. I am particularly pleased that both business units made a significant contribution to this,” said Dr. Ludwin Monz, President and CEO of Carl Zeiss Meditec AG, commenting on the result.

Ophthalmology, in particular, contributed to growth: the Ophthalmic Devices strategic business unit (SBU) increased its revenue by 9.2 percent in the first nine months of the current fiscal year (adjusted for currency effects: 8.2 percent), to €639.9m, compared with €585.8m in the same period of the prior year. The business with laser systems for refractive vision correction developed particularly well. The sub-segment of Surgical Ophthalmology, the business with intraocular lenses and devices for the treatment of cataracts, again achieved revenue growth, and Carl Zeiss Meditec expanded its market share of intraocular lenses. The EBIT margin of the Ophthalmic Devices SBU increased further. This was also attributable to one-time disposal proceeds from plants located in Ontario, California, in the amount of around €8m, as reported in the first quarter of 2016/17.

Revenue in the Microsurgery SBU grew by 5.6 percent (adjusted for currency effects: 4.3 percent). Revenue from surgical microscopes and visualization solutions climbed to €224.8m, compared with €212.8m in the prior year. The profitability of the Microsurgery SBU remained at an above-average level and increased slightly compared with the prior year. Significant new products were launched in the neuro and dental surgery market in March and April 2017, with the introduction of the KINEVO 900 visualization system and the EXTARO 300 surgical microscope.

Another strong performance was achieved by the Asia/Pacific (APAC) region. At €332.6m, revenue was significantly higher than the prior-year figure of €278.7m – an increase of 19.3 percent (adjusted for currency effects: 17.3 percent). A large part of this growth is again attributable to the Chinese market, as well as Southeast Asia and India.

Revenue in the EMEA region declined slightly by 1.1 percent in the first nine months of 2016/17 (adjusted for currency effects: -0.4 percent). Revenue came in at €259.6m (prior year: €262.5m). The development of business was particularly below average in the United Kingdom, Southern Europe and the Middle East.

Revenue in the Americas region increased by a further 5.9 percent (adjusted for currency effects: 3.7 percent), to €272.5m (prior year: €257.3m).

Earnings per share (EPS) increased significantly year-on-year, to €1.10 (prior year: €0.83). Besides the increase in the operating profit, this was also attributable to gains on currency hedges, compared with losses in the same period of the prior year.

Carl Zeiss Meditec confirms its forecast revenue target of €1,150m to €1,200m for fiscal year 2016/17. The EBIT margin is expected to be within the range also forecast for the medium term, of 13 to 15 percent.