Carl Zeiss Meditec achieves further significant growth in revenue and order intake in first half 2021/22

Jena, Germany | Carl Zeiss Meditec AG

Carl Zeiss Meditec generated revenue of €855.4m in the first six months of fiscal year 2021/22 (prior year: €767.4m), corresponding to an increase of 11.5% (adjusted for currency effects: +10.7%) compared with the same period of the prior year. Order intake rose to an even greater extent than revenue, climbing 30.7% to €1,062.3m (prior year: €812.9m). Earnings before interest and taxes (EBIT) increased slightly to €177.3m. The EBIT margin was 20.7% (prior year: 21.2%). The adjusted EBIT margin amounted to 21.2% (prior year: 21.4%), which approximates the previous year’’s figure.

Dr. Markus Weber: ““The supply chain situation in the equipment business has deteriorated further in the past few months –– due, among other things, to the war in Ukraine and the COVID-19 lockdowns in China. I am therefore all the more delighted to be reporting these good half-year results –– an outstanding team achievement.””

Revenue in the strategic business unit (SBU) Ophthalmic Devices increased by 10.5% in the first six months of fiscal year 2021/22 (adjusted for currency effects: +9.7%), to €651.9m (prior year: €590.1m). Recurring revenue from consumables, implants and services once again contributed significantly to the growth. The equipment business is impacted by supply chain bottlenecks. Order intake in the Ophthalmic Devices SBU increased disproportionately to revenue. Revenue in the Microsurgery SBU increased by 14.8% (adjusted for currency effects: +13.8%) to €203.5m (prior year: €177.3m).
Orders received in the Microsurgery SBU likewise increased at a much higher rate than revenue.

Revenue in the EMEA¹ region increased by 5.8% (adjusted for currency effects: +7.1%) to €229.2m (prior year: €216.7m). Order intake in core European markets exhibited a positive trend.

Revenue in the Americas region increased by 7.6% (adjusted for currency effects: +2.6%) to €212.2m (prior year: €197.2m). Contributors to this are both the stable development in the USA as well as a further recovery in the countries of South America.

In the APAC² region, revenue increased to €414.1m, compared with €353.5m in the prior year (+17.1%; adjusted for currency effects: +17.3%). The strongest contributions to growth came from China and India The Japanese market also recorded growth.

The operating result (earnings before interest and taxes: EBIT) increased to €177.3m in the first six months of fiscal year 2021/22 (prior year: €162.7m). The growth in revenue with a solid share of recurring revenue had a positive effect on this. Planned larger investments in Sales & Marketing and Research & Development had a curbing effect. EBIT in the prior year also included positive extraordinary income of €2.4m from the sale of a property. The EBIT margin decreased slightly to 20.7% (previous year: 21.2%). Adjusted for special effects, the EBIT margin was 21.2% (prior year: 21.4%). Earnings per share increased to €1.44 (prior year: €1.12).

The Company’’s outlook for fiscal year 2021/22 remains unchanged: Revenue is expected to grow at least to the same extent as the market. One uncertainty is posed by the continued strain in the global supply chains, particularly in the equipment business. Political and macroeconomic factors such as the war in Ukraine and the regional COVID-19 lockdowns in China are contributing to this. The risks of supply disruptions increased significantly; further bottlenecks are expected in the present third quarter. The EBIT margin is expected to range between 19-21% in fiscal year 2021/22.

These projections are based on the assumption that there will continue to be no material loss of revenue due to disruptions to the supply chains and that the COVID-19 situation in China will normalize in the third quarter of 2021/22.