Carl Zeiss Meditec achieves further growth in first quarter of 2021/22

Jena/Germany | Carl Zeiss Meditec AG

Carl Zeiss Meditec generated revenue of €410.2m in the first three months of fiscal year 2021/22 (prior year: €368.9m), corresponding to an increase of 11.2% (adjusted for currency effects: +10.5%) compared with the same period of the prior year. Orders received increased at a much higher rate than revenue, rising 24.0% to €498.3m. (prior year: €401.7m). Earnings before interest and tax (EBIT) increased slightly to €74.4m (prior year: €73.4m, including one-time extraordinary income of €2.4m). The EBIT margin was 18.1% (prior year: 19.9%). The adjusting the EBIT margin was 18.6% (prior year: 19.8%).

Dr. Markus Weber, CEO of Carl Zeiss Meditec AG since 1 January 2022: “As in fiscal year 2020/21, we are still dealing with a challenging environment: the pandemic is not yet entirely behind us – the global supply chains, especially, remain very strained. I am therefore all the more delighted with the continued strong demand for our solutions – orders received were at a record high at the start of the year.”

Revenue in the Ophthalmic Devices strategic business unit (SBU) increased by 9.7% in the first three months of fiscal year 2021/22 (adjusted for currency effects: +9.1%), to €310.9m (prior year: €283.4m). Recurring revenue from consumables, implants and services once again made significant contributions to growth. Orders received in the Ophthalmic Devices SBU increased disproportionately to revenue. Revenue in the Microsurgery SBU increased by 16.1% (adjusted for currency effects: +15.2%) to €99.3m (prior year: €85.5m). Orders received in the Microsurgery SBU likewise increased at a much higher rate than revenue.

Revenue in the EMEA¹ region increased by 5.0% (adjusted for currency effects: +5.9%) to €114.1m (prior year: €108.7m). Orders received in the core European markets exhibited a positive trend.

The Americas region recorded a revenue increase of 12.3% (adjusted for currency effects: +8.4%) to €114.5m (prior year: €102.0m). The USA and the countries of South America both contributed to this.

In the APAC² region, revenue increased to €181.5m, compared with €158.2m in the prior year (+14.8%; adjusted for currency effects: +15.1%). The strongest contributions to growth came from China and India Japan recorded a strong order intake.

The operating result (earnings before interest and taxes: EBIT) increased slightly in the first three months of fiscal year 2021/22, to €74.4m (prior year: €73.4m). The growth in revenue with a solid share of recurring revenue had a positive effect on this. Planned 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 to 18.1% (prior year: 19.9%). Adjusted for special effects, the EBIT margin was 18.6% (prior year: 19.8%). Earnings per share declined to €0.42 (prior year: €0.52). Negative results from currency hedges contributed to this.

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. The new products launched at the end of the fiscal year under review in the Ophthalmic Devices SBU, which included the VISUMAX® 800 and the QUATERA® 700, were met with a good level of interest; initial orders and installations were made in the first quarter of fiscal year 2021/22. Due, among other things, to still pending approval processes, however, the Management Board does not expect these new products to make any significant contribution to revenue in the current fiscal year.

The EBIT margin is expected to be between 19-21% in fiscal year 2021/22 In the medium term, the EBIT margin is expected to increase to a level sustainably above 20%. The rising proportions of recurring revenue are making a positive contribution to this. Conversely, scheduled strategic investments in Research & Development and Sales & but Marketing remain high.