Carl Zeiss Meditec AG grows by 9% in fiscal year 2016/17

Carl Zeiss Meditec AG closed fiscal year 2016/17 with solid revenue growth. Revenue increased by 9.3%, to €1,189.9m. EBIT margin rose further year-on-year.

Dr. Ludwin Monz, President and CEO of Carl Zeiss Meditec AG, comments on the results: “We gained further market shares and reached the upper end of our forecast of €1,150 – 1,200m. We are also very satisfied in particular with the steadily growing proportion of recurring revenue, which accounted for as much as 33% of our total revenue in the fiscal year just ended. In addition, we have once again been able to introduce significant innovation to the market.”

Overall, the Ophthalmic Devices strategic business unit (SBU) generated revenue of €880.5m (prior year: €791.9m), which equates to growth of 11.2%. All segments within this SBU achieved growth. The development of refractive lasers, in particular, was very dynamic, as in previous years; however, equipment and consumables for cataract surgery as well as the diagnostics product portfolio also made good contributions to revenue growth. Revenue growth was 4.4% in the Microsurgery SBU. Revenue amounted to €309.4m, compared with €296.5m in the prior year. Significant innovations were introduced to the market during fiscal year 2016/17.

Further highly dynamic growth in Asia/Pacific consolidated this reporting region’s position as the region with the largest share of revenue. At €448.2m, revenue was significantly higher than the prior-year figure of €381.7m. This corresponds to an increase of 17.4%. A large part of this growth is attributable to the Chinese market, as well as India, Southeast Asia and South Korea.

In the EMEA region, revenue increased by 3.0% to €363.4m (prior year: €352.7m). Business in the core European markets was largely stable; while there was a decline in the UK and in parts of Southern Europe.

Revenue in the Americas region increased by 6.8%, to €378.2m (prior year: €354.0m). The USA performed well, but South America also achieved an increase during the reporting period, thus accelerating growth compared with the prior year.

Earnings before interest and taxes (EBIT) increased to €180.8m (prior year: €154.3m). This includes a positive special effect from an asset disposal at the Ontario site, amounting to around €7.5m, as already reported in the first quarter of fiscal year 2016/17. The EBIT margin was 15.2% (prior year: 14.2%). After adjustment for special effects, the EBIT margin was 14.8% (prior year: 14.7%).

Earnings per share (EPS) increased significantly to €1.57, compared with €1.21 in the prior year. Contributors to this were the increase in operating profit, as well as positive results from currency hedges, as opposed to negative results in the prior year.

Once again, Carl Zeiss Meditec has set itself ambitious targets for fiscal year 2017/18. Due in particular to the positive development of revenue, the improved product mix and the increased proportion of recurring revenue, Carl Zeiss Meditec AG anticipates an adjusted EBIT margin of between 14% and 16% in fiscal year 2017/18 and in the medium term.