Carl Zeiss Meditec reports decline in revenue due to COVID-19 pandemic

Carl Zeiss Meditec generated revenue of €1,335.5m in fiscal year 2019/20 (prior year: €1,459.3m), a decline of -8.5% (adjusted for currency effects: -8.7%) year on year. Earnings before interest and taxes (EBIT) decreased to €177.6m (prior year: €264.7m). The EBIT margin was 13.3% (prior year: 18.1%).

“Fiscal year 2019/20 was entirely dominated by the COVID-19 pandemic,” says Dr. Ludwin Monz, President and CEO of Carl Zeiss Meditec AG. “Our top priority was the close cooperation with our customers and protecting our employees. We responded quickly to the short-term decline in demand, secured our production and delivery capacity and adjusted costs. A stable overall surgical consumables business also helped to limit the decline in revenue and profit.”

Revenue in the Ophthalmic Devices strategic business unit (SBU) decreased by -7.3% in fiscal year 2019/20 (adjusted for currency effects: -7.5%), to €990.6m (prior year: €1,068.6m). Revenue in the Microsurgery SBU decreased by -11.7% (adjusted for currency effects: -12.1%), to €344.8m (prior year: €390.7m). Recurring revenue from consumables, implants and service accounted for a 38.8% share of revenue – a new high after 33.9% in the prior year.

Revenue in the EMEA region decreased by -13.1% (adjusted for currency effects: -12.7%), to €362.4m (prior year: €417.1m). Declines were recorded particularly in the markets worst affected by the COVID-19 pandemic in Western Europe, the UK, Turkey and the Middle East region. There was a perceptible recovery in Germany toward the end of the reporting period.

The Americas region recorded a revenue decline of -13.2% (adjusted for currency effects: -13.8%), to €384.0m (prior year: €442.5m). Revenue decreased significantly in the USA and Brazil in particular, after both had achieved growth in the first six months of the fiscal year.

With revenue of €589.0m, the APAC region almost reached the prior-year figure of €599.7m (-1.8%; adjusted for currency effects: -2.3%), bolstered by a robust recovery in China and South Korea in the second half of the year. The markets of Japan, India and Southeast Asia, on the other hand, showed a decline.

The operating result (earnings before interest and taxes: EBIT) decreased to €177.6m in fiscal year 2019/20 (prior year: €264.7m). The EBIT margin decreased to 13.3% (prior year: 18.1%). Adjusted for special effects, this amounted to 13.8% (prior year: 18.5%). Earnings per share fell to €1.37 (prior year: €1.79).

Carl Zeiss Meditec generally expects to see a recovery of the markets in fiscal year 2020/21 and thus a return to renewed growth in revenue and EBIT. In light of the current COVID-19 infection rates in Europe and North America, however, it cannot be ruled out that the pandemic may cause further strain at the beginning of the new fiscal year. The Company predicts that the first few months of the new fiscal year 2020/21 will lag behind the corresponding year-ago figures for revenue and EBIT.

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2 Europe, Middle East, Africa}

Additional information regarding this publication and the analyst conference call on FY 2019/20 results are available at
https://www.zeiss.com/meditec-ag/investor-relations/financial-calendar/conference-calls.html