Carl Zeiss Meditec accelerates growth in the first six months of 2016/17

Ophthalmic Surgery made largest contribution to growth

JENA/GERMANY, 10/05/2017.

Carl Zeiss Meditec continued its growth trend in the first six months of 2016/17. Revenue increased by 8.6 percent (adjusted for currency effects, 7.1 percent), to €587.5m (prior year: €540.8m). Earnings before interest and taxes (EBIT) rose significantly, to €95.1m (prior year: €75.3m). The adjusted EBIT margin increased to 15.2 percent (prior year: 14.3 percent). Earnings per share reached €0.76 (prior year: €0.59).

Dr. Ludwin Monz, President and CEO of Carl Zeiss Meditec AG, comments on the half-year results: “We achieved solid growth rates in the first six months of 2016/17 and continued to increase our market shares with our leading portfolio in Ophthalmic Surgery. Furthermore, we were able to launch a range of new products to the market, both in Ophthalmology and in Microsurgery.”


Strongest growth in Ophthalmic Devices SBU

Ophthalmology, in particular, contributed to growth: the Ophthalmic Devices strategic business unit (SBU) increased its revenue by 10.6 percent in the first six months of the current fiscal year (adjusted for currency effects: 9.2 percent), to €433.1m, compared with €391.6m in the same period of the previous 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, achieved significant revenue growth, and Carl Zeiss Meditec expanded its market share. The EBIT margin of the Ophthalmic Devices SBU increased further. Aside from a favorable product mix, this was also attributable to one-time disposal proceeds from plants located in Ontario, California, in the amount of €7.7m, as reported in the first quarter of 2016/17.

Revenue in the Microsurgery SBU grew by 3.5 percent (adjusted for currency effects: 1.8 percent). Revenue from surgical microscopes and visualization solutions climbed to €154.4m, compared with €149.1m 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, the KINEVO 900 visualization system and the EXTARO 300 surgical microscopes, were launched on the market of neuro and dental surgery.


APAC region continues dynamic development

Another strong performance was achieved by the Asia/Pacific (APAC) region. At €227.2m, revenue was significantly higher than the prior-year figure of €186.7m – an increase of 21.7 percent (adjusted for currency effects: 18.4 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 1.3 percent in the first six months of 2016/17 (adjusted for currency effects: -0.6 percent) - however, compared with a weak start of the year, the business development was more stable in the second quarter of 2016/17. Revenue of €175.4m (prior year: €177.7m) was recorded. There was a downturn in business particularly in the United Kingdom, Southern Europe and Middle East.

Revenue in the Americas region further increased by 4.8 percent (adjusted for currency effects: 2.7 percent) to revenue of €184.9m (prior year: €176.4m).

Earnings per share (EPS) increased significantly year-on-year, to €0.76 (prior year: €0.59). The increase in operating profit contributed to this.

The revenue target of Carl Zeiss Meditec AG lies within the range 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 percent to 15 percent.

Revenue by strategic business unit

Figures in €m 6 months 2016/17 6 months 2015/16 Change compared to prior year Change compared to prior year (adjusted for currency effects)
Ophthalmic Devices 433.1 391.6 +10.6% +9.2%
Microsurgery 154.4 149.1 +3.5% +1.8%
Total 587.5 540.8 +8.6% +7.1%

Revenue by region

Figures in €m 6 months 2016/17 6 months 2015/16 Change compared to prior year Change compared to prior year (adjusted for currency effects)
EMEA 175.4 177.7 -1.3% -0.6%
Americas 184.9 176.4 +4.8% +2.7%
APAC 227.2 186.7 +21.7% +18.4%
Total 587.5 540.8 +8.6% +7.1%

Contact for investors and press

Sebastian Frericks
Director Investor Relations Carl Zeiss Meditec AG
Phone +49 3641 220 116
Email: investors .meditec @zeiss .com

Brief profile

Carl Zeiss Meditec AG (ISIN: DE 0005313704), which is listed on TecDAX of the German stock exchange, is one of the world’s leading medical technology companies. The Company supplies innovative technologies and application-oriented solutions designed to help doctors improve the quality of life of their patients. It provides complete packages of solutions for the diagnosis and treatment of eye diseases, including implants and consumable materials. The Company creates innovative visualization solutions in the field of microsurgery. With approximately 2,900 employees worldwide, the Group generated revenue of € 1,088 million in financial year 2015/16 (to 30 September).

The Group’s head office is located in Jena, Germany, and it has subsidiaries in Germany and abroad; more than 50 percent of its employees are based in the USA, Japan, Spain and France. The Center for Application and Research (CARIn) in Bangalore, India and the Carl Zeiss Innovations Center for Research and Development in Shanghai, China, strengthen the Company's presence in these rapidly developing economies. Around 41 percent of Carl Zeiss Meditec AG’s shares are in free float. The remaining approx. 59 percent are held by Carl Zeiss AG, one of the world’s leading companies in the optical and optoelectronic industries.

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