Carl Zeiss Meditec increases revenue in first six months of 2019/20

COVID-19 pandemic leads to significant slowdown in second quarter

Jena/Germany | 11 May 2020 | Carl Zeiss Meditec AG

Carl Zeiss Meditec generated revenue of €714.9m in the first six months of 2019/20 (prior year: €667.2m), achieving growth of 7.2% (adjusted for currency effects: +5.8%) compared with the same period of the prior year. Earnings before interest and taxes (EBIT) decreased slightly to €102.5m (prior year: €110.4m). The EBIT margin was 14.3% (prior year: 16.5%).

“Our revenue growth in the first six months of the year is the result of basically solid demand for our products and solutions” says Dr. Ludwin Monz, President and CEO of Carl Zeiss Meditec AG. “However, we, too, were significantly impacted by the effects of the COVID-19 pandemic during the second quarter, which was initially evident in the Asia/Pacific region and was then also abundantly clear in Europe and North America in March.”

Growth in both strategic business units

Revenue in the Ophthalmic Devices strategic business unit (SBU) increased by 5.5 percent in the first six months of fiscal year 2019/20 (adjusted for currency effects: +4.2 percent), to €517.7m (prior year: €490.7m).
Revenue in the Microsurgery SBU grew by 11.7 percent (adjusted for currency effects: +10.1 percent), to €197.2m (prior year: €176.5m).

Continued growth in Americas and APAC

Revenue in the EMEA region decreased by 2.3 percent (adjusted for currency effects: -2.3 percent), to €208.7m (prior year: €213.7m). In March, in particular, incoming orders decreased in this region, due to the effects of the COVID-19 pandemic.

The Americas region increased its revenue by 13.6 percent after the first six months of the current fiscal year (adjusted for currency effects: 10.8 percent), to €205.5m (prior year: €180.9m). The U.S. achieved good growth, although there was also a significant downturn in this region in March compared with the prior year.

The APAC region also made a positive contribution to growth, bolstered by a robust trend in Japan and South Korea, increasing revenue by 10.3 percent (adjusted for currency effects: +8.8 percent) to €300.7m (prior year: €272.6m). In China, however, in particular, temporary closures of clinics and postponements of non-acute surgical treatments in February and March resulted in substantial losses of revenue.

Operating earnings slightly down versus previous year

The operating result (earnings before interest and taxes: EBIT) fell slightly in the first six months of fiscal year 2019/20, to €102.5m (prior year: €110.4m). The EBIT margin decreased from 16.5 percent to 14.3 percent. Adjusted for special effects, this amounted to 14.7 percent (prior year: 16.8 percent). Earnings per share increased to €0.71 (prior year: €0.65), since losses on currency hedging transactions were significantly lower compared with the prior year.

“As we already communicated at the start of April, we are currently unable to give an exact forecast for the rest of fiscal year 2019/20, due to the global effects of the COVID-19 pandemic. Our priority at the present time is the safety of our employees and maintaining production operations and service in order to support our customers in the best possible way,” says Dr. Ludwin Monz.

Revenue by strategic business unit

All figures in €m

6 months
2019/20

6 months
2018/19

Change from
prior year 

Change from
prior year*

Ophthalmic Devices

517.7

490.7

+5.5%

+4.2%

Microsurgery

197.2

176.5

+11.7%

+10.1%

Overall group

714.9

667.2

+7.2%

+5.8%

*adjusted for currency effects

Revenue by region

All figures in €m

6 months
2019/20

6 months
2018/19

Change from
prior year 

Change from
prior year*

EMEA

208.7

213.7

-2.3%

-2.3%

Americas

205.5

180.9

+13.6%

+10.8%

APAC

300.7

272.6

+10.3%

+8.8%

Overall group

714.9

667.2

+7.2%

+5.8%

*adjusted for currency effects

Press Contact

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

Brief Profile

Carl Zeiss Meditec AG (ISIN: DE 0005313704), which is listed on the MDAX and 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. The Company offers complete solutions, including implants and consumables, to diagnose and treat eye diseases. The Company creates innovative visualization solutions in the field of microsurgery. With 3,232 employees (as of 30 September 2019) worldwide, the Group generated revenue of €1,459.3m in fiscal year 2018/19 (as of 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 groups in the optical and optoelectronic industries.

For more information visit our website at www.zeiss.com/med

Press Contact

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

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