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

Revenue lower by around 6% year-on-year after nine months 2019/20

Jena/Germany | 5 August 2020 | Carl Zeiss Meditec AG

Carl Zeiss Meditec generated revenue of €967.9m in the first nine months of fiscal year 2019/20 (prior year: €1,027.6m), a decline of -5.8% (adjusted for currency effects: -6.9%) compared with the same period of the prior year. Earnings before interest and taxes (EBIT) decreased to €111.9m (prior year: €184.2m). The EBIT margin was 11.6% (prior year: 17.9%).

“The effects of the COVID-19 pandemic impacted us significantly, particularly in the third quarter of fiscal year 2019/20. Although there has already been a slight recovery in some parts of APAC1 , the measures to contain the COVID-19 pandemic in Europe and North America had a marked effect on our customers and thus demand for our products,” said Dr. Ludwin Monz, President and CEO of Carl Zeiss Meditec AG.

Both strategic business units report declines in revenue

Revenue in the Ophthalmic Devices strategic business unit (SBU) decreased by -7.0% in the first nine months of fiscal year 2019/20 (adjusted for currency effects: -8.0%), to €709.1m (prior year: €762.7m).
Revenue in the Microsurgery SBU decreased by -2.3% (adjusted for currency effects: -3.6%), to €258.7m (prior year: €264.9m).

Stable performance in APAC region – significant declines in EMEA and Americas

Revenue in the EMEA2 region decreased by -12.8% (adjusted for currency effects: -12.7%), to €268.8m (prior year: €308.2m). 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. In Germany, a recovery was well underway towards the end of the reporting period.

The Americas region recorded a revenue decline of -6.9% (adjusted for currency effects: -9.0%), to €272.3m (prior year: €292.5m). In the third quarter, revenue decreased significantly in the USA and Brazil in particular, after both had achieved growth at the start of the fiscal year.

With revenue of €426.8m, the APAC region almost reached the prior year’s figure of €426.9m (adjusted for currency effects: -1.1%). That performance was bolstered by a robust recovery in China and South Korea in the third quarter, after in particular temporary closures of clinics and postponements of elective surgery had previously led to significant revenue losses in the months of February and March. The markets of Japan, India and Southeast Asia, on the other hand, showed a clear decline in the third quarter.

Operating result below prior year

The operating result (earnings before interest and taxes: EBIT) decreased in the first nine months of fiscal year 2019/20, to €111.9m (prior year: €184.2m). The EBIT margin declined to 11.6% (prior year: 17.9%). Adjusted for special items, this amounted to 12.1% (prior year: 18.2%). Earnings per share fell to €0.77 (prior year: €1.22).

“As already announced in July, we are projecting revenue of around €1.3bn for fiscal year 2019/20. This is based on the assumption that the markets will continue to recover and that no additional measures to contain the COVID-19 pandemic will be necessary,” added Dr. Ludwin Monz. “Our entire focus remains on protecting our employees, continuity of supply for our customers, and continuing with our strategic investments, so that we can return to sustainable growth as soon as possible.”

Revenue by strategic business unit

All figures in €m

9 months
2019/20

9 months
2018/19

Change from
prior year 

Change from
prior year*

Ophthalmic Devices

709.1

762.7

-7.0%

-8.0%

Microsurgery

258.7

264.9

-2.3%

-3.6%

Overall group

967.9

1,027.6

-5.8%

-6.9%

*adjusted for currency effects

Revenue by region

All figures in €m

9 months
2019/20

9 months
2018/19

Change from
prior year 

Change from
prior year*

EMEA

268.8

308.2

-12.8%

-12.7%

Americas

272.3

292.5

-6.9%

-9.0%

APAC

426.8

426.9

0.0%

-1.1%

Overall group

967.9

1,027.6

-5.8%

-6.9%

*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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