Carl Zeiss Meditec Reports Slight Revenue Decline in H1 2023/24 Due to Currency Fluctuations

Carl Zeiss Meditec has announced a moderate revenue decrease of -2.8% in the first half of the fiscal year 2023/24, primarily due to adverse currency effects. When adjusted for these currency impacts, the decline stands at just -0.7%, with revenues tallying €947.2 million, down from €974.5 million in the previous year. The company attributes this decline to strategic reductions in inventory levels within its Chinese distribution channels and underperformance in the North American market, where investment hesitancy has impacted device sales.

The company's earnings before interest and taxes (EBIT) also fell to €108.2 million compared to €143.9 million in the previous period, a decline influenced by a challenging product mix and the completion of stock reduction. The EBIT margin was reported at 11.4%, down from 14.8% in the prior year. Carl Zeiss Meditec expects a rebound in the latter half of the year driven by stringent cost-control measures and recently completed acquisitions aimed at enhancing efficiencies in ophthalmology operations.

The revenue contraction was not uniform across all regions and business units. The Microsurgery unit experienced growth, thanks primarily to accelerated order processing, while the Ophthalmology unit saw a sharper decline. The EMEA region reported significant growth due to increased activities in countries like Italy, Spain, and France, contrasting with declines in the Americas and APAC regions, with North America facing the brunt of reduced device business demand.