Carl Zeiss Meditec achieves double-digit growth in first half year of 2022/23 with declining earnings

JENA, 9 May 2023

Carl Zeiss Meditec generated revenue of around €974.5m in the first six months of fiscal year 2022/23 (prior year: €855.4m), equating to growth of +13.9% (adjusted for currency effects: +12.4%). Earnings before interest and taxes (EBIT) declined to around €143.9m (prior year: €177.3m). The EBIT margin was 14.8% (prior year: 20.7%).

“We are very satisfied with the revenue growth we have achieved, as we were still very strongly affected by the effects of the COVID-19 pandemic in China and by the tense supply chains in the first six months of fiscal year 2022/23. Despite these difficult conditions, we still managed to generate further double-digit growth. Our focus continues to be on shortening delivery times for our customers and on reducing the high order backlog. At the same time, we shall continue our strategic investments in research and development at a fast pace,” says Dr. Markus Weber, President and CEO of Carl Zeiss Meditec AG.

Growth contributions from both strategic business units

Revenue in the strategic business unit (Strategic Business Unit, SBU) Ophthalmology increased by +13.9% in the first half of fiscal year 2022/23 (adjusted for currency effects: +12.3%) to €742.6m (prior year: €651.9m). Hereby Surgical Ophthalmology and Diagnostics made a solid contribution to the growth. In spite of the ongoing supply chain shortages, more equipment was delivered. The product mix developed less favorably than in the strong prior-year period.

The strategic business unit Microsurgery achieved revenue growth of +13.9% (adjusted for currency effects: +12.7%), from €203.5m in the prior year to €231.9m. This SBU continues to be impacted by the strain in the supply chains. The order backlog remains high.

Strongest growth in Americas region

Revenue in the EMEA^[1] region increased by +7.9% (adjusted for currency effects: +8.4%), to €247.2m (prior year: €229.2m). Positive growth contributions came from Southern Europe, among other places. The core markets Germany, France, Spain and the UK recorded stable growth.

Revenue in the Americas region increased by a significant +27.6% (adjusted for currency effects: +19.4%) from €212.2m to €270.7m. A partial conversion of the high order backlog also contributed to this. The majority of markets, including the USA, recorded growth well into the double-digit percentage range.

The APAC^[2] region made a solid contribution to growth. Revenue increased by +10.3% (adjusted for currency effects: +11.0%) to €456.7m (prior year: €414.1m). India and Southeast Asia, in particular, are making good contributions to revenue growth. On the other hand, the Japanese and South Korean markets declined slightly.

EBIT and EBIT margin significantly below prior year

In spite of solid revenue growth, the operating result (earnings before interest and taxes, EBIT) remained below the prior-year level after the first six months of fiscal year 2022/23, at €143.9m (prior year: €177.3m). This downward trend is primarily due to a weaker product mix as a result of a smaller proportion of consumables at the start of the fiscal year, associated, among other things, with the COVID-19 pandemic in China. At the same time, strategic investments in research and development, for example in the area of digitalization, and sales and marketing continue at a fast pace. Also higher procurement costs due to the strained global supply chains and generally rising labor costs are continuing to have an adverse effect.

The EBIT margin was 14.8% after the first six months (prior year: 20.7%). Adjusted for special effects, the EBIT margin was 15.3% (prior year: 21.2%). Although earnings per share benefited from gains on currency hedges, this figure nevertheless declined compared with the same period of the prior year, to €1.26 (prior year: €1.44).

Consolidation of the forecast for the further course of business in 2022/23

Carl Zeiss Meditec AG plans to continue its high strategic investments in sales and marketing and research and development in the second half of fiscal year 2022/23. The reduction of the high order backlog in the equipment business began in the second quarter and is expected to continue in the course of the fiscal year. The proportion of consumables is expected to improve significantly again compared with the first six months of fiscal year 2022/23, due, among other things, to the expected recovery in the Chinese market.

Carl Zeiss Meditec AG has therefore consolidated its projections for fiscal year 2022/23.

Revenue is expected to increase to around €2.1 billion, which, according to today’s estimates, corresponds to the previous target of growth at least on a par with the underlying markets. The EBIT margin for the whole fiscal year 2022/23 is expected to be between 17–20%.

Revenue by strategic business unit

Revenue by region

Further information on our publication and the Analyst Conference Call on the results for the first six months of fiscal year 2022/23 can be found at

https://www.zeiss.com/meditec-ag/investor-relations/financial-calendar/conference-calls.html

 
Contact for investors and press

Sebastian Frericks

Head of Group Finance & Investor Relations, Carl Zeiss Meditec AG

Phone: +49 (0)3641 220-116

E-Mail: investors.meditec@zeiss.com
 

www.zeiss.de/presse

^[1] Europe/Middle East/Africa

^[2] Asia/Pacific