ZEISS: Double-digit revenue growth in first half of fiscal year

• All four segments contributed to revenue growth
• Expenditure on research and development amounted to 15% of revenue
• More than 44,000 employees worldwide
  

Oberkochen/Germany | 16 May 2024 | ZEISS Group

In the first half of the fiscal year, the ZEISS Group generated revenue totaling 5,304 million euros (ended 31 March 2024), which is an increase of 10% as compared to the previous year. All four segments of the ZEISS Group contributed to this. Earnings before interest and taxes (EBIT) totaled 739 million euros (-178 million euros compared to the previous year). Expenditure on research and development remained at 15% of revenue. The number of employees increased to 44,558.

"Despite the challenging market environment, we were able to maintain double-digit revenue growth in the first half of fiscal year 2023/24," said Dr. Karl Lamprecht, President and CEO of ZEISS. "Our consistently high expenditure on research and development as well as the investments in the company's transformation and our global infrastructure are central elements of our sustainable growth strategy. They ensure the future viability and positive development of the company."

The macroeconomic conditions impacted the strategic business units in different ways. All four ZEISS segments contributed to the growth in revenue in the first half of fiscal year 2023/24.

The Semiconductor Manufacturing Technology (SMT) segment achieved another significant increase in revenue in the first half of the year. The market is expected to improve further in the second half of the calendar year. To accommodate the high order intake and customer demand, the segment is driving its capacity expansion and the planned investments for the further development of existing technologies and the introduction of new ones.

All direct-to-market segments achieved higher revenue than in the prior-year period. The Medical Technology segment continued to increase revenue in the first half of the year; both strategic business units, Microsurgery and Ophthalmology, contributed to this. The Industrial Quality & Research (IQR) segment also had a successful start to the first half of 2023/24. The two strategic business units, Industrial Quality Solutions and Research Microscopy Solutions, contributed to this. Despite moderate consumer sentiment and challenging market conditions, the Consumer Markets segment generated stable revenue in the first two quarters of the fiscal year.

The APAC and EMEA regions drove the revenue growth in the direct-to-market segments in the first half year. It was possible to generate growth despite negative currency effects. At the half year, the Americas region showed a decline in revenue as compared to the same period last year. This development is due in particular to the US market.

A mixed picture has emerged regarding order intake among the direct-to-market segments after the first six months in the current fiscal year. Overall, order intake was slightly below the high level of the previous year. Large order backlogs compensate for this slowdown. Consumer confidence appears to be recovering, indicating stable growth prospects in the medium term.

Expenditure on research and development was 15% of revenue (807 million euros) in the first half of 2023/24. The company's equity increased to 8,051 million euros (30 September 2023: 7,846 million euros), and the equity ratio was 53%. Investments in property, plant and equipment came to 734 million euros.

"The half-year figures show that ZEISS is enjoying a stable and financially sound position, even in challenging market conditions. Given our significant investments in digitalization, in transformative initiatives and in the expansion of infrastructure, we can accept temporary fluctuations in the results and will continue to pursue the growth trajectory of the ZEISS Group," said Stefan Müller, Chief Financial Officer of Carl Zeiss AG.

At the end of the first half year, ZEISS employed 44,558 employees worldwide (as of 31 March 2024). In the past 12 months, the ZEISS Group added 3,299 new employees globally (+8%).

Due to the geopolitical tensions and complex macroeconomic conditions, it is difficult to predict how the global economy will develop. The major uncertainties make resilient and diversified supply chains even more important.

"Despite a slowdown in order intake dynamics in recent months, we expect that the fiscal year will continue to be positive given the order backlog, which remains high, and the signs of recovery," said Lamprecht.