Superb start to fiscal year 2016/17 for Carl Zeiss Meditec AG

Jena/Germany | Carl Zeiss Meditec AG

Carl Zeiss Meditec continued its growth trend in the first quarter of 2016/17. Revenue increased by 6.6 percent (adjusted for currency effects: 5.4 percent), to €280.0m (prior year: €262.6m). Earnings before interest and taxes (EBIT) rose significantly, to €44.2m (prior year: €32.2m) – but benefited from one-time capital gains from asset sales. The adjusted EBIT margin increased to 13.4 percent (prior year: 12.6 percent). Earnings per share reached €0.38 (prior year: €0.21).

Dr. Ludwin Monz, President and CEO of Carl Zeiss Meditec AG, is satisfied with the start to the year: "We closed the first quarter with encouraging increases in revenue and operating profit. And we continue to consistently pursue our strategy of being a solutions provider for our customers worldwide."

Ophthalmology, in particular, contributed to growth: the Ophthalmic Devices strategic business unit (SBU) increased its revenue by 8.5 percent in the first quarter of the current fiscal year (adjusted for currency effects: 7.4 percent), to €207.6m, compared with €191.3m in the same period of the previous year. The business with laser systems for refractive vision correction developed particularly well. Additional growth is anticipated during the further course of the fiscal year due the planned launch of the minimally invasive laser surgery ReLEx^® SMILE in the USA. The sub-segment of Surgical Ophthalmology, the business with intraocular lenses and devices for the treatment of cataracts, also performed well. In Diagnostics, on the other hand, competitive pressure remained strong. The EBIT margin of the Ophthalmic Devices SBU increased further. The one-time proceeds of €7.7m from the disposal of assets at a Surgical Ophthalmology site in Ontario, California, contributed to this growth.

Revenue in the Microsurgery SBU grew by 1.6 percent (adjusted for currency effects: 0.2 percent). Revenue from surgical microscopes and visualization solutions climbed to €72.4m, compared with €71.3m in the prior year. The key markets in North America and Asia exhibited a sideways trend at the start of the year. The profitability of the Microsurgery SBU remained at an above-average level and increased slightly compared with the prior year.

Another strong performance was achieved by the Asia/Pacific (APAC) region. At €105.8m, revenue was significantly higher than the prior-year figure of €83.6m – an increase of 26.6 percent (adjusted for currency effects: 22.9 percent). A large part of this growth is attributable to the Chinese market, as well as Southeast Asia and India.

Revenue in the EMEA region declined by 7.2 percent (adjusted for currency effects: -6.6 percent), to €83.7m (prior year: €90.2m). There was a downturn in business particularly in the United Kingdom, Southern Europe and the Middle East.

Revenue in the Americas region was largely stable, increasing by 1.9 percent (adjusted for currency effects: 0.7 percent) to revenue of €90.5m (prior year: €88.8m).
Earnings per share (EPS) increased significantly year-on-year, to €0.38 (prior year: €0.21). The increase in operating profit contributed to this – the prior year was also affected significantly by extraordinary expenses arising from a financial interest and by negative results from currency hedges.

Carl Zeiss Meditec AG's objective remains to continue growing at at least the same rate as the underlying market in fiscal year 2016/17. The EBIT margin is expected to be within the range also forecast for the medium term, of 13 percent to 15 percent.