Carl Zeiss Meditec accelerates growth in the first six months of 2016/17

Jena/Germany | Carl Zeiss Meditec AG

Carl Zeiss Meditec continued its growth trend in the first six months of 2016/17. Revenue increased by 8.6 percent (adjusted for currency effects, 7.1 percent), to €587.5m (prior year: €540.8m). Earnings before interest and taxes (EBIT) rose significantly, to €95.1m (prior year: €75.3m). The adjusted EBIT margin increased to 15.2 percent (prior year: 14.3 percent). Earnings per share reached €0.76 (prior year: €0.59).

Dr. Ludwin Monz, President and CEO of Carl Zeiss Meditec AG, comments on the first-half results: “We achieved impressive growth rates and in the first six months of 2016/17 and continued to increase our market shares with our leading portfolio in Ophthalmic Surgery. Furthermore, we were able to launch a range of new products to market, both in Ophthalmology and in Microsurgery.”

Ophthalmology, in particular, contributed to growth: the Ophthalmic Devices strategic business unit (SBU) increased its revenue by 10.6 percent in the first six months of the current fiscal year (adjusted for currency effects: 9.2 percent), to €433.1m, compared with €391.6m in the same period of the previous year. The business with laser systems for refractive vision correction developed particularly well. The sub-segment of Surgical Ophthalmology, the business with intraocular lenses and devices for the treatment of cataracts, achieved significant revenue growth, and Carl Zeiss Meditec expanded its market share. The EBIT margin of the Ophthalmic Devices SBU increased further. Aside from a favorable product mix, this was also attributable to one-time disposal proceeds from plants located in Ontario, California, in the amount of €7.7m, as reported in the first quarter of 2016/17.

Revenue in the Microsurgery SBU grew by 3.5 percent (adjusted for currency effects: 1.8 percent). Revenue from surgical microscopes and visualization solutions climbed to €154.4m, compared with €149.1m in the prior year. The profitability of the Microsurgery SBU remained at an above-average level and increased slightly compared with the prior year. Significant new products were launched in the neuro and dental surgery market in March and April 2017, with the introduction of the KINEVO 900 visualization system and the EXTARO 300 surgical microscope.

Another strong performance was achieved by the Asia/Pacific (APAC) region. At €227.2m, revenue was significantly higher than the prior-year figure of €186.7m – an increase of 21.7 percent (adjusted for currency effects: 18.4 percent). A large part of this growth is again attributable to the Chinese market, as well as Southeast Asia and India.

Revenue in the EMEA region declined slightly by 1.3 percent in the first six months of 2016/17 (adjusted for currency effects: -0.6 percent) - however, compared with a weak start of the year, the business development was more stable in the the second quarter of 2016/17. Revenue of €175.4m (prior year: €177.7m) was recorded. There was a downturn in business particularly in the United Kingdom, Southern Europe and Middle East.

Revenue in the Americas region further increased by 4.8 percent (adjusted for currency effects: 2.7 percent) to revenue of €184.9m (prior year: €176.4m).

Earnings per share (EPS) increased significantly year-on-year, to €0.76 (prior year: €0.59). The increase in operating profit contributed to this. The revenue target of Carl Zeiss Meditec AG lies within the range of €1,150m to €1,190m for 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.