Carl Zeiss Meditec remains on growth course in fiscal year 2021/22

Jena, Germany | Carl Zeiss Meditec AG

Carl Zeiss Meditec generated revenue of around €1,903m in fiscal year 2021/22 (prior year: €1,647m), corresponding to growth of +15.5% (adjusted for currency effects: +13.3%). Orders received increased even more significantly to around €2,251m (+30.1%, adjusted for currency effects: +27.7%). Earnings before interest and taxes (EBIT) increased to around €397m (prior year: €374m). The EBIT margin was 20.9% (prior year: 22.7%).

Dr. Markus Weber, President and CEO of Carl Zeiss Meditec AG: ““Once again, we are looking back on a very successful fiscal year. Given the heightened geopolitical and macroeconomic risks and the rising inflation rate, we are extremely satisfied with the result achieved. Due to the well filled order books and steady demand for our innovations, we are confident that we will remain on a growth course in 2022/23.””

Revenue in the strategic business unit (SBU) Ophthalmic Devices increased by +17.0% in fiscal year 2021/22 (adjusted for currency effects: +15.0%), to €1,469m (prior year: €1,256m). In particular the business with recurring revenue from consumables, implants and services made a significant contribution to this growth. Orders received increased from €1,319m to €1,721m, an increase of +30.5% (adjusted for currency effects: +28.3%). In addition to robust demand in the equipment and consumables business, this is also attributable to the increase in production and delivery time in the equipment business due to shortages in the global supply chains and materials procurement.

The sales recovery continued in the strategic business unit Microsurgery and also exceeded market growth, with revenue increasing by +10.9% (adjusted for currency effects: +7.8%) to €434m (prior year: €391m). Orders received have recently developed disproportionately to revenue and increased by 28.6% (adjusted for currency effects: 25.7%), from €412m to €530m. In addition to strong demand, this is also attributable to the increase in production and delivery times in the equipment business, due to strained supply chains, and in materials procurement.

Revenue in the EMEA¹ region increased by +6.1% (adjusted for currency effects: +6.5%), to €459m (prior year: €433m). The core markets Germany, France and Southern Europe and the United Kingdom continued to record solid growth.

Revenue in the Americas region increased by +8.4% (adjusted for currency effects: -0.1%) to €487m (prior year: €449m), mainly thanks to positive currency effects. After adjustment for currency effects, revenue in the USA developed at a roughly constant level compared with the prior year.

Once again, the APAC² region made the strongest contribution to growth. Revenue increased by 25.0% (adjusted for currency effects: +25.0%) to €957m (prior year: €765m). China and India had the highest growth rates.

The operating result (earnings before interest and taxes: EBIT) increased to €397m in fiscal year 2021/22 (prior year: €374m). A more favorable product mix with a high proportion of recurring revenue of 46% (prior year: +41%) had a positive effect in this respect. This positive development is also attributable to stockpiling of consumables in the mid-double-digit millions range in the Chinese distribution channel. The majority of this took place in the second half of the fiscal year to provide for potential future lockdowns due to the Zero-COVID-Policy in China. In relation to revenue, an EBIT margin of 20.9% (prior year: 22.7%) was achieved in fiscal year 2021/22. Adjusted for special effects, this figure was 21.4% (prior year: 23.0%). Earnings per share increased to €3.29 (prior year: €2.64). Due to the successful fiscal year, shareholders are to receive an appropriate share of the profits. The Management Board therefore plans to propose a dividend of €1.10 (prior year: €0.90) to the Annual General Meeting.

Due to the positive development of business and the high volume of orders, the Company is looking ahead to fiscal year 2022/23 with optimism. On the other hand, macroeconomic and political uncertainties, such as the tension in the global supply chains, the high inflation rate, China’’s COVID Policy and the war between Russia and Ukraine continue to persist. For Q1 2022/23, the EBIT margin is expected to fall significantly short of the prior year’’s figure, due among other things to the widespread lockdown situation in China and a weaker product mix as well as rising operating costs. Assuming that the above-mentioned risk factors do not worsen further in the course of the year, however, revenue growth for fiscal year 2022/23 is expected to be at least as high as market growth, with an EBIT margin of around 19 to 21%. Cost increases from expansion of the workforce, wage settlements and the supply chains may cause additional burden.

In the medium term, the EBIT margin is expected to establish itself at a level sustainably above 20%. The rising proportions of recurring revenue are making a positive contribution to this. Conversely, planned strategic investments in Research & Development and Sales & Marketing remain high.