Carl Zeiss Meditec AG continues its growth trend

Positive revenue and earnings trend – further growth in recurring revenue

09-Dec-2016 - Germany

Carl Zeiss Meditec AG has brought financial year 2015/16 to a successful close with further growth: Revenue increased by 4.6 percent (adjusted for currency effects: 2.7 percent) to €1,088.4m. Earnings before interest and taxes (EBIT) rose to €154.3m (prior year: €130.6m). The EBIT margin increased to 14.2 percent (prior year: 12.6 percent). Earnings per share reached €1.21 (prior year: €0.77).

Dr. Ludwin Monz, President and CEO of Carl Zeiss Meditec AG looks back on the past fiscal year with satisfaction: "We have achieved profitable growth and met our forecast revenue range of €1,080 – €1,120m. We have also gained additional market share, particularly in ophthalmology. The trend in recurring revenue is also positive – as much as 32 percent of our business is attributable to consumables for cataract and refractive surgery, service revenue and other recurring sources of revenue. The new organizational structure announced in July 2016 will help us to offer our customers an even better service and to seize additional opportunities for growth."

Strongest growth in Ophthalmic Systems SBU

Both Ophthalmology business units achieved growth: revenue in the Ophthalmic Systems SBU (OPH) increased by 7.5 percent in the fiscal year, to €421.2m, compared with €392.0m in the same period of the prior year. Adjusted for currency effects, revenue increased by 5.2 percent. The business with laser systems for refractive vision correction developed particularly well. The Surgical Ophthalmology SBU (SUR) increased its revenue by 4.3 percent (adjusted for currency effects: 2.9 percent) to €370.7m (prior year: €355.3m). Significant increases were once again achieved by intraocular lenses for treating cataracts. Under the new SBU structure, the combined SBU Ophthalmic Devices would have grown revenue to €791.9m – an increase of 6.0 percent (4.1 percent adjusted for currency effects).

Revenue growth in the Microsurgery SBU was 1.3 percent and was boosted by positive currency effects. Revenue from surgical microscopes and visualization solutions climbed to €296.5m, compared with €292.8m in the prior year. The development of business in the Japanese market was particularly restrained. Adjusted for currency effects, revenue was down by -0.9 percent, thus remaining slightly below the level of a year ago.

Asia/Pacific becomes largest reporting region

After another strong performance by Asia/Pacific, this reporting region has become the largest segment for the first time. At €381.7m, revenue was significantly higher than the prior-year figure of €319.4m – an increase of 19.5 percent. Adjusted for currency effects, this growth would still have amounted to 15.5 percent. A large part of this growth is attributable to the Chinese market, as well as Southeast Asia and South Korea.

Revenue in the EMEA region declined slightly, by 1.7 percent to €352.7m (prior year: €358.8m). Germany, France and the United Kingdom made good contributions to revenue Business in Southern Europe and the Middle East declined.

Revenue in the Americas region decreased by 2.2 percent to €354.0m (prior year: €361.9m). The strength of the US dollar had a positive effect in this region. The persistently high competitive pressure had a curbing effect, particularly in the area of ophthalmic diagnostics. Adjusted for currency effects, a decline of -4.9 percent was recorded compared with the prior year.

Earnings per share (EPS) increased significantly year-on-year, to €1.21 (prior year: €0.77). The increase in operating profit contributed to this – the prior year was also affected significantly by extraordinary expenses arising from a financial interest.

Carl Zeiss Meditec AG has set itself the target to continue growing at least the same rate as the underlying market in fiscal year 2016/17. The EBIT margin is expected to continue to move within the range also forecast for the medium term, of 13-15 percent.

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