Carl Zeiss Meditec generated revenue of €475.0m in the first quarter of fiscal year 2023/24 (prior year: €470.3m), corresponding to a growth of +1.0% (adjusted for currency effects: +3.3%). Order backlog normalized to around €315m. Earnings before interest and taxes (EBIT) declined to around €43.5m (prior year: €60.3m). The EBIT margin was 9.2% (prior year: 12.8%).
Dr. Markus Weber, President and CEO of Carl Zeiss Meditec AG commented on the Q1 results: “We have made a solid start to the new fiscal year. The planned measures to clear the Chinese distribution channel as well as currency developments have impacted revenue and earnings as anticipated. However, a positive effect resulted from the equipment business, which achieved good deliveries and significantly improved production times.”
Revenue growth primarily boosted by equipment business and SBU Microsurgery
Revenue in the Ophthalmic Devices strategic business unit (SBU) decreased by -2.0% in the first three months of fiscal year 2023/24 (adjusted for currency effects: 0.0%), to €351.1m (prior year: €358.2m). In particular the planned reduction of stocks of consumables for refractive surgery in the Chinese distribution channel had an adverse effect. Currency effects also had a negative impact.
The strategic business unit Microsurgery achieved revenue growth of +10.6% (adjusted for currency effects: +13.7%) to €123.9m (prior year: €112.0m). The SBU continued to benefit from the reduction of the high order backlog.
Heterogeneous sales development in the reporting regions
Revenue in the EMEA1 region increased by +28.2% (adjusted for currency effects: +30.9%) to €156.5m (prior year: €122.1m). The core markets France, Italy and Spain are making positive contributions to growth.
Revenue in the Americas region decreased by -19.9% (adjusted for currency effects: -16.6%) from €139.9m to €112.1m. The positive trend in Latin America continued, while the U.S. experienced a decline at the start of the fiscal year.
The APAC2 region recorded a slight decline in revenue of -0.9% (adjusted for currency effects: +0.4%), to €206.4m (prior fiscal year: €208.2m). India and Southeast Asia are making positive contributions. The Chinese market, meanwhile, showed a decline in revenue due to the planned reduction of stocks of surgical consumables.
Operating result down compared with prior year, as expected
The operating result (earnings before interest and taxes, EBIT) declined in the first quarter of fiscal year 2023/24, to €43.5m (prior year: €60.3m). As expected, gross profit came under considerable pressure due to a less favorable product mix – resulting from a higher proportion of devices and a lower proportion of consumables due to the reduction of stocks in the Chinese distribution channel.
The EBIT margin in the first three months of fiscal year 2023/24 was 9.2% (prior year: 12.8%). Adjusted for special effects, this figure was 9.7% (prior year: 13.4%). Earnings per share benefited from gains on currency hedges and amounted to €0.42 in the first quarter (prior year: €0.57).
Outlook for the further course of business in 2023/24
In spite of geopolitical risks and an increasingly difficult macroeconomic environment, the Company generally expects to see further market growth. Revenue is expected to grow at least in line with the market growth. A gradual recovery of the EBIT margin is expected in the further course of the year. EBIT for fiscal year 2023/24 as a whole is expected to be around the prior year’s level.
