- Double-digit growth in revenue and EBITDA
- Order intake remains at a good level
- Guidance for 2023 confirmed: significant revenue increase and margin improvement expected
“Jenoptik continued to perform very well in the first half-year, with double-digit revenue and earnings growth. Our Advanced Photonic Solutions and Smart Mobility Solutions divisions posted significant revenue growth. Despite the weakening economic environment, we are very optimistic about achieving our targets for 2023, also in view of our high order backlog. We continue to focus on the optimal utilization of our existing capacities and their further expansion,” says Stefan Traeger, President & CEO of JENOPTIK AG.
Revenue growth of approx. 13 percent – profitability significantly improved
The photonics group Jenoptik continued on its course of growth in the first half of 2023, with revenue up by 12.9 percent to 504.9 million euros (prior year: 447.2 million euros), driven by the Advanced Photonic Solutions and Smart Mobility Solutions divisions. Jenoptik posted its strongest revenue increase in Asia/Pacific, with a rise of 23.7 percent, followed by Europe (including Germany) with 15.8 percent. In the Americas, revenue was slightly above the very high level of the prior year. Overall, 75.2 percent of revenue was generated abroad (prior year: 75.9 percent).
EBITDA again grew at a faster rate than revenue, mainly due to the good performance of the Advanced Photonic Solutions division and the improvement in earnings of the Non-Photonic Portfolio Companies, and at 91.6 million euros was 31.6 percent up on the prior-year figure of 69.6 million euros. The corresponding margin improved to 18.1 percent (prior year: 15.6 percent). Group EBIT came to 53.9 million euros, compared with 36.9 million euros in the prior-year period. Despite higher interest and tax expenses, group earnings after tax of 32.7 million euros also significantly exceeded the prior year’s figure of 23.3 million euros. Earnings per share came to 0.56 euros (prior year: 0.41 euros).
Order intake remains at a good level
As expected, the Group’s order intake of 546.9 million euros in the first half-year of 2023 was down on the very high prior-year figure of 608.6 million euros. As a result of a book-to-bill ratio above one, the order backlog grew to 766.6 million euros compared with the end of 2022 (31/12/2022: 733.7 million euros). Jenoptik is continuing to expand its production capacities in response to strong demand, primarily through the construction of a new fab for the semiconductor equipment industry in Dresden and a new site for the medical technology business in Berlin, which opened in June. At 53.2 million euros, capital expenditure in the first half-year was accordingly higher than the prior year’s figure of 42.1 million euros.
Balance sheet and financial position remain strong
The free cash flow before interest and taxes increased from 12.6 million euros in the prior year to 26.1 million euros, mainly driven by higher earnings. The cash conversion rate grew to 28.5 percent (prior year: 18.2 percent). The equity ratio on the reporting date was 50.9 percent (31/12/2022: 50.4 percent) and net debt was 500.6 million euros (31/12/2022: 479.0 million euros). Leverage, net debt in relation to EBITDA, came to 2.4 (31/12/2022: 2.6). Jenoptik thus continues to have very solid financial and balance sheet ratios.
Business development by the divisions
The Advanced Photonic Solutions division continued to perform very well, with revenue increasing by 13.3 percent from 344.3 million euros to 390.0 million euros. In particular the business with the semiconductor equipment industry, but also in the industrial solutions area, saw strong revenue increases in the first half-year. The division’s EBITDA margin came to 21.8 percent, slightly down on the prior-year figure of 22.4 percent. The reason for the decline was an exceptionally high margin in the second quarter of the prior year which was driven by mix effects. As expected, the order intake of 422.1 million euros was down on the very high prior-year figure of 466.5 million euros.
The Smart Mobility Solutions division reported significant revenue growth of 22.4 percent to 54.7 million euros in the first six months (prior year: 44.7 million euros). Revenue growth was particularly strong in Asia/Pacific and Europe. The EBITDA margin increased from 3.0 percent to 8.1 percent, mainly as a result of higher revenue. Due to the typical fluctuations in the project business, the division’s order intake of 62.5 million euros in the first half-year was down on the prior-year figure of 75.4 million euros.
At 58.2 million euros, revenue of the Non-Photonic Portfolio Companies was slightly above the prior-year figure of 57.1 million euros. EBITDA amounted to 7.0 million euros (prior year: minus 0.1 million euros), driven by higher earnings from Prodomax and HOMMEL ETAMIC as well as the elimination of negative impacts from projects in the automation business. At 59.7 million euros, order intake was down on the prior-year figure of 65.3 million euros following a strong year-end 2022.
Guidance for the fiscal year 2023 confirmed
In view of good business performance in the first half-year, the Executive Board of JENOPTIK AG confirms its guidance for the full year 2023. The Group continues to expect revenue of between 1,050 and 1,100 million euros and an EBITDA margin of 19.0 to 19.5 percent. This forecast is based on the assumption that geopolitical risks do not worsen. These include, for example, the Ukraine conflict – with the sanctions that have been put in place and potential impacts on price developments, energy supplies, and supply chains. Potential portfolio changes are not considered in this forecast.
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