Facing a slight downturn in the overall market, Medical technology provider Carl Zeiss Meditec AG raised its revenue by 2.9 percent to EUR 649 million (previous year: EUR 630.8 million) in the first nine months of financial year 2011/2012. In the first nine months of the current financial year, the Company increased its earnings before interest and taxes (EBIT) from EUR 88.6 million to EUR 92.5 million and confirms its revenue forecast for the whole year.
"Thanks to our balanced global presence we achieved once again a solid result despite disparate development in the strategic business units and we consider ourselves to be well on the way for achieving our goals in the current financial year", says Dr. Ludwin Monz, President and CEO of Carl Zeiss Meditec AG. The Company is predicting sales totaling between EUR 880 and 910 million in the current financial year 2012/2013.
According to Ludwin Monz, the expansion of the solutions business will have a positive effect also beyond the end of the current financial year. However, the Company expects continued competitive pressure in parts of the ophthalmic market and lower growth rates in microsurgery which may tend to lead to a lower gross margin. “Even in view of the economic downturns we continue to adhere to our targets for 2015. We want to increase the percentage of case-number-dependent products and services in consolidated revenue to 25 percent and to achieve an EBIT margin of 15 percent", comments Ludwin Monz. In the first nine months of the current financial year EBIT margin was 14.3 percent and thus 0.3 percentage points higher than in the same period of the previous year. Thanks to the positive financial result earnings per share moved sharply higher to EUR 0.81 (previous year: EUR 0.65).
Key figures by region and business units at a glance
In the first nine months the three strategic business units showed different dynamics. After a weak start at the beginning of the year Ophthalmic Systems held their ground again. Even in a continued tense competitive situation, a slight revenue growth of 0.2 percent from EUR 266.3 million to EUR 266.8 million could be achieved. Compared to the previous year, growth in Microsurgery was significantly more moderate and drew closer to the generally more restrained market development. The revenue rose by 1.7 percent to EUR 289.5 million compared to € 284.7 million in the previous year. The Company benefited once again from the continuing development in the business with intraocular lenses. In the Surgical Ophthalmology business unit, revenue increased by 16.2 percent to EUR 92.7 million. In the previous year the figure was EUR 79.8 million.
The three reporting regions recorded comparable growth. In the EMEA region (Europe, Middle East, Africa) revenues were up by 3.0 per cent. As in the first months of the financial year, the declines in Southern European countries were once again overcompensated for by the continued positive development of business in Germany, the persistently strong growth in Russia and the good growth overall in the Middle East. The Americas region grew by 2.8 percent. Carl Zeiss Meditec recorded excellent growth rates in South America, while the U.S. market – in spite of a positive third quarter – remained on a slight downward trend. The Asia/Pacific (APAC) region recorded revenue growth of 2.9 percent, whereas growth was reduced once again by currency effects as in the first six months. Adjusted for currency effects, growth was 9.1 percent.
"Even if market conditions are not easy, we consider our prospects of future business development to be good", says Ludwin Monz. "In the coming months it will be absolutely essential to generate growth through innovations in Ophthalmic Systems, to leverage growth potential in Microsurgery facing a restrained market development and to continue the very positive development of Surgical Ophthalmology. Our high levels of R&D investment, which are tailored to sustainability, a deliberate cost management and the well balanced position of our business worldwide shall continue to be the basis of a sound development well into the future."
