BUSINESS: Financial Carl Zeiss Meditec Posts Slight Revenue Growth in Q1 of 2023/24 By Staff Monday, February 12, 2024 12:18 AM JENA, Germany—Carl Zeiss Meditec AG (ISIN: DE0005313704) generated revenue of €475.0 million in the first quarter of fiscal year 2023/24 (compared to the prior year: €470.3 million), corresponding to a growth of +1.0 percent (adjusted for currency effects: +3.3 percent), according to a company announcement. Order backlog normalized to around €315 million, a statement noted. Earnings before interest and taxes (EBIT) declined to around €43.5 million (compared to the prior year: €60.3 million). The EBIT margin was 9.2 percent (compared to the prior year: 12.8 percent).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 in the Ophthalmic Devices strategic business unit decreased by -2.0 percent in the first three months of fiscal year 2023/24 (adjusted for currency effects: 0.0 percent), to €351.1 million (compared to prior year: €358.2 million). 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 announcement said.The strategic business unit of Microsurgery achieved revenue growth of +10.6 percent (adjusted for currency effects: +13.7 percent) to €123.9 million (prior year: €112.0 million). The Microsurgery unit continued to benefit from the reduction of the high order backlog, the company noted.Revenue in the EMEA region increased by +28.2 percent (adjusted for currency effects: +30.9 percent) to €156.5 million (compared to prior year: €122.1 million). The core markets France, Italy and Spain are making positive contributions to growth.Revenue in the Americas region decreased by -19.9 percent (adjusted for currency effects: -16.6 percent) from €139.9 million to €112.1 million. The positive trend in Latin America continued, while the U.S. experienced a decline at the start of the fiscal year.The APAC region recorded a slight decline in revenue of -0.9 percent (adjusted for currency effects: +0.4 percent), to €206.4 million (compared to prior fiscal year: €208.2 million). 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.The operating result (earnings before interest and taxes, EBIT) declined in the first quarter of fiscal year 2023/24, to €43.5 million (compared to prior year: €60.3 million). 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 company announced.The EBIT margin in the first three months of fiscal year 2023/24 was 9.2 percent (compared to prior year: 12.8 percent). Adjusted for special effects, this figure was 9.7 percent (prior year: 13.4 percent). In spite of geopolitical risks and an increasingly difficult macroeconomic environment, the company said it 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.