JENA, Germany—Carl Zeiss Meditec (ISIN: DE 0005313704) generated revenue of around €974.5 million in the first six months of fiscal year 2022/23, compared to same period in the prior year of €855.4 million, equating to growth of +13.9 percent (+12.4 percent adjusted for currency effects). Earnings before interest and taxes (EBIT) declined to around €143.9 million, compared to  €177.3 million in the first half of the prior year. The EBIT margin was 14.8 percent  compared to 20.7 percent in the period a year ago.

Dr. Markus Weber, president and CEO of Carl Zeiss Meditec AG, said, “We are very satisfied with the revenue growth we have achieved, as we were still very strongly affected by the effects of the COVID-19 pandemic in China and by the tense supply chains in the first six months of fiscal year 2022/23. Despite these difficult conditions, we still managed to generate further double-digit growth. Our focus continues to be on shortening delivery times for our customers and on reducing the high order backlog. At the same time, we shall continue our strategic investments in research and development at a fast pace,” he said.

Revenue in the strategic business unit (Strategic Business Unit, SBU) ophthalmology increased by +13.9 percent in the first half of fiscal year 2022/23 (adjusted for currency effects: +12.3 percent) to €742.6 million compared to €651.9 million in the year-ago period ). The company noted that surgical ophthalmology and diagnostics made a solid contribution to the growth.
 
In spite of the ongoing supply chain shortages, more equipment was delivered, the announcement said. The product mix developed less favorably than in the strong prior-year period.

The strategic business unit of microsurgery achieved revenue growth of +13.9 percent (+12.7 percent adjusted for currency effects), from €203.5 million in the prior year to €231.9 million this year. This SBU continues to be impacted by the strain in the supply chains. The order backlog remains high.

Carl Zeiss Meditec's revenue in the EMEA region increased by +7.9 percent (adjusted for currency effects: +8.4 percent), to €247.2 million versus €229.2 million in the prior year period. Positive growth contributions came from Southern Europe, among other places. The core markets of Germany, France, Spain and the U.K. recorded stable growth.

Revenue in the Americas region increased by a significant 27.6 percent or 19.4 percent adjusted for currency effects, from €212.2 million a year ago to €270.7 million this year. A partial conversion of the high order backlog also contributed to this. The majority of markets, including the U.S., recorded growth well into the double-digit percentage range.

The APAC region made a solid contribution to growth. Revenue increased by +10.3 percent (adjusted for currency effects: +11.0 percent) to €456.7 million, compared to  €414.1 million in the prior year first half. India and Southeast Asia, in particular, are making good contributions to revenue growth. On the other hand, the Japanese and South Korean markets declined slightly.

In spite of solid revenue growth, the operating result (earnings before interest and taxes, EBIT) remained below the prior-year level after the first six months of fiscal year 2022/23, at €143.9 million. The company said, "This downward trend is primarily due to a weaker product mix as a result of a smaller proportion of consumables at the start of the fiscal year, associated, among other things, with the COVID-19 pandemic in China.

"At the same time, strategic investments in research and development, for example in the area of digitalization, and sales and marketing continue at a fast pace. Also higher procurement costs due to the strained global supply chains and generally rising labor costs are continuing to have an adverse effect."

Carl Zeiss Meditec AG said it plans to continue its high strategic investments in sales and marketing and research and development in the second half of fiscal year 2022/23. The reduction of the high order backlog in the equipment business began in the second quarter and is expected to continue in the course of the fiscal year.
 
The proportion of consumables is expected to improve significantly again compared with the first six months of fiscal year 2022/23, due, among other things, to the expected recovery in the Chinese market.

Carl Zeiss Meditec AG has therefore consolidated its projections for fiscal year 2022/23. Revenue is expected to increase to around €2.1 billion, which, according to today’s estimates, corresponds to the previous target of growth at least on a par with the underlying markets. The EBIT margin for the whole fiscal year 2022/23 is expected to be between 17 percent to 20 percent 

The Group’s head office is located in Jena, Germany, and it has subsidiaries in Germany and abroad; more than 50 percent of its employees are based in the U.S., Japan, Spain and France.

The Center for Application and Research (CARIn) in Bangalore, India and the Carl Zeiss Innovations Center for Research and Development in Shanghai, China, strengthen the company's presence in these rapidly developing economies. Around 41 percent of Carl Zeiss Meditec AG’s shares are in free float. The remaining approximately 59 percent are held by Carl Zeiss AG.