EQS-News: Carl Zeiss Meditec achieves slight revenue growth in first three months of 2024/25

JENA, 12 February 2025

Carl Zeiss Meditec generated revenue of €490.5m in the first three months of fiscal year 2024/25 (prior year: €475.0m), corresponding to growth of +3.2% (adjusted for currency effects: +3.3%). Adjusted for currency and acquisition effects, growth remained down at -7.3% at the beginning of the year, as expected. However, order entry and order backlog increased significantly. EBITA[1] declined to around €35.2m (prior year: €46.0m). The EBITA margin was 7.2% (prior year: 9.7%).

Dr. Markus Weber, President and CEO of Carl Zeiss Meditec AG commented on the Q1 results: "As expected, the first three months were still affected by the high comparative base of the prior year in the equipment business and the product cycle transition to new models for neurosurgical microscopes and refractive laser systems. Nevertheless, we were able to post slight growth thanks to the DORC acquisition. The good response to the new products, the approval of our VISUMAX^® 800 refractive laser system for the Chinese market and the general recovery in order entry and order backlog give us confidence that we will return to solid organic growth in the coming months."

Slight sales growth thanks to DORC consolidation

Revenue in the Ophthalmology strategic business unit (SBU) increased by +7.1% in the first three months of fiscal year 2024/25 (adjusted for currency effects: +7.2%), to €376.2m (prior year: €351.1m). The acquisition of DORC was the main contributor to this. Adjusted for acquisitions and currency effects, revenue fell by 7.1% compared to the prior year. The weak underlying revenue performance is due to high comparative figures for equipment deliveries in the prior year and weak business in China, which was affected by a reluctance to invest in equipment (as the result of speculation about forthcoming economic stimulus packages for medical technology in the course of 2025) and price declines for intraocular lenses (following the introduction of new national volume based procurement in the previous year). Product cycle effects, particularly due to the upcoming market launch of the VISUMAX^® 800 in China, are depressing demand for the predecessor systems.

The Microsurgery strategic business unit posted a 7.8% decline in revenue (adjusted for currency effects: -7.8%) to €114.3m (prior year: €123.9m). The decline in revenue was due to a particularly strong delivery period in the previous year and product cycle effects in neurosurgical microscopes before the expected increase in deliveries of the new KINEVO^® 900S neurosurgical microscope in the second and third quarters of 2024/25.

The recurring revenue was 47.3% (prior year: 36.1%). The increase was mainly due to the DORC acquisition.

Positive contributions to revenue from EMEA[2] and Americas

Revenue in the EMEA region increased by +11.2% (adjusted for currency effects: +11.8%) to €174.0m (prior year: €156.5m). The German, UK and Scandinavian markets made positive contributions to the growth.

Revenue in the Americas region increased by +19.3% (adjusted for currency effects: +18.6%) from €112.1m to €133.7m. North America recorded double-digit percentage growth, with the US growing significantly compared to its weak performance in the prior-year period.

The APAC^[3] region recorded a decline in revenue of -11.5% (adjusted for currency effects: -11.4%), to €182.7m (prior fiscal year: €206.4m). India made a positive contribution here. The Chinese and Japanese markets, on the other hand, recorded a decline in revenue.

Net income lower than in prior year due to weak organic growth and negative product mix development

The operating result (EBITA) declined in the first three months of fiscal year 2024/25, to €35.2m (prior year: €46.0m). Gross margin declined to 51.4% (prior year: 53.2 %) due to weak organic growth and negative product mix effects – mainly resulting from declines in the equipment business compared to a strong delivery period in the prior year and a drop in prices for intraocular lenses in China.

The EBITA margin in the first three months of fiscal year 2024/25 was 7.2% (prior year: 9.7%). Adjusted for special effects, it was 6.7% (prior year: 9.7%). Earnings per share amounted to €0.18 (prior year: €0.42) in the first three months. Adjusted earnings per share amounted to €0.36 (prior year: €0.47).

Outlook for the further course of business in 2024/25

Carl Zeiss Meditec is expecting the global macroeconomic situation to remain challenging in 2024/25 and anticipates neither a rapid recovery in the investment climate for equipment nor any reduction in the pressure on consumer spending on elective procedures. Revenue is expected to return to moderate growth. The cost containment measures remain in force. New product launches offer additional potential for business growth over the course of the year. The EBITA and EBITA margin are expected to be stable or slightly higher in the 2024/25 fiscal year.

Revenue by strategic business unit

Revenue by region

Further information on our publication and the Analyst Conference Call on the results for the first three months of fiscal year 2024/25 can be found at https://www.zeiss.de/meditec-ag/investor-relations/finanzkalender/telefonkonferenzen.html

Contact for investors and press

Sebastian Frericks

Head of Group Finance & Investor Relations

Carl Zeiss Meditec AG

Phone: +49 3641 220-116

Email: investors.med@zeiss.com
 

www.zeiss.de/presse

^[1] Earnings before interest, taxes and amortization of intangible assets from purchase price allocation

^[2] Europe, Middle East, Africa

^[3] Asia/Pacific