JENA/Germany, 05.12.2013. Medical technology company Carl Zeiss Meditec AG met its targets in financial year 2012/2013 with revenue growth of 5.2 percent to 906.4 million and an increase in its EBIT margin of 0.5 percent to 14.8 percent. The Company continued to grow in all its strategic business units and regions. Earnings before interest and tax (EBIT) climbed to 133.9 million (previous year: 122.9 million); boosted further by a good financial result, earnings per share rose to 1.15 (previous year: 0.88).
After particularly positive results in the fourth quarter, medical technology company Carl Zeiss Meditec AG closed financial year 2012/2013 with revenue at the upper end of the previously stated revenue corridor of 880-910 million. The development of earnings was also positive, with an EBIT margin of 14.8 percent. The Company has set itself the target of a sustainable EBIT margin of 15 percent by 2015. All three strategic business units and the three regions made a positive contribution to the revenue of 906.4 million albeit to different extents. The Supervisory Board proposes to the Annual General Meeting a dividend of 45 cents per share.
Dr. Ludwin Monz, President and CEO of Carl Zeiss Meditec AG, gave his take on the positive figures: "Our result is encouraging, especially in light of the unfavourable development of exchange rates. The strategic orientation of our Company is also on the right track. The distribution of revenue and growth across our three business regions is very well balanced, and we have already achieved our target of increasing the proportion of revenue raised by case-number-dependent products and services (recurring revenues) to 25 percent ahead of schedule this financial year." An increase to 30 percent is now realistic in the medium term. "Our position enables us, even in times of volatile markets and growing competition, and falling growth rates in certain sections of our business, to turn our innovative leadership into good results." Crucial to this is not only further strengthening our capacity for innovation, but also expanding our solutions business. Around one in every six employees of Carl Zeiss Meditec AG was working in Research and Development (R&D) in the reporting year; investments in R&D amounted to 10.7 percent of revenue.
Revenue by business unit
Growth in the three Strategic Business Units (SBUs) varied. Although the Ophthalmic Systems SBU more than made up for a decline in sales the first six months from the second half of the year onwards, in spite of ongoing fierce competition, and a generally restrained market trend in the Microsurgery SBU resulted in revenue growth that is merely in the high single-digits, the Surgical Ophthalmology SBU once again achieved double-digit revenue growth, borne in particular by the strong intraocular lens business.
The now moderate growth of 4.2 percent to 394.2 million in the Microsurgery SBU in the financial year (previous year: 378.2 million) is mainly attributable to the general restraint in market development in this segment. There was a perceptible increase in competitive pressure in certain segments within the Ophthalmic Systems SBU. The business activities of this SBU were also affected in the reporting year by a now complete model change in the area of optical coherence tomography (OCT). After a weak start in the first half of the year the SBU significantly overcompensated for its revenue decline, resulting in revenue growth of 4.0 percent for the financial year as a whole, to 391 million (previous year: 375.9 million). Once again, the Surgical Ophthalmology SBU performed extremely well, increasing its revenue by 12.6 percent to 121.3 million (previous year: 107.7 million). This growth is mainly attributable to the sale of premium intraocular lenses for minimally invasive cataract surgery which made significant contributions to revenue.
Revenue by region
With some regional differences, the development of revenue in the EMEA region (Europe, Middle East and Africa) was once again positive overall in the reporting year. The increase of 5.9 percent is mainly due to growth in Germany and the Middle East, which more than offset declines in Southern Europe, in particular. There were also signs of a slight recovery in parts of Southern Europe in the second half of the year.
The trend in the Americas region was positive overall, with revenue growth of 7.8 percent. Positive growth rates were achieved in South America throughout the financial year; in the US, however, revenue declined initially in the first six months, before the onset of a significant recovery in the second half of the year.
Currency effects curbed growth rates considerably in the Asia/Pacific region, resulting in revenue growth of just 1.4 percent here. Adjusted for currency effects, this increase equates to 9.4 percent, with very positive trends in China and Japan, in particular. Southeast Asia also made encouraging contributions to growth.
Outlook
The Company expects the growing demand for medical technology products and systems to continue in the medium and long term. Ludwin Monz therefore considers Carl Zeiss Meditec AG to be well equipped for the future: "Our broad product range, the balanced regional distribution of revenue, the increasing integration of products into solutions, and the growing revenue stream from case-number-dependent products and services, offer a solid foundation for achieving further growth in the financial year that is at least on a par with market development in the industry." The Company also aims to stabilize its EBIT margin at the current level over the next two financial years. The Company is adhering to its medium-term goal to achieve a sustainable EBIT margin of 15 percent in 2015.
Revenue by strategic business unit
Figures in
EUR 000 FY 2011/2012 FY 2012/20
