JENA/Germany, 11.02.2015. Aided by currency effects, Carl Zeiss Meditec AG started financial year 2014/15 by increasing its revenue by 13.6 percent to 241.1 million (previous year: 212.3 million). In spite of increased R&D spending, earnings before interest and taxes (EBIT) reached 27.9 million in the first quarter (previous year: 26.5 million), which corresponds to an EBIT margin of 11.6 percent (previous year: 12.5 percent). All three strategic business units (SBUs) achieved growth in the reporting period; development in the individual regions varied.
Adjusted for the increase in costs for the strategic research project in ophthalmology announced in December 2014, the EBIT margin would have been slightly higher, at 12.9 percent, than the previous years EBIT margin of 12.6 percent. At 19.4 million, consolidated net income was down by 9.4 percent compared with the same period of the previous year ( 21.4 million). This decline was mainly attributable to a significantly lower result from currency hedging transactions compared with the previous year. In terms of revenue, currency effects once again contributed to growth, accounting for around 3 percent, in addition to minor acquisition effects; on an adjusted basis, growth would have amounted to 9 percent.
Dr. Ludwin Monz, President and CEO of Carl Zeiss Meditec AG, gave his take on the 3-month figures: Our company is showing positive development. With targeted investments in the field of ophthalmology and microsurgery and with cost-cutting in diagnostics, we are laying the foundations today to sustainably secure our growth and earnings power in future."
Revenue by business unit
In the first quarter, business development was reported on the basis of a modified structure for the first time. The presentation of figures since the beginning of financial year 2014/15 is based on business fields and the respective, underlying market segments. Accordingly, surgical microscope for ophthalmic surgery are no longer be allocated to the Microsurgery SBU, but are instead assigned to the Surgical Ophthalmology SBU. Diagnostic devices used preoperatively for cataract surgery, which were previously assigned to the Ophthalmic Systems SBU, are now part of the business of the Surgical Ophthalmology SBU.
Based on the modified structure, the Microsurgery SBU increased its revenue, on a comparable basis, by 4.6 percent to 67.8 million (previous year: 64.8 million), which corresponds to growth of 2.6 percent, after adjustment for currency effects.
The revenue of the Ophthalmic Systems SBU in the new structure (comparatively) climbed by 13.5 percent to around 91.7 million, compared with the previous years figure of 80.8 million, although the area of diagnostics within this sector continues to be hampered by strong pricing and competitive pressure, to which the Company shall respond in the coming financial year with cost-cutting measures. Positive development was achieved in this SBU in the areas of Refractive Lasers and Service. Adjusted for currency effects, the SBU's revenue increased by 8.6 percent.
Once again the highest growth rate was achieved by the now newly assembled Surgical Ophthalmology SBU. This SBUs revenue increased by 22.4 percent, on a comparable basis, to around 81.6 million (previous year: 66.7 million). Even without taking into consideration the first-time consolidation of Aaren Scientific Inc., Ontario, California, which specializes in the manufacture of intraocular lenses, this SBU achieved an organic growth rate well into the double-digit percentage range.
Development by region
EMEA (Europe, Middle East and Africa): In the EMA region, revenue increased by 22.7 percent to 86.5 million in the first three months (previous year: 70.5 million). As in prior quarters, development on the individual markets is highly heterogeneous. Germany and the UK recorded strong growth rates; revenue in Southern Europe recovered further Spain performed particularly well, due to purchases brought forward in reaction to an impending VAT increase; business in Russia continues to decline.
Americas: Revenue in the Americas region increased by 4.0 percent, to 80.6 million (previous year: 77.6 million). This region benefited in particular from the strength of the US dollar. Adjusted for currency effects, the Americas would have recorded a revenue decline of 3.3 percent.
APAC (Asia/Pacific region): The APAC region achieved a revenue increase of 15.1 percent in the first quarter, to 73.9 million (previous year: 64.2 million). Adjusted for currency effects, growth was on a comparable scale, at 16.2 percent. As in prior quarters, revenue in Japan continued to decline after the sharp increase in value added tax in the previous year. Substantial contributions to growth came from China and Australia.
Outlook
Over the past few months ZEISS has enriched the medical technology industry with a number of significant product innovations. The CT LUCIA, for example, an intraocular lens for the standard segment, which is manufactured at the new Aaren Scientific Inc. site in Ontario (California), was launched in September 2014. The optical biometry portfolio was also expanded in September, with the IOLMaster 700. This is a new product generation, which also includes the highly innovative, integrated SWEPT Source OCT technology. Ludwin Monz: "Our company has a strong product portfolio. We have also been able to set new benchmarks in the market with the successful launch of our new products. We are optimistic in the current financial year that we will be able to further strengthen our market position. As announced, our EBIT margin is also expected to remain within the projected range of 13 to 15 percent throughout the course of the year.
Revenue by strategic business unit
Figures in EUR 000 3 Months 2013/14 3 Months 2014/15 Cha
