BUSINESS Carl Zeiss Meditec Reports Revenue and Orders Increased Over Nine-Month Period By Staff Monday, August 8, 2022 12:30 AM JENA, Germany—Carl Zeiss Meditec (ISIN: DE 0005313704) generated revenue of €1,332.9 million in the first nine months of fiscal year 2021/22 (prior year: €1,198.2 million), corresponding to an increase of 11.2 percent (adjusted for currency effects: +9.8 percent) compared with the same period of the prior year. Order intake increased at a much higher rate than revenue, rising 36.0 percent to €1,750.5 million (prior year: €1,287.6 million). Earnings before interest and taxes (EBIT) at €275.9 million were only slightly below the previous year's level of €282.8 million, which had still benefited considerably from lower operating costs during the COVID-19 pandemic.The EBIT margin was 20.7 percent versus prior 23.6 percent for the prior year. The adjusted EBIT margin was 21.2 percent (prior year: 23.9 percent). “In the last few months, the continuing tense global supply chain situation and the COVID-19 lockdown in Shanghai have presented us with major challenges, but our teams have once again managed to overcome them superbly. I am therefore highly satisfied with the very solid revenue growth and the even stronger order intake. Our markets and our portfolio are developing at a strong pace,” said Dr. Markus Weber, CEO of Carl Zeiss Meditec AG. Revenue in the Ophthalmic Devices strategic business unit (SBU) increased by 11.2 percent in the first nine months of fiscal year 2021/22 (adjusted for currency effects: +10.0 percent) to €1,027.2 million (prior year: €923.4 million). Recurring revenue from consumables, implants and services once again contributed significantly to the growth. The equipment business continued to be impacted by supply chain bottlenecks. Orders received in the Ophthalmic Devices SBU increased disproportionately to revenue. Revenue in the Microsurgery SBU increased by 11.2 percent (adjusted for currency effects: +9.2 percent) to €305.7 million versus €274.8 million a year ago. Orders received in the Microsurgery SBU likewise increased at a much higher rate than revenue, Zeiss said. Revenue in the EMEA region increased by 5.3 percent (adjusted for currency effects: +6.5 percent) to €334.2 million compared with €317.3 million for the prior year. Orders received in the core European markets exhibited a very positive trend, according to Zeiss. Revenue in the Americas region increased by 8.0 percent (adjusted for currency effects: +1.1 percent) to €330.4 million compared with €305.9 million for the prior year. Contributors to this are both the stable development in the U.S. as well as a further recovery in the countries of South America. In the APAC region, revenue increased to €668.3 million, compared with €575.0 million in the prior year (+16.2 percent; adjusted for currency effects: +16.2 percent). The strongest contributions to growth came from China and India. The Japanese market also recorded growth. The operating result (earnings before interest and taxes: EBIT) was close to the previous year’s level at €275.9 million in the first nine months of fiscal year 2021/22 level versus €282.8 million for the prior year. Revenue growth, as well as the increasing share of recurring revenue and favorable currency effects, had a positive impact on operating result, Zeiss said. Scheduled larger investments in sales and marketing and R&D had an adverse effect on operating result. EBIT of the previous year had benefited from low sales and marketing costs during the COVID-19 pandemic. The EBIT margin decreased to 20.7 percent versus 23.6 percent for the previous year. Adjusted for special effects, this amounted to 21.2 percent compared with 23.9 percent the previous year. Zeiss confirmed its outlook for fiscal year 2021/22. Revenue is expected to be at least around €1.8 billion, while EBIT margin in fiscal 2021/22 should be in the upper range of the previous forecast range of 19 percent to 21 percent. The forecasts for revenue and EBIT assume that the COVID-19 situation in China and the global supply chain situation do not deteriorate further in fourth quarter 2021/22.