OBERKOCHEN, Germany—The Zeiss Group reported that its revenue rose to over €10 billion to €10.108 billion, for the first time in the company's history (up 15 percent compared to the prior year.) for the fiscal 2022/2023 year period, ending Sept. 30. Earnings before interest and taxes (EBIT) were also up on the previous year at €1.7 billion compared to €1.6 billion in the prior year. All four segments of the Zeiss Group contributed to this growth despite the challenging market environment, the company said.

"We can look back on another very successful fiscal year. To be able to continue on this dynamic growth path in the future, we need to set the right course now. We are doing this by investing huge sums in our further development," said Dr. Karl Lamprecht, president and CEO of Zeiss. "Our success is based on our distinctive innovative strength. To ensure this continues, we have invested 15 percent of revenue in research and development, personnel development and infrastructure—more than ever before.”

All four Zeiss segments are contributing to growth and the market environment. In addition to the semiconductor manufacturing technology segment and the industrial quality and research segment, the Zeiss medical technology segment, the company noted, "We achieved a significant double-digit increase in revenue in fiscal year 2022/23 and increased market share. In addition, the stabilization of supply chains, particularly in the second half of the fiscal year, and accelerated deliveries in the areas of ophthalmology and microsurgery made a positive contribution to revenue growth.

"In the EMEA and AMERICAS regions, revenue growth rates were in the double digits. Revenue in APAC showed a very positive development. Strategic investments and the continued structural optimization of the segment are expected to lay the foundation for further growth in the upcoming fiscal year." Revenue for the medical technology segment was €2,504 million for the year, an 11 percent increase, or 14 percent adjusted for currency effects.

The consumer markets segment at Zeiss also closed fiscal year 2022/23 with good revenue growth. "High inflation and the associated uncertainty among consumers have affected the market environment and consumer climate and caused a reluctance to spend. In the strategic vision care segment, growth was achieved through innovations in branded ophthalmic lenses and eye health as well as the expansion of the digital consumer journey. Growth stimuli came in particular from the APAC and EMEA regions."

The company also said, "In consumer products, the subdued mood among retailers and consumers as well as price competition had an impact on the result. The strike during film productions in Hollywood over several months affected the cine lens business. Zeiss technologies for smartphone photography have nevertheless increased in popularity. There are slightly positive signals for the coming fiscal year, for example through innovations, additional market development and expansion of the product portfolio for movie and camera lenses, sports and nature observation optics.”

Revenue for consumer markets segments were €1,624 million, a 4 percent increase over the prior fiscal period, or an increase of 5 percent adjusted for currency changes.

All geographic regions contributed to the growth in revenue although APAC demonstrated the most dynamic growth. The AMERICAS and EMEA regions also recorded revenue growth and once again contributed to the positive development of Zeiss.

The company stated that the Zeiss Group is bigger than ever with around 43,000 employees, employing 42,992 people worldwide as of Sept. 30.

"Zeiss is bigger than ever and continues to grow. As such, almost 18,000 new employees have joined the company in the past seven years alone," said Lamprecht. "We are expanding our capacity and therefore investing around €3.5 billion over the next five years in infrastructure—more than ever before. A large proportion of this will flow into infrastructure projects specifically in Germany, such as the further expansion of the Oberkochen site, a new site in Aalen-Ebnat or the site of the company’s foundation in Jena."

At 15 percent of revenue, Zeiss spent a record sum of €1,545 million on research and development in the past fiscal year compared to €1,151 million in the prior year. In Zeiss Group's research and development departments, more than 6,200 employees work everyday "to further expand the company's investment power. This is reflected in the number of patents retained which totaled around 11,300 worldwide as of the reporting date," the company said.

"The innovations in all four segments perform pioneering work in digitalization. From vision care via photography through to microscopy, metrology and medical technology, Zeiss is developing solutions for the digital world. One of the most important achievements of digitalization is artificial intelligence (AI). Current devices and software solutions from Zeiss already contain AI components or have been manufactured with them. There is also a major focus on topics such as intelligent data use or advanced machine learning methods," the company's announcement stated.

"In order to continue to grow profitably in the long term and, at the same time, be resilient in rapidly changing times, Zeiss must continue to develop," concluded Lamprecht. "In addition to enormous innovative strength, this comprehensive development includes the transformation toward a data and process-driven company. Now is the right time to press ahead at full speed."

He noted, "Success in the future depends on us continuing to keep an eye on the various risks while, at the same time, realizing our potential and maximizing every opportunity. We are confident that we will not only continue to develop but also grow in line with our strategic agenda and transformation activities. We therefore assess the Zeiss Group's business development for fiscal year 2023/24 as being positive."