BUSINESS: Financial Carl Zeiss Meditec Reports Record Revenue in Fiscal 2020-21 as Group Looks Ahead to 2022 With 'Some Optimism' By Staff Monday, December 13, 2021 12:24 AM JENA, Germany—Carl Zeiss Meditec (ISIN: DE 0005313704) reported late last week that it generated revenue of approximately €1,647 million in fiscal year 2020-21, which represents growth of 23.3 percent compared with the prior fiscal year’s revenue of €1,336 million. The percentage increase adjusted for currency effects was 26.5 percent, according to the announcement. Revenue in the Americas region increased 16.9 percent to €449 million (prior year: €384 million) due to “the further acceleration of the U.S. business,” the announcement noted. Adjusted for currency effects, the revenue increase was 23.9 percent in the Americas region. Orders received increased even more significantly to approximately €1,731 million, a gain of 29.1 percent (adjusted for currency effects: 32.6 percent), the company noted. Earnings before interest and taxes (EBIT) increased disproportionately to approximately €374 million from the prior year’s €178 million). The EBIT margin was 22.7 percent (prior year: 13.3 percent). “We remain on a clear growth trajectory; the economic effects of the pandemic are largely behind us,” Dr. Ludwin Monz, president and chief executive officer of Carl Zeiss Meditec AG, said in the announcement. “At the same time, we presented a number of major innovations to our customers at the end of the fiscal year—for example, in cataract surgery and digitization.” Due to the positive development of business and the high volume of orders, “the company is looking ahead to fiscal year 2021/22 with some optimism,” the announcement said. Revenue is expected to grow at least to the same extent as the market. The EBIT margin in fiscal year 2021/22 is expected to be between 19 percent and 21 percent. In the medium term, the EBIT margin is expected to settle at a level sustainably above 20 percent, with the growing proportion of recurring revenue making a positive contribution. At the same time, there continues to be a need for significant strategic investments in research and development and sales and marketing. Revenue in the strategic business unit Ophthalmic Devices increased 26.8 percent in the fiscal year (adjusted for currency effects: 29.8 percent) to €1,256 million from the prior year’s €991 million. In particular, the business with recurring revenue from consumables, implants and services made a significant contribution to this growth, the company said. The recovery of revenue continued in the strategic business unit Microsurgery, where there was an acceleration in the second half of the fiscal year in particular. Revenue increased 13.4 percent (adjusted for currency effects: 17.1 percent) to €391 million. On a geographic basis, revenue in the EMEA region increased by +19.4 percent (adjusted increase of 21.2 percent), to €433 million (prior year: €362 million). Once again, there was a positive trend in the markets of Germany, France and Southern Europe, and the U.K., the announcement noted.The operating result (earnings before interest and taxes) increased disproportionately in fiscal year 2020/21, to €374 million (prior year: €178 million). This was driven in particular by a favorable product mix and a high proportion of recurring revenue, as well as low selling and marketing expenses, the announcement noted. The EBIT margin increased to 22.7 percent (prior year: 13.3 percent). Adjusted for special effects, this resulted in an increase to 23 percent (prior year: 13.8 percent). A number of major innovations in ophthalmology were launched at the end of the fiscal year. The product range for cataract surgery was completed by a device for surgical lens extraction (ZEISS QUATERA 700) and a new intraocular lens (ZEISS CT LUCIA 621). A new generation of the femtosecond laser ZEISS VISUMAX 800 was launched for refractive laser surgery, which corrects ametropia in the eye. Products were also launched for digitization in ophthalmology.