Carl Zeiss Meditec Reports Record Earnings in FY 2018/2019

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JENA, Germany—Carl Zeiss Meditec AG (ISIN: DE 0005313704) posted significant increases in sales and earnings in fiscal year 2018/19, based on growth in all strategic business units and regions. The company, based here, reported revenue of €1,459.3 million, resulting in an increase of 13.9 percent, or 11.7 percent adjusted for currency effects, compared with the same period of the prior year. Earnings before interest and taxes (EBIT) rose significantly, to €264.7 million, with an EBIT margin 18.1 percent versus 15.4 percent the prior year.

“This was a record year for Carl Zeiss Meditec AG, to which all business units and regions contributed,” said Dr. Ludwin Monz, president and CEO.

Zeiss’s ophthalmic devices strategic business unit (SBU) increased its revenue by 14.5 percent in the fiscal year 2018/19, or 12.4 percent adjusted for currency effects, to €1,068.6 million, compared with €933.2 million in the same period of the prior year. Significant drivers of this revenue growth were once again laser systems for vision correction as well as devices and consumables for cataract surgery.

Revenue in the microsurgery SBU grew by 12.4 percent, or 9.7 percent adjusted for currency effects, to €390.7 million, compared with €347.6 million in the same period of the prior year. Sales of visualization systems for neurosurgeons, for the treatment of tumors and vascular diseases, continued to develop well, the company said.

Revenue in the EMEA region increased by 10.3 percent in fiscal year 2018/19, or 10.7 percent adjusted for currency effects, to €417.1 million. The core markets Germany, France and the UK achieved good revenue growth, Zeiss said.

Revenue in the Americas region also increased, reaching a new all-time high of €442.5 million, compared with €406.5 million in the prior year. This growth amounted to +8.9 percent, or 3.9 percent adjusted for currency effects, according to Zeiss.

The APAC region recorded revenue growth of 20.8 percent, or 19.0 adjusted for currency effects, to €599.7 million, with the largest contributions coming from China and South Korea. Japan also performed well, Zeiss said.

The operating result (EBIT) increased to €264.7 million in fiscal year 2018/19, up from €197.1 million the prior year. This significant increase is primarily due to a positive development of the product mix, accompanied by a slight decline in operating cost ratios, Zeiss said. The EBIT margin increased from 15.4 percent to 18.1 percent. Adjusted for special effects, the increase amounted to 18.5 percent, up from 15.7 percent in the prior year.

Carl Zeiss Meditec said it expects to be able to grow faster than the underlying markets again in fiscal year 2019/20. The EBIT margin is expected to be in a range from 17 to 19 percent. Significant additional investments in research and development and in sales and marketing are already factored into this outlook, the company said.