Deliver Your News to the World

Carl Zeiss Meditec: sales and earnings increased significantly in first quarter of 2005/2006


Sales revenue grow by 53.6% to € 95.1 million - EBIT climbs by 67.2% to € 11.4 million - First-quarter consolidated net income up by 49% year-on-year - Carl Zeiss Meditec aims to evolve into a medtech solutions provider with planned takeover of Carl Zeiss Surgical

Jena, 13.02.2006. Carl Zeiss Meditec AG (ISIN DE0005313704) further accelerated its profitable growth rate in the first quarter of financial year 2005/2006 (1 October – 31 December 2005). The medical technology provider, which is listed on the Prime Standard of the Deutsche Börse, increased its sales by 53.6% in the first three months compared to the year-ago period, generating revenue of € 95.1 million (previous year: € 61.9 million).

Profitability again increased at a faster rate than sales. EBITDA rose to € 13.9 million (previous year: € 8.3 million), corresponding to an increase of 68.8%. EBIT grew by 67.2% to € 11.4 million (previous year: € 6.8 million). The EBIT margin now stands at 12.0% (previous year: 11.0%).
At € 6.0 million (previous year: € 4.0 million), consolidated net income was up by almost half (49.0%) year-on-year. Earnings per share climbed 28.6% to € 0.18 (previous year: € 0.14). The growth in sales and earnings is attributable to both the innovative product range and global sales presence, as well as to the rapid and successful integration of the two companies acquired in the previous year, IOLTECH S.A. and Laser Diagnostics Technologies, Inc.

“Our growth strategy is paying off,” says President and CEO Ulrich Krauss. “We plan to continue enhancing our organic growth through strategically significant acquisitions in future, too.” One acquisition currently in the pipeline is that of Carl Zeiss Surgical, with which Carl Zeiss Meditec aims to broaden its focus and develop new growth potential in the area of neurosurgery and ear, nose and throat (ENT) surgery, in addition to ophthalmology.

Innovative diagnostic systems accounted for around two thirds (67.7%) of total sales in the first quarter of the current financial year.
Carl Zeiss Meditec generated revenue of € 64.4 million with these systems (previous year: € 45.8 million), corresponding to an increase of 40.5%. The strong demand for laser systems and the consolidation of IOLTECH – not yet included in the accounting in the first three months of the pre- vious year – boosted sales in the “Laser and IOL” business segment by 140.5% to € 24.6 million (previous year: € 10.2 million). This segment thus accounted for 25.9% of Carl Zeiss Meditec’s total sales in the reporting period.
The service business grew by 4.0% year-on-year to € 6.1 million (previous year: € 5.9 million), thus accounting for 6.4% of sales.

Carl Zeiss Meditec AG achieved strong growth in all regions where it operates. At 103.4%, the strongest growth was achieved in the EMEA region (Europe, Middle East and Africa), accelerated by the consolidation of the France- based IOLTECH. Sales here amounted to € 24.0 million (previous year: € 11.8 million), thus this region accounted for 25.2% of Carl Zeiss Meditec sales. In the “Asia/Pacific” region, the company’s sales revenue increased by 74.7% to € 21.5 million (previous year: € 12.3 million), representing 22.6% of total sales. The “Americas” region, mainly the USA, generated sales of € 44.7 million, accounting for almost half (47.0%) of total sales. Compared to the previous year, the growth rate was 32.5%. Sales in Germany rose to € 5.0 million (previous year: € 4.1 million), corres- ponding to an increase of 19.8% year-on-year and a 5.2% share of total Carl Zeiss Meditec sales.

Carl Zeiss Meditec AG’s balance sheet continues to be extremely solid. With a balance sheet total of € 373.5 million, the equity ratio is 56.9% (30 September 2005: 56.0%). Working capital increased by 8.5% to € 122.2 million (previous year: € 112.6 million), due not least to the growth in sales. As a result of this and the reduction of liabilities, cash flow from operating activities was slightly down in the first three months compared to the previous year. At € 6.0 million, cash flow from operating activities was 8.9% below the year-ago figure (€ 6.6 million).

As of 31 December 2005, Carl Zeiss Meditec employed a global workforce of 1,230 (previous year: 897). This increase from the previous year is mainly due to the acquisition of IOLTECH.

Carl Zeiss Meditec intends to continue this growth trend. Ulrich Krauss: “Our growth is based on three pillars: the continual enhancement of our innovative products and systems, the expansion of our position in our traditional markets, and identifying and exploiting growth opportunities in adjacent market segments. The motivation behind the planned takeover of Carl Zeiss Surgical is to reinforce our existing core business in ophthalmology and develop additional, profitable growth potential in neuro/ENT surgery.”


This news content was configured by WebWire editorial staff. Linking is permitted.

News Release Distribution and Press Release Distribution Services Provided by WebWire.