“Despite the adverse general economic situation we have been able to continue our growth course and even exceed our expectations”
Medical technology company Carl Zeiss Meditec has achieved full year-on-year sales revenue growth of 12.1% . Earnings before interest and taxes (EBIT) increased 19.4% in the same period. All regions and strategic business units contributed to the results.
The Company generated consolidated revenue of EUR 758.8 million in financial year 2010/2011 (ending 30 September 2011), compared to EUR 676.7 million the previous year. This corresponds to an increase of 12,1 percent. Earnings (before interest and taxes) increased disproportionately by 19.4 percent to EUR 103.6 million (previous year: EUR 86.7 million).
“Despite the adverse general economic situation we have been able to continue our growth course and even exceed our expectations,” says Dr Ludwin Monz, President and CEO of Carl Zeiss Meditec AG.
“Although we continued to invest in new products, and to establish and expand our sales and service structures, we have succeeded in increasing profitability. This is not least because we managed to further improve the manufacturing cost position.”
Speaking about the EBIT margin increased to 13.6 percent (previous year: 12.8 percent) and earnings per share climbing to €0.82 (previous year: EUR 0.68), Dr Monz comments; “Our corporate program entitled “Meditec Excellence and Growth Agenda” (MEGA) is bearing the first fruits and the results achieved are an endorsement of the growth- and profitability-oriented path we decided to take,” he adds. The Supervisory Board and Management Board therefore propose to the Annual General Meeting a dividend of €0.30 per share for financial year 2010/2011.
Revenue by business unit
The Microsurgery Strategic Business Unit (SBU) achieved a growth of 20.0 percent — well above the market development rate. Surgical Ophthalmology with its innovative intraocular lenses (IOL) grew by 6.0 percent and the Ophthalmic Systems contributed with a growth of 7.2 percent.
The rate of growth in all cases was driven in particular by new products. In the reporting year Carl Zeiss Meditec invested 11.1 percent of sales in innovations and solutions. 14.5 percent of the workforce was engaged in research and development, and the Company acquired patents at an average rate of one per week.
Revenue by region
Despite the worsening government debt crisis in the Euro region, the EMEA region (Europe, Middle East, Africa) posted a 7.9 percent increase in revenue. The solid performance in the USA was accompanied by growth in Latin American countries, resulting in overall growth of 11.5 percent. Similarly, the Company recorded a two-digit growth rate of 18.1 percent in the Asian/Pacific region. This was mainly attributable to the growing Indian and Chinese markets, but despite the serious natural and nuclear disasters early in the year Japan also continued to develop positively. The Asian/Pacific region with vast development potential remains the strongest region in terms of growth.
Against a background of volatile constraints, the company admits that a forecast for the current business year is difficult although notes that demographic trends will continue to be beneficial to the company’s business.
“With our broad business base and global presence we are comparatively resistant to economic upheavals. In addition, our well- established sales and service organisations will enable us to seize a sizeable share of growth in emerging economies in Asia and South America. At the same time we will be concentrating on a continued increase in profitability,” explains Dr Monz. By 2015 the company is striving for an EBIT margin of 15 percent.
Future growth will be promoted and supported by the corporate program MEGA 2015 for facilitating the implementation of the corporate strategy and a consistent focus on the success factors of innovation, customer orientation, new markets, employees and processes. “With our products and solutions for ophthalmology and microsurgery we aim to contribute to medical progress”, concludes Dr Ludwin Monz.
Source: Carl Zeiss Meditec