ZEISS reports 11 percent revenue increase

The ZEISS Group, Stuttgart, Germany, reported fiscal year revenues continued to grow, with revenue and earnings reaching new heights in fiscal year 2018/19, which ended Sept. 30, 2019. Revenue grew by 11 percent, reaching 6.428 billion euros (previous year: 5.817 billion euros). Adjusted for currency and acquisition effects (like-for-like), revenue rose by 8 percent. At 1.063 billion euros, earnings before interest and taxes (EBIT) were significantly higher than the previous year (772 million euros). The EBIT margin was 17 percent. Incoming orders increased by 9 percent, reaching 6.575 billion euros for the first time.

“All ZEISS segments have developed extremely well. This is quite remarkable, especially in the midst of an uncertain economic climate and profound structural change in different industries,” says Dr. Michael Kaschke, president and CEO “ZEISS has consistently prepared for these scenarios and is well-positioned for the future as well as resilient thanks to its corporate strategy, the ZEISS Agenda 2020. Moreover, as a global technology leader, ZEISS is on its way in many segments and areas to becoming a shaper in its markets.”

In 2018/19, the ZEISS Group saw robust growth in all four segments. In Consumer Products, the SLR photography lens business still faces increased pressure, the range of SLR cameras, in particular, is shrinking, the company said, but the lens business for mirrorless cameras was able to pick up speed.

The ZEISS Group generated approximately 90 percent of its revenue outside Germany. With a revenue increase of 15 percent (like-for-like), the dynamic national economies in the APAC region in particular continued to drive this positive trend. In the EMEA region, ZEISS was able to further grow with an 8 percent increase in revenue (like-for-like). In the Americas region, revenue of 1.347 billion euros was 2 percent higher than last year’s figure (like-for-like).

“ZEISS’ targeted innovation strategy, combined with substantial expenditures and investments, is a cornerstone of the accelerated growth,” says Chief Financial Officer, Dr. Christian Müller, CFO. ZEISS also considers it part of its responsibility to deploy sustainability measures that are even more far-reaching than those already in place. On the path to becoming carbon-neutral, the company has decided to switch to a CO2-neutral energy supply in Germany by 2022. “We are making a real difference by implementing a great number of concrete measures to reduce CO2 emissions and protect the climate,” says Müller.

Economic growth slowed down, even more, this year, and a further slump in current growth is expected for next year., the company said. The risks in global trade continue to increase, and there is no sign of de-escalation.

“While the current number of incoming orders is reason to be optimistic, we do not presume that ZEISS, for all its strengths, can remain completely unaffected by economic fluctuations. That is why we are working specifically on strengthening our ability to adapt and our resilience,” says Kaschke. “The goal for fiscal year 2019/20 is to once again increase revenue and continue to achieve a high EBIT margin of over 10 percent – a challenging goal in light of the economic downturn and the need to maintain our significant R&D expenditures.”