Jenoptik Announce Strong Financial Results

Jenoptik has announced the recovery in demand in its three photonics divisions – Light & Optics, Light & Production, and Light & Safety – continuing in the third quarter. Jenoptik posted a dynamic increase in order intake after nine months of 49.0 percent, to 761.0 million euros (prior year: 510.9 million euros). The reporting quarter, too, saw an encouraging 42.8-percent increase in the Group’s order intake. In the period from January through September 2021, the Group’s book-to-bill ratio increased from 1.01 to 1.25. An order backlog up 34.1 percent to 616.8 million euros (31/12/2020: 460.1 million euros) also leaves Jenoptik confident of its future prospects.

“Jenoptik had yet another strong quarter. We also made significant progress regarding the Group’s strategic posture. Our landmark acquisition of Berliner Glas Medical and SwissOptic will strengthen our global photonics footprint and further accelerate growth,” says Stefan Traeger, President & CEO of JENOPTK AG.

In the first nine months, the company posted a 20.6-percent increase in revenue, to 609.2 million euros (prior year: 505.0 million euros); with growth of 24.9 percent in the third quarter. The Light & Optics division, in particular, benefited from a strong contribution from TRIOPTICS and substantial organic growth in the first nine months. The Light & Production division saw growth thanks to an upturn in demand from the automotive industry, while revenue in Light & Safety was down on the prior year, partly due to the project-based business, and VINCORION remained largely stable. Worth mentioning for the Group as a whole are the significant improvements in revenue in the key strategic regions of Asia/Pacific and the Americas, where the share of group revenue increased from 38.1 percent in the prior year to 44.8 percent in the period covered by the report.

The improvement in profitability in the first nine months of 2021 was even more pronounced than the revenue growth. The EBITDA grew by 81.9 percent, from 66.6 million euros to 121.2 million euros. This was attributable to the good operating performance, increasingly positive impacts from the restructuring measures implemented in 2020, and one-off effects of 25.6 million euros in connection with the 2020 acquisitions. The EBITDA margin improved to 19.9 percent (prior year: 13.2 percent). In the first nine months, income from operations (EBIT) of 80.5 million euros was more than double the prior-year figure of 32.7 million euros.

As of September 30, 2021, Jenoptik continues to have a very healthy and robust financial and balance sheet structure. Cash flows from operating activities improved from 31.1 million euros in the prior year to 42.2 million euros in the first nine months of 2021. At 17.7 million euros, the free cash flow was also up on the prior-year figure of 13.4 million euros, despite a sharp rise in working capital.

Jenoptik strengthens its global photonics business with the acquisition of Berliner Glas Medical and SwissOptic. The closing of the transaction is expected in the fourth quarter of 2021. In 2022, the new companies are due to contribute around 130 million euros of revenue, with attractive margins. In the coming years, the acquired companies anticipate revenue growth in the low double-digit percentage range. Through these acquisitions, Jenoptik is not only significantly expanding its attractive semiconductor equipment and medical technology business, but is also strengthening its product and technology portfolio and its global presence, particularly in Asia. The purchase price is around 300 million euros.

Light & Optics with unabated dynamic, profitable growth

Driven by unabated dynamic demand in the semiconductor equipment business, as well as by the positive development in the Biophotonics and Industrial Solutions areas, the Light & Optics division remains on a profitable course of expansion after nine months. The division’s revenue grew by 52.6 percent to 324.3 million euros (prior year: 212.5 million euros). TRIOPTICS contributed 67.1 million euros to this figure (prior year: 0.9 million euros). EBITDA increased even more strongly, from 46.2 million euros to 97.9 million euros. Most of this increase was the result of the very good operating performance and the contribution made by TRIOPTICS. A one-off effect of around 20.7 million euros was also realized in connection with the acquisition of TRIOPTICS. The division’s year-on-year EBITDA margin rose from 21.6 percent to 30.1 percent. Thanks to a doubling of the order intake, to 436.1 million euros (prior year: 217.3 million euros), and an order backlog of 288.0 million euros (31/12/2020: 179.1 million euros), continued growth is also expected to be seen in the coming months.

Light & Production with growing demand from the automotive industry

In view of a gradual recovery in demand from the automotive industry, the Light & Production division’s business is also picking up again, even though the effects of the Covid-19 pandemic are still being felt. The Laser Processing area, in particular, posted an increase, while Metrology and Automation & Integration saw only slight growth. Overall, the division’s revenue grew by 4.3 percent to 121.3 million euros (prior year: 116.3 million euros). In addition to the increase in revenue, positive effects from the restructuring and cost-cutting measures implemented in the prior year, earnings of 3.6 million euros from the sale of the metrology business for grinding machines, and a one-off effect of 4.9 million euros in connection with the acquisition of INTEROB all contributed to a sharp rise in EBITDA, from 4.6 million euros to 12.6 million euros. The EBITDA margin improved from 4.0 percent to 10.4 percent. The rise in the order intake by 20.7 percent to 143.6 million euros (prior year: 119.0 million euros) reflects the growing demand from the automotive industry. At 96.0 million euros, the order backlog is also significantly up on the figure at year-end 2020 (31/12/2020: 74.7 million euros).

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