ZEISS Group Reports Revenue Growth
The ZEISS Group has anounced that its revenue increased to just under 11 billion euros and up 8% on the prior year with EBIT at 1,444 million euros (prior year: 1,686 million euros). ZEISS Group reported mixed development in its business segments with a high spend on research and development equivalent to 15% of revenue with more than 46,000 employees worldwide.
Overall, ZEISS can look back on a very successful fiscal year 2023/24. The Group’s revenue rose to 10.894 billion euros with an EBIT margin of 13%. All four segments of the ZEISS Group contributed to this growth. The challenges posed by geopolitical tensions and the current weaker global economic situation have, however, intensified and impacted the segments to varying degrees.
“Overall, we ended fiscal year 2023/24 with a good result and revenue growth. At the same time, it was not possible for all areas to escape the impact of current developments on the global markets,” said Dr. Karl Lamprecht, President and CEO of ZEISS. “Our success is based on our enormous innovative strength. To make sure it stays that way, we have spent a record 15% of revenue on research and development – and thus more than ever before – and also invested in the targeted expansion of personnel and infrastructure.”
Segment Development
The Industrial Quality & Research segment achieved revenue growth, but the economic situation for this segment in fiscal year 2023/24 was more challenging than in the prior year. The Industrial Quality Solutions strategic business unit recorded a slight increase in incoming orders and revenue growth in the past fiscal year despite negative currency effects. The software business in particular developed positively. The Research Microscopy Solutions strategic business unit recorded an increase in revenue growth in the past fiscal year despite negative currency effects, albeit with a slight decline in incoming orders. The strategic business unit developed particularly well in the electron microscopy and software area. Further expansion of remote service offerings is one of the factors that has enabled the installed base, which has grown steadily in recent years, to be leveraged for profitable growth in the service business.
The Semiconductor Manufacturing Technology (SMT) segment showed strong growth once again and recorded an 11% increase in incoming orders. The Semiconductor Manufacturing Technology segment remains on course for growth despite only sluggish recovery in the volatile semiconductor market. The SMT segment was able to decouple itself from the market thanks to special circumstances such as strong demand for semiconductor production equipment in China. Customer demand for lithography equipment for semiconductor production, particularly in the deep ultraviolet (DUV) sector, was sustained in fiscal year 2023/24. Increases in deliveries compared to the prior year and a new product launch contributed to the renewed high level of revenue. Extreme ultraviolet (EUV) lithography has enabled further miniaturization of microchips. In the past year, ZEISS Semiconductor Manufacturing Technology supplied its customer ASML with the latest EUV product generation or high NA EUV lithography for the first time. In order to meet growing customer demand and handle order backlogs, the SMT segment is expanding capacity at all its sites, but is doing so with caution in view of the uncertain global economic situation and the volatility of the semiconductor sector.
The Medical Technology segment also achieved robust revenue growth compared to the prior year. The Ophthalmology strategic business unit, which offers products and solutions for the diagnosis and treatment of eye diseases as well as systems and consumables primarily for cataract, retina and refractive surgery, recorded slight growth. The acquisition and first-time consolidation of DORC Topco B.V., Zuidland, Netherlands, and its subsidiaries have made a significant contribution to growth since April 2024. Reluctance to invest, particularly in North America, combined with high interest rates and health policy uncertainties, led to a decline in the equipment business, such as surgical microscopes. The Microsurgery strategic business unit, which offers virtualization solutions for minimally invasive surgical treatments, suffered from an increasing reluctance to invest, particularly in the North American market, partly due to high interest rates and increased funding costs.
The continued stable global growth in the optical market had a positive impact on the Consumer Markets segment. Despite a noticeable reluctance on the part of consumers to spend, the strategic Vision Care segment generated profitable growth with innovations for all age groups, expansion of the digital portfolio for eye care professionals and concepts for global challenges, such as increasing short-sightedness in children and young people. The reluctance to buy was further reflected in optics for hunting, sport and nature observation. Digital revenue, for example from game cameras for hunters, grew significantly. The share of digital services for production, visual effects and post-production also continued to increase in the cinematography business. ZEISS is an innovation driver for film productions and streaming services worldwide. The brand partnerships for mobile imaging and smartphone photography developed very positively.
“The ZEISS Group’s broad portfolio ensures a pleasingly robust overall performance in a strained environment,” said Stefan Müller, member of the Executive Board and CFO of the ZEISS Group. “We are seeing a subdued consumer climate and reluctance to invest in some areas. That is why we are reinforcing our resilience with targeted measures.”
The Group’s research and development departments have 6,951 employees (prior year: 6,252) or 15% of the workforce working on new solutions and technologies for the optics industry as well as digital business models. At the end of the reporting period, ZEISS held around 12,500 patents worldwide (prior year: approximately 11,300). In the reporting period, the company applied for new patents for approximately 740 inventions (prior year: approximately 670).
“The business environment is becoming increasingly challenging. We are nevertheless creating the economic scope for strategically important investments through our broad and future-oriented portfolio,” concluded Dr. Lamprecht “This also includes enhancing our innovative strength and transforming ourselves into a data- and process-driven organization. This will ensure we remain competitive. Overall, we therefore assess the ZEISS Group’s business development for fiscal year 2023/24 as being moderately positive.”
For more information: www.zeiss.com
