Carl Zeiss Meditec AG Financial Results Q1 2024/25 | Order Intake Momentum

Sebastian Frericks, Head of Investor Relations atCarl Zeiss Meditec AG, presents theQ1 2024/25 financial results and discusses revenue growth, market challenges, and future strategies.At the start of the fiscal year,Carl Zeiss Meditec recorded a 3% revenue growth, primarily driven by theDOCTER OPTICS (DO) acquisition. However, underlyingorganic momentum remained negative, as anticipated. The company had previouslyguided for this decline in December, signalling a temporary headwind due to specific market conditions.Despite anegative investment climate in China, with hospitals delaying purchases while awaiting stimulus measures, Carl Zeiss Meditec has shown resilience. Last year's strong post-pandemic delivery phase also meant that this quarter faced a challenging comparison base, but the company has navigated these challenges with determination.Another key issue was theprice decline in intraocular lenses (IOLs) due to China'sVolume-Based Procurement (VBP) regulations, impacting pricing power in this segment. Despite these headwinds, thecompany's order backlog grew by nearly €100 million, reaching€382 million in Q1, signalling stronger demand for future quarters.Notably, the company reported itsfirst consistent order turnaround in 12–18 months, boosting confidence that organic performancehas bottomed out and is set for an upturn.Due to theweak organic performance and product mix effects, particularly lower sales ofhigh-margin surgical microscopes, Carl Zeiss Meditec'sEBITDA declined at the start of the fiscal year. However, theophthalmology division grew by 7%, primarily driven by theDO acquisition. This strategic growth, despite the decline, demonstrates thecompany's forward-thinking approach.Similarly, themicrosurgery division faceda 7.8% organic decline, mainly because of tough comparisons against a strong prior-year period driven by backlog clearance. However, the company is ramping up sales for the next-genKINEVO neurosurgical microscope, expected todrive recovery in the coming quarters.One of thebiggest developments in Q1 2024/25 was theearly approval of VISUMAX 800 in China. Thislatest-generation femtosecond laser system revolutionizes laser vision correction by enabling alenticular cut in 6–8 seconds, significantly enhancingsafety, automation, and patient comfort.Carl Zeiss Meditecmaintains a conservative full-year outlook, citinggeopolitical risks and macroeconomic uncertainties in China. However, stabilization signs insurgical procedure volumes suggest the marketmay have reached its lowest point.Key growth drivers moving forward:✅Stronger order backlog supporting future revenue momentum✅VISUMAX 800 launch in China & US driving market expansion✅KINEVO 900S rollout in neurosurgery boosting high-margin sales✅Potential public stimulus measures in China as a wildcard for upsideFrom amid-term perspective (3–5 years), Carl Zeiss Meditec aims forEBITDA margin recovery to 16–20%, depending onmarket recovery and product adoption.Carl Zeiss Meditec'sQ1 2024/25 results highlight atransitional phase—whileshort-term challenges persist, strategic investments in innovation and operational efficiency position the company forstronger performance ahead.▶️ Other videos:Elevator Pitch: https://seat11a.com/investor-relations-elevator-pitch/Company Presentation: https://seat11a.com/investor-relations-company-presentation/Deep Dive Presentation: https://seat11a.com/investor-relations-deep-dive/Financial Results Presentation: https://seat11a.com/investor-relations-financial-results/ESG Presentation: https://seat11a.com/investor-relations-esg/T&CThis publication is for informational purposes only and does not constitute investment advice. Using this website, you agree to our terms and conditions outlined on www.seat11a.com/legal and www.seat11a.com/imprint.