Overall assertion on the financial position of Carl Zeiss Meditec Group at the end of the fiscal year

The Carl Zeiss Meditec Group generated revenue of €2,227.6m in fiscal year 2024/25 (prior year: €2,066.1m), which corresponds to an increase of +7.8% (adjusted for currency effects: 8.6%). Revenue was thus within the forecast of moderate revenue growth given in the 2023/24 annual report.

With revenue of €1,723.7m (prior year: €1,589.2m), the Ophthalmology SBU recorded growth of +8.5% (adjusted for currency effects: +9.3%, adjusted for currency and acquisition effects: +2.3%). The full-year consolidation of DORC, which was acquired in the prior year, contributed to this increase. Other growth drivers were the ongoing recovery in the equipment business, the global increase in intraocular lens volumes and stable growth in consumables for refractive surgery in China.

The Microsurgery SBU generated revenue of €503.9m (prior year: €477.0m), thus recording an increase of +5.7% (adjusted for currency effects: +6.6%) compared with the prior year. Strong deliveries of neurosurgical microscopes, in particular the new KINEVO^® 900 S surgical microscope, was one of the main contributors to this increase.

Earnings before interest, taxes and amortization from purchase price allocations on intangible assets (EBITA) increased to €257.7m in the reporting period (prior year: €248.9m). Relative to revenue, the Carl Zeiss Meditec Group achieved an EBITA margin of 11.6% (prior year: 12.0%). The target of stable or slightly increased EBITA was therefore achieved, although the EBITA margin fell slightly compared to the prior year.

Revenue and earnings were also impacted by negative currency effects, particularly as a result of exchange rate fluctuations between the euro and the US dollar and Asian currencies. The impact of negative currency effects on EBITA in fiscal year 2024/25 is in the low double-digit million range.

The EBITA margin in the Ophthalmology strategic business unit rose year-on-year. This growth is largely due to the DORC consolidation. Furthermore, a sustained recovery in the device business as well as a global increase in the volume of multifocal intraocular lenses and stable growth in consumables for refractive surgery in China led to a positive revenue trend. Research and development costs were considerably below the previous year’s level due to strict cost management. In fiscal year 2025/26 we aim to achieve further growth. However, the restrictive investment climate in the equipment business and in elective procedures, which is dependent on the general consumer climate, is likely to have a slowing effect.

The EBITA margin of the Microsurgery strategic business unit decreased significantly year-on-year. Currency effects, increased depreciation and amortization, and trade tariffs had a significant negative impact, despite increasing deliveries of neurosurgical microscopes, in particular the new KINEVO^® 900 S surgical microscope, and the resulting revenue growth. The gross profit margin was below the previous year’s level, while operating costs only increased slightly. For the future, the Company expects further revenue growth and an improved product mix in the Microsurgery strategic business unit, particularly from this product cycle.

At €209.9m (prior year: €247.3m), cash flows from operating activities in fiscal year 2024/25 were down on those in the prior year. Besides the lower consolidated net income, the slightly lower cash inflow was mainly due to an increase in working capital, in particular higher trade receivables, and higher interest payments.

In the 2024/25 fiscal year, free cash flow amounted to €203.7m (prior year: €121.5m), due primarily to lower investments in property, plant and equipment and intangible assets within the scope of the Resilience program set up in the 2023/24 fiscal year. EVA^® decreased from €8.4m in the prior year to -€55.4m. The sharp decline in EVA^® is due mainly to higher capital costs in connection with the DORC consolidation.

In order to maintain its innovative strength and ensure future growth, the Company continuously invests in research and development. In fiscal year 2024/25 R&D spending amounted to 14.6% of revenue (prior year: 16.6%).