Results of operations

Presentation of results of operations

Revenue

In fiscal year 2024/25, the Carl Zeiss Meditec Group generated revenue of €2,227.6m (prior year: €2,066.1m), which corresponds to an increase of +7.8% compared to the prior year. Adjusted for currency and acquisition effects, revenue in the 2024/25 fiscal year increased by +3.3%. Both strategic business units recorded an increase in revenue. Growth was driven by strong deliveries of the VISUMAX^® 800 in China, as well as increasing deliveries of neurosurgical microscopes, in particular the KINEVO^® 900 S. Solid global volume growth for multifocal IOLs as well as strong demand for consumables for retinal surgery and largely stable volumes of refractive procedures in China also contributed to growth.

The orders on hand rose significantly and amounted to €379.6m at the end of the 2024/25 fiscal year (30 September 2024: €327.0m).

Revenue of the Carl Zeiss Meditec Group

in €m/growth in %

a) Revenue by strategic business unit

The Ophthalmology strategic business unit accounted for just over three quarters (77.4%) of the Carl Zeiss Meditec Group’s total revenue in the fiscal year under review (prior year: 76.9%). The Microsurgery strategic business unit generated 22.6% (prior year: 23.1%) of total revenue.

Share of strategic business units in revenue of the Carl Zeiss Meditec Group

in fiscal year 2024/25

Revenue of the Ophthalmology SBU was up by +8.5% (adjusted for currency effects: +9.3%) compared with the prior year to €1,723.7m (prior year: €1,589.2m). The increase was mainly due to the consolidation of DORC. Adjusted for acquisitions and currency effects, revenue, at +2.3%, was slightly above the previous year’s level. A sustained recovery in the equipment business as well as a global increase in the volume of intraocular lenses and stable growth in consumables for refractive surgery in China led to a positive revenue trend.

Orders received increased significantly by +18.3% from €1,499.6m to €1,774.3m (adjusted for currency effects: +19.2%).

Revenue in the Microsurgery SBU amounted to €503.9m for fiscal year 2024/25, an increase of +5.7% compared with the prior year (prior year: €477.0m). Adjusted for currency effects, the revenue increase amounted to +6.6%. Increasing deliveries of neurosurgical microscopes, particularly the new KINEVO^® 900 S surgical microscope, contributed significantly to this increase.

Microsurgery orders also increased significantly by +18.0% from €435.2m to €513.5m (adjusted for currency effects: +19.0%).

b) Revenue by region

In fiscal year 2024/25, 44.5% (prior year: 45.9%) of total revenue was generated in the APAC region. The EMEA region accounted for 29.5% (prior year: 28.3%) of total revenue, while the Americas region accounted for 26.0% (prior year: 25.8%) of total revenue. In total, more than half of revenue was generated with the ZEISS Group’s global sales network.

Share of the regions in revenue of the Carl Zeiss Meditec Group

in fiscal year 2024/25

Revenue in the EMEA region increased by +12.5%, from €584.3m to €657.5m. After adjustment for currency effects, this increase amounted to +13.6%. In particular, the core markets of Germany and the UK as well as the Scandinavian markets contributed to revenue growth.

Revenue in the Americas region increased by +8.7% from €532.9m to €579.2m, in particular due to substantial growth in North America and a recovery in the US compared to the weak prior-year period.

The APAC region also recorded a year-on-year increase in revenue of +4.4% (adjusted for currency effects: +4.6%) to €991.0m (prior year: €949.0m). Posting strong growth rates, the markets of India, South East Asia and South Korea made a positive contribution to revenue development. The Chinese market, however, remained stable as expected. Japan showed a downward trend.

Gross profit

Gross profit in fiscal year 2024/25 amounted to €1,175.2m (prior year: €1,088.6m). The gross margin reached 52.8% in the reporting period (prior year: 52.7%).

Operating expenses

Operating expenses amounted to €952.8m in the reporting year (prior year: €912.3m), corresponding to an increase of 4.4%. The increase was primarily due to higher sales and marketing costs and general administrative expenses, mainly in connection with the DORC acquisition in the previous year. Strict cost controls resulted in a slight decrease of operating costs in Research & Development. The proportion of operating expenses to revenue decreased overall from 44.2% in the prior-year period to 42.8% in fiscal year 2024/25.

• Selling and marketing expenses: Selling and marketing expenses increased from €458.2m in the prior year to €495.1m. The share of expenses in relation to the Carl Zeiss Meditec Group’s total revenue was 22.2% as in the prior year (prior year: 22.2%).
• General and administrative expenses: Expenses in this area amounted to €131.4m (prior year: €111.0m). Relative to revenue, the share of general administrative expenses increased slightly to 5.9% (prior year: 5.4%). The increase was mainly due to software projects and the integration of DORC.
• Research and development expenses: The Carl Zeiss Meditec Group continuously invests in Research & Development (R&D) to further develop its product portfolio and ensure further growth. R&D expenses fell slightly to €326.3m in the reporting period (prior year: €343.1m) as a result of measures for reprioritization of research and development projects. At 14.6% (prior year: 16.6%), the R&D ratio fell significantly compared with the prior year, but remained at a high level compared with the industry average.

Development of earnings

EBITA in €m/EBITA margin in %¹

The Carl Zeiss Meditec Group generated earnings before interest, taxes and amortization from purchase price allocations to intangible assets (EBITA) in the amount of €257.7m (prior year: €248.9m), thus recording an increase of +3.6% year-on-year. This corresponds to an EBITA margin of 11.6% (prior year: 12.0%). The previous year’s figure had benefited from a one-off payment in the amount of €18m as settlement of a legal dispute with Topcon Ltd. in the US. Adjusted for special effects, the EBITA margin was 11.6% (prior year: 11.2%).

The EBITA margin in the Ophthalmology strategic business unit developed positively and stood at 10.9% (prior year: 9.6%), slightly above the prior year figure. The full consolidation of DORC and the positive organic growth were contributory factors here. During the reporting period, revenue from equipment continued to recover and there was further volume growth in intraocular lenses, particularly premium lenses, while consumption of refractive procedures increased slightly and procedures in China remained stable.

The EBITA margin of the Microsurgery strategic business unit declined from 20.0% in the prior year to 14.0% in fiscal year 2024/25. Nevertheless, this was once again above the EBITA margin for the Group as a whole. Despite an increase in revenue as a result of increasing deliveries of neurosurgical microscopes, in particular the new KINEVO^® 900 S surgical microscope, negative currency effects due to exchange rate fluctuations, particularly of the euro against the US dollar and Asian currencies, as well as increased amortization and US trade tariffs, had a dampening effect.

Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to €349.7m for the fiscal year under review (prior year: €327.2m). The EBITDA margin amounted to 15.7% (prior year: 15.8%).

The financial result decreased to -€29.4m in fiscal year 2024/25 (prior year: €46.4m). This is mainly due to losses from currency hedging contracts and lower interest income.

The net result of interest income and interest expenses amounted to -€20.1m in the reporting period (prior year: -€6.2m). The decline is mainly due to interest expenses for the shareholder loan from Carl Zeiss AG to refinance the DORC acquisition, which was offset in the prior year by higher interest income from the Group Treasury.

The tax rate for the reporting period was 26.6% (prior year: 25.2%). As a general rule, an average annual tax rate of slightly below 30% is assumed.

Consolidated profit attributable to the shareholders of the parent company amounted to €141.2m for fiscal year 2024/25 (prior year: €178.7m). Non-controlling interests accounted for €1.1m (prior year: €1.4m). In fiscal year 2024/25, basic earnings per share of the parent company amounted to €1.61 (prior year: €2.01).