News › Jenoptik • remains on growth track
- Revenue and EBITDA increase significantly
- Order intake remains at good level
- Margin guidance for 2023 raised
“In an increasingly challenging economic climate, Jenoptik has continued to develop very well, with double-digit growth in both revenue and earnings. The robust increase in revenue over the first nine months was driven by all segments. Given our substantial order backlog, interalia, we are confident for the remainder of the year. We reiterate our revenue target for the current year, and raise the guidance for the EBITDA margin to around 19.5 percent,” says Stefan Traeger, President & CEO of JENOPTIK AG.
Double-digit growth in revenue and earnings
The Jenoptik photonics group continued on its course of growth in the first nine months of 2023, with revenue growing by 10.1 percent to 768.7 million euros (prior year: 698.0 million euros). All segments contributed to this growth, in particular the Advanced Photonic Solutions division. Jenoptik posted its strongest revenue growth in Europe (incl. Germany), with a rise of 15.1 percent, followed by Asia/Pacific with 12.3 percent.
The Group’s EBITDA again grew at a faster rate than revenue, mainly due to good performance of the Advanced Photonic Solutions division and the improvement in earnings of the Non-Photonic Portfolio Companies, and at 143.0 million euros was 21.4 percent up on the prior-year figure of 117.8 million euros. The corresponding margin improved to 18.6 percent (prior year: 16.9 percent). EBIT came to 88.1 million euros, compared with 68.4 million euros in the prior-year period. Despite higher interest and tax expenses, group earnings after tax grew by 30.8 percent to 54.2 million euros. Earnings per share improved to 0.94 euros (prior year: 0.71 euros).
Order intake remains at good level
The Group’s order intake for the first three quarters amounted to 835.3 million euros, slightly below the prior year’s high level of 884.5 million euros. As a result of the continuing high book-to-bill ratio of 1.09, the order backlog increased considerably to 794.9 million euros compared with the end of 2022 (31/12/2022: 733.7 million euros). Jenoptik is continuing to expand its production capacities in response to strong demand, primarily through the construction of a new fab in Dresden for the semiconductor equipment industry and a new site for the medical technology business in Berlin, which opened in June. At 77.9 million euros, capital expenditure in the first nine months was accordingly higher than the prior year’s figure of 65.9 million euros.
Financial and balance sheet position remains strong
The free cash flow before interest and taxes increased from 28.4 million euros in the prior year to 56.9 million euros, mainly as a result of higher earnings. The cash conversion rate grew to 39.8 percent (prior year: 24.1 percent). On the reporting date, the equity ratio was 52.3 percent (31/12/2022: 50.4 percent), and the net debt was 489.3 million euros (31/12/2022: 479.0 million euros). Leverage, i.e. net debt in relation to EBITDA, came to 2.3 (31/12/2022: 2.6). Jenoptik thus continues to have very solid financial and balance sheet ratios.
Business development of the divisions
The Advanced Photonic Solutions division continued to perform very well, with revenue increasing by 11.1 percent from 534.8 million euros to 594.3 million euros. Business with the semiconductor equipment industry, in particular, but also in the Industrial Solutions area, saw significant revenue increases. The division’s EBITDA margin came to 22.1 percent, slightly down on the prior-year figure of 22.7 percent. The order intake of 622.1 million euros did not reach the very high prior-year figure of 683.2 million euros.
In the first nine months, the Smart Mobility Solutions division posted significant revenue growth of 9.1 percent, to 82.7 million euros (prior year: 75.8 million euros). The revenue increase was particularly strong in Asia/Pacific and Europe. However, due to mix effects and investments in strategic markets, the EBITDA margin came to 8.1 percent (prior year: 11.1 percent). Due to typical fluctuations in the project business, the division’s order intake of 87.7 million euros in the first three quarters was down on the prior-year figure of 102.6 million euros.
At 89.3 million euros, revenue of the Non-Photonic Portfolio Companies was 4.5 percent up on the prior-year figure of 85.4 million euros. EBITDA was 12.2 million euros (prior year: minus 1.1 million euros), driven by improved earnings of all areas as well as the elimination of negative impacts from projects in the automation business. The order intake significantly increased to 122.5 million euros (prior year: 96.6 million euros), mainly due to a major order.
Margin guidance for fiscal year 2023 raised
Given the strong business performance in the first nine months, the Executive Board of JENOPTIK AG confirms the revenue forecast of 1,050 million euros to 1,100 million euros for the full year 2023, and raises the BITDA margin guidance to around 19.5 percent, compared to the previous guidance of 19.0 to 19.5 percent. This forecast presupposes that geopolitical risks do not worsen. These include, for example, the Ukraine conflict – with the sanctions that have been put in place and potential impacts on price developments, energy supplies, and supply chains as well as the conflict in the Middle East. Potential portfolio changes are not considered in this forecast.
Conference call for journalists, analysts, and investors
The Executive Board of JENOPTIK AG will hold a conference call with analysts, investors, and journalists (in English) on November 9, 2023 at 11:00 am (CET).
The presentation on the first nine months of 2023, the Quarterly Statement for January through September 2023, and the press release are available on the Jenoptik website.