News › Jen­op­tik posts strong results in second quarter

  • 2022 gui­dance rai­sed: Reve­nue tar­get now bet­ween 930 and 960 mil­lion euros; EBITDA mar­gin expec­ted to increase to 18.0 to 18.5 percent
  • Reve­nue up by 35.8 per­cent in first half-year, to 447.2 mil­lion euros
  • EBITDA mar­gin at 20.4 per­cent in second quar­ter, 15.6 per­cent in first half-year
  • Order intake up by 36.8 per­cent, in part due to sus­tained strong demand from semi­con­duc­tor equip­ment sector

“Jen­op­tik con­ti­nues to per­form very well in an over­all chal­len­ging envi­ron­ment. In the second quar­ter, we pos­ted not only app­re­cia­ble impro­ve­ments in reve­nue and pro­fi­ta­bi­lity, but also a very strong order intake and back­log. This gives us con­fi­dence for the second half of the year, and we’ve the­r­e­fore rai­sed our full-year tar­gets for 2022 to a reve­nue range of bet­ween 930 and 960 mil­lion euros and an EBITDA mar­gin of 18.0 to 18.5 per­cent,” says Ste­fan Trae­ger, Pre­si­dent & CEO of JENOPTIK AG.

Notes: Since the first quar­ter of 2022, Jen­op­tik has con­so­li­da­ted its core pho­to­nics busi­ness in two divi­si­ons, Advan­ced Pho­to­nic Solu­ti­ons and Smart Mobi­lity Solu­ti­ons. The for­mer Light & Optics and parts of the Light & Pro­duc­tion divi­si­ons were com­bi­ned in the new Advan­ced Pho­to­nic Solu­ti­ons divi­sion. Non-pho­to­nic acti­vi­ties, par­ti­cu­larly for the auto­mo­tive mar­ket, are now ope­ra­ted as inde­pen­dent brands within the Non-Pho­to­nic Port­fo­lio Com­pa­nies. The for­mer Light & Safety divi­sion became the Smart Mobi­lity Solu­ti­ons divi­sion. The sale of VINCORION was suc­cessfully com­ple­ted with clo­sing on June 30, 2022. In accordance with IFRS 5, VINCORION is shown as a dis­con­tin­ued operation.

Half-year reve­nue grows 35.8 per­cent, orga­ni­cally by 13.7 percent
Jen­op­tik showed a very posi­tive ope­ra­ting per­for­mance also in the second quar­ter of 2022. Reve­nue grew by more than a third to 238.7 mil­lion euros (prior year: 178.7 mil­lion euros). In the first six months, this resul­ted in a reve­nue increase of 35.8 per­cent, to 447.2 mil­lion euros (prior year: 329.3 mil­lion euros). Jen­op­tik Medi­cal and the Swiss­Op­tic Group, com­pa­nies acqui­red in 2021, tog­e­ther con­tri­bu­ted 73.3 mil­lion euros to reve­nue. Jen­op­tik the­r­e­fore achie­ved orga­nic growth of 13.7 per­cent over the first six months. Reve­nue increased in all regi­ons. The strong growth of 41.7 per­cent in Europe (incl. Ger­many) was attri­bu­ta­ble also to the com­pa­nies acqui­red in 2021. Jen­op­tik also achie­ved noti­ceable growth in the stra­te­gic focus regi­ons of Asia/Pacific and the Ame­ri­cas. Over­all, 75.9 per­cent of reve­nue was gene­ra­ted abroad, less than in the prior year (prior year: 80.3 percent).

Marked impro­ve­ment in qua­lity of earnings
At the end of the first half-year, EBITDA was up to 69.6 mil­lion euros (prior year: 66.6 mil­lion euros). In the prior year, the EBITDA had included a one-off effect of 18.4 mil­lion euros in con­nec­tion with the 2020 acqui­si­ti­ons; exclu­ding this one-off effect, EBITDA would have come to 48.2 mil­lion euros. The EBITDA mar­gin in the first half-year was 15.6 per­cent (prior year: excl. the above-men­tio­ned one-off effect 14.6 per­cent, incl. one-off effect 20.2 per­cent;). During the year, the mar­gin impro­ved signi­fi­cantly from 10.1 per­cent in the first quar­ter to 20.4 per­cent in the second quar­ter. Taking into account an impro­ved finan­cial result, con­sider­a­bly hig­her income taxes, and nega­tive ear­nings after tax of the dis­con­tin­ued ope­ra­tion, Jen­op­tik achie­ved group ear­nings after tax of 23.3 mil­lion euros. The figure for the prior year was 37.7 mil­lion euros, incl. the above-men­tio­ned one-off effect. Group ear­nings per share tota­led 0.41 euros (prior year 0.65 euros).

At 710.5 mil­lion euros, order back­log remained at a very high level
Jen­op­tik con­tin­ued to see strong cus­to­mer demand in the first half-year. Over the report­ing period, the order intake grew, both orga­ni­cally and with the con­tri­bu­tion of the com­pa­nies acqui­red in 2021, by 36.8 per­cent to 608.6 mil­lion euros (prior year: 444.9 mil­lion euros). Demand in the Advan­ced Pho­to­nic Solu­ti­ons divi­sion remained par­ti­cu­larly strong, but the Smart Mobi­lity Solu­ti­ons divi­si­ons also impro­ved its order intake com­pared to the prior-year period. The order back­log increased by 30.7 per­cent to 710.5 mil­lion euros (31/12/2021: 543.5 mil­lion euros).

Jen­op­tik with healthy balance sheet and good liqui­dity position
The clear focus on a solid accoun­ting and finan­cing policy con­ti­nues to pay off. Jen­op­tik has a very solid equity ratio of 47.3 per­cent (31/12/2021: 44.4 per­cent). Due to a signi­fi­cant increase in out­flows from ope­ra­tive inves­t­ing acti­vi­ties over the report­ing period, in par­ti­cu­lar for capa­city expan­sion, the Group’s free cash flow of 11.0 mil­lion euros was down on the prior-year figure of 11.6 mil­lion euros. The free cash flow in the con­ti­nuing ope­ra­ti­ons grew to 12.6 mil­lion euros (prior year: 11.7 mil­lion euros). This gives the com­pany suf­fi­ci­ent finan­cial lati­tude to finance future orga­nic growth and poten­tial acqui­si­ti­ons in the pro­cess of imple­men­ting the objec­ti­ves of its “Agenda 2025”.

“Given the dif­fi­cult glo­bal envi­ron­ment, we’re deligh­ted to report a healthy balance sheet and com­for­ta­ble liqui­dity. It means we have suf­fi­ci­ent reser­ves to take advan­tage of oppor­tu­ni­ties for fur­ther growth, both through invest­ment in our orga­nic growth and in port­fo­lio-boos­ting acqui­si­ti­ons,” adds Chief Finan­cial Offi­cer Hans-Die­ter Schumacher.

Deve­lo­p­ment of the divisions

Advan­ced Pho­to­nic Solu­ti­ons with very posi­tive ope­ra­ting performance
In the first half-year 2022, the Advan­ced Pho­to­nic Solu­ti­ons divi­si­ons gene­ra­ted reve­nue of 342.1 mil­lion euros, 53.9 per­cent above the prior-year figure of 222.2 mil­lion euros. Busi­ness with the semi­con­duc­tor equip­ment indus­try con­tin­ued to grow stron­gly, and Bio­pho­to­nics and Indus­trial Solu­ti­ons also gene­ra­ted signi­fi­cantly hig­her reve­nues. The com­pa­nies acqui­red in 2021 con­tri­bu­ted 73.3 mil­lion euros to the increase, the­r­e­fore, the division’s orga­nic reve­nue growth was 21.1 per­cent. Over the first six months, EBITDA grew to 78.9 mil­lion euros (prior year: 69.7 mil­lion euros, incl. one-off effect of 18.4 mil­lion euros). At 23.0 per­cent, the EBITDA mar­gin was down on the prior year’s 31.3 per­cent (excl. one-off effect: 23.1 per­cent). In the second quar­ter, the EBITDA mar­gin came to 27.3 per­cent, a sharp increase on the 18.0 per­cent in the first quar­ter. The con­ti­nuing high level of demand was reflec­ted in the 55.7‑percent increase in the order intake to 457.9 mil­lion euros (prior year: 294.2 mil­lion euros). The order back­log increased from 430.2 mil­lion euros at year-end 2021 to 550.4 mil­lion euros.

Smart Mobi­lity Solu­ti­ons repor­ted sharp increa­ses in order intake and backlog
In the first six months of 2022, the Smart Mobi­lity Solu­ti­ons divi­sion gene­ra­ted reve­nue of 44.7 mil­lion euros, 4.4 per­cent more than in the prior-year period (prior year: 42.8 mil­lion euros). Despite the slight rise in reve­nue, EBITDA of 1.4 mil­lion euros was down on the prior-year figure of 3.3 mil­lion euros, in part due to hig­her expen­ses for rese­arch and deve­lo­p­ment. The EBITDA mar­gin was 3.0 per­cent, com­pared with 7.8 per­cent in the first six months of the prior year. The division’s order intake is sub­ject to typi­cal fluc­tua­tions in pro­ject busi­ness; at 75.4 mil­lion euros in the first half-year 2022 it was up on the high prior-year figure of 64.6 mil­lion euros, and included lar­ger orders from North Ame­rica, Europe, and the Middle East/Africa region. The order back­log grew a signi­fi­cant 59.3 per­cent to 86.5 mil­lion euros (31/12/2021: 54.3 mil­lion euros).

Non-Pho­to­nic Port­fo­lio Com­pa­nies start second half-year with strong order backlog
The Non-Pho­to­nic Port­fo­lio Com­pa­nies, which are domi­na­ted by auto­mo­tive busi­ness, gene­ra­ted reve­nue of 59.3 mil­lion euros in the first half of the year (prior year: 63.1 mil­lion euros, incl. the reve­nue con­tri­bu­tion from the non-opti­cal pro­cess metro­logy busi­ness sold in mid-2021). EBITDA was still nega­tive at minus 1.8 mil­lion euros (prior year: minus 0.5 mil­lion euros), while the EBITDA mar­gin fell to minus 3.0 per­cent (prior year: minus 0.8 per­cent). In the second quar­ter of 2022, the Non-Pho­to­nic Port­fo­lio Com­pa­nies achie­ved an impro­ve­ment in EBITDA to 1.5 mil­lion euros com­pared to minus 3.3 mil­lion euros in the first quar­ter. The order intake decli­ned from the high prior-year figure of 85.0 mil­lion euros to 74.0 mil­lion euros. The prior year had included seve­ral auto­ma­tion-rela­ted orders in North Ame­rica worth 40 mil­lion US dol­lars. The divi­sion, howe­ver, still has a strong order back­log of 73.4 mil­lion euros (31/12/2021: 58.9 mil­lion euros).

Gui­dance for 2022 fis­cal year raised
On the basis of the good per­for­mance in the first half of 2022 and the well-fil­led pro­ject pipe­line, the Exe­cu­tive Board is rai­sing the full-year gui­dance for 2022 for the con­ti­nuing ope­ra­ti­ons. Reve­nue of bet­ween 930 and 960 mil­lion euros is now expec­ted (pre­viously reve­nue growth of at least 20 per­cent / 2021: 750.7 mil­lion euros). EBITDA is also anti­ci­pa­ted to increase signi­fi­cantly com­pared to the prior year, excl. one-off effects (2021: 125.2 mil­lion euros), with the EBITDA mar­gin impro­ving accor­din­gly to bet­ween 18.0 and 18.5 per­cent (pre­viously around 18 per­cent / 2021: 16.7 per­cent (excl. one-off effects)). The fore­cast is in line with mar­ket expectations.

These growth assump­ti­ons, howe­ver, pre­sup­pose that geo­po­li­ti­cal risks do not wor­sen fur­ther. This includes, among other things, the Ukraine con­flict – with the sanc­tions that have been put in place and poten­tial impacts on price deve­lo­p­ments, energy sup­plies, and sup­ply chains – does not esca­late fur­ther. Uncer­tain­ties also exist with regard to the deve­lo­p­ment of the Covid-19 pan­de­mic and con­ti­nuing sup­ply bot­t­len­ecks, alt­hough Jen­op­tik is con­fi­dent of its ability to manage them.

Con­fe­rence call for ana­lysts and investors:
The Exe­cu­tive Board of JENOPTIK AG will hold a con­fe­rence call with ana­lysts, inves­tors and jour­na­lists (in Eng­lish) on August 10, 2022 at 11:00 am (CEST).

The pre­sen­ta­tion on the first half-year 2022, the Inte­rim Report for Janu­ary to June 2022, and the press release are available on the Jen­op­tik web­site.