Jenoptik expects ‘significant and profitable’ growth in 2021

29 Mar 2021

Company says revenue development “marked by Covid-19 pandemic” – but profitability significantly improved.

Jenoptik ended its 2020 reporting year with a strong fourth quarter and was able to significantly increase profitability in 2020, the company announced last week. This “positive development was supported by sustained high demand from the semiconductor equipment industry, the acquisition of Trioptics and a largely stable capital spending by public sector customers.”

See also: Jenoptik successfully places 400 million euro debenture bond (24th March, 2021).

“At the beginning of 2021, Jenoptik stands for growth, innovation, and profitability even more than it did a year ago,” said Dr. Stefan Traeger, President and CEO.

“By focusing on growth areas in photonics, we managed the Covid-19 year 2020 well. We are confident for 2021 thanks to an upturn in demand, improved cost efficiency and external growth. We expect revenue growth in the low double-digit percentage range and want to increase profitability to an EBITDA (pre-tax earnings) margin of 16.0 to 17.0%.”

Headline figures

In the 2020 fiscal year, Jenoptik generated revenue of €767.2M, which, as expected, was clearly down on the prior-year figure of adjusted €837.0M, mainly due to the Covid-19 pandemic and structural issues in the automotive industry. As in the prior year, the fourth quarter was strongest, with €262.2M (prior year: €255.7M).

The two companies acquired during the reporting year, Trioptics and Interob, contributed €47.2M to annual revenue in 2020. On a regional level, revenue in Asia rose by 9% to €105.8M in spite of Covid-19, mainly due to the acquisition of Trioptics.

Europe (outside of Germany) remained relatively stable at €226.1M. By contrast, the Americas (€195.5M), Germany (€214.7M), and the Middle East/Africa (€25.2M) were “significantly affected by the pandemic”. As in the prior year, foreign revenue amounted to around 72%.

Adjusted EBITDA amounted to €130.7M (prior year €138.0M). This resulted in an adjusted EBITDA margin of 17.0% (prior year: 16.5%), or 17.6% excl. PPA.

Outlook for 2021

Based on good order intake growth in the fourth quarter of 2020, Jenoptik stated that “a well-filled project pipeline, and the continued promising development in the semiconductor equipment business, the Executive Board expects further growth in the current fiscal year. In addition to the organic growth in the divisions, Trioptics, which will be consolidated for the full year for the first time, will also contribute to the positive development.”

For 2021, Jenoptik is expecting revenue growth in the low double-digit percentage range, including Trioptics (prior year: €767.M). The Group currently forecasts EBITDA to increase significantly in the current fiscal year (prior year: €111.6M). The EBITDA margin is due to reach between 16.0 and 17.0%.

Due to the continuing uncertainty generated by the Covid-19 lockdown at the beginning of the year and the risk of a third wave of the pandemic, a more precise forecast is not currently possible, the firm concluded, promising a further forecast during the course of the year.