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Jenoptik reports ‘good start to 2021’

12 May 2021

Latest quarter financials reveal significant pick-up in orders with latest full-year targets confirmed.

“The Jenoptik Group had a good start to 2021. We see clear signs of increasing demand particularly in our photonics divisions. In view of our well-filled order books, improved cost efficiency, and the contributions from the companies we acquired in fiscal year 2020, we are well on track to achieve our annual targets for 2021,” commented Stefan Traeger, President & CEO, regarding the company’s latest financial results, announced Tuesday.

Jenoptik posted a 26.8 percent increase in its order intake, to €268.3M (prior year: €211.7M). All three photonics divisions – Light & Optics, Light & Production, and Light & Safety – posted significantly more orders, while the order intake of Vincorion declined. Order backlog was up 22.0 percent to €561.3M (end of 2020: €460.1M).

In terms of quarterly revenue, organic growth and the contribution made by Trioptics, allowed the Light & Optics division to more than offset the still appreciable impacts of the coronavirus pandemic. In what is traditionally the seasonally weakest quarter, Jenoptik generated revenue of €176.0M, 7.0 percent up on the prior-year figure of €164.4M.

On a regional level, Asia/Pacific was the primary beneficiary of the Trioptics acquisition. Higher revenues were also achieved in Europe, while they declined in the Americas and the Middle East/Africa. The share of revenue generated abroad was broadly unchanged at 74.0 percent (prior year: 74.2 percent).

Profitability improved significantly over the reporting period. Pre-tax earnings (EBITDA) rose by 47.1 percent, from €13.6M to €20.0M. Positive impacts from the structural and portfolio measures put in place in 2020 also contributed to this rise.

Growth potential

At €23.2M, cash flows from operating activities were slightly down on the prior-year figure of €26.4M due to lower positive impacts from changes in working capital and other assets and liabilities. Nevertheless, lower overall expenditure for and proceeds from investing activities led to an increase in the free cash flow from €14.4M to €15.7M.

Hans-Dieter Schumacher, Chief Financial Officer, commented, “We are well prepared for future internal and external growth. In March 2021, we placed on the market debenture bonds with sustainability components worth €400M, of which €130M were disbursed in March, to be followed by €270M in the second half of the year.”

Over the first three months of 2021, the firm’s Light & Optics division benefited from dynamic growth in the semiconductor equipment business, and from rising revenues in Biophotonics and Industrial Solutions.

Trioptics also generated a substantial revenue contribution. Revenue grew by 35.8 percent, from €69.3M to €94.2M. In the first three months of 2021, demand picked up considerably in all areas, resulting in the order intake, worth €132.7M, being 78.5 percent up on the prior-year figure of €74.3M.

The impacts of the coronavirus pandemic from the prior year, in particular a lower order backlog at the beginning of the year, could still be felt in the Light & Production division. Revenue in the first three months came to €36.7M, 5.8 percent down on the prior year (prior year: €38.9M).

While the Laser Processing area posted minor growth, both Industrial Metrology and Automation & Integration reported slightly lower revenue due to project postponements. The restructuring and cost-cutting measures the division put in place in the 2020 fiscal year were already starting to contribute to positive earnings performance in the first quarter.

The Light & Safety division experienced “strong global demand for traffic safety solutions” and a sharp rise in order intake. Business in Light & Safety division is predominantly project-based and therefore subject to volatility. This, together with pandemic-related delays in the supply of electronic components, led to a substantial decline in revenue, from €26.5M in the prior year to €19.2M in the first quarter of 2021.

At Vincorion, profitability improved despite project postponements and ongoing difficult situation in the aviation industry due to the pandemic In the first three months of 2021, Vincorion generated revenue of €25.4M (prior year: €28.1M).

While demand in the Energy & Drive business grew, revenue declined in Power Systems and the business with the aviation industry. Following the cost-cutting measures put in place by Vincorion, EBITDA over the reporting period improved from €1.0M to €3.1M, and the EBITDA margin from 3.4 percent to 12.0 percent.

Outlook for 2021

Jenoptik also confirmed that it expects revenue growth in low double-digit percentage range in 2021, and EBITDA margin of 16.0–17.0 percent is expected. The company stated, “Based on good order intake growth in late 2020 and the first quarter of 2021, a well-filled project pipeline, a promising development in the semiconductor equipment business, and a pick-up of business in the automotive and biophotonics areas, the Executive Board expects further growth in the current fiscal year.

“In addition to the organic growth in the divisions, Trioptics, which is consolidated for the full year for the first time, will also contribute positively. For 2021, Jenoptik, including Trioptics, is expecting revenue growth in the low double-digit percentage range (prior year: €767.2M).

“In view of the continuing uncertainty caused by the Covid-19 pandemic, a more precise forecast is currently not possible. However, it is planned to specify the outlook for full year 2021 during the course of the year.”

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