Jenoptik posts ‘solid start’ to fiscal year 2023

17 May 2023

Reports revenue growth of 12.2 percent and improved profitability.

Reporting its first quarter (Q1) of fiscal 2023 financial results, diversified photonics group Jenoptik says it has continued on its course of growth, with Q1 revenue up by 12.2 percent to 234.1 million euros (prior year equivalent: 208.5 million euros). This growth was primarily due to sustained strong demand in the Advanced Photonic Solutions division.

Stefan Traeger, President & CEO of Jenoptik, commented, “With double-digit growth in revenue and earnings, Jenoptik delivered a solid start to the fiscal year 2023. Our Advanced Photonic Solutions division, in particular, continues to show strong momentum, as expected.

“Mainly in view of a healthy order backlog, we are optimistic for the remainder of the fiscal year, pursuing the objectives of optimally using our existing capacities while simultaneously expanding them.”

The company posted its strongest revenue growth in Asia/Pacific, with a rise of 31.4 percent, followed by Europe (including Germany) with 12.9 percent. Overall, 74.0 percent of revenue was generated abroad (prior year: 76.4 percent).

Pre-tax earnings (“EBITDA”) again grew at a faster rate than revenue, mainly due to strong performance in the Advanced Photonic Solutions division and the improvement in earnings of the Non-Photonic Portfolio Companies. At 36.6 million euros it was 74.2 percent up on the prior-year figure of 21.0 million euros.

The EBITDA margin was 15.6 percent (prior year: 10.1 percent). With depreciation and amortization virtually unchanged, group EBIT came to 19.9 million euros, compared with 4.7 million euros in the same period in the prior year. At 11.8 million euros, group earnings after tax were also significantly higher than the prior year’s figure of 2.8 million euros, despite higher interest and tax expenses. Earnings per share amounted to 0.21 euros (prior year: 0.05 euros).

Capacities to be increased

As had been forecast, the group’s order intake of 283.0 million euros in the past quarter was down on the high prior-year figure of 310.3 million euros. Due to the still high book-to-bill ratio of 1.21, the order backlog further increased to 776.1 million euros (31/12/2022: 733.7 million euros).

Jenoptik continues to expand its production capacities in response to strong demand, primarily through the construction of a new fab in Dresden, Germany, for the semiconductor equipment industry, a new site for the medical technology business in Berlin, as well as machinery and equipment. Accordingly, at 22.5 million euros, capital expenditure in this quarter was higher than the prior year’s figure of 20.5 million euros.

The free cash flow before interest and taxes increased mainly driven by higher earnings from minus 3.1 million euros in the prior-year quarter to 28.5 million euros.

Division performances

The Advanced Photonic Solutions division saw continued dynamic growth, with revenue increasing by 15.1 percent from 158.0 million euros to 181.8 million euros. Business with the semiconductor equipment industry, in particular, but also in the areas of Industrial Solutions and Biophotonics, saw revenue increases in the first three months of 2023.

The Smart Mobility Solutions division posted revenue growth of 8.4 percent in the first quarter of 2023, to 22.9 million euros (prior year: 21.2 million euros). Due to product mix effects, the EBITDA margin came to minus 0.4 percent, compared with 3.2 percent in the prior year. In the first three months of 2023, the division posted an order intake worth 38.9 million euros, on a par with the prior-year figure.

At 28.3 million euros, revenue of the Non-Photonic Portfolio Companies was close to the prior year’s level of 28.8 million euros. Driven by higher earnings of Prodomax and the elimination of negative impacts from Interob, EBITDA amounted to 3.2 million euros, compared with minus 2.2 million euros in the same period of the prior year.

In view of good business performance in the first quarter, Jenoptik’s Executive confirmed its guidance for the full year 2023. The group therefore continues to expect revenue of between 1,050 and 1,100 million euros and an EBITDA margin of 19.0 to 19.5 percent.