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Jenoptik eyes 2024 growth as Dresden facility nears completion

27 Mar 2024

Jena-headquartered optics and photonics giant says it is on track to hit 2025 sales target of €1.2BN.

Jenoptik’s executive team is expecting the firm’s sales to rise by around 5 per cent this year, keeping it on track to hit the 2025 target of €1.2 billion.

The highly diversified maker of optics and photonics products, headquartered in Jena, Germany, but with a global footprint, has just confirmed that sales in 2023 rose nearly 9 per cent, reaching nearly €1.07 billion.

At this stage, growth in 2024 is expected to be slightly more muted, rising at a “mid-single-digit” rate. That implies a total approaching €1.12 billion - and means that a similar increase next year would enable Jenoptik to hit the €1.2 billion figure.

Dresden expansion on track
Reflecting on those figures, CEO Stefan Traeger said: “Jenoptik performed very well in the fiscal year 2023, with growth driven by its photonics business, especially in the semiconductor equipment sector.

“We have created strong growth platforms in our core markets of semiconductor and electronics, life science and medical technology, and smart mobility. We will continue to invest in these areas, among others, by expanding our production capacities.

“Despite an increasingly challenging business environment, we expect to continue growing profitably in the current fiscal year and remain on track to achieve our goals for 2025.”

Quoted in the firm’s annual report, he added: “Overall, we have achieved what we set out to do and are continuing to make progress towards our goal of becoming a world-keading photonics group.”

By 2025 the sales figures should be augmented by shipments from the firm’s major new production facility in Dresden, which is said to be nearing completion. Following an investment of close to €100 million, construction at the Dresden site is expected to be finished by the end of June, with production of micro-optics and sensors slated to begin in early 2025.

Dividend payout
Jenoptik’s annual report shows that last year’s growth was once again driven primarily by the company’s “advanced photonic solutions” business unit, whose sales jumped by 11 per cent, to reach €821 million.

And although order intake is down from the prior year’s record high, backlog remains strong, with the semiconductor industry continuing to provide the greatest impetus.

“In particular business with the semiconductor equipment industry grew in 2023,” reported Jenoptik. “With the exception of optical test and measurement, all areas contributed to revenue growth."

Thanks to the continued high order backlog and ongoing strength in the core photonics businesses, especially in the semiconductor equipment sector, Jenoptik’s executive board says it is optimistic that it will achieve further profitable growth this year.

Profit margins are expected to remain steady as revenues rise, despite the costs of relocating parts of business to the new Dresden location.

Jenoptik’s shareholders are set to benefit with a proposed increase in dividend from €0.30 to €0.35 per share, meaning a total payout worth €20 million.

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