Carl Zeiss Meditec, the medical technology company, reported a significant decline in its financial performance for fiscal year 2023/24. The company's revenue contracted by 1.1 percent to 2.07 billion euros, while operating profit (EBIT) saw a sharp decrease from 348.1 million to 194.5 million euros. This substantial downturn was primarily attributed to weakened demand in the equipment business segment and special effects related to the acquisition of Dutch Ophthalmic Research Center (D.O.R.C.). In response to these challenges, the company has announced a dramatic reduction in its dividend payment from 1.10 euros to 0.60 euros per share. The company's recurring revenue from consumables, implants, and services has grown to represent 47 percent of total sales.
Future Outlook
Management maintains a cautious stance regarding the upcoming fiscal year, projecting only moderate revenue growth amid challenging global economic conditions. The company does not anticipate a rapid recovery in the investment climate. Looking ahead, Carl Zeiss Meditec aims to gradually increase its EBITA margin to between 16 and 20 percent, supported by the growing proportion of recurring revenues. The full-year consolidation of D.O.R.C. is expected to contribute positively to overall performance, with operational results (EBITA) forecasted to remain stable or show slight improvement.
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