- · Nine-month revenue up by 34.4 percent to 698.0 million euros, organic growth of 11.9 percent
- · EBITDA grew by 40.1 percent, on a comparable basis, to 117.8 million euros
- · Record order backlog of 749.8 million euros – order intake up by around one third year-on-year
- · 2022 guidance specified: Revenue expected in the upper half of the existing range of 930 to 960 million euros; EBITDA margin still anticipated to increase to 18.0 to 18.5 percent
Revenue up 34.4 percent after nine months – organic growth of 11.9 percent
Primarily thanks to the sustained strong performance of the Advanced Photonic Solutions division, Jenoptik continued on its path of profitable growth in the third quarter, posting a significant revenue increase of 34.4 percent to 698.0 million euros (prior year: 519.5 million euros). The companies Jenoptik Medical and the SwissOptic Group, acquired in 2021, generated combined revenue of 117.8 million euros. The Group thus posted organic growth of 11.9 percent at the end of the first three quarters. As in the prior quarters, Jenoptik achieved growth in all regions, with the greatest rise of 47.8 percent seen in Europe (incl. Germany) due to acquisitions. The strategic focus regions of Asia/Pacific and the Americas saw increases of around 20 percent. Overall, 76.3 percent of revenue was generated abroad (prior year: 81.5 percent).
EBITDA margin further up to 16.9 percent
Despite increased costs, Jenoptik further substantially improved its quality of earnings in 2022.
In absolute terms, the continuing operations generated an increase in EBITDA from 109.7 million euros in the prior year to 117.8 million euros at the end of September 2022 (incl. PPA of minus 1.3 million euros, compared with minus 1.8 million euros in the prior-year period). The prior-year earnings had included a positive one-off effect in connection with the 2020 acquisitions worth 25.6 million euros (of which Q3/2021: 7.2 million euros). Without that earnings on a comparable basis would have been 84.1 million euros and the growth rate 40.1 percent. The EBITDA margin from July to September grew from 18.9 percent in the prior year (excl. one-off effect, incl. one-off effect: 22.6 percent) to 19.2 percent, and after nine months from 16.2 percent (excl. one-off effect, incl. one-off effect: 21.1 percent) to 16.9 percent. Taking into account an improved financial result, significantly higher tax payments, and a negative earnings contribution of minus 4.8 million euros (prior year: 3.8 million euros) from VINCORION (discontinued operation), which was sold in summer, Jenoptik achieved group earnings after tax of 41.4 million euros (prior year: 66.2 million euros, incl. one-off effect). Group earnings per share came to 0.71 euros (prior year: 1.12 euros incl. one-off effect, 0.68 euros excl. one-off effect).
Continuing positive demand – order backlog up to 749.8 million euros
The positive trend in demand continued. Both organically and due to acquisitions, the order intake grew by 32.1 percent to 884.5 million euros (prior year: 669.6 million euros). The Advanced Photonic Solutions and Smart Mobility Solutions divisions both saw growth well in the double-digit percentage range. At 749.8 million euros, the order backlog reached a record high, 38.0 percent up on the figure at the end of 2021 (31/12/2021: 543.5 million euros).
Equity ratio grew to 48.9 percent, sharp increase in free cash flow to 28.4 million euros
In view of the current uncertain development of framework conditions, the clear focus on a solid accounting and financing policy is the basis for the Group’s future growth and its “Agenda 2025” targets. The equity ratio further improved to 48.9 percent (31/12/2021: 44.4 percent). Despite a significant increase in outflows from investing activities over the reporting period, the Group’s free cash flow before interests and taxes grew to 26.7 million euros (prior year: 17.7 million euros). The free cash flow in the continuing operations improved even more, from 11.1 million euros to 28.4 million euros.
“Our free cash flow of 28.4 million euros and equity ratio of 48.9 percent are a clear sign of Jenoptik’s strength as well as a solid balance sheet and sound financial position. This will enable us to successfully pursue our growth initiatives, even in these challenging times,” says Chief Financial Officer Hans-Dieter Schumacher.
Development of the divisions
Advanced Photonic Solutions with sustained growth in semiconductor equipment
From January to September 2022, the division’s revenue increased by 51.4 percent to 529.1 million euros (prior year: 349.6 million euros). Business with the semiconductor equipment industry continued to grow in the first nine months of the year, with Biophotonics and Optical Test & Measurement also generating considerably higher revenue. Without the revenue of 117.8 million euros generated by the companies acquired in 2021, organic revenue growth came to 18.0 percent. Excluding the above-mentioned one-off effect, EBITDA grew by 53.6 percent, from 80.4 million euros (incl. one-off effect: 106.0 million euros) to 123.5 million euros. The division’s EBITDA margin came to 23.3 percent, slightly up on the comparable prior-year figure of 23.0 percent (excl. one-off effect, incl. one-off effect: 30.2 percent). As of September 30, 2022, the division continued to enjoy strong customer demand, with the order intake, driven by the semiconductor equipment industry and developments in the Biophotonics as well as Industrial Solutions areas, rising a significant 43.5 percent to 670.5 million euros (prior year: 467.1 million euros). The order backlog increased from 430.2 million euros at year-end 2021 to 588.9 million euros.
Smart Mobility Solutions starts fourth quarter with significantly improved order backlog
Business in the Smart Mobility Solutions division continued to revive in the third quarter. Quarterly revenue increased by 5.4 percent to 31.1 million euros. EBITDA grew by more than a third to 7.1 million euros, and the EBITDA margin increased from 17.9 percent to 22.7 percent. On a cumulative basis for the first nine months, the division generated revenue of 75.8 million euros, a rise of 4.8 percent on the prior-year figure of 72.3 million euros. Due to appreciably higher selling and R+D expenses, nine-month earnings of 8.4 million euros were still slightly down on the prior year (prior year: 8.6 million euros). The EBITDA margin was 11.1 percent (prior year: 11.9 percent). The division’s order intake saw good growth, increasing 18.4 percent from 86.7 million euros to 102.6 million euros by the end of September 2022. The order backlog also grew a significant 53.4 percent to 83.3 million euros (31/12/2021: 54.3 million euros).
Non-Photonic Portfolio Companies: order intake in automotive business up in the third quarter
In the third quarter, the Non-Photonic Portfolio Companies, which are dominated by automotive business, achieved an order intake which was 28.5 percent up on the prior year. This almost offset the weaker performance seen in the first half-year, with the order intake of 109.3 million euros at the end of the first nine months (prior year: 112.6 million euros). The order backlog remained high at 77.4 million euros (31/12/2021: 58.9 million euros). After nine months, weaker development in the automotive industry over the year to date is reflected in a 5.2-percent decline in revenue to 91.1 million euros (prior year: 96.0 million euros), with 2021 still including revenue contributions from the non-optical process metrology business, which was sold in July 2021. EBITDA of minus 2.8 million euros was also down on the prior-year figure of 4.4 million euros, especially as the prior year included one-off income of 3.6 million euros from the sale of the metrology business.
Guidance for fiscal year 2022 specified: Executive Board expects revenue in the upper half of the existing range of 930 to 960 million euros and EBITDA margin still between 18.0 and 18.5 percent
In view of the good performance in the first nine months, the Executive Board specifies the forecast announced in August 2022 and expects revenue in the upper half of the existing range of 930 to 960 million euros (2021: 750.7 million euros). EBITDA is also expected to see significant growth on the prior year, excluding the one-off effect. The EBITDA margin is still due to improve to between 18.0 and 18.5 percent (2021: 16.7 percent excl. one-off effect). This scheduled growth in part presupposes that geopolitical risks do not worsen. These include, for example, the Ukraine conflict – with the sanctions that have been put in place and potential impacts on price developments, energy supplies, and supply chains. Uncertainties also exist with regard to the development of the Covid-19 pandemic, inflation, and continuing supply bottlenecks, even though Jenoptik remains confident of its ability to manage them.
Conference call for analysts and investors
The Executive Board of JENOPTIK AG will hold a conference call with analysts, investors, and journalists (in English) on November 10, 2022 at 11:00 am (CET).
The presentation on the first nine months of 2022, the Quarterly Statement for January through September 2022, and the press release are available on the Jenoptik website in the Investor Relations / Reports and Presentations section.
