- Double-digit growth in revenue and EBITDA
- Order intake remained at high level
- Guidance for 2023 confirmed: significant revenue increase and margin improvement expected
Revenue growth of 12.2 percent – profitability significantly improved
The photonics group Jenoptik continued on its course of growth in the first quarter of 2023, with revenue up by 12.2 percent to 234.1 million euros (prior year: 208.5 million euros), primarily due to sustained strong demand in the Advanced Photonic Solutions division. Jenoptik posted its strongest revenue growth in Asia/Pacific, with a rise of 31.4 percent, followed by Europe (including Germany) with 12.9 percent. The Americas region almost reached the very strong level of the prior year. Overall, 74.0 percent of revenue was generated abroad (prior year: 76.4 percent).
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).
Order intake remained at high level – capacities to be increased
As expected, the Group’s order intake of 283.0 million euros in the past quarter was down on the very 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 is continuing 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.
Strong free cash flow; very good financial and balance sheet position
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. The corresponding cash conversion rate was 78.0 percent, compared with the negative figure for the prior year. With an equity ratio of 50.6 percent (31/12/2022: 50.4 percent), net debt of 465.5 million euros (31/12/2022: 479.0 million euros), and leverage (net debt in relation to EBITDA) of 2.3 (31/12/2022: 2.6), Jenoptik continues to have very solid financial and balance sheet ratios.
Business performance in the divisions
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 division’s EBITDA margin improved to 20.0 percent, compared with 17.2 percent in the prior year. As expected, the order intake of 212.1 million euros was down on the very high prior-year figure of 238.1 million euros.
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.
Guidance for fiscal year 2023 confirmed
In view of good business performance in the first quarter, the Executive Board of JENOPTIK AG confirms 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. This forecast assumes 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. Potential portfolio changes are not considered in this forecast.
Conference call for journalists, analysts, and investors
The Executive Board of JENOPTIK AG will hold a conference call with analysts, investors, and journalists (in English) on May 11, 2023 at 11:30 am (CEST).
The Quarterly Statement for January through March 2023 and the presentation on the first quarter of 2023 are available on the Jenoptik website in the Investors/Reports and presentations section. Images are available for download from the Jenoptik image database through media.jenoptik.com.