- 2022 guidance raised: Revenue target now between 930 and 960 million euros; EBITDA margin expected to increase to 18.0 to 18.5 percent
- Revenue up by 35.8 percent in first half-year, to 447.2 million euros
- EBITDA margin at 20.4 percent in second quarter, 15.6 percent in first half-year
- Order intake up by 36.8 percent, in part due to sustained strong demand from semiconductor equipment sector
Notes: Since the first quarter of 2022, Jenoptik has consolidated its core photonics business in two divisions, Advanced Photonic Solutions and Smart Mobility Solutions. The former Light & Optics and parts of the Light & Production divisions were combined in the new Advanced Photonic Solutions division. Non-photonic activities, particularly for the automotive market, are now operated as independent brands within the Non-Photonic Portfolio Companies. The former Light & Safety division became the Smart Mobility Solutions division. The sale of VINCORION was successfully completed with closing on June 30, 2022. In accordance with IFRS 5, VINCORION is shown as a discontinued operation.
Half-year revenue grows 35.8 percent, organically by 13.7 percent
Jenoptik showed a very positive operating performance also in the second quarter of 2022. Revenue grew by more than a third to 238.7 million euros (prior year: 178.7 million euros). In the first six months, this resulted in a revenue increase of 35.8 percent, to 447.2 million euros (prior year: 329.3 million euros). Jenoptik Medical and the SwissOptic Group, companies acquired in 2021, together contributed 73.3 million euros to revenue. Jenoptik therefore achieved organic growth of 13.7 percent over the first six months. Revenue increased in all regions. The strong growth of 41.7 percent in Europe (incl. Germany) was attributable also to the companies acquired in 2021. Jenoptik also achieved noticeable growth in the strategic focus regions of Asia/Pacific and the Americas. Overall, 75.9 percent of revenue was generated abroad, less than in the prior year (prior year: 80.3 percent).
Marked improvement in quality of earnings
At the end of the first half-year, EBITDA was up to 69.6 million euros (prior year: 66.6 million euros). In the prior year, the EBITDA had included a one-off effect of 18.4 million euros in connection with the 2020 acquisitions; excluding this one-off effect, EBITDA would have come to 48.2 million euros. The EBITDA margin in the first half-year was 15.6 percent (prior year: excl. the above-mentioned one-off effect 14.6 percent, incl. one-off effect 20.2 percent;). During the year, the margin improved significantly from 10.1 percent in the first quarter to 20.4 percent in the second quarter. Taking into account an improved financial result, considerably higher income taxes, and negative earnings after tax of the discontinued operation, Jenoptik achieved group earnings after tax of 23.3 million euros. The figure for the prior year was 37.7 million euros, incl. the above-mentioned one-off effect. Group earnings per share totaled 0.41 euros (prior year 0.65 euros).
At 710.5 million euros, order backlog remained at a very high level
Jenoptik continued to see strong customer demand in the first half-year. Over the reporting period, the order intake grew, both organically and with the contribution of the companies acquired in 2021, by 36.8 percent to 608.6 million euros (prior year: 444.9 million euros). Demand in the Advanced Photonic Solutions division remained particularly strong, but the Smart Mobility Solutions divisions also improved its order intake compared to the prior-year period. The order backlog increased by 30.7 percent to 710.5 million euros (31/12/2021: 543.5 million euros).
Jenoptik with healthy balance sheet and good liquidity position
The clear focus on a solid accounting and financing policy continues to pay off. Jenoptik has a very solid equity ratio of 47.3 percent (31/12/2021: 44.4 percent). Due to a significant increase in outflows from operative investing activities over the reporting period, in particular for capacity expansion, the Group’s free cash flow of 11.0 million euros was down on the prior-year figure of 11.6 million euros. The free cash flow in the continuing operations grew to 12.6 million euros (prior year: 11.7 million euros). This gives the company sufficient financial latitude to finance future organic growth and potential acquisitions in the process of implementing the objectives of its “Agenda 2025”.
“Given the difficult global environment, we’re delighted to report a healthy balance sheet and comfortable liquidity. It means we have sufficient reserves to take advantage of opportunities for further growth, both through investment in our organic growth and in portfolio-boosting acquisitions,” adds Chief Financial Officer Hans-Dieter Schumacher.
Development of the divisions
Advanced Photonic Solutions with very positive operating performance
In the first half-year 2022, the Advanced Photonic Solutions divisions generated revenue of 342.1 million euros, 53.9 percent above the prior-year figure of 222.2 million euros. Business with the semiconductor equipment industry continued to grow strongly, and Biophotonics and Industrial Solutions also generated significantly higher revenues. The companies acquired in 2021 contributed 73.3 million euros to the increase, therefore, the division’s organic revenue growth was 21.1 percent. Over the first six months, EBITDA grew to 78.9 million euros (prior year: 69.7 million euros, incl. one-off effect of 18.4 million euros). At 23.0 percent, the EBITDA margin was down on the prior year’s 31.3 percent (excl. one-off effect: 23.1 percent). In the second quarter, the EBITDA margin came to 27.3 percent, a sharp increase on the 18.0 percent in the first quarter. The continuing high level of demand was reflected in the 55.7-percent increase in the order intake to 457.9 million euros (prior year: 294.2 million euros). The order backlog increased from 430.2 million euros at year-end 2021 to 550.4 million euros.
Smart Mobility Solutions reported sharp increases in order intake and backlog
In the first six months of 2022, the Smart Mobility Solutions division generated revenue of 44.7 million euros, 4.4 percent more than in the prior-year period (prior year: 42.8 million euros). Despite the slight rise in revenue, EBITDA of 1.4 million euros was down on the prior-year figure of 3.3 million euros, in part due to higher expenses for research and development. The EBITDA margin was 3.0 percent, compared with 7.8 percent in the first six months of the prior year. The division’s order intake is subject to typical fluctuations in project business; at 75.4 million euros in the first half-year 2022 it was up on the high prior-year figure of 64.6 million euros, and included larger orders from North America, Europe, and the Middle East/Africa region. The order backlog grew a significant 59.3 percent to 86.5 million euros (31/12/2021: 54.3 million euros).
Non-Photonic Portfolio Companies start second half-year with strong order backlog
The Non-Photonic Portfolio Companies, which are dominated by automotive business, generated revenue of 59.3 million euros in the first half of the year (prior year: 63.1 million euros, incl. the revenue contribution from the non-optical process metrology business sold in mid-2021). EBITDA was still negative at minus 1.8 million euros (prior year: minus 0.5 million euros), while the EBITDA margin fell to minus 3.0 percent (prior year: minus 0.8 percent). In the second quarter of 2022, the Non-Photonic Portfolio Companies achieved an improvement in EBITDA to 1.5 million euros compared to minus 3.3 million euros in the first quarter. The order intake declined from the high prior-year figure of 85.0 million euros to 74.0 million euros. The prior year had included several automation-related orders in North America worth 40 million US dollars. The division, however, still has a strong order backlog of 73.4 million euros (31/12/2021: 58.9 million euros).
Guidance for 2022 fiscal year raised
On the basis of the good performance in the first half of 2022 and the well-filled project pipeline, the Executive Board is raising the full-year guidance for 2022 for the continuing operations. Revenue of between 930 and 960 million euros is now expected (previously revenue growth of at least 20 percent / 2021: 750.7 million euros). EBITDA is also anticipated to increase significantly compared to the prior year, excl. one-off effects (2021: 125.2 million euros), with the EBITDA margin improving accordingly to between 18.0 and 18.5 percent (previously around 18 percent / 2021: 16.7 percent (excl. one-off effects)). The forecast is in line with market expectations.
These growth assumptions, however, presuppose that geopolitical risks do not worsen further. This includes, among other things, the Ukraine conflict – with the sanctions that have been put in place and potential impacts on price developments, energy supplies, and supply chains – does not escalate further. Uncertainties also exist with regard to the development of the Covid-19 pandemic and continuing supply bottlenecks, although Jenoptik is 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 August 10, 2022 at 11:00 am (CEST).
The presentation on the first half-year 2022, the Interim Report for January to June 2022, and the press release are available on the Jenoptik website at www.jenoptik.com.
