- Revenue up by 38.5 percent in the first quarter
- EBITDA up 27.3 percent to 21.0 million euros; EBITDA margin of 10.1 percent
- High demand, particularly from the semiconductor equipment industry; order intake grew substantially by 29.5 percent
- 2022 guidance confirmed: Revenue to grow at least 20 percent, with EBITDA margin of around 18 percent
Note: 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 Light & Production divisions have been merged into the new Advanced Photonic Solutions division, while non-photonic activities, particularly for the automotive market, have been separated as Non-Photonic Portfolio Companies. The former Light & Safety division has become the Smart Mobility Solutions division. Following signing of a contract to sell VINCORION, this division is now shown as a discontinued operation in accordance with IFRS 5.
Revenue of the continuing operations up 38.5 percent; organic growth of 16.6 percent
In the first quarter of 2022, Jenoptik was able to continue its good performance in the fiscal year 2021, and increase revenue by 38.5 percent to 208.5 million euros (prior year: 150.6 million euros). Jenoptik Medical and the SwissOptic Group, the companies acquired in 2021, together contributed 33.0 million euros to revenue; Jenoptik therefore achieved organic growth of 16.6 percent. Revenue increased in all regions. In Europe (including Germany), where the acquisitions had the greatest impact, it grew by 45.5 percent, while revenue in the key strategic regions of Asia/Pacific and the Americas grew by almost 30 percent. Overall, 76.4 percent of revenue was generated abroad, compared with 79.8 percent in the prior year.
Over the reporting quarter, profitability also grew appreciably in spite of higher costs, with EBITDA increasing 27.3 percent, from 16.5 million euros to 21.0 million euros (incl. PPA of minus 0.8 million euros (prior year: minus 1.8 million euros). The EBITDA of the prior-year period included a positive one-off effect of 2.4 million euros in connection with the acquisition of INTEROB. The EBITDA margin came to 10.1 percent (prior year: 9.4 percent excluding the one-off effect mentioned above; 11.0 percent incl. one-off effect). Taking into account an improved financial result, considerably higher tax payments, and lower earnings of the discontinued operation, Jenoptik achieved group earnings after tax of 2.8 million euros (prior year: 3.8 million euros). Group earnings per share came to 0.05 euros (prior year: 0.07 euros).
Sustained dynamic demand in Advanced Photonic Solutions
Driven by a high level of dynamic demand, especially in the semiconductor equipment sector, and the contribution made by the companies acquired in 2021, the order intake of the continuing operations in the first quarter of 2022 grew 29.5 percent to 310.3 million euros (prior year: 239.6 million euros). Of this figure, 42.5 million euros came from Jenoptik Medical and the SwissOptic Group. The order backlog increased by 18.1 percent on the figure at year-end 2021, to 641.9 million euros (31/12/2021: 543.5 million euros).
Balance sheet quality remains solid
With an equity ratio of 44.3 percent (31/12/2021: 44.4 percent), Jenoptik continues to enjoy a healthy financing and balance sheet structure following the end of the first quarter of 2022. This gives the company the financial latitude to finance future organic growth and potential acquisitions, in the process implementing the objectives of its “Agenda 2025”. The group free cash flow fell, in part due to higher capital expenditure, measures to secure the supply chain and payment of the transaction costs for the acquisition in late 2021, to 3.4 million euros (prior year: 15.7 million euros). The free cash flow of the continuing operations was minus 3.1 million euros (prior year: 9.2 million euros).
“We increased our investments in projects for future growth in the first quarter of 2022 and plan to continue doing so in the coming months and quarters. With a consistently good balance sheet quality and the ability to lastingly generate free cash flows, we can do this on a sound financial footing,” says Chief Financial Officer Hans-Dieter Schumacher.
Development of the divisions
Advanced Photonic Solutions with strong growth
In the first quarter of 2022, the Advanced Photonic Solutions division generated revenue of 157.1 million euros, 56.2 percent above the prior-year figure of 100.6 million euros. Business with the semiconductor equipment industry continued to grow strongly in the first three months of 2022. The Biophotonics and Industrial Solutions areas also generated higher revenue than in the comparable period in the prior year. Organically – excluding Jenoptik Medical and SwissOptic Group – the division grew 23.4 percent. EBITDA increased by 28.3 percent, from 22.0 million euros to 28.3 million euros. The prior year included a one-off effect of around 2.4 million euros in connection with the conditional purchase price components arising from the acquisition of INTEROB. At 18.0 percent, the EBITDA margin was down on the prior year’s figure (prior year: 19.5 percent excl. one-off effect; 21.9 percent incl. one-off effect). The order intake grew by 63.0 percent to 232.6 million euros (prior year: 142.7 million euros), while the order backlog increased from 430.2 million euros at year-end 2021 to 503.2 million euros.
Smart Mobility Solutions with improved revenue and earnings
In the first three months of 2022, the Smart Mobility Solutions division posted revenue of 21.2 million euros, an increase of 10.2 percent on the prior-year period (prior year: 19.2 million euros). The rise in revenue was also reflected in the division’s profitability, with EBITDA increasing to 0.7 million euros in the reporting period (prior year: 0.2 million euros), and the EBITDA margin growing noticeably from 0.9 percent to 3.2 percent. The division’s order intake is subject to typical fluctuations in project business, and in the first quarter of 2022 was 38.9 million euros, slightly down on the high prior-year figure of 41.2 million euros. The Smart Mobility Solutions division was awarded two larger orders from North America and the Middle East/Africa in the first three months of 2022; in early 2021, it received several orders for traffic safety technology in North America worth a total of around 20 million euros. By contrast, the division’s order backlog increased by a significant 33.7 percent to 72.6 million euros (31/12/2021: 54.3 million euros).
Non-Photonic Portfolio Companies with strong order backlog from the automotive industry
The predominantly automotive-centric Non-Photonic Portfolio Companies – HOMMEL ETAMIC, Prodomax, and INTEROB – generated 29.7 million euros of revenue from January through March 2022 (prior year: 30.3 million euros). The Automation unit in North America saw strong growth. Over the reporting period, EBITDA came to minus 3.3 million euros (prior year: minus 3.0 million euros), while the EBITDA margin fell to minus 11.0 percent (prior year: minus 9.8 percent). Set against the strong prior-year figure – which included several orders for automation business in North America of over 40 million US dollars – the order intake fell to 37.9 million euros (prior year: 54.3 million euros). The order backlog increased from 58.9 million euros at year-end 2021 to 65.9 million euros.
Discontinued operation: VINCORION
In the 2022 reporting quarter, VINCORION revenue was 23.2 million euros (prior year: 25.4 million euros), with EBITDA of 0.2 million euros (prior year: 3.1 million euros).
Guidance for fiscal year 2022 confirmed: Executive Board continues to expect revenue growth of at least 20 percent and an EBITDA margin of around 18 percent
On the basis of the good order situation, a well-filled project pipeline, and ongoing promising developments in the core photonics businesses, in particular the semiconductor equipment sector, Jenoptik is confirming its forecast of further profitable growth in 2022. In addition to the organic growth in the divisions, Jenoptik Medical and the SwissOptic Group, consolidated for a full fiscal year for the first time, will contribute to the positive development.
For 2022, the Executive Board is expecting revenue in the continuing operations to grow by at least 20 percent (2021: 750.7 million euros). EBITDA is also expected to see significant growth on the prior year, excluding one-off effects (2021: 125.2 million euros). The EBITDA margin is due to be around 18 percent (2021: 16.7 percent (excluding one-off effects)). This scheduled growth presupposes that the Ukraine conflict – with the sanctions that have been put in place and potential impacts on price developments and supplies – 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 journalists, analysts, and investors
The JENOPTIK AG Executive Board will hold a conference call with journalists (in German) at 9:30 am (CEST) on May 11, 2022, and with analysts and investors (in English) at 11:30 am (CEST).