(BRIEF) Jenoptik AG announces impressive currency effects for the 2023 financial year, underlined by a strong increase in sales and profitability. The company’s photonics business, specifically semiconductor devices, generated a significant expansion in biological profits of 8. 7% to €1,066. 0. Million. EBITDA and EBIT also saw really significant improvements, demonstrating greater operating power and economies of scale. Despite a slight decline in order intake, Jenoptik remains optimistic about the long-term outlook, with plans for additional investment in key markets and production expansion. capacity. The proposed dividend accrual reflects the company’s commitment to rewarding shareholders while driving sustainable expansion. Looking ahead to 2024, Jenoptik expects mid-single-digit earnings expansion and points to its strong monetary functionality amid ongoing challenging geopolitical situations and market uncertainties.
(PRESS RELEASE) JENA, March 27, 2024 — /EuropaWire/ — “Jenoptik performed very well in the 2023 monetary year, with expansion driven through its photonics business, specifically in the semiconductor apparatus sector. We have built strong expansion platforms in our core semiconductor and electronics, life sciences and medical technology, and smart mobility markets. We will continue to invest in these areas, including by expanding our production capabilities. Despite a challenging business environment, we look forward to continuing our successful expansion in the current monetary year and remaining on track to achieve our 2025 targets,” says Stefan Traeger, President and CEO of JENOPTIK AG.
Significant increase in profits in Europe: a really significant improvement in profitability
The Jenoptik Photonics group continued to grow during the following fiscal year. Sales increased by 8. 7% to €1,066. 0 million (year-on-year: €980. 7 million). Photonics Solutions Division Avanzadas. La largest profit expansion of the Group occurred in Germany with an increase of 18. 9 percent, followed by Europe (excluding Germany) with 15. 0 percent. In Asia/Pacific, sales growth increased to 4. 2%, while the Americas region was not very successful at the end of last year. A total of 74. 5 percent of sales were generated (year-over-year: 76. 7 percent).
EBITDA grew even faster than revenues, mainly due to economies of scale, and represented a year-on-year increase of 13. 9% to €209. 6 million. The corresponding margin increased to 19. 7 percent (previous year: 18. 8 percent). ).
EBIT also increased significantly, expanding by 24. 0% to €126. 3 million (last year: €101. 9 million). However, it includes impairments for a total amount of €12. 7 million similar to the sale of TELSTAR-HOMMEL in the second quarter of 2023 and HOMMEL ETAMIC as a component of the reallocation of goodwill from non-photonic holding companies. Last year’s impairments amounted to €13. 9 million.
Profit attributable to shareholders amounted to €72. 5 million (previous year: €55. 1 million); The corresponding profits, according to the corresponding percentage, amounted to €1. 27 (previous year: €0. 96).
Intake is below last year’s high: investment is still at its highest
In the last financial year, order intake remained at a physically strong point of €1,092. 2 million. This represents a decrease of 7. 9 percent, attributable to all segments, compared to last year’s peak of €1,185. 4 million. The group’s order book increased to €745. 0 million at the end of 2023 (31/12/2022: €733. 7 million).
Thanks to the strategic expansion of biology in the three main markets (semiconductors and electronics, life sciences and medical generation) as well as smart mobility, Jenoptik is especially expanding its production capacities. Thus, capital expenditure in the 2023 monetary year remained at the maximum, at 110. 4 euros. million (previous year: €106. 0 million) and is mainly due to the structure of a new plant in Dresden for the semiconductor equipment industry and the new location of the medical generation business in Berlin, which came into operation in mid-2023.
Strong loose cash flow; Significant improvement in currency and balance sheet ratios
Free money before interest and taxes increased from €82. 7 million to €127. 3 million, despite a peak in investments. In addition to a very smart and consistent return, loose money benefited from the sale of real estate. The corresponding money conversion rate is over 60. 8 per cent (previous year: 44. 9 per cent). With an equity ratio of 54. 2% as of December 31, 2023 (previous year: 50. 4%), net debt of €423. 1 million (previous year: €479. 0 million). ) and leverage (net debt/EBITDA) of 2. 0 (previous year: 2. 6), Jenoptik has particularly improved its cash and balance sheet ratios.
Proposed dividend of up to €0. 35 consistent with the share
Jenoptik pursues the goal of enabling shareholders to participate in the national functionality of the company and at the same time enable new growth investments. Therefore, the Board of Directors and the Advisory Board will propose to the General Shareholders’ Meeting the payment of a dividend of €0. 35 according to % of percentage (previous year: €0. 30 based on % of percentage). This would bring the overall dividend distributed by 16. 7% to €20. 0 million.
Divisional sales.
The Advanced Photonics Solutions division continued its dynamic growth, with profit increasing by 10. 6% from €742. 6 million to €821. 2 million. This is partly due to strong demand from the semiconductor appliance sector. In the year under review, the department’s EBITDA margin of 21. 9 percent (last year: 22. 7 percent) was influenced, among other things, through the optical measurement and control business. Although demand remained at the smart point, order intake of €826. 5 million did not reach last year’s peak of €906. 8 million.
The Smart Mobility Solutions division recorded a profit expansion of 3. 9% to €118. 8 million (last year: €114. 3 million). Sales increased specifically in the Europe and Asia/Pacific regions. However, thanks to the combination of effects and investments in strategic markets, the EBITDA margin amounted to 12. 9% (last year: 16. 9%). Due to the typical fluctuations in the order sector, the department’s order intake of €113. 6 million decreased compared to last year (€125. 8 million).
At €121. 1 million, the profit of non-photonic portfolio companies increased by 1. 5% compared to last year’s figure of €119. 3 million. The metrology business recorded a significant increase in profits. EBITDA amounted to €17. 6 million (last year: €3. 6 million). million), driven by a significant improvement in effects in the Automation division. Order intake amounted to €147. 1 million, compared to €148. 4 million last year.
Outlook for 2024: A successful and continued expansion is expected
Based on the higher order e-book in fiscal 2023 and the promising developments underway in the core photonics business, especially in the semiconductor apparatus business, the Executive Board is optimistic about a successful and continued expansion in fiscal 2024.
Jenoptik expects earnings expansion of around 5% in 2024 (2023: €1,066. 0 million) and an EBITDA margin of 19. 5-20. 0% (2023: 19. 7%), adding an expected effect of around 0. 5% of earnings from the move. Jenoptik will continue to invest in expanding its production capacity in the financial year 2024, so it expects investments to be slightly higher than last year’s peak of €110. 4 million. Management expects the money conversion rate (free cash flow-to-EBITDA ratio) to be around 50% in 2024 (31. 12. 2023: 60. 8%). The forecast is subject to the condition that geopolitical risks and their effects on price developments, energy sources and supply chains do not worsen further. This forecast does not reflect any replacement in the portfolio.
The presentation of the 2023 monetary statements and the 2023 annual report can be found on Jenoptik’s online page on the Investors / Reports & Presentations pages.
This press release would likely involve statements relating to the long term that are based on existing assumptions and forecasts made through the senior control of the Jenopik Group. A variety of known and unknown risks, uncertainties, and other points would likely cause real, monetary outcomes, and other known and unknown results. , the business progression or functionality differs materially from the data provided herein. These points could arise with geopolitical conflicts, adjustments in replacement rates and interest rates, pandemics, the arrival of competing products, or a replacement in business strategy. The Company undertakes no legal responsibility to update these forward-looking statements in light of long-term developments.
About Jenoptic
Optical technologies are at the heart of our business. Jenoptik is a global photonics organization and has two divisions: Advanced Photonic Solutions and Smart Mobility Solutions. The non-photonics business, specifically for the automotive market, is operated as independent brands within the non-photonics portfolio companies. Our main markets are semiconductors and electronics, life sciences and medical technology, as well as smart mobility. The Jenoptik Group, headquartered in Jena, Germany, employs around 4,600 people worldwide. JENOPTIK AG is indexed on the German Frankfurt Stock Exchange and is listed on MDax and TecDax. In the 2023 financial year, Jenoptik generated sales of €1,066. 0 million.
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SOURCE: Jenoptik
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