Jenoptik posts double-digit earnings growth in first half-year 2024
- Substantial increase in revenue and EBITDA
- Pickup in demand in Q2; order intake in first half-year still slightly below prior-year level
- 2024 guidance confirmed
“Jenoptik performed very well in an overall challenging market environment. After a slow start, demand improved in the second quarter, and we achieved substantial revenue and earnings growth in the first six months. Given our strong position in core markets and our strong customer base, we expect this demand to continue in the second half of the year. Based on this, we confirm our guidance for 2024,” says Stefan Traeger, President & CEO of JENOPTIK AG.
Revenue growth of 7.1 percent – profitability again significantly improved
The photonics group Jenoptik continued on its course of growth in the first half of 2024, with revenue up by 7.1 percent to 540.8 million euros (prior year: 504.9 million euros), driven by the Advanced Photonic Solutions division and the Non-Photonic Portfolio Companies. In Europe (including Germany), Jenoptik recorded significant growth of 18.9 percent, while revenue in the Americas and Asia/Pacific did not reach the prior year’s levels. Overall, 70.7 percent of revenue was generated abroad (prior year: 75.2 percent).
The Group’s EBITDA again grew faster than revenue, mainly due to the very strong development of the Non-Photonic Portfolio Companies, but also a good performance of the Advanced Photonic Solutions division, and at 101.4 million euros was 10.7 percent up on the prior-year figure of 91.6 million euros. The EBITDA margin was 18.8 percent (prior year: 18.1 percent). EBIT increased by 18.2 percent from 53.9 million euros to 63.7 million euros. At 40.2 million euros, group earnings after tax were also significantly higher than the prior year’s figure of 32.7 million euros; earnings per share amounted to 0.69 euros (prior year: 0.56 euros).
Pickup in demand in second quarter; capacity expansion progressing as planned
As expected, Jenoptik saw a pickup in demand in the second quarter with an increase in order intake of 7.0 percent year-over-year. However, the order intake for the first half-year, amounting to 524.4 million euros, was still slightly below the prior year’s 546.9 million euros. While demand in the semiconductor equipment business continued to be robust, it remained subdued in Optical Test & Measurement, some cyclical applications in life science & medical technology, and at the Non-Photonic Portfolio Companies, the latter due to project delays in the first quarter. The Group’s book-to-bill ratio came to 0.97 (prior year: 1.08). The order backlog of 734.1 million euros remained at a solid level (31/12/2023: 745.0 million euros).
In view of the strong medium-term growth potential in the three future markets of semiconductor & electronics, life science & medical technology, and smart mobility, Jenoptik is further expanding its production capacities as planned, mainly through the construction of a new factory in Dresden for the semiconductor equipment industry but also with capital expenditure in machinery and equipment. Investments in the first half-year amounted to 42.9 million euros, compared to 53.2 million euros in the same period last year.
Financial and balance sheet position still highly robust
The free cash flow before interest and taxes increased substantially to 41.5 million euros in the first half-year, primarily due to higher earnings (prior year: 26.1 million euros). In the first six months of 2024, the cash conversion rate came to 40.9 percent, compared with 28.5 percent in the prior-year period. With an equity ratio of 54.2 percent (31/12/2023: 54.2 percent), net debt of 429.6 million euros (31/12/2023: 423.1 million euros), and leverage (net debt in relation to EBITDA) of 2.0x (31/12/2023: 2.0x), Jenoptik continues to have very solid financial and balance sheet ratios.
Business performance in the divisions
The Advanced Photonic Solutions division continued its positive performance, with revenue increasing by 8.2 percent from 390.0 million euros to 422.0 million euros. In particular, business with the semiconductor equipment industry saw significant growth in the first six months of 2024. The division’s EBITDA margin was 20.3 percent, compared with 21.8 percent in the prior year. Order intake came in at 415.8 million euros, slightly down on the prior year’s 422.4 million euros, impacted by weaker demand in Optical Test & Measurement and some life science & medical technology applications.
In the first half-year, the Smart Mobility Solutions division posted revenue of 52.4 million euros, down from the strong prior year’s 54.7 million euros. EBITDA came to 3.2 million euros (prior year: 4.4 million euros). The division’s order intake, subject to typical project business fluctuations, amounted to 63.3 million euros (prior year: 62.5 million euros).
At 65.3 million euros, revenue of the Non-Photonic Portfolio Companies was a considerable 12.1 percent up (prior year: 58.2 million euros). Thanks to higher earnings contributions from both Prodomax and HOMMEL ETAMIC, the EBITDA margin improved from 11.7 percent in the prior-year period to 18.5 percent in the first six months of 2024. The order intake of 44.2 million euros was particularly impacted by project delays in the first quarter (prior year: 59.7 million euros).
Within the framework of executing the strategic Agenda 2025, the Executive Board has decided to further develop HOMMEL ETAMIC internally. Regarding Prodomax, the aim is still to sell the company within the current strategy period.
Guidance for fiscal year 2024 confirmed
Despite a challenging general market environment, the Executive Board of JENOPTIK AG expects to achieve further profitable growth in the fiscal year 2024, given the continued strong order backlog and the Group’s strong position in its core markets. In the second half of the year, a further improvement in demand is anticipated. The Executive Board therefore continues to expect revenue growth in the mid-single-digit percentage range in 2024 (2023: 1,066.0 million euros) and an EBITDA margin of 19.5 to 20.0 percent (2023: 19.7 percent), including an expected impact of approximately 0.5 percentage points for the relocation to the new semiconductor site in Dresden. Capital expenditure is expected to be slightly above the prior-year level of 110.4 million euros.
This forecast is subject to the assumption that political and economic conditions do not deteriorate, including economic trends, the war in Ukraine, the conflict in the Middle East, European and international regulations, and macroeconomic developments. Potential portfolio changes are not considered in this forecast.
The presentation on the first half-year 2024 and the Interim Report for January to June 2024 are available on the Investors / Reports and presentations pages. Images are available for download in the Jenoptik image database.
This press release may contain statements relating to the future which are based on current assumptions and forecasts made by the corporate management of the Jenoptik Group. A variety of known and unknown risks, uncertainties, and other factors may cause the actual results, the financial situation, the development, or the performance of the company to diverge significantly from the information provided here. Such factors may include geopolitical conflicts, changes in currency exchange rates and interest rates, pandemics, the introduction of competing products, or a change in business strategy. The company does not assume any obligation to update such forward-looking statements in the light of future developments.
About Jenoptik
Optical technologies are the core of our business. Jenoptik is a global photonics group and comprises the two divisions Advanced Photonic Solutions and Smart Mobility Solutions. Non-photonic activities, particularly for the automotive market, are operated as independent brands within the Non-Photonic Portfolio Companies. Our key markets primarily include semiconductor & electronics, life science & medical technology as well as smart mobility. Approximately 4,600 people worldwide work for the Jenoptik Group, which is headquartered in Jena (Germany). JENOPTIK AG is listed on the German Stock Exchange in Frankfurt and traded on the MDax and TecDax. In fiscal year 2023, Jenoptik generated revenue of 1,066.0 million euros.
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